IoT in Utilities Market

IoT in Utilities Market Size & Growth (2022 - 2027)

The global Internet of Things (IoT) in the utility market is expected to grow from $29.6 billion in 2019 to $55.8 billion by 2025, at a CAGR of 13.5% during the forecast period.

IoT is considered the next industrial revolution, i.e., Industry 4.0. The concept of IoT is to develop advanced solutions and services, improve productivity and efficiency, solve critical problems and improve decisions in real-time. IoT is a new trend in all businesses and the utility sector is funding in this technology to modify operations and improve the overall experience of its customers. In the current scenario, the public service industry is mainly governed by policy and the need to comply with legislative regulations. It is also motivated by concerns about cost savings. Thus, the IoT helps the utility industry to overcome challenges and implement advanced services and solutions. In addition, connected IoT utilities monitor compliance with real-time compliance and network power regulations to maximize monitoring and remote control to enable preventive maintenance. Also, the IoT accelerates the digital transformation of benefits.

IoT solutions have led to the convergence of different business processes which have exponentially pushed the public services sector into the growth phase. The demand for operational control technology is the highest category of software sales. The analytics solution is expected to grow faster due to the growing trends of mobile and smart cloud devices, as well as factors such as predictive analytics, end-to-end automation and conductive analytics platforms.

Market growth and trends:

The utility industry is associated to the Internet of Things (IoT) as smart grids are considered as a prominent application of IoT technology. This industry is expected to grow in the coming years with exponential growth in new IoT applications. The solutions segment maintains the highest IoT in the size of the utility market over the foreseen period.

IoT technology solutions help utilities integrate various business processes that push the utility industry into its growth phase exponentially. The integration of technologies into existing operations should increase the overall operational efficiency of public services with less investment in infrastructure. IoT technology is deployed across the full value of public services, such as production, transmission, distribution, asset management, workforce management, security, energy management, consumer side analysis, infrastructure management, and remote monitoring and surveillance.

Power grid management to maintain the largest market size during the forecast period

An electrical network is primarily responsible for the efficient management and supply of electricity to its end users. Applying IT intelligence and network capabilities to a traditional network can result in an intelligent, automated, and advanced network. Smart sensors, receivers, smart meters, and power boxes are a part of IoT network that can support mutual communication. In a traditional electrical grid, utility providers have been informed of power failure through customers. The Advanced Measurement Infrastructure (AMI) is rising due to the presence of Internet Protocol (IP) addresses and two-way communication between all components.

Market Drivers and Restraints:

IoT in the utility market is primarily driven by the growing adoption of smart meters as they provide real-time information on transmission and power consumption. It also stimulates local and micro-energy production, such as wind turbines and solar panels, creating a platform for new sources of income and improving the efficiency of production and distribution. The decentralization of the energy sector is a key IoT factor in the public services market.

Some limiting factors that could hinder IoT in the utility market are a lack of technically skilled labor and a lack of standards. The increase in incidents of cybersecurity breaches in the industry is expected to limit the global IoT in the utility market.

IOT IN UTILITIES MARKET REPORT COVERAGE:

IoT in Utilities Market Segmentation:

The global utilities IoT market can be segmented and sub-segmented based on the following categories:

IoT in Utilities Market - By Components:

• Hardware
• Software
• Services

The hardware segment can be divided into sensors, RFID, connected devices and others. The software segment can be branched into the local and cloud. The service segment can be subdivided into managed and professional services.

IoT in Utilities Market - By Platforms:

• Network Management
• Device Management
• Application Management

IoT in Utilities Market - By Applications:

• Electricity Grid Management
• Gas Management
• Waste Management

Regional Analysis:

IoT in the utility market in emerging economies, particularly in Europe and Asia Pacific, is expected to expand at a considerable rate of growth during the forecast period. The Asia Pacific regional market is developing because of the rising need for smart metering solutions and efforts to promote smart buildings and smart cities. Also, the IoT market for public services in the APAC region is expected to grow due to the presence of a significant number of gas and electricity generation facilities in the region.

North America is likely to rule the global IoT in the utilities market over the conjecture period due to the rising implementation of connected smart devices and technological progressions in the area.

The United States will contribute a substantial share in North America IoT in the utility market owing to consumer awareness related to the benefits of this technology to manage resources. Moreover, the presence of leading gas production facilities in the nation supports the rising call for such technological solutions. The presence of several power generation facilities followed by gas generation facilities in the Asia-Pacific region offers significant growth opportunities for the market. The increasing digitization trend, coupled with the increase in industry use cases, is expected to fuel demand in the future. Increased investment in advanced technologies by utilities contributes to growth.

Key players in the market

The main providers in the public services IoT market include:

1. IBM (United States)
2. Oracle (United States)
3. Verizon (United States)
4. Cisco (United States)
5. Vodafone (United Kingdom)
6. Telit (United Kingdom)
7. Landis Gyr (Switzerland)
8. Itron (United States)
9. Schneider Electric (France)
10. Huawei (China)\
11. Trimble (United States)
12. Aclara (United States)
13. Trilliant (United States)
14. Energyworx (Netherlands)
15. HCL (India)
16. Altair (United States)
17. Actility (France)
18. Waviot (Russia)
19. Rayven (Australia)
20. Saviant Consulting (India)
21. ABB (Switzerland)
22. Siemens (Germany)
23. Honeywell (United States)
24. GE (United States) and Others

Recent Developments

• In November 2019, Schneider Electric declared the introduction of the EcoStruxure distributed energy resource management system (DERMS), which will be crucial in automating the peak load management, discharge, voltage optimization and control of the value-added distributor (VAR).
• Itron signed a deal with a Brazilian utility company in December 2019 to modernize the water distribution system in the Consolidated Service District. As per this contract, the latter company will install Itron's intelligent water communication modules on its 1,400 miles of water pipes.
• In October 2019, Light, an electricity service provider in Brazil, collaborated with Landis Gyr for the most substantial smart grid project in South America.