Smart Utilities Market Report 2026

The smart utilities market size has grown rapidly in recent years. It will grow from $52.86 billion in 2025 to $59.81 billion in 2026 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to digitization of utility operations, expansion of connected utility assets, early adoption of scada-based monitoring systems, increasing investments in grid automation, rising demand for operational efficiency.

The smart utilities market size is expected to see rapid growth in the next few years. It will grow to $97.77 billion in 2030 at a compound annual growth rate (CAGR) of 13.1%. The growth in the forecast period can be attributed to increasing investments in smart utility modernization, rising integration of ai-driven analytics, expansion of connected water and gas networks, growing adoption of cloud-based utility platforms, increasing focus on sustainability-driven utility optimization. Major trends in the forecast period include increasing adoption of integrated utility management platforms, rising deployment of iot-enabled utility sensors, growing use of predictive analytics for asset management, expansion of cloud-based utility operations, enhanced focus on loss prevention and efficiency.

The increasing adoption of electric vehicles is expected to drive the growth of the smart utilities market in the coming years. Electric vehicles (EVs) are powered by one or more electric motors using energy stored in rechargeable batteries or other energy storage devices. The rise in EV usage is fueled by convenience and environmental benefits, along with the growing availability of models, decreasing costs, and supportive government policies aimed at decarbonization. Smart utilities support EV integration by optimizing charging infrastructure, managing grid demand, and enabling efficient energy distribution. For example, in January 2025, according to Cox Automotive, a US-based system software company, electric vehicle sales in 2023 were revised upward to 1,212,758 units, a 49% increase compared to 2022, and continued to grow in 2024, rising 7.3% to 1,301,411 units. Therefore, the growing adoption of electric vehicles is driving the expansion of the smart utilities market.

Leading companies in the smart utilities sector are concentrating on developing advanced solutions such as advanced meter infrastructure (AMI) systems to modernize urban water management and gain a competitive advantage. AMI solutions are comprehensive systems that automate real-time data collection and management for efficient utility monitoring and control. For instance, ST Engineering introduced BrightCity in June 2024, an AMI solution designed to assist utility providers and consumers in managing water consumption effectively. BrightCity addresses challenges posed by aging water infrastructure and disparate meter systems by converting traditional meters into smart meters using its innovative Meter Interface Unit (MIU). This MIU, compatible with most water meters, enables wireless data collection and integrates with a central Meter Data Management System (MDMS) for real-time insights, predictive leakage detection, and customer usage monitoring through a dedicated portal.

In February 2023, Smart Energy Water (SEW), a US-based digital customer and workforce solutions provider, acquired 3Insys. The acquisition aimed to enhance SEW's offerings and expand its market presence in digital solutions for the energy and utility sectors. 3Insys, known for its Agile Integration Platform as a Service (iPaaS) tailored to energy and utility industries, brought valuable expertise and technology to SEW through this acquisition.

Major companies operating in the smart utilities market are Siemens AG, General Electric Company, International Business Machines Corporation, Cisco Systems Inc, Oracle Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc, ABB Ltd, SAP SE, Eaton Corporation plc, Atos SE, Wipro Limited, Tech Mahindra Limited, Hubbell Incorporated, Itron Inc, Enel X S.r.l., Landis+Gyr Group AG, S&C Electric Company, Kamstrup A/S, Tantalus Systems Corporation, Trilliant Holdings Inc.

North America was the largest region in the smart utilities market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart utilities market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart utilities market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart utilities market consists of revenues earned by entities by providing services such as energy auditing services, utility billing services, grid management services, and remote monitoring services. The market value includes the value of related goods sold by the service provider or included within the service offering. The smart utilities market also includes sales of products including smart meters, smart grids, smart sensors, and smart thermostats. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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