Internet of Things in Utilities Market - Global Forecast 2025-2032

Senior executives in the utilities sector are leveraging the Internet of Things (IoT) to modernize infrastructure, strengthen operational resilience, and successfully transition toward digitally enabled resource management. As digital transformation accelerates, tailored IoT strategies equip utility leaders to respond to changing energy demands and evolving market expectations.

Market Snapshot: Internet of Things in Utilities Market

The Internet of Things in Utilities Market demonstrates robust expansion, growing from USD 37.41 billion in 2024 to an estimated USD 41.26 billion in 2025, representing a compound annual growth rate of 10.18%. The sector anticipates reaching USD 81.24 billion by 2032. This growth is driven by widespread adoption of smart sensors, predictive analytics, and the integration of both cloud and edge computing across electricity, gas, and water utilities. Enhanced connectivity enables real-time monitoring, reduces operational downtime, and ensures optimal asset use, transforming resource management and strengthening engagement between utilities and their customers.

Scope & Segmentation Overview

• Components: Assessment of foundational hardware such as programmable logic controllers (PLCs), remote terminal units (RTUs), edge gateways, and advanced meters designed for electricity, gas, and water applications. Also included are sensor suites for monitoring flow, pressure, and temperature, in addition to managed and professional services as well as asset, analytics, and network management software to deliver secure and scalable utility operations.
• Solutions: Evaluation of real-time asset monitoring, automated fault detection, network resilience improvements, and grid management optimization. Coverage extends to security enhancements, smart metering initiatives, and deployment of advanced metering infrastructure (AMI) and automated meter reading (AMR) systems.
• End Use: Analysis encompassing electricity, gas, and water utility applications within commercial, industrial, and residential environments. Segmentation further highlights municipal and agricultural use cases within the water sector, demonstrating IoT’s adaptability to different operational configurations.
• Applications: Review of condition monitoring in both online and offline scenarios, deployment models for demand response strategies, advanced fault detection, and adaptive load management techniques aimed at improving resource efficiency and operational performance.
• Communication Technologies: Overview of network protocols, including cellular (4G, 5G), low-power wide-area networks (LoRaWAN, NB-IoT, Sigfox), RF mesh (Wi-SUN, Zigbee), satellite systems (GEO, LEO, MEO), and traditional wired options such as Ethernet and power line communication (PLC).
• Deployment Modes: Comparison of private, public, and hybrid cloud architectures, with emphasis on balancing flexibility in edge and centralized data management. On-premise solutions are considered for their advantages in maintaining data security and managing latency requirements.
• Regions: Geographic analysis covers the Americas—including the United States, Canada, Mexico, Brazil, Argentina, Chile, Colombia, and Peru—the EMEA region (Europe, Middle East, and Africa), and Asia-Pacific markets with focus areas such as China, India, Japan, and Australia, each presenting unique regulatory environments and partnership prospects.
• Key Companies: Strategic profiles of solution providers, including Cisco Systems, IBM, Siemens, Schneider Electric, General Electric, Microsoft, ABB, Itron, Landis+Gyr, and Oracle, highlight their roles in sector-specific innovation and accelerating digital transformation.

Key Takeaways for Senior Executives

• Integrated IoT platforms provide actionable insights for predictive maintenance, empowering utility organizations to allocate resources efficiently and enhance field operations.
• Changes in tariff structures are prompting utilities to broaden supplier networks, with renewed focus on local sourcing and building more stable supply chains.
• Utilizing edge computing combined with digital twin technology advances operational oversight, allowing utilities to improve problem responsiveness and dependability.
• Collaborative partnership models between technology vendors and utilities increasingly emphasize performance-based contracts and shared visibility of operational metrics.
• Regulatory dynamics, infrastructure maturity, and cross-sector partnerships shape regional adoption rates and influence investment strategies for utility IoT deployments.
• Real-time analytics and advanced connectivity enable utilities to diversify service portfolios and deepen data-driven customer relationships.

Tariff Impact on Supply Chains and Technology Choices

Implementation of new tariffs on IoT hardware in the United States is increasing procurement complexity and pressuring project costs across the utilities sector. To manage these challenges, utilities are developing multisupplier networks, investing in domestic production capacity, and revising device designs for higher adaptability and cost control. Engaging in industry alliances and adopting flexible procurement strategies has become critical for maintaining uninterrupted operations in a shifting trade landscape.

Methodology & Data Sources

The market analysis is based on direct interviews with utility executives, architects, and operational supervisors, corroborated by regulatory disclosures and proprietary analytics. A multi-tiered peer review process ensures accuracy and strategic relevance for senior stakeholders examining IoT adoption in utilities.

Why This Report Matters: Internet of Things in Utilities Market

• Provides utility decision-makers with frameworks to customize IoT strategies for complex and rapidly evolving operational environments.
• Offers insights on disruptive technologies and business shifts, setting practical reference points for compliance and performance monitoring.
• Delivers targeted segmentation and actionable recommendations to facilitate strategic partnerships and enhance resource allocation across multiple regions.

Conclusion

Executives gain the knowledge to reinforce supply chain resilience, streamline operations, and accelerate digital transformation strategies suited to future industry requirements.

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