Digital Utility Global Market Report 2024

The digital utility market size has grown rapidly in recent years. It will grow from $227.85 billion in 2023 to $253.94 billion in 2024 at a compound annual growth rate (CAGR) of 11.5%. The growth observed in the historic period can be attributed to the increase in renewable energy sources, stricter regulations and compliance, aging infrastructure, rising energy demand, growth in data generation, and an increase in natural disasters.

The digital utility market size is expected to see rapid growth in the next few years. It will grow to $406.95 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The increase projected during the forecast period is due to rapid urbanization, the escalating threat of cyber attacks, the expansion of electric vehicle infrastructure, a rise in the adoption of cloud computing, and the implementation of 5G networks. Key trends expected in this period encompass grid digitalization, the integration of AI and machine learning applications, the incorporation of energy storage, the development of customer-centric solutions, and the transition to smart cities.

The growth of distributed and renewable power generation projects is anticipated to propel the digital utility market during the forecast period. Distributed generation involves the production of electricity from multiple sources, often from renewable energy sources. The increasing number of distributed projects is attributed to the advantages of renewable and distributed power generation, which reduce the reliance on centralized power facilities, thereby benefiting the environment and mitigating the environmental impacts associated with centralized generation. The notable environmental benefits of distributed and renewable energy generation projects are contributing to the rising adoption of such initiatives. For example, in May 2021, a Climate Policy Initiative article highlighted India's ambitious goals to increase the share of renewable energy in its energy mix, with plans to install 175 GW of renewable energy projects by 2022 and 450 GW by 2030. Consequently, the increasing prevalence of distributed and renewable power generation projects is a key driver for the growth of the digital utility market.

The increasing trend towards electrified transportation is anticipated to drive the growth of the digital utility market in the coming years. Electrified transportation involves the use of electric power, typically from batteries or fuel cells, to propel vehicles, including electric cars, buses, trucks, and bicycles. This shift towards electrified mobility is driven by the aim to promote more environmentally friendly and sustainable forms of transportation. Digital utility technologies play a crucial role in managing charging infrastructure, optimizing energy distribution, and ensuring grid resilience, facilitating the seamless integration of electric vehicles into the utility ecosystem. As an illustration, in April 2023, the International Energy Agency reported that ten million electric cars were sold worldwide in 2022, with the overall market share of electric automobiles expected to increase from 4% to 14% in the past two years. Consequently, the growing trend towards electrified transportation is a significant driver for the digital utility market.

Technological advancements are playing a pivotal role in shaping the digital utility market for the forecast period. An illustrative example is the partnership between Ausgrid, the largest distributor of electricity on Australia's east coast, and technology leaders Infosys and Microsoft in September 2021. This collaboration aims to accelerate Ausgrid's cloud transformation journey, positioning it as a leading digital utility. The cloud program is strategically designed to reduce operating costs for Ausgrid and enhance the performance of its IT systems and applications. Infosys and Microsoft, as key collaborators, are actively contributing to this initiative by modernizing Ausgrid's application landscape and optimizing its IT infrastructure. This exemplifies how technological advancements, particularly in cloud computing, are being harnessed to drive digital transformation and efficiency in the utility sector.

Major companies in the digital utility market are actively focusing on introducing innovative products, with a notable example being mobile workforce management (MWM) solutions, to better cater to the needs of their existing consumers. Mobile workforce management involves the use of tools and processes to support and empower employees who work outside of traditional office settings. An instance of this is seen in the launch of ARCOS LLC's premium MWM software, ARCOS Mobile Workbench, in February 2022. This solution consolidates all work assignments, changes, and reports into a single, user-friendly interface, streamlining processes and reducing manual effort. ARCOS Mobile Workbench offers the flexibility to either integrate with existing legacy systems or run all processes through ARCOS, providing options that align with workflow preferences. The information within the Mobile Workbench is kept confidential, accessible only to authorized users determined by the server. Moreover, data encryption ensures security both at rest and in transit, providing complete control over access to sensitive information. This example underscores the commitment of major companies to delivering cutting-edge solutions that enhance workforce management in the digital utility sector.

In April 2022, American Electric Power (AEP), a major electric energy company based in the United States, completed the acquisition of Sempra Renewables LLC for $1.05 billion. This strategic transaction has significantly augmented AEP's portfolio of competitive renewable energy assets across 11 states in the US, reaching a total capacity of 1,075 megawatts. Upon the completion of the Santa Rita project, this capacity is expected to further increase to 1,302 megawatts. Sempra Renewables LLC, the acquired company, operates in the energy infrastructure sector and is based in the US. This acquisition aligns with AEP's commitment to expanding its presence and capabilities in the renewable energy space.

Major companies operating in the digital utility market report are Bosch.IO GmbH, Siemens AG, General Electric Company, Accenture plc, IBM Corporation, Cisco Systems Inc., Oracle Corporation, Schneider Electric SE, Honeywell International Inc., SAP SE, ABB Ltd., Capgemini SE, Eaton Corporation plc, Rockwell Automation Inc., Trimble Inc., Itron Inc., Landis+Gyr Group AG, Enel X North America Inc., Schweitzer Engineering Laboratories, Ipswitch Inc., Kalkitech Inc., Aclara Technologies LLC, Open Systems International Inc., OSIsoft LLC, Sensus USA Inc., C3.AI Inc., Trilliant Holdings Inc., Utilidata Inc., Echelon Corporation, Utilitech Engineering LLP.

North America was the largest region in the global digital utility market in 2023. The regions covered in the digital utility market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital utility market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Digital utility comes in three primary types such as on-premise, hybrid, and cloud. On-premise entails deploying tools and approaches locally to address suboptimal and non-scalable software needs. This involves hosting hardware and software applications on-site. The networks supporting digital utility include generation, transmission, distribution, and retail, utilizing technologies such as hardware and integrated solutions. The digital economy serves various sectors, including banking, financial services, and insurance (BFSI), media and communication services, manufacturing and natural resources, aerospace and defense, transportation and logistics, government and utilities, along with other end-users.

The digital utility market research report is one of a series of new reports that provides digital utility market statistics, Including digital utility industry global market size, regional shares, competitors with a digital utility market share, detailed digital utility market segments, market trends and opportunities, and any further data you may need to thrive in the digital utility industry. This digital utility market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The digital utility market Includes revenues earned by entities in telecommunications, electrical utilities, natural gas, transportation services, and water and wastewater treatment services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.