Digital Utility Market Report 2026

The digital utility market size has grown rapidly in recent years. It will grow from $272.19 billion in 2025 to $310.76 billion in 2026 at a compound annual growth rate (CAGR) of 14.2%. The growth in the historic period can be attributed to adoption of traditional utility management systems, increasing demand for operational efficiency, integration of basic automation tools, growth of utility infrastructure, rising need for timely maintenance and defect resolution.

The digital utility market size is expected to see rapid growth in the next few years. It will grow to $525.73 billion in 2030 at a compound annual growth rate (CAGR) of 14%. The growth in the forecast period can be attributed to implementation of ai-driven predictive maintenance, expansion of cloud-based digital utility platforms, adoption of iot-enabled monitoring devices, focus on sustainable and resilient utility operations, increasing investment in digital transformation initiatives. Major trends in the forecast period include deployment of hybrid and multi-cloud solutions, integration of on-premise and cloud systems, advanced data analytics for operational efficiency, automation of network management and monitoring, enhanced customer engagement through digital platforms.

The increasing number of distributed and renewable power generation projects is anticipated to drive the growth of the digital utility market during the forecast period. Distributed generation refers to electricity production from various sources, often including renewable energy sources. The rise in distributed projects is attributed to the fact that renewable and distributed power generation reduces the electricity demand on centralized power facilities, thus protecting the environment and minimizing the environmental impacts associated with centralized generation. The significant environmental benefits of distributed and renewable energy generation projects are contributing to the expansion of these initiatives. For instance, in June 2024, an article published by Eurostat, a Luxembourg-based government agency, reported that in 2023, the supply of renewable energies increased by 4.4% compared to 2022, reaching approximately 10.9 million terajoules (TJ). Consequently, the growing number of distributed and renewable power generation projects is fueling the growth of the digital utility market.

Major companies operating in the digital utility market are focusing on developing innovative solutions, such as modern utility customer engagement platforms, to enhance customer experience, enable self-service, and improve operational efficiency. A modern utility customer engagement platform is a digital tool that allows utility customers to manage accounts, monitor usage, pay bills, and interact seamlessly with their utility provider via web or mobile interfaces. For instance, in August 2024, Earth Corporation, a Japan-based manufacturing company, launched Engage360, a mobile-first utility customer engagement platform designed to improve how energy consumers interact with their utility providers. The platform allows customers to easily view and pay bills, track usage patterns, and manage accounts through an intuitive digital interface. Engage360 also includes analytics tools that help customers compare rate plans and optimize energy consumption. Through this launch, Earth Corporation aims to enhance customer satisfaction, reduce support center workload, and drive operational efficiency for utilities.

In March 2025, Bidgely Inc., a US-based provider of AI-driven energy analytics solutions, acquired Grid4C for an undisclosed amount. Through this acquisition, Bidgely aims to strengthen its UtilityAI Platform by incorporating Grid4C’s predictive analytics and DER load management capabilities, enabling utilities to optimize grid operations, enhance customer engagement, and support the energy transition. Grid4C Ltd. is a France-based technology company that offers AI-driven solutions for grid asset monitoring, appliance fault detection, and forecasting of distributed energy resources.

Major companies operating in the digital utility market 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, Kalkitech Inc., Aclara Technologies LLC, Open Systems International Inc., OSIsoft LLC, Sensus USA Inc., C3.ai Inc., Trilliant Holdings Inc., Utilidata Inc., Echelon Corporation.

North America was the largest region in the global digital utility market in 2025. The regions covered in the digital utility market report are Asia-Pacific, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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