The market for Digital Utility is expected to reach US$ 381.38 Bn in 2028.
The global digital utility market accounted for US$ 141.41 Bn in 2018 and is anticipated to grow to US$ 381.38 Bn, growing at a CAGR of 11.7% throughout the forecast period from 2019 to 2027.
Using digital technology as an enabler of change aids utility companies in transforming to new energy systems. The growth of the digital utility market is driven by factors including strict environmental regulations, an increase in the renewable energy sector, and renewable integration, among others. Digitalization's benefits, including reduced operation costs, increased revenue, and lucrative opportunities, attract companies to adopt digitalization. Opportunities in different types of utilities will vary; for instance, fully integrated companies in regulated markets are inclined towards savings in operating costs, increased productivity, and network reliability, among others. The growth of the digital utility market is thus enhanced globally.
In addition, the rising adoption of digital utility helps in providing contextual and real-time business insights with much better automation and integration, improved connectivity and collaboration by bifurcating processes and technology, and better mobility with devices and apps that make time and place irrelevant. For instance, AGL, a leading utility provider in Australia, adopted a cloud-based online customer engagement platform integrated with Microsoft Azure, which resulted in a 29% increase in mobile conversion and 47% more clicks on web pages related to new projects.
The digital utility market is segmented on technology into hardware and integrated solution segments. The hardware segment accounted for more than 60% of the total revenue generated by the global digital utility market. Owing to rapid technological advancements in hardware, including smart grids, smart meters, and transformers, among other equipment. Organizations are looking for smart grid solutions, allowing for predictive maintenance, real-time analytics, and efficient asset management.
In contrast, the integration solutions segment is expected to register the highest growth during the forecast period. This can be associated with organizations rapidly deploying integrated solutions for the digitally enabled workforce, assisting in digitizing assets, and optimizing operations. In addition, integrated solutions include both cloud as well as software services. Thus proliferating the digital utility market growth.
The global digital utility market is segmented based on the network: transmission and distribution, generation, and retail. The transmission and generation segment is poised to dominate the market. This is due to the widely used distribution and generation segment and the increasing focus on monitoring and managing electricity transmission and distribution. On the contrary, the retail segment is expected to witness the highest growth throughout the forecast period in the digital utility market. Furthermore, increasing the adoption of different data extraction and analytics tools for better customer management is proliferating the segment's growth on a global scale.
In 2018, the North American region was leading the digital utility market and accounted for more than 30% of revenue generated worldwide, followed by Europe. Owing to the increasing number of renewable power plants, the development of state-of-the-art infrastructure to meet increasing electricity demand among others in the region is proliferating the growth of the digital utility market.
In contrast, the Asia Pacific region is expected to grow at the highest rate. This is due to the increased demand for electricity, the development of smart cities, and changing regulatory norms, among others, in the region. Thus bolstering the demand of the market in the region.
This study report represents analysis for each segment from 2017 to 2027, considering 2018 to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities that give a better market understanding of the overall Digital Utility market. In addition, the global report also represents the competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
The market for Digital Utility is expected to reach US$ 381.38 Bn in 2028.
The Digital Utility market is expected to see significant CAGR growth over the coming years, at 11.7%.
The report is forcasted from 2019-2027.
The base year of this report is 2018.
General Electric Co., Siemens AG, ABB Ltd., Accenture Plc, Capegemini SE, Sap SE, IBM, Microsoft Corporation, Oracle Corporation are some of the major players in the global market.