Digital Utility is defined as the use of digital technology in providing utility services. It involves the integration of data analysis and communication technology to inform the end-user about how to efficiently use the data utility services most efficiently. The technology integration is taking place across utility providers both public as well as private. With the help of digital technology wastage of utility services has been brought down, this in turn has also helped to bring down carbon emissions. The government focusing on the benefits of digital utility services is pushing for it, which has been driving the growth of the market. For instance, in Sep 2021, the government of India announced to double the deployment of smart meters by 2025. Such initiatives play an important role in driving the growth of the market. Further, the growth of the market is also driven by the growing adoption of digital technologies across utility service providers and the implementation of smart grids by the power sector.
The global digital utility market is segmented based on its components, deployment type, and end-users. Based on the components, the market is segmented into hardware, software, and services. Among the component segment, software is anticipated to hold a significant market share. The growth of the software segment is driven by the increasing adoption of software-based solutions in utility service companies. This has been creating significant demand for the software segment which is catalyzed by the software solution providers to gain a competitive edge. For instance, In May 2022, Aptumo launched the Next Generation Customer Information System. The company’s tool is built on Salesforce cloud technology — that firm’s technology and is designed so that water utilities can automate manual processes while also boosting customer service and otherwise encouraging digital advances.
Further, based on the end-users, the market is segmented into residential, commercial, and retail. The residential segment is anticipated to hold a significant market share over the forecast period. The growth of the residential segment has been driven by growing digitalization moves by governments and the adoption of smart grids and other related digitalization policies. All such measures have been driving the digital utility market for residential end-users. For instance, as per the news report in March 2024, the government of India is planning to replace 25 crore conventional electric meters with smart meters, also the government plans to upgrade the utility infrastructure over the next 5 years (2024-2029).
The global digital utility market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), the Middle East & Africa, and South America. Among these, the North American market is anticipated to hold significant growth over the forecast period. However, the Asia-Pacific region is projected to experience higher growth in the digital utility market.
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The North American Region is anticipated to Hold a Significant Share in the Global Digital Utility Market
Among these regions, the North American region is anticipated to account for a significant share of the digital utility market during the forecast period. The growth of the digital utility market in North America is driven by growing investment by the US government in the Modernisation of Utility infrastructure. For instance,
In November 2023, The US Government under the Bipartisan Infrastructure Law’s Grid Resilience and Innovation Partnerships Program announced to spend $3.9 Billion on power infrastructure. This funding under the GRIP program focuses on projects to improve electric transmission create comprehensive solutions that link grid communications systems and operations to increase resilience and reduce power outages and threats, and deploy advanced technologies such as distributed energy resources and battery systems to provide essential grid services.
The major companies serving the global digital utility market include Capgemini SA, International Business Machine Corporation, Accenture PLC, Microsoft Corporation, Cognizant Technology Solutions Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Siemens AG, General Electric Company, ABB Ltd., among others. The market players are considerably contributing to market growth by adopting various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, In March 2024, Siemens announced the launch of new Gridscale X software in the US and Canada. The product allows ISOs (independent system operators) and TSOs (transmission system operators) to centrally manage their network data with a Digital Twin of the power grid for more efficient planning, development, and operations.
