PUBLISHER: Allied Market Research | PRODUCT CODE: 1344506
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344506
According to a new report published by Allied Market Research, titled, "Digital Utility Market," The digital utility market was valued at $214.2 million in 2022, and is estimated to reach $594.2 million by 2032, growing at a CAGR of 10.8% from 2023 to 2032.
The power generation, transmission, and distribution industries are rapidly adopting digital devices to enhance plant productivity, dependability, and protection. Smart grids, sensors, and smart meters are digital systems that provide a more accurate and real-time accounting of power consumption to businesses and consumers. These technologies contribute to the enhancement of the productivity, performance, safety, enforcement, and dependability of power generation and distribution. This results in enhanced asset management, planning, and execution, as well as increased customer satisfaction and quality.
Rapid industrialization and economic development, particularly in developing and underdeveloped countries, drive a significant increase in global energy demand. Modern lifestyles are becoming more energy intensive as the number of domestic appliances and electronic devices increases. To meet this rise in demand, governments around the globe are increasing generation capacity and constructing dependable transmission and distribution networks. In developing countries, the lack of a stable power supply is a significant cause of economic underperformance. It hinders new investors and hampers industrialization. Even in countries with excess generation capacity, the transmission and distribution networks are often deteriorating and unreliable, resulting in an unstable power supply. Improving grid infrastructure, minimizing transmission losses, and optimizing operations have become crucial. Digital utility services provide unique solutions for utility management based on hardware, software, and integrated platforms. It facilitates comprehensive data-driven grid management, maximizing efficiency, minimizing outages, and facilitating proactive maintenance. The implementation of digital utility services can enhance the dependability and productivity of utility operations. The demand for effectiveness in utility operations is a significant market growth driver.
The adoption of digital utilities offers numerous advantages for energy operations, including increased efficiency, decreased outages, and proactive maintenance. A rise in digitization is anticipated to make digital utility a more desirable option. However, implementing digital utilities for energy grid operations involves numerous expenses. Globally, most of the transmission and distribution networks were constructed in the 20th century, making them incompatible with digital integration. Modern software components and digital utility solutions cannot be implemented on outdated utility equipment. It requires the replacement of all network components with their modern equivalents. The replacement significantly increases the cost of operating digital utility solutions. Some of the most prominent digital utility solution providers are engineering firms, and their proprietary software operates solely on outdated equipment and outdated hardware It hinders interoperability and increases costs. Massive investments in digital utility solutions are expected to provide marginal benefits, if any, to countries that are developing or underdeveloped, as several fundamental issues regarding power generation, transmission, and distribution remain unresolved. The cost of integrating digital utilities restricts their adoption and poses a significant obstacle to the market's expansion
Digitalization in plants has increased due to the growth of digital technology and the emergence of software distribution models, such as software services. This software makes digital solutions more cost-effective for developers. Moreover, the use of digital solutions in power plants can reduce carbon dioxide emissions by facilitating fuel analysis and enhanced combustion performance. It increases flexibility to increase the proportion of renewable energy sources and mitigate cycling's negative effects. In addition, digitalization permits the developer to adapt to regulatory and market changes. In buildings, digitalization and technological advancement are expected to facilitate energy efficiency and enhanced power management. Sensors used in the digitalization of buildings must be able to detect energy and electricity demand, temperature, air quality, presence of moisture, and its impact. Digital technologies and solutions will be required to realize automated, energy-efficient buildings. In new construction and existing buildings, an increase in the number of standards and guidelines regarding future-oriented, integrated investment strategies for digitalization technologies related to buildings will offer lucrative opportunities for the digital utility market.
The digital utility market is segmented on the basis of technology, network, and region. By technology, the market is divided into hardware and integrated solutions. On the basis of the network, it is categorized into power generation, transmission and distribution, and retail. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the global digital utility market are ABB Ltd., General Electric Company, Siemens AG, SAP SE, Oracle Corporation., Cisco Systems Inc., Accenture plc, Capgemini SE, Microsoft Corporation, and Schneider Electric SE.