Global Digital Utility Market - 2022-2029

Market Overview

The global digital utility market size was worth US$ XX million in 2022 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

The growing digitization has permeated the energy and power industry. Smart grids, distributed generation and renewable energy have led to the adoption of new regulatory frameworks and have given rise to new business models and practices. Digital solutions are being increasingly applied to solve the complex issues plaguing energy generation and distribution.

Digital Utility solutions are built using a mix of real-world, project-tested hardware and services along with leveraging spatially enabled and highly configurable software suites. The digital utility allows for big data-driven alignment of supply and demand in power generation. It enables data analytics for accurate outage predictions, thereby preventive maintenance. A smart grid allows for automated control that increases efficiency, safety and reliability.

Market Dynamics

The demand for digital utility is mainly driven by the increasing drive for efficiency in energy utility operations. It is an important driver for the market. The high cost of integrating digital utilities is a key factor in limiting the growth of this market.

Increasing drive for efficiency in energy utility operations

Global energy demand increases rapidly as rapid industrialization and economic development occur, especially in underdeveloped and developing countries. Modern lifestyles are increasingly becoming more energy-dense due to the growing usage of various home appliances and electronic gadgets. Governments worldwide are engaged in increasing generation capacity and building reliable transmission and distribution networks to meet this growing demand.

The lack of stable power supply is a major cause of economic underperformance in developing countries. It drives away potential investors and retards industrialization. An unstable power supply is witnessed even in countries with surplus generation capacity, mainly due to dilapidated and unreliable transmission and distribution networks. It has become paramount to improve grid infrastructure, minimize transmission losses and increase the efficiency of operations.

Digital utility services provide unique solutions based on hardware, software and integrated platforms for utility management. It enables comprehensive data-driven management for the grid, maximizing efficiency, reducing outages and proactive maintenance. The adoption of digital utility services can help to increase the reliability and efficiency of utility operations. The drive for efficiency in utility operations is a key driver in the growth of the market.

High cost in the integration of digital utility

The adoption of digital utility provides various benefits for energy operations, such as increased efficiency, reduced outages and proactive maintenance. Rising digitization is expected to render digital utility an increasingly attractive option. However, various costs are involved in adopting digital utilities for energy grid operations.

The vast majority of the transmission and distribution network globally was built in the 20th century, rendering them unsuitable for digital integration. Modern software components and digital utility solutions cannot be implemented on the old generation of utility equipment. It requires the total replacement of various components in the network with modern equivalents.

The replacement places enormous costs on the operation of digital utility solutions. Some of the most prominent digital utility solution providers are engineering companies and their proprietary software runs exclusively on equipment and hardware designed by them. It limits interoperability and further drives up the costs.

For the developing and underdeveloped countries, the massive investments in digital utility solutions may only provide marginal gains, if any, since several underlying fundamental issues pertaining to power generation, transmission and distribution remain unresolved. The cost of the integration of digital utility limits its adoption and is a key challenge for the growth of the market.

COVID-19 impact analysis

The global digital utility market experienced uneven impacts on deployment in 2020 due to the COVID-19 pandemic. The COVID-19 epidemic started in the first quarter of 2020 and significantly slowed global electricity demand. In addition, it resulted in a decrease in energy industry investment and the postponement of ongoing projects.

The research and development of new innovative technologies were impacted due to the pandemic since government lockdown and restrictions led to the curtailment of these activities. Therefore, the commercial deployment of new technologies was delayed and financing of new projects was curtailed, impacting the revenues of various companies in the digital utility sector.

The short-term impact of the COVID-19 pandemic has been relatively mild for the digital utility market. The pandemic is expected to accelerate the digitization of various energy operations. Digitization will bring greater efficiency and ease of operations to energy utility services. The demand for digital utility remains strong and is expected to grow gradually in the coming years.

Segment Analysis

The global digital utility market is segmented into technology, sector, end-user and regions. The digital utility market is further segmented into hardware, integrated solutions and software based on technology. The integrated solutions are leading in this segmentation since it is the most widely adopted technology of digital utility. The integration of hardware and software allows the best possible outcome for applications. The vast majority of customers prefer integrated solutions to offer the best value for money.

Geographical Analysis

The Asia-Pacific region is leading in the global digital utility market. The region accounts for the largest market share, primarily due to many energy projects currently under construction. Rapidly industrializing nations such as India, China, Vietnam, Thailand, Malaysia and Indonesia are leading the growing demand for energy in the region.

Electricity is unavailable in some remote and rural areas of Asia-Pacific countries due to insufficient transmission and distribution (T&D) networks. The countries in the region are substantially investing in constructing a transmission line network to supply electricity to these areas.

According to the IEA, China was the greatest market for power sector investment in 2020, owing to the rising demand for power in the industrial and commercial sectors. In addition, China's power transmission and distribution grid has been undergoing massive improvements and modifications to enable it to transport more electricity and meet future demand.

India's energy investment has expanded at the fastest rate globally in the last four years, increasing by more than 10%. Renewable energy spending continued to outspend fossil fuel-based power generation in 2020, owing to solar PV and wind projects bidding. It is expected to drive the digital power utility market during the projected period.

In addition, nuclear power stations with a capacity of 7,000 MW are currently in various stages of construction in India as of 2020. The Indian government stated in February 2022 that it would allocate Rs. 19,500 crores to stimulate solar module manufacturing under the government's flagship Production Linked Incentive (PLI) scheme. The digital power utility market is projected to be driven by these incentives. The Asia-Pacific region is expected to retain the largest share in the global digital utility market.

Competitive Landscape

The global digital utility market is competitive due to the availability of a wide variety of services and solutions that cater to different types of industrial and commercial requirements. Some of the major players contributing to the growth in the segment are ABB, Accenture, Capgemini SE, Cisco Systems, Inc., General Electric, Siemens AG, SAP SE, Schneider Electric, Eaton Corporation PLC and International Business Machines Corporation. The major players in the market adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to the growth of the global industry.

ABB

Overview: ASEA Brown Boveri, abbreviated to ABB, is a major multinational conglomerate specializing in robotics, power, heavy electrical machinery and automation technology. It has manufacturing operations in 12 countries and its products are sold in more than 150 countries globally through a network of 16 subsidiaries and hundreds of distributors. ABB was founded in 1883 and is headquartered in Zurich, Switzerland.

Product Portfolio

ABB Ability is the company's flagship digital utility service for power generation. It combines connectivity with proprietary software to achieve data-driven optimization and total power plant management automation. ABB Ability enables the safe operation of utility operations and maximizes efficiency.

Key Developments:

In 2021, ABB reached a milestone in supplying digital utility solutions for 5GW for solar energy projects in India. ABB has significantly scaled up digital utility solutions for renewable energy production.

Why Purchase the Report?

Visualize the composition of the digital utility market segmentation by the technology, sector, end-user and region, highlighting the critical commercial assets and players.

Identify commercial opportunities in the digital utility market by analyzing trends and co-development deals.

Excel data sheet with thousands of global digital utility market-level 4/5 segmentation data points.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the critical product of all major market players

The global digital utility market report would provide approximately 58 market data tables, 59 figures, and 220 pages.

Target Audience 2022

Digital utility companies

Energy companies

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals