Midmarket Utilities: Trends and Opportunities for IT Services Providers

Midmarket utilities in North America are prioritizing cybersecurity, resource optimization, sustainability, and stakeholder engagement against a backdrop of aging infrastructure, electrification demand, and decarbonization mandates. Key trends include the digital transformation of operations, the energy transition toward decarbonization, and AI-driven innovation, while challenges such as organizational resistance, legacy IT, skills gaps, and regulatory uncertainty persist. Application modernization, data integration, cybersecurity, and shared services models are areas in which IT service providers can offer scalable, cost-effective solutions tailored to midmarket needs. These dynamics underscore the sector's push for resilience, efficiency, and strategic modernization."Midmarket utilities face a pivotal moment: balancing decarbonization, digital transformation, and resilience while navigating aging infrastructure, regulatory mandates, and evolving customer expectations." - Senior Associate Advisor Jean-Francois Segalotto, IDC Energy Insights