PUBLISHER: KBV Research | PRODUCT CODE: 1450527
PUBLISHER: KBV Research | PRODUCT CODE: 1450527
The Global Digital Utility Market size is expected to reach $380.9 billion by 2030, rising at a market growth of 10.2% CAGR during the forecast period.
The Asia Pacific region is witnessing significant growth in renewable energy projects, particularly solar and wind power. Therefore, the Asia Pacific region acquired $51,881.9 million revenue in 2022. The rapid urbanization in the Asia Pacific region necessitates the modernization of energy grids. The growing urban population generates increased waste.
The major strategies followed by the market participants are Partnerships & Collaborations as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November 2023, Capgemini SE signed a partnership with Bpifrance, through this partnership, Capgemini would expedite innovation and the digital transformation of Bpifrance and its clients, enhancing the bank's IT teams with cutting-edge technologies, notably in data processing and AI. Additionally, In October 2023, Siemens AG came into partnership with Microsoft to merge AI advancements across the Microsoft Cloud with Siemens' industrial domain knowledge, empowering frontline and knowledge workers alike with innovative, AI-driven tools.
Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunner in the Digital Utility Market. In November 2023, Capgemini SE signed a collaboration with Euroclear. Under this collaboration, both companies joined hands in the successful rollout of its Digital Securities Issuance (D-SI) service. Companies such as Siemens AG, Accenture PLC, and General Electric Company are some of the key innovators in Digital Utility Market.
Market Growth Factors
Industrialization is marked by adopting the Industrial Internet of Things (IIoT) to create connected and intelligent industrial ecosystems. Digital utility solutions contribute to the connectivity and optimization of energy-intensive industrial processes. Therefore, the market is expanding significantly due to the increasing trends in urbanization and industrialization.
Resilience planning involves using predictive analytics to develop early warning systems for natural disasters. AI and data analytics enable utilities to forecast potential threats and take proactive measures to safeguard critical infrastructure. Thus, because of the resilience planning and disaster management, the market is anticipated to increase significantly.
Market Restraining Factors
The disparity in financial capabilities among utilities can lead to unequal access to digital technologies. Larger utilities or those in economically robust regions may have the financial capacity to invest in advanced solutions, leaving smaller utilities disadvantaged. Thus, high initial investment can slow down the growth of the market.
By Technology Analysis
By technology, the market is categorized into hardware and integrated solutions. The integrated solutions segment covered 34.6% revenue share in the digital utility market in 2022 Integrated solutions enable utilities to manage diverse aspects of their operations through a unified system. This ensures that utilities can engage with customers through their preferred channels, fostering stronger connections.
By Network Analysis
Based on network, the market is classified into generation, transmission & distribution, and retail. In 2022, the generation segment witnessed 41.1% revenue share in the market. The generation segment leverages big data analytics to process large volumes of data generated by power plants and grid operations.
By Regional Analysis
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region led the digital utility market by generating 33.2% revenue share. North America has numerous research and innovation centers focused on advancing digital utility technologies.
Recent Strategies Deployed in the Market
List of Key Companies Profiled
Global Digital Utility Market Report Segmentation
By Technology
By Network
By Geography