PUBLISHER: Roots Analysis | PRODUCT CODE: 1920858
PUBLISHER: Roots Analysis | PRODUCT CODE: 1920858
As per Roots Analysis, the global digital utility market size is estimated to grow from USD 227.85 billion in the current year USD 654.68 billion by 2035, at a CAGR of 11.13% during the forecast period, till 2035.

The opportunity for digital utility market has been distributed across the following segments:
Type of Component
Type of Deployment
Type of Network
Areas of Application
Type of Technology
Type of End-User
Company Size
Geographical Regions
Digital Utility Market: Growth and Trends
Digital utility refers to the incorporation of cutting-edge technologies, data analytics, and communication systems into conventional utility frameworks to enhance efficiency, dependability, and sustainability. Within the sectors of electricity, water, and gas, digital utility solutions employ smart meters, sensors, and Internet of Things (IoT) devices to gather real-time data on usage trends and grid operations. This wealth of data enables utilities to improve resource management, swiftly detect issues, and respond more adeptly to variations in demand.
The utility industry is progressively adopting innovative digital technologies, such as blockchain, artificial intelligence (AI), and machine learning, to improve their operations, customer interactions, and partnerships within the supply chain. These digital approaches allow users to manage energy production and distribution more efficiently, providing capabilities like predictive maintenance along with increased safety and efficiency, which ultimately enhances customer satisfaction. The expansion of this sector is fueled by factors including the growth of renewable energy initiatives and mandates focused on energy efficiency. Furthermore, the pressing need for green energy and swift advancements are driving this momentum.
Digital Utility Market: Key Segments
Based on type of component, the global digital utility market is segmented into hardware, services and software. According to our estimates, currently, the hardware segment captures the majority of the market share. This can be attributed to the widespread adoption of smart meters, transformers, and other advanced equipment that are crucial for digital utility solutions.
However, the services segment is expected to grow at a higher CAGR during the forecast period. This increase is driven by improvements in data extraction and analytics for better customer management, as well as a rising consumer preference for renewable energy options and sustainable practices from utility providers.
Based on type of deployment, the global digital utility market is segmented into cloud, hybrid and on-premises. According to our estimates, currently, the on-premises segment captures the majority of the market share. This can be attributed to its established infrastructure and the control it provides utilities over their operations and data security. However, the cloud deployment segment is expected to grow at a higher CAGR during the forecast period. This increase is due to the widespread adoption of cloud deployment for its scalability, flexibility, and cost-effectiveness in managing digital utility functions.
Based on type of network, the global digital utility market is segmented into energy storage, energy trading, power generation, retail, transmission & distribution. According to our estimates, currently, the transmission & distribution segment captures the majority of the market share. This growth is largely due to the substantial investments necessary to upgrade outdated infrastructure and enhance the efficiency of electricity delivery systems.
However, the retail segment is expected to grow at a higher CAGR during the forecast period. This increase is driven by heightened consumer awareness regarding environmental issues and an increasing demand for renewable energy alternatives.
Based on area of application, the global digital utility market is segmented into asset management, smart grid and smart meeting. According to our estimates, currently, the smart grid segment captures the majority of the market share. This increase can be attributed to the essential function the smart grid sector serves in upgrading energy infrastructure and enhancing both the efficiency and reliability of electricity distribution. However, the smart metering sector is expected to grow at a higher CAGR during the forecast period. This growth is linked to the increasing demand for precise billing, improved customer engagement, and more effective energy management solutions.
Based on type of technology, the global digital utility market is segmented into artificial intelligence (AI), big data analytics, and the internet of things (IoT). According to our estimates, currently, the artificial intelligence (AI) segment captures the majority of the market share. This growth can be attributed to its capacity to boost operational efficiency, enhance predictive maintenance, and support data-driven decision-making among utility providers.
However, the internet of things (IoT) segment is expected to grow at a higher CAGR during the forecast period. This increase is linked to the rising number of connected devices and sensors that enable real-time monitoring and management of energy resources.
Based on type of end user, the global digital utility market is segmented into commercial, residential and retail. According to our estimates, currently, the commercial segment captures the majority of the market share. This increase can be attributed to the rising adoption of digital utility solutions by businesses aiming to boost operational efficiency and lower energy expenses.
However, the retail segment is expected to grow at a higher CAGR during the forecast period. This increase is linked to the increasing dependence on data analytics to gain deeper insights into customer behaviors and preferences. By employing digital utility solutions, retailers can enhance their energy management strategies, resulting in reduced costs and improved customer satisfaction.
Based on company size, the global digital utility market is segmented into large and small and medium enterprise. According to our estimates, currently, the large enterprise segment captures the majority of the market share. Meanwhile, the small and medium enterprise segments is expected to grow at a higher CAGR during the forecast period. This growth can be attributed to their adaptability, innovation, focus on specialized markets, and capacity to respond to evolving customer needs and market dynamics.
Based on geographical regions, the digital utility market is segmented into North America, Europe, Asia, Latin America, Middle East and North Africa, and the rest of the world. According to our estimates, currently North America captures the majority share of the market, owing to the region's advanced technological infrastructure, early integration of smart grid solutions, and strong initiatives toward grid modernization.
Digital Utility Market: Research Coverage
The report on the digital utility market features insights on various sections, including:
Key Questions Answered in this Report
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