Digital Power Utility Market Analysis And Forecast To 2032: By Technology (Hardware, Integrated Solutions, Others), Network (Generation, Transmission and Distribution, Retail, Others), And By Region

Digital Power Utility Market Analysis And Forecast To 2032: By Technology (Hardware, Integrated Solutions, Others), Network (Generation, Transmission and Distribution, Retail, Others), And By Region

The global Digital Power Utility Market was valued at USD 46.5 Billion in 2022 and it is anticipated to grow up to USD 282.4 Billion by 2032 at a CAGR of 19.8% during the forecast period.

A digital power utility is a power utility that uses digital technology to manage and operate its infrastructure. This includes the use of digital devices and systems to monitor and control the generation, distribution, and consumption of electricity. The digital power utility is a relatively new concept, and its adoption is still in its early stages. However, its proponents believe that it has the potential to revolutionize the way power utilities operate. By leveraging digital technology, a digital power utility can improve efficiency, optimize operations, and better manage resources.

Global Digital Power Utility Market Scope and Report Structure

Report Metric

Details

Base Year

 2022

Historic Period

2016-2021

Forecast Period

 2023–2032

CAGR %

19.8%

Market Size Unit

USD Billion

Segments Covered

Technology, Network and Region

Companies Covered

Microsoft Corporation, Siemens AG, General Electric, IBM, Oracle Corporation, SAP SE, Schneider Electric SE, ABB LTD, Eaton Corporation, and Capgemini.

Report Offerings

Market Value, Market Forecast, Competitive Landscape, Market Dynamics, and Key Developmental Strategies

Market Trends and Drivers

Growing number of renewable power generation projects and energy efficiency mandates is one of the key trends stoking market growth. Stringent regulatory policies are further stimulating the growth of the market. Rising need for green energy and rapid digitalization are fueling the demand for digital utility solutions. Increasing penetration of digital technologies and spiraling demand for domestic electricity in countries such as China and India are anticipated to provide a fillip to the market. Moreover, increasing number of renewable energy plants and growing environmental concerns are supplementing the growth of the market. Additionally, rising number of government initiatives supporting digital transformation is projected to support the growth of the market in the country.

Market Restraints and Challenges

The high cost involved in the collaboration and integration of diverse applications of digital utility hinders the growth of the digital utility market in the global market. The lack of awareness is another major factor that restricts market growth. Also, the issue of cyber security is a major shortcoming in the growth of the digital utility market.

Global Digital Power Utility Market Segmental Overview

The report analyses the global Digital Power Utility Market based on technology, network, and region

Global Digital Power Utility Market by Technology

By technology, the Digital Power Utility Market is segmented into Hardware, and Integrated Solutions. The hardware segment held the largest market share of xx% in 2022 and is expected to grow at a significant CAGR over the forecast period. Digital utility technology includes communication equipment, electronic equipment, networking equipment, mobile devices, and other electronic devices. Hardware and integrated solutions in digital utility are designed to cater to the needs of users related to utility operations and processes. These solutions scan, record, and maintain asset performance. Technological developments taking place in hardware and extensive use of smart meters, transformers, and other intelligent equipment are contributing to the growth of the segment. Smart grid solutions are sought after by organizations since they enable predictive maintenance, real-time analytics, and effective asset management.

The integrated solutions segment is expected to register the highest CAGR over the forecast period. Integrated solutions offered in the market include cloud and software services. The software solution assists in digitizing assets, optimizing operations, providing flexibility, and improving reliability.

Global Digital Power Utility Market by Network

By network, the Digital Power Utility Market is segmented into Power Generation, Transmission and Distribution (T&D), Energy Storage, Energy Trading, and Others. The transmission & distribution segment is anticipated to dominate the market over the forecast period. Transmission & distribution solutions are widely used across the utility industry owing to increasing emphasis on monitoring and management of electric transmission and distribution systems. The retail segment is estimated to witness the highest CAGR over the forecast years. Data extraction and analytics techniques are widely used for efficient customer management, which is projected to drive the growth of the segment over the forecast period.

Geographical Analysis of Global Digital Power Utility Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. North America dominated the Digital Power Utility Market capturing an xx% market share in 2022 and is expected to showcase a significant CAGR in the forecast period. The North America market was at the forefront of the market in terms of revenue in 2019 owing to the increasing number of renewable power plants and rising investments in electrical infrastructure. Additionally, growing digitalization and the emergence of several connected devices are likely to trigger the growth of the market over the forecast period. The increasing number of renewable power plants, to cater to the needs of the growing population, is driving the growth of the digital utility market. The changing regulations and government policies related to utility are further driving the penetration of green energy in developed and developing economies.

The digital utility across various regions provides modern contact center infrastructure. The contact center infrastructure offers features such as contact center transformation, product & vendor evaluation, contact management, quality control, and service assurance. The infrastructure helps to develop, maintain, and upgrade contact center applications at utilities such as gas, water, and power. The enterprises use automation tools and communication technologies to redirect their customer support center and contact from service resolution to revenue generation. It provides a standardized workflow for better utilization of resources.

Major Players in the Global Digital Power Utility Market

The key players in the market are Microsoft Corporation, Siemens AG, General Electric, IBM, Oracle Corporation, SAP SE, Schneider Electric SE, ABB LTD, Eaton Corporation, and Capgemini, among others.

COVID-19 Impact:

The COVID-19 outbreak in Q1 of 2020 has severely depressed electricity demand across the globe. Also, led to declining investments in the energy industry and delayed the ongoing projects. Factors such as the growing electricity generation and energy consumption demand, especially renewable energy consumption, are expected to drive the digital power utility market during the forecast period. However, soaring operating costs for transmission and distribution infrastructure are expected to restrain the digital power utility market during the forecast period.

Recent Developments:

• In September 2021, Infosys Ltd and Microsoft Corp. signed a multi-year strategic deal with Ausgrid to accelerate the cloud transformation of the largest electricity distributor on Australia's east coast.
• In October 2021, SP Group partnered with the Energy Market Authority (EMA) and the Science and Technology Policy and Plans Office to develop the country’s first digital twin for the national grid. The digital twin is expected to help improve the resilience and reliability of the Singapore grid through real-time monitoring of events.
• In March 2021, ABB reached the cumulative 5-gigawatt (GW) mark in providing Programmable Logic Controller-based (PLC) solar plant automation solutions in India.
• In February 2021, General Electric Company (GE), CTCI Corporation (CTCI), and Southern Power Generation Sdn Bhd (SPG) announced the start of their commercial operation for Southern Power Generation’s Track 4A Power Plant, a 1,440 MW combined-cycle gas power plant in Pasir Gudang, Johor, Malaysia. GE is expected to provide a full spectrum of digital solutions and plant improvement services, major inspections of the 9HA.02 gas turbines, and technical advisory services.

Frequently Asked Questions

Q1.

How big is the Digital Power Utility Market?

Ans.

The global Digital Power Utility Market was valued at USD 46.5 Billion in 2022 and it is anticipated to grow up to USD 282.4 Billion by 2032 at a CAGR of 19.8% during the forecast period.

Q2.

What is the Digital Power Utility Market growth rate?

Ans.

The growth rate of the Digital Power Utility Market is 19.8%

Q3.

Which region holds a major market share for the market?

Ans.

North America holds a major market share of the Digital Power Utility Market in 2022.

Q4.

Which segment accounted for the largest Digital Power Utility Market share?

Ans.

By technology, hardware segment accounted for the largest Digital Power Utility Market share.

Q5.

Who are the key players in the Digital Power Utility Market?

Ans.

The global Digital Power Utility Market report includes players such as Microsoft Corporation, Siemens AG, General Electric, IBM, Oracle Corporation, SAP SE, Schneider Electric SE, ABB LTD, Eaton Corporation, and Capgemini, among others

Q6.

What are the factors driving the Digital Power Utility Market growth?

Ans.

Factors such as the major countries in Asia-Pacific have inadequate transmission and distribution (T&D) networks, and hence, electricity is not available in some of the remote and rural areas. To bring electricity to these areas, the countries in the region are investing heavily in building a transmission line network.

Q7.

What are the key growth strategies of Digital Power Utility Market players?

Ans.

The key growth strategies of Digital Power Utility Market players are product launch and product approval.

Q8.

Which region will provide more business opportunities for the Digital Power Utility Market during the forecast period?

Ans.

The Asia-Pacific region will provide more business opportunities for the Digital Power Utility Market during the forecast period.

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