Utility Communication Market Forecasts to 2028 – Global Analysis By Technology (Wireless and Wired), Utility (Private and Public), Component (Software and Hardware), Application (Oil & Gas Utility, Transmission & Distribution and Other Applications), End

Utility Communication Market Forecasts to 2028 – Global Analysis By Technology (Wireless and Wired), Utility (Private and Public), Component (Software and Hardware), Application (Oil & Gas Utility, Transmission & Distribution and Other Applications), End User and Geography

According to Stratistics MRC, the Global Utility Communication Market is accounted for $17.59 billion in 2022 and is expected to reach $45.37 billion by 2028 growing at a CAGR of 17.1% during the forecast period. Utility communications are the steps taken to set up two-way communication between utility and end consumers across all of the network's distributed data points. It enables real-time data transfer to control centres, the control and monitoring of grid equipment, and the measurement of electric network performance. Power line carrier, fibre optics, ethernet, microwave, and radio communications are just a few of the utility communication technologies that can be used in the Oil & Gas sectors' transmission and distribution networks. The utility communications market makes it possible to connect with quicker, more reliable, and cost-effective infrastructure, which results in lower operational costs, fewer customer complaints, and more energy conservation.

According to the IEA, renewable energy capacity is anticipated to grow at a rapid pace in the following five years, accounting for about 95% of the increase in global power capacity by 2026. According to the UN report, by 2025, 1.8 billion people will be living in countries or regions with absolute water scarcity and that poses a major threat to several sectors including food security.

Market Dynamics:

Driver:

Focus on improving grid reliability

In order to increase the reliability of the electricity distribution network, utility communication technologies are needed. To increase the operational effectiveness of power distribution systems, data is collected, automated, analysed, and optimised using sensors, processors, communication networks, and switches. Automated voltage regulators aid electric utilities in lowering peak loads, making the most of their current resources, and enhancing power reliability. Utility communication systems assist grid operators in utilising repair workers effectively and reducing truck rolls based on real-time data to maximise operations remotely. As a result, implementing utility communication enables utilities to restore service more quickly, emit less pollution, and maintain high levels of operational efficiency and dependability.

Restraint:

Lack of standards and interoperability

The capacity of two or more networks, systems, devices, applications, or components to share and easily use information safely and effectively without the user experiencing any discomfort is known as interoperability, and it is vital for grid modernization. Interoperability in electric power systems is the seamless, end-to-end interconnection of hardware and software from client appliances via distribution and transmission systems to the power source to improve the coordination of energy flow with real-time information and analysis flow. One of the biggest obstacles to the deployment of diverse devices is the lack of a universally accepted communication standard, as well as the incompatibility of various IT protocols and communication system components. Data management and storage is another problem. The difficulty that the majority of solution providers are dealing with is identifying non-quantifiable data from the enormous volume of data provided by various nodes of the network.

Opportunity:

Rise in number of upcoming smart city projects in developing regions

Urban areas are developing smart cities to foster sustainable economic growth. There are already more than 100 smart city projects underway throughout the globe, which present enormous prospects for tech firms, service providers, utility providers, and consulting firms. An uninterrupted power supply distribution network, which the traditional grid cannot deliver due to the high level of efficiency required, is a crucial component of the success of smart cities. As a result, utility communication is expected to be necessary for smart cities to have a reliable electricity supply. Electric service efficiency, quality, dependability, safety, and security are all improved through utility communication. New requirements like energy conservation and storage also present profitable market prospects for utility communications.

Threat:

Oil price instability and reduced oil demand

The COVID-19 epidemic has slowed the expansion of the oil and gas sector by lowering demand and, as a result, the price of oil. Lockdowns affected the nations, and the authorities imposed them all throughout the country. As a result, transportation and allied industries have experienced a significant reduction, which has had an effect on the demand for oil and gas. Due to the global shutdown and related problems along the supply chain, the spread of COVID-19 is also likely to have a negative impact on the producers of field devices used in utility communication. Due to the lack of supply, it is also anticipated that raw material prices would rise, which will ultimately cause order closures to be delayed.

Covid-19 Impact

Utility communications in 2020 will feel some of the harmful effects of the coronavirus, which are already having an adverse influence on the planet. The World Health Organization issued a public health emergency declaration in response to the COVID-19 virus epidemic in December 2019. The disease has spread to more than 100 countries, resulting in a huge mortality toll on a global scale. Global tourism, export-import, banking, and manufacturing all experienced significant losses. After initially demonstrating the potential for improvement, the downward pressure on the global economy has once more grown. The dangerous elements of the slowly expanding economy have already expanded due to the viral pandemic.

The public segment is expected to be the largest during the forecast period

The public segment is estimated to have a lucrative growth, whose primary motivation in becoming monopoly businesses is to better serve their customers by offering competitively priced services. In order to enhance their performance, these concerns are also given a few extra privileges. Large capital investments are needed for public utility companies, and these investments primarily take the form of fixed assets.

The commercial segment is expected to have the highest CAGR during the forecast period

The commercial segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the demand for utility communication in the business sector has been driven by the quick expansion and development of commercial facilities, including office buildings, shops, municipal buildings, data centres, schools, hospitals, gymnasiums, and warehouses among others. Commercial buildings can reduce their energy expenditures by effectively managing peak load and power consumption through the use of utility communication systems. As a result, it is predicted that the commercial category would have the highest CAGR during the forecast period.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to its growing population and sizable manufacturing base. As a result, the developing nations are actively investing in matrix extension projects to improve the dependability and adaptability of appropriation organisations. Local economies are heavily focused on increasing the amount of renewable energy production. In addition, the district's state-run administrations are quickly updating its outdated power system and integrating utility exchange systems into the network to enable continuous monitoring, reduce blackouts, track usage, and integrate infinite energy sources into the matrix. These factors are anticipated to support the extension of the utilities correspondence market in the district.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the demand for advanced communication solutions is rising in Europe as a result of enterprises adopting more technological solutions. Additionally, the expansion of offshore drilling operations provides an opportunity for market expansion in Europe. These elements significantly contribute to the expansion of the utility communications sector in Europe.

Key players in the market

Some of the key players profiled in the Utility Communication Market include ABB, Honeywell International Inc., Yokogawa, Hitachi, Azbil Corporation, General Electric, Schneider Electric, Metso Corporation, Emerson, Rockwell Automation, Toshiba, Siemens, Black & Veatch Holding, Itron, Telefonaktiebolaget LM Ericsson, Nokia, FUJITSU, Sensus (Xylem) and Motorola Solutions.

Key Developments:

In June 2022 Nokia came into collaboration with Cellnex Telecom, a Spanish wireless telecommunications infrastructure, and services company. This partnership is aimed to promote digital transformation across a series of industries.

In June 2022, GE Digital partnered with Climavision, a weather technology company. The partnership is made to support GE Digital’s electric utility customers to enhance their capability to forecast weather and good plan for worse storm events.

In June 2022, Schneider Electric came into collaboration with Hitachi Energy, a technology leader in transmission, distribution, and grid automation solutions. Through this collaboration, both companies aim to offer better customer value and boost the energy transition. Additionally, the company assumes this collaboration would ensure benefits for customers in their operational life cycle.

In May 2022, Itron, Inc., collaborated with Microsoft, a technology corporation producing computer software, and consumer electronics. Under this collaboration, companies would combine Microsoft’s leading cloud solutions and Itron’s leading energy management solutions to change the way end users manage and look at their energy and how utilities address the requirements of a quickly transforming industry.

In December 2021, Fujitsu signed an agreement with GE, an energy leader engaged in offering equipment, solutions, and services. Under this Agreement, Companies combine Fujitsu’s system integration, operation services, and maintenance and GE’s OEM expertise in grid asset performance management to deliver Transmission & Distribution utilities full support in creating and finalizing their digitalization projects.

Technologies Covered:
• Wireless
• Wired

Utilities Covered:
• Private
• Public

Components Covered:
• Software
• Hardware

Applications Covered:
• Oil & Gas Utility
• Transmission & Distribution
• Other Applications

End Users Covered:
• Industrial
• Commercial
• Residential
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements