Digital power utility Market: Global Industry Analysis and Forecast (2023-2029) Trends

Digital power utility Market Definition:

The power distributor benefits from the digital power utility solution since it provides a real-time solution for asset control via cloud and Internet of Things applications. It can also improve the security, storage, and flexibility of the process, as well as provide cloud-based solutions to speed up delivery. Further, the Digital power utility market is segmented by Technology, Sector, and region. On the basis of Technology, the Digital power utility market is segmented under Hardware, and Software & Service. Based on the Sector, the Digital power utility market is segmented under the channels of Power Generation, Transmission & Distribution and Power Consumption. By region, the market covers the following regions: North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

Digital power utility Market Dynamics:

The growing population, increasing disposable income and rising urbanization rates have increased electricity demand across the globe. It is forecasted that around 68% of the world’s population will live in urban areas by 2050. Therefore, and increasing potential for renewable energy across various sectors would support the market during the forecasted period.

 

Increasing capital investment in renewable energy projects:

More investments in renewable energy projects have been made possible by a growing focus on renewable energy projects and energy storage devices, thermally activated technology, and transmission and distribution systems. According to a research published by the United Nations Environment Programme, global investment in renewable energy projects increased to USD 272.9 billion, marking the fifth year in a row that investment has above USD 250 billion.

 

The high cost of transforming existing infrastructure could hamper market growth:

The digital transformation or upgrade of existing infrastructure would necessitate a significant investment, which would stymie the market. However, the growth of the digital power utility industry is supported by the transformation of existing infrastructures and increases in the efficiency of electricity distribution systems.

 

Smart grids necessitate new skills and are causing new business models to emerge:

The power industry is about to undergo a digital transformation. Renewable energy, distributed generation, and smart grids all necessitate new capabilities, as well as new business models and regulatory frameworks. Data collection and interchange are increasing at an exponential rate, posing both digital risks and opportunities. The online channel is becoming more competitive for customers, and the Internet of Things promises new product and administration choices. Governments and regulatory organizations are attempting to push smarter measuring systems and cleaner standards for generation and consumption, while digital economy entrants are altering the industrial environment.

 

To thrive amid these challenges, the utility of the future would be an all-digital system. This means that today's utility companies are facing a digital transformation of their organization and business. It can start with quick steps to improve efficiency and expand the customer base. As the transformation gains momentum, it should open up deeper digital possibilities across a broad domain. Adopting the digital system and moving away from the old traditional way would be the challenge for the market.

 

Digital power utility Market Trends:

Plants are becoming more digitalized as a result of advances in digital technology and the introduction of software distribution methods such as software-as-a-service, which makes digital solutions more inexpensive for developers. Also, by enabling fuel analysis and improved combustion performance, the use of digital technologies in power plants can cut carbon dioxide emissions. It increases the flexibility to raise the share of renewables and regulate cycling's impact. The developer can also respond to regulatory and market developments thanks to digitalization.

 

Building digitization and technology innovation would allow for greater energy efficiency and improved power control. Sensors in buildings, for example, should be able to detect energy and power demand, temperature, air quality, and the presence and impact of moisture. To achieve energy efficiency and automated buildings, digital technology and solutions would be required. In new construction and existing buildings, a number of standards and recommendations for future-oriented, integrated investment strategies for building-related digitalization technologies would emerge.

 

Digital power utility Market Segment Analysis:

By technology, the market is divided into hardware and software & services based on technology. Because of massive investment in smart metering and EV charging, the hardware segment dominated the global market. The hardware is widely employed in next-generation technology. Traditional metering systems are becoming less popular, resulting in a shift toward technology and smart meters. However, new software solutions, such as artificial intelligence, machine learning, or other digital approaches available to the utility industry, are driving the significant rise in the software and services segment. Also, as the trend toward system automation continues, the software & service market would continue to increase, since automated systems require digital support to work efficiently.

 

By Sector, The market is divided into three sectors: power generation, transmission and distribution, and consumption. Because of the rising demand for electricity from non-residential buildings and increased HVAC usage, the power consumption sector is likely to dominate the global market. Because the digital utility solution enables users to successfully undertake transmission and distribution activities, the transmission and distribution segment is forecasted to be the fastest-growing category in the global market.

 

 

Digital power utility Market Regional Insights:

In 2021, the North America region had the highest share in the Digital power utility market, up to 37%, and is expected to increase at a CAGR of 12.3% from 2022 to 2027. Because of the increased footprint of diverse businesses in the region, which has contributed to the rise of the power transmission and distribution industry, in the region, the market is forecast to increase steadily. The increased need for intelligent buildings and building automation has raised the installation of smart metres and sensors in the area, which has aided market growth.

 

Because of increased investment in large industries and commercial projects, the Asia Pacific region is expected to be the fastest-growing market. In India, for example, more than 300 smart city initiatives totalling USD 2 billion were in the works in 2021. Also, greater government backing, increased investment in renewable energy, and adoption of green building concepts are all contributing to the market's growth.

 

Recent Developments in the Digital power utility Market:

• October 2021- The National Grid, a British multinational electricity and gas utility provider, has struck a multi-year global strategic IT and digital deal with Wipro Limited, an Indian multinational organization, to speed up its digital innovation journey.
• June 2019- General Electric, an American global corporation, has agreed to supply centralized data gathering, remote monitoring services, on-site sensor assessment, and predictive analytics solutions to Enel green power for a three-year period in order to develop its operation and maintenance service.

 

Digital power utility Competitive Landscape:

Current trends indicate that the market is mainly dominated by the services of large providers. In recent years, major new players have entered the market and continuous research and development activities are carried out to keep up with the development of technologies and market players. Some of the leading key players of the digital power utility market are: ABB (Switzerland), General Electric Company (U.S.), Siemens (Germany), Accenture Plc (Ireland), Capgemini Ltd (France), SAP SE (Germany), IBM Corporation (U.S.).

 

Digital power utility Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Global Digital power utility market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Digital power utility market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Global Digital power utility Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global Digital power utility market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Digital power utility market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Digital power utility market.

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Global Digital power utility market. The report also analyses if the Global Digital power utility market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Digital power utility market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Digital power utility market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Digital power utility market is aided by legal factors.

 

Digital power utility Market Scope:

Digital power utility Market Scope
Market Size in 2022	USD 83.32 Bn.
Market Size in 2029	USD 379.88 Bn.
CAGR (2023-2029)	24.2%
Historic Data	2017-2021
Base Year	2022
Forecast Period	2023-2029
Segment Scope	By Technology Hardware Software & Service
	By Sector Power Generation Transmission & Distribution Power Consumption
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Digital power utility Market Key Players: 

• ABB (Switzerland)
• General Electric Company (U.S.)
•  Siemens (Germany)
• Accenture Plc (Ireland)
• Capgemini Ltd (France)
• SAP SE (Germany)
• IBM Corporation (U.S.)
• Microsoft Corporation (U.S.)
• Oracle Corporation (U.S.)
• Wipro Ltd (India)
• Infosys Ltd (India)
• Cognizant Technology Solutions (U.S.)