Digital Utility Market

Digital Utility Market Size

The global digital utility market size was valued at USD 209.8 billion in 2024 and is projected to grow at a CAGR of 9.5% between 2025 and 2034. One of the considerable reasons for the impressive growth of the market is the increasing demand for smart grid technologies. The trend of shifting towards smart grids is becoming commonplace among utility providers around the globe on account of enhancing energy efficiency, lowering operational expenditures, and using more renewable energy sources.

The installation of advanced forensics and data analytics functions, as well as the facilitation of real-time monitoring and predictive maintenance, are becoming increasingly essential for efficient modern utilities. Such a shift is also aided by government policies and investments in clean energy projects. The smart grids expansion continues to accelerate, since the energy companies are focusing on decarbonization and more reliable initiatives.

According to GMI, the global smart grid market generates revenue of around USD 66.1 billion in 2024 but will expand further still, in line with the 10.6% CAGR expected between 2025 and 2034 which is caused by the increase in energy demands caused by the efficiency, reliability, and sustainability requirements of the modernized utilities grid. Therefore, the swift adoption rate with which smart grid technologies are taking the energy management sector by storm only serves to speed up the expansion of the market for digital utility as well.

The rise of Big Data analytics and IoT devices is another primary element of growth for the digital utility market. Operation managers include IoT integrated solutions for real time monitoring capabilities and minimization of service downtimes. Implementation of Big Data analytics makes management of resources and allocation of energy more efficient.

These technologies optimize business processes and enhance client relations through predictive analysis. As the energy market ecosystem gets intricate due to the inclusion of renewables and distributed systems, IoT and analytics become instrumental in facilitating growth within the sector.

Digital Utility Market Trends

• Increasing energy consumption levels in the background of growing concern towards the environment has resulted in firms working on the development of smart grid technologies. Using smart meters allows utilities to enhance operational performance through improved precision in billing and contracted responsive service, as well as cutting expenditure. They assist in the consumption of cleaner energy by analyzing energy utilization trends. Apart from that, they optimize the utility processes of maintaining electricity provision and preventing service cut-offs, which strengthens the resilience of the electric grid.
  
• As a result of the increasing emphasis on energy saving and being environmentally friendly, an active effort is being made on the deployment of smart metering systems. For example, in March 2023, IntelliSmart Infra introduced INSTINCT 3.0 to accelerate innovations in smart metering technology. The goal of this project is to find potential collaborations for promoting concepts with commercial applicability that would be advantageous to the smart metering industry or the broader energy sector.
  
• Their purpose is to achieve the goals of increasing the devices’ technological developments and energy management even further. Furthermore, IntelliSmart’s activities are geared towards ensuring technology improvements and increasing power sector efficiency.
  
• An important obstacle in the advancement of a digital utility is the adequate amount of resources most countries require to implement technologically advanced gadgets. The implementation of infrastructure such as smart meters, energy management systems, and other technological solutions requires a high initial investment.
  
• Securing funding for such projects is difficult for many utilities, particularly in developing economies, as these costs tend to increase. Furthermore, new technologies combined with legacy system complicate the issue further and inflate the price. The costs related to this can have an impact on the use of technologically advanced tools, and this consequently explains the saturation in market growth.
  

Digital Utility Market Analysis

Learn more about the key segments shaping this market

Download Free PDF

Based on the component, the market is segmented into solutions and services. In 2024, the solution segment accounted for over 75% of the market share and is expected to exceed USD 390 billion by 2034.

• The solutions segment of the utility offerings leads the digital utilities market due to technological revolution such as smart meters, installation of energy management systems, and automation of the grids. Such solutions enable the utilities to enhance operational and cost efficiency by improving service delivery through analytics and real-time data monitoring. Due to the complex and evolving world where demand also has become imperative to have solutions for demand response and predictive maintenance.
  
• Such solutions help utilities attain their energy efficiency and sustainability targets and the regulations as well. These solutions enable utilities to optimize the use of energy and increase the volume of energy distributed, remains one of their competitive advantages. As these utilities upgrade their processes, the need for such sophisticated ones continues to surge.
  

Learn more about the key segments shaping this market

Download Free PDF

Based on the deployment, the market is divided into on-premises and cloud. The cloud segment held above 60% of the market share in 2024. The cloud segment is also the leader in the digital utility market due to its elastic nature and cost management capability. Siloed applications enable utilities to handle terabytes of data without having to invest in capital assets in advance.

• At the same time, they enable real-time control and integration with other systems such as IoT and big data analytics. With the increasing demand for remote capability and greater cooperation calls for cloud-based deployment. As a result, cloud vendors offer both recurrent maintenance updates and a set of security features to help think up long-term strategies for system automation.
  

Looking for region specific data?

Download Free PDF

In 2024, the US digital utility market holds around 84% in North America and is expected to exceed USD 140 billion by 2034. U.S. has established itself as the leader in global digital utility fueled by government through the Energy Policy Act allows investments in the development of new energy solutions.

• Competition is promoted constantly due to the presence of technology providers and major players in the U.S. market. Furthermore, the greater emphasis which is placed on renewable energy sources and their sustainability fits well with the expansion of the market in the U.S. The growing needs of the country for smart metering and energy management systems explain the propelling trend even more.
  
• The sustainability targets and stringent regulations with the intention of reducing carbon emissions have been key motivators for Europe's market. This transformation into integrated smart energy solution involves a rapid transition to smart grids and energy management systems.
  
• In terms of the use of smart meters and enhanced energy efficiency, Germany, the UK, and France are some of the forerunners. The Green Deal and The Clean Energy Package of the European Union promote the shifts to technology ideas in the energy sector. Europe is increasingly working on strengthening grid resilience and predictive maintenance through new technologies. The rising market opportunities are caused by the growing consumer interest in energy-saving solutions with real-time data.
  
• The digital utility market in the Asia Pacific region is experiencing a surge owing to high energy needs which are combined with urbanization and a robust call for integration of renewable energy. Moreover, countries such as China, India, or Japanese markets are rapidly pulling a flock towards the grid and metering solutions aiming towards enhancing energy reliability and efficiency.
  
• In addition, the area has begun recording higher levels of growth in investing Management Systems aimed at increasing utility resource application and enlarging power distribution. Also being cited are government policies such as the China 13th Five Year Plan together with the Indian Smart Cities Mission which are aimed at the energy industry’s digital transformation. The growing tide of electric vehicles and aid in growing the demand for updated utility solutions towards the existing issues. The market pace is still going forward despite challenges like infrastructural upgrades or data security needing a solution.
  

Digital Utility Market Share

• Microsoft, Oracle, and Schneider Electric dominate the market and collectively held a substantial market share of over 12% in the market in 2024. These vendors are integrating and rising above others in the market due to their strong technology know-how and variety in products they offer.
  
• Moreover, platforms offered by Oracle as well as Microsoft such as cloud, AI, and big data help utilities maneuver through the market and respond to performance operations to the max. Depending on the field of focus, Schneider is ahead with product offerings with regards to smart grid technologies as well as energy management solutions for more sustainable energy in usage and better real-time monitoring.
  
• Their ability to keep their reach global along with stronger ties forged with government and other enterprises are aiding them in making digital utility offerings widespread. These companies have also moved into a new sphere of integrating IoT wherein utility companies are able to cut costs and optimize their operations. Again, their market superiority is augmented by their capacity to interface with current systems and offer adaptable options.
  

Digital Utility Market Companies

Major players operating in the digital utility industry are:

• ABB
• Eaton
• General Electric
• Hitachi Energy
• Honeywell
• IBM
• Microsoft
• Oracle
• Schneider Electric SE
• Siemens
  

The market is characterized by a plethora of major incumbents as well as new entrants, and it is on the basis of blend of these players that the digitalization of utility management is taking shape.

• The larger players in the market are usually conventional utility providers or service providers, and they are gradually rolling out new technologies like smart grid, IoT, AI, and big data. These players are also working on integrating real-time monitoring, predictive maintenance, and dynamic energy management into the systems to deliver better operational efficiency, lower cost, and superior customer service. They are also designing solutions that will be compatible with existing systems and devices while meeting IoT requirements.
  

Digital Utility Market News

• In February 2024, GE Vernova revealed that it's utilizing practices such as GridOS to manage today's complicated electricity networks incorporating wind and solar technologies. The firm’s acquisition of Greenbird Integration Technology is also towards facilitating grid management to assist utilities in gearing up for an era of frequent power breakdowns due to climate. GE's intent is on developing smarter and robust grid solutions where the delivery of electricity remains dependable irrespective of the varying demand for its use.
  
• Their collaboration with utilities, together with their investment in AI and analytics serve a dual purpose of better and timely monitoring of systems and more efficient operations. The firm is changing energy management by introducing revolutionary grid software that enhances energy transition systems and restoration.
  
• In March 2023, IntelliSmart Infra together with INSTINCT 3.0 announced partnering in smart metering to bolster its presence in the field. The aim of this approach is to source new opportunities for shared commercialization of innovative ideas that would benefit these sectors, the smart metering and the power sector.Thrust is on smart metering advanced techniques to assist in the achievement of the energy management objectives. The initiatives of Intelismart are also aimed at achieving the wider objectives of power Sector Modernization and Efficienc.
  

The digital utility market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Solutions
  • Advanced Metering Infrastructure (AMI)
  • Energy Management System (EMS)
  • Customer Information System (CIS)
  • Geographic Information System (GIS)
• Services
  • Consulting services
  • System integration
  • Managed services

Market, By Deployment

• On-premises
• Cloud

Market, By Utility

• Power utilities
• Water utilities
• Gas utilities

Market, By End Use

• Residential
• Commercial
• Industrial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa