How Has the Smart Utilities Market Size Evolved in Recent Years?
The smart utilities market has seen considerable growth due to a variety of factors.
• The smart utilities market has expanded rapidly in recent years. It will rise from $46.64 billion in 2024 to $53.25 billion in 2025 at a compound annual growth rate (CAGR) of 14.2%.
This growth is driven by the increased adoption of energy storage solutions, the need for demand response management, growing renewable energy demand, rising energy consumption, and infrastructure modernization investments.
What are the Market Size and Expected Growth Rates for the Smart Utilities Market?
The smart utilities market is expected to maintain its strong growth trajectory in upcoming years.
• The smart utilities market is expected to grow rapidly, reaching $89.33 billion by 2029 at a CAGR of 13.8%.
The growth is driven by factors like improved grid reliability, weather-based load forecasting, digitalization, the increasing demand for sustainable energy solutions, rising utility costs, and a greater preference for energy-efficient appliances. Key trends during this period include hyper-automation, edge computing, predictive maintenance through digital twins, enhanced cybersecurity with quantum threats in focus, and the evolution of smart grids and autonomous systems.
Which Key Drivers Are Propelling The Smart Utilities Market's Growth?
The smart utilities market is projected to see a surge due to the increasing acceptance of electric vehicles (EVs). These vehicles, which are powered by one or multiple electric motors and utilize rechargeable batteries or other energy storage devices, are increasingly favored because of their convenience, eco-friendly nature, and expanding model variations. Also fueling their adoption are dwindling costs and supportive government policies directed at decarbonization. Smart utilities support EV integration through optimizing charging facilities, managing power grid demand, and facilitating efficient power distribution. As per data from the International Energy Agency (IEA), an autonomous intergovernmental organization based in France, the proportion of EVs in all new vehicle purchases augmented to 14% in 2022, a significant increase from around 9% in 2021. Therefore, the smart utilities market growth is largely attributed to the increased adoption of EVs.
What Are The Key Segments Within The Global Smart Utilities Market?
The smart utilities market covered in this report is segmented –
1) By Components: Hardware, Software, Services
2) By Technology: Wired, Wired-Less
3) By Applications: Meter Hardware, Communications And Networking, Power Quality Equipment, Technologies
Subsegments:
1) By Hardware: Smart Meters (Electricity, Gas, Water), Communication Modules (For Smart Grid Networks), Sensors And Actuators (For Monitoring And Control), Smart Grids And Substations Equipment, Advanced Metering Infrastructure (Ami), Energy Storage Systems (Batteries), Smart Transformers And Circuit Breakers, Iot Devices For Utilities
2) By Software: Smart Grid Management Software, Utility Data Management Systems (Udms), Energy Management Software (Ems), Geographic Information Systems (Gis), Billing And Customer Information Systems (Cis), Predictive Analytics And Forecasting Software, Scada Systems (Supervisory Control And Data Acquisition), Cloud-based Software For Utility Operations
3) By Services: Installation And Commissioning Services, Consulting Services (For Smart Grid Design And Implementation), Maintenance And Support Services, Data Analytics And Reporting Services, Cloud Hosting And Data Storage Services, Cybersecurity Services For Smart Utilities, Managed Services (For Operations And Monitoring), Remote Monitoring And Diagnostics Services
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How Are New Trends Impacting The Size Of The Smart Utilities Market?
To stay competitive and modernize urban water management, leading businesses in the smart utilities market are prioritizing the development of innovative technologies including advanced meter infrastructure (AMI) solutions. These integrated systems provide a platform for the efficient monitoring and control of utility usage by collecting and managing data automatically in real time. For example, ST Engineering, a tech and engineering conglomerate based in Singapore, unveiled an AMI solution known as BrightCity in June 2024 with the intent of aiding utility providers and consumers in managing water consumption. BrightCity overcomes the obstacles posed by outdated water infrastructure and fragmented metering systems by converting traditional meters into smart meters using its pioneering Meter Interface Unit (MIU). This MIU, compatible with a majority of water meters, facilitates the wireless gathering and integration of data into a consolidated Meter Data Management System (MDMS). This system offers predictive detection of leaks, real-time insights, and a portal for customers to monitor their water usage.
Who Are the Key Players In The Smart Utilities Market?
Major companies operating in the smart utilities market are:
• Siemens AG
• General Electric Company
• International Business Machines Corporation (IBM)
• Cisco Systems Inc.
• Oracle Corporation
• Mitsubishi Electric Corporation
• Schneider Electric SE
• Honeywell International Inc.
• ABB Ltd
• SAP SE
• Eaton Corporation plc
• Atos SE
• Wipro Limited
• Tech Mahindra Limited
• Xylem Inc.
• Hubbell Incorporated
• Itron Inc.
• Enel X S.r.l.
• Landis+Gyr Group AG
• S&C Electric Company
• Semtech Corporation
• Kamstrup A/S
• Smart Energy International
• Tantalus Systems Corporation
• Trilliant Holdings Inc.
What Are The Regional Insights Into The Smart Utilities Market?
North America was the largest region in the smart utilities market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart utilities market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
