The digital utility market is projected to grow from an estimated $135.16 billion in 2017 to $244.31 billion by 2022, at a compound annual growth rate of 12.57 percent, from 2017 to 2022, according to a report issued by MarketsandMarkets.
This growth can be attributed to the increase in the number of distributed and renewable power generation projects, energy efficiency mandates demanding carbon emission reduction, and strict regulatory requirements for electric utilities.
The digital utility market in Asia-Pacific is projected to grow at the fastest rate during the forecast period. Increasing investment in the electrical infrastructure and growing decentralized power generation will be driving the growth of the digital utility market in the region during the forecast period. The developing smart grid projects and investments in smart cities are also driving the digital utility market in Asia-Pacific.
Based on technology, the integrated solutions segment is estimated to grow at the fastest rate during the forecast period. The integrated solutions segment, which encompasses cloud platforms, analytics and data management, and related services, is a key aspect that enables the digital transformation of utilities. These solutions improve efficiency and productivity in the utilities sector which can drive the digital utility market.
Upcoming smart cities and the need to improve productivity and efficiency of utilities are expected to create new opportunities for integrated solutions providers and cloud platform companies in the digital utility market. Utilities are also focusing on deploying digital technologies in restructuring their businesses. All these factors will drive the digital utility market during the forecast period.
The market in North America is currently the largest market for digital utility, closely followed by the European market. Rising investments in aging electrical infrastructure and increasing electricity demand are driving the digital utility market in the North America. The market in the U.S. is estimated to be the largest in the region, followed by the markets in Canada and Mexico, during the forecast period.
For more information about the report, click here.
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Digital Transformation of the Power Plant is one of the key content tracks in the Summit at POWERGEN International. The Smart Power Plant Knowledge Hub also will be on the exhibit floor. POWERGEN International is Nov. 19-21 in New Orleans.
(Smart Energy International and Power Engineering are both part of Clarion Energy. Story reused with permission).