Digital revolution has penetrated the power and energy sector triggering demand for new capabilities and frameworks for renewables, smart grids and distributed generation. With widespread proliferation of technology, today’s power utility is likely to undergo digital transformation, thus enhancing efficiency and power management. Additionally, adoption of digital solutions in power utility can significantly contribute in reducing carbon emissions.
Study says that the global digital power utility market is expected to grow at an exponential rate of over 23% in the next six years and is likely to cross US$ 235 billion in 2027 from a valuation of around US$ 50 billion in 2020.
Rising Energy Demand to Boost Growth of Digital Power Utility Market
Rampant growth in urbanization has translated into an increased demand for energy and power. As per analysis of United Nations, around 68% of the overall population worldwide will reside in urban areas by end of 2050. Thus, to fulfil increasing demand for energy, it has become imperative to rely on renewable source of energy on the global front, given the depletion of existing fossil fuel volume. That said, governments across countries are promoting the use of renewable energy sources such as wind and solar to meet energy requirements. According to US EIA (Energy Information Administration), by 2050, renewable energy is expected to account for about half of the overall energy output. Also, other macro aspects such as increasing population coupled with stable increase in GDP per capita and industrialization growth rate have further fuelled the demand for electricity worldwide. in this backdrop, increasing demand for energy coupled with growing reliance on renewable sources is expected to pave potential avenues for digital power utility market in the following years.
Increasing Hardware Adoption in Next-Gen Equipment to Fuel Digital Power Utility Market Growth
Hardware used in digital power utility has been witnessing high demand and is expected to maintain status quo as the most used technology. Hardware in the digital power utility is expected to largely contribute towards market growth owing to its increasing adoption backed by significant investments in EV charging and smart metering. Moreover, with smart meters gaining momentum owing to declining use of traditional systems, use of hardware is expected to further increase particularly in the next generation equipment. That said, the digital power utility market is likely to witness significant contribution with increasing adoption of hardware.
Asia Pacific to Remain a Potentially Attractive Region for Digital Power Utility Market
Asia Pacific is expected to reflect high attractiveness for digital power utility market. Being considered as the power house of the energy market on the back of government support and incentives, the energy consumption in the region is likely to witness a significant boom. The region also paves potential opportunities in terms of developing efficient power transmission. Several countries in Asia Pacific face challenges apropos to inadequate distribution and transmission of power owing to poor network, which also leads to absence of electricity in few remote areas. In order to improve the situation, emerging economies are focusing on investing in developing transmission network. That said, it becomes imperative to mull upon leveraging technology and adopting digital power utility solutions that can support power distributors by giving real time control on assets using IoT and cloud.
In addition, a huge scope for the market lies in the region, particularly across countries such as China and India. According to IEA, China surfaced as the most lucrative market for energy solutions and power sector investment owing to rising demand across commercial and industrial sectors. Moreover, there has been a significant development in the distribution and transmission grid infrastructure in China. It is undergoing major modifications and upgrades making it compatible to transmit huge volume of electricity to cope up with the growing demand. Similarly, increasing energy investment in India is fuelling the need for digital power utility. For instance, in 2022, the Government of India expressed its vision of boosting the manufacturing of solar panels and modules under its PLI (Production Linked Incentive) scheme by allocating of INR 24,000 crore. In this backdrop, increasing demand for power and growing investments in power transmission and distribution is expected to fuel the growth of the market in the region.
Digital Power Utility Market: Competitive Landscape
Key players in the market are focusing on collaborations and strategic agreements to enhance market position and their portfolio. In 2021, Indian multinational Wipro Limited and National Grid entered into a multi-year strategic collaboration. This deal is expected to accelerate Wipro’s digital innovation journey. Likewise, same year in September a multi-year strategic deal was signed between Australia based Ausgrid and Microsoft Corporation and Infosys Ltd in order to fuel cloud transformation of Australia’s largest electricity distributor. In October 2021, EMA (Energy Market Authority) and SP Group partnered to develop digital twin for national grid. This digital twin will enhance reliability and resilience of Singapore grid by carrying out real time monitoring of events.
Few of the major players in the digital power utility market include Siemens AG, ABB Ltd., Microsoft Corporation, GE, IBM Corporation, Infosys Ltd, Cognizant Technology Solutions, Wipro Ltd and Accenture.
Global Digital Power Utility Market is Segmented as Below
Key Elements Included In The Study: Global Digital Power Utility Market
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