By using digital tools such as sensors, power generators can now access multiple data points, varying from fuel temperature and pressure to vibrations and humidity levels, depending on the type of plant. This journey is backed by supporting technologies, with cybersecurity and data governance https://www.justuk.org/category/tech-and-innovation/ lying at its very core. Five intensifying challenges are prompting many electric power providers to seek new tools and processes for asset management (figure 1). To achieve this, companies will likely need to move away from traditional asset management strategies and develop comprehensive digital strategies with robust data governance and cybersecurity at the core.
The digital utility market size is expected to see rapid growth in the next few years. Embracing these innovations will be essential for both utilities and consumers looking to navigate the challenges and opportunities of a rapidly changing world. Utility companies are increasingly turning to digital technologies to better engage with customers and provide them with the services they need. One way to do this is to implement strong authentication measures, such as two-factor authentication, to make it more difficult for hackers to gain access to systems. There are numerous benefits for utility companies, including reducing latency, saving on bandwidth costs, and improving security.
The digital utility market is increasingly adopting AI-enabled software platforms that combine grid planning, operations, asset management, and real-time network intelligence. North America dominated the digital utility market with a market share of 38.45% in 2025. Discover how ArcGIS supports modern network management with modeling, interoperability, enterprise access, and data quality. Start by identifying core challenges (e.g., asset aging, demand forecasting, manual reporting), and then assess your data maturity. Those utilities that embrace change, champion innovation, and act decisively will shape the future of energy. Utilities must address legacy challenges and capitalize on emerging opportunities by adopting innovative thinking.
- In addition, digital channels such as online portals and mobile apps make it easier for customers to access information and transact with their utility.
- The digital utility market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?
- From 2026 to 2034, the digital utility market is expected to advance steadily as utilities move from foundational digitization toward fully connected operating models.
- A central aspect of digital transformation is the deployment of digital technologies and their adoption by each utility.
- In substations, power plants and control centres, cybersecurity is now firmly on the agenda.
Impact of digital transformation in the water utility sector
The Middle East & Africa digital utility market accounted for 4.25% of the global market, reaching USD 10.58 billion in 2025, and is anticipated to grow at a CAGR of 10.85% during the forecast period. Latin America’s digital utility market accounted for 5.85% of the global market, reaching USD 14.57 billion in 2025, and is expected to grow at a CAGR of 11.45% during the forecast period. Europe’s digital utility market accounted for 27.15% of the global market, reaching USD 67.61 billion in 2025, and is expected to register a CAGR of 10.65% during the forecast period. The Asia Pacific digital utility market accounted for 24.3% of the global market, reaching USD 60.52 billion in 2025, and is projected to grow at a CAGR of 13.25% during the forecast period. Canada’s modernization of utility infrastructure, increasing adoption of smart metering and grid technologies, and growing focus on energy efficiency continue to support digital utility market development.
Global Digital Utility Market Trends and Insights
For instance, digital technologies are expected to have great potential for improving efficiency, especially in the CD subdivision, e.g., through intensified consumer outreach and feedback resulting in improved demand management, despite its low current penetration rate. Widely adopted digital technologies with higher TAS may function as entry points to digital transformation. To identify the key-enabling technologies for the digital transformation of water utilities, we analyzed the penetration of individual digital technologies across all water utilities in the sample of respondents by computing the technology availability score (TAS; see Methods). 3 show that all utilities in our https://business-soulwork.com/when-to-focus-on-environmental-sustainability/ sample have commenced the process of digital transformation in at least one subdivision and have adopted/planned digital technologies in their operations. Higher UDS represents greater penetration of digital technologies within the respective utility. A central aspect of digital transformation is the deployment of digital technologies and their adoption by each utility.
Sustainability and Regulatory Compliance
He is focused on delivering solutions to complex and critical challenges within the industry and brings a strong passion for making a difference with some of our largest power, utility, and renewable energy businesses and their customers. The North American Electric Reliability Corporation’s Critical Infrastructure Protection (NERC CIP) standards that address cybersecurity of the bulk electric power system continue to evolve, and should be considered as a floor from which to build. Perils prowl across industrial control systems, such as SCADA, and extend into all of the components of the industrial internet of things (IIoT), including sensors, mobile apps, capital equipment, software, firmware, hardware, operating systems, databases, ports, and more (figure 5).
Utilities respond by deploying mobile portals and AI‑driven alerts, turning data access into a competitive differentiator rather than a compliance check‑box. Meanwhile, firms like Honeywell, Hitachi Energy and Cisco inject cybersecurity, IoT connectivity and edge analytics into the value chain, reinforcing the ecosystem’s resilience as regulatory pressure mounts on data integrity and grid reliability. Residential and commercial consumers now expect instantaneous access to consumption data, pricing signals and outage notifications via mobile apps. Discover the future of AI with four scenarios that could reshape the business landscape by 2030.
These trends are already starting to have a significant impact on the way that utility companies operate, and it is expected to continue to do so in the future. The project also involved upgrades to the grid infrastructure, including new substations and switching equipment. In addition, digital channels such as online portals and mobile apps make it easier for customers to access information and transact with their utility. In the end, digital transformation can help utilities create a more sustainable and equitable energy future. Many utilities are turning to digital technologies to improve customer service, increase efficiency, and reduce costs.
Helping clients deliver reimagined future business at scale holistically. Utilities are increasingly recognizing the diverse applications of digital twins as they seek to enhance operational efficiency and address industry challenges. Today, many implementations are isolated and discrete, but a more integrated future awaits.
Customer self-service and billing transparency
With the increased connectivity that digital transformation brings, cybersecurity https://www.homeofamazing.com/how-can-solar-energy-be-integrated-into-home-design/ threats now extend into the cloud, across third-party networks, and through connected assets and devices. Two elements that should be at the core of any digital asset management strategy are data governance and cybersecurity. Generation plants are stationary and usually have access to high-speed communications, so progression through the loop may be faster and more widespread in this segment. They’ll deploy more smart devices and distributed analytics at the grid edge to access more granular information in real time.
Reliable service, lower losses, and a system built for the future. Digital technology isn’t just supporting the utilities industry – it’s rewiring it for the future. Digital tools like self-service portals, mobile apps, and chatbots allow utilities to offer 24/7 access to account info, outage updates, and billing. These challenges underscore the need for a well-planned, scalable digital strategy that addresses both technological and organizational complexities. According to the International Energy Agency (IEA), digital technologies could help reduce global carbon emissions by up to 6 gigatons by 2050.
North America’s digital utility market accounted for 38.45% of the global market, reaching USD 95.76 billion in 2025, and is projected to grow at a CAGR of 10.95% during the forecast period. Its leadership is supported by the increasing digitization of electricity networks, including smart grid infrastructure, advanced monitoring, automated control systems, and digital asset management. Predictive maintenance therefore provides technology suppliers with an opportunity to increase digital utility market share. Legacy-system fragmentation can consequently restrain digital utility market growth by increasing implementation complexity and modernization costs. Increasing distributed generation is therefore strengthening digital utility market demand. AI-powered grid orchestration is therefore becoming an important part of digital utility market trends.