IoT technology solutions help integrate business processes to support the utility industry reach its growth phase. By integrating technologies and existing operations, IoT is expected to improve their operational efficiency with lower investments in infrastructure. Further, the fact-based insights generated via internet-related gadgets can be employed to answer important problems, make real-time choices, improve efficiency, and create new and revolutionary experiences in the future. Inkwood Research predicts the global IoT in energy & utility application market will grow with a CAGR of 10.39% during the forecast period, 2022-2030.
The role of green tech and energy in the utility sector is growing exponentially and will further diversify the role of IoT in the energy & utility sector, mainly in Asia-Pacific, North America, and Europe. Additionally, long-time players like Cisco Systems Inc, SAP SE, ABB Ltd, etc., and new players like BuildingIQ Inc, Bastille, Blue Wireless, etc., must embrace the rising demand for renewables to remain relevant in the utility market.
An Overview | Regional Growth Prospects Via Leading Segments
IoT in energy production can efficiently satisfy the energy demands in smart cities. A 2019 report mentions that global energy consumption will surge by 40% over the next 25 years, propelling the need for smarter energy solutions to reach an all-time high. Moreover, the energy demand is expected to surge exponentially post-pandemic as growing demand can be witnessed across various industries and market segments. The global IoT in energy & utility application market report includes segmentation by connectivity, end-user, and component.
Electricity grid & supply management leads the end-user segment with an 11.62% CAGR.
The market growth is driven by the transformation of existing power networks into smart grids in order to satisfy rising power demands. Besides, an IoT-based electricity grid can be deployed for distributed coordination, transmission, distribution, location awareness, mobility support, and energy consumption. Therefore, due to their versatility, various leading companies adopt electricity grids in manufacturing and energy supply plants.
For instance, in 2015, General Electronics (GE) announced one of its largest industrial acquisitions of Alstom’s power and grid businesses in more than 20 countries and regions, including the United States, Europe, India, China, Japan, and Brazil. This major acquisition immediately benefitted the market for GE 9HA/7HA gas turbines and Alstom steam turbines & heat recovery steam generators in various Asia-Pacific and European projects.
Asia-Pacific to hold 28.94% of the market share by 2030.
According to a global survey, IoT is considered critical to business success by over 3,000 developers and business & internet technology decision-makers from the Asia-Pacific region. Furthermore, the COVID-19 pandemic is driving more investment across multiple industries as IoT closely integrates with technologies. The region has the potential to become the world’s largest IoT market with its adoption in almost every sector during the forecast period.
Moreover, various company acquisitions and product launches create opportunities for the Asia-Pacific IoT in energy & utility application market. For instance, in 2021, BP, a globally integrated energy company, coordinated with Infosys to develop and pilot an energy as a service (EaaS) solution to help businesses improve infrastructure’s energy efficiency and provide instructions to meet their goal to counter carbon emission.
Key Market Restraints
The rapidly growing democratization of technology and data makes Big Data and predictive analytics themes for future business growth. Moreover, IoT technologies are highly flexible and are applicable in many business contexts. However, energy & utility applications in renewable energy are challenging from the view of investments. The companies have to invest highly and make the right decision to choose either cloud-based technology or on-premises technology. They may also have a huge amount of crucial data, which, when opted for deployment, may cause security issues.
The adoption of IoT solutions to achieve business outcomes in the global IoT in energy & utility application market is complex. Organizations need a well-defined metrics for seamless adoption of IoT-based digital technologies to measure success. According to a market study, 61% of enterprises are confident in getting their return on the investment done in IoT within 3 years. In addition, a survey conducted by Forbes, estimates that about 37% executives who deployed IoT technology in their companies witnessed improved efficiency and productivity. Therefore, IoT leaders must develop strategic imperatives and a thorough understanding of the enterprise’s business objectives to achieve maximum outcome of the technology.
What is the leading component in the global IoT in energy & utility application market?
With an expected CAGR of 10.78%, services is the leading component in the global IoT in energy & utility application market.
What will be the total value of the global IoT in energy & utility application market during the forecast period, 2022-2030?
The global IoT in energy & utility application market is anticipated to be valued at $73219.61 million during the forecast years.