According to a market research report published by MarketsandMarkets, Internet of Things (IoT) in utility market size is estimated to grow from USD 4.63 Billion in 2015 to USD 11.73 Billion by 2020, at a Compound Annual Growth Rate (CAGR) of 20.4% during the forecast period.
Currently, the IoT is at the center stage of digital transformation. IoT technology can bring exceptional operational efficiency to the utility sector.
It can provide more visibility in the challenging operational environment, where the automation process can have a potential role to play. Cost efficiency, reliability, and safety are the desired goals achieved with the IoT application in the utility sector.
Due to the accelerated growth and low market entry barriers for the new entrants in the IoT market, start-ups are getting opportunities of venture funding from investors all around the world.
The major driver for upsurge in demand for IoT solutions in the utility sector is the increase in the operational efficiency with less infrastructure investment and integration of existing technology solutions and hardware over a common platform.
Additionally, declining cost of IoT components and regional government initiatives for smart grid roll-out are some of the driving factors which are accelerating IoT in utility market.
“The IoT is eliminating barriers and allowing the utilities target large audiences and enabling new business opportunities and delivery models.
On the basis of software, IoT in utility market is segmented into analytics, security, operations control, smart grid management, predictive asset management, and Customer Information System (CIS) and billing system.
The increasing trends of mobile, cloud, and smart devices along with factors such as predictive analytics for business, conducive platforms for analytics, and end-to-end automation are significantly driving the market across the world.
These benefits are the prime reasons for the increasing investment in analytics solutions segment by major enterprises and business.
“Asia Pacific (APAC) is expected to experience extensive growth opportunities in the next few years”
For exhaustive regional analysis, the IoT in utility market is segmented into North America, Europe, APAC, Latin America and Middle East and Africa (MEA). North America is expected to witness the highest market size during the forecast.
The major push factors for the market in North America are: the smaller co-operative utilities are expected to inject funds for IoT deployment; and the regional government initiative to offer low interest federal loan for large water infrastructure projects to utilities are.
APAC is fastest-growing region owing to the public and private partnership models developed for the infrastructure re-development in the major parts of the region.
The scope of the report covers detailed information regarding the major factors influencing the growth of the IoT in utility market such as drivers, restraints, challenges, and opportunities.
A detailed analysis of the key industry innovators has been done to provide insights into their business overview, products and services offered, key strategies, and recent developments associated with the IoT in utility market.