In addition, increasing concerns to make the most effective use of energy in order to reduce the ever-increasing energy need contributes to the growth of the IoT utilities market between 2016 and 2024.
According to the energy market research company, the potential of IoT in the utility sector is huge owing to the benefits provided by these solutions such as gaining real-time visibility into every process in the facility.
Moreover, government initiatives for implementing smart grid in countries such as India and China is expected to propel the IoT utilities market growth. The smart grid initiatives by Indian multinational corporation companies such as Crompton Greaves, North Delhi Power Limited lies lucrative growth opportunities.
Asia Pacific IoT utilities market is also expected to witness huge adoption owing to the rising demand for smart metering solutions and efforts to promote smart buildings & cities.
The potential of smart meters to significantly reduce cost by improved outage management & easier payments and enhanced customer service are enabling huge growth opportunities in the region.
Moreover, the rising use cases coupled with the presence of large number of gas & electricity production facilities and heavy investments to improve the energy infrastructure in the region is fueling the IoT utilities market growth.
The hardware segment dominates the IoT utilities market owing to the increasing investments in hardware integrated with advanced digital solutions across the industry.
However, the U.S. will continue to dominate the IoT utilities market due to the high awareness of the users regarding the benefits of implementing IoT technology that helps in managing their resources. The presence of large number of gas production facilities in the country supports the rising demand to implement such solutions.
Increased demand for smart solutions in the energy sector in the U.S. will continue to bring demand for advanced solutions driving the growth. Moreover, advanced infrastructure of the country is increasing the demand for cloud solutions, which will further fuel consumption.
Increasing demand from users for remote monitoring of facilities for quick identification and restoration of any kind of leakage and faults is expected to give rise to the adoption of IoT solutions for gas management. Leakage in the facility assets such as pipelines might cause a large amount of destruction which can be avoided by using such advanced solutions.
Taking into consideration, the findings of its recent study on utilities’ adoption of IoT, Global Market Insights forecasts revenue generation in the segment to reach $15 billion by 2024.
Smart grids can transform an electric power grid using IoT by integrating the devices, processes and the energy infrastructure into a more connected and collaborative process. It enables the generated energy to get distributed and consumed in a more efficient and timely manner resulting in enhanced reliability and security to the users.
Professional services are dominating the revenue share in the IoT utilities market due to the increasing demand from utility companies for highly customised business as well as consulting services. The benefits of using professional services helps enterprises to mitigate risks by developing and prioritising strategies, optimise the performance & security resulting in improving the business processes.
IoT utilities market, players/tips for growth
The insufficiency of technically skilled workforce coupled with the lack of standards is expected to hinder the IoT utilities market growth. Growing incidents of cyber security breaches throughout the industries accessing highly sensitive information coupled with the lack of interoperability might pose a challenge to the IoT utilities market.
Amongst prominent industry players is Microsoft Corporation, Intel Corporation, Cisco Systems Inc., IBM Corporation, Huawei Technologies Co. Ltd. General Electric, Trilliant Inc., Osisoft LLC and Honeywell International Inc.
The industry is currently witnessing heavy investments on research and development for fully connected solutions by major players. IoT solutions are considered as a necessity for the utility industry eliminating the requirements for physical visits to monitor the assets, fault & leakage detection and restoration.
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