Utility Communication Market Growth Report 2021 to 2031
The utility communication market size is projected to reach US$ 32.28 billion by 2031 from US$ 21.16 billion in 2023. The market is expected to register a CAGR of 5.4% in 2023–2031. The evolution of the Industry 4.0 concept and the growing number of renewable energy projects are likely to remain a key utility communication market trends.
Utility Communication Market Analysis
The utility communication market is growing at a rapid pace due to the growing need for billing process modification surged the demand for personalized communication networks and the increasing demand for distributed energy resources (DER). The market is expanding steadily, driven by favorable government initiatives and investment to promote to development of power infrastructure. Moreover, the development of smart grid infrastructure and the rising adoption of technologically advanced systems integrated with the Internet of Things (IoT) and artificial intelligence (AI) are providing lucrative opportunities for market growth.
Utility Communication Market Overview
Utility communication is systems that ensure more reliable, secure, and safe transmission of data, video, and voice across WANs and LANs. This communication system offers users the benefits of easy installation in hazardous locations. The utility communication system works by using numerous networks, including video surveillance, smart grid, supervisory control & data acquisition (SADA) system, and ethernet-based connectivity. Moreover, the growing demand for wired and wireless communication systems by utility for monitoring power consumption and distribution is boosting the market during the forecast period.
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Utility Communication Market: Strategic Insights
Market Size Value in US$ 10,730.4 Million in 2019 Market Size Value by US$ 35,138.1 Million by 2027 Growth rate CAGR of 16.3% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Utility Communication Market: Strategic Insights
| Market Size Value in | US$ 10,730.4 Million in 2019 |
| Market Size Value by | US$ 35,138.1 Million by 2027 |
| Growth rate | CAGR of 16.3% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Utility Communication Market Drivers and Opportunities
Growing Need for Billing Process Modification Surged the Demand for Personalized Communication Networks is Driving the Market
Utility bills are the primary method used by utilities for informing individuals about their electricity consumption, followed by bill payments from consumers. The bills are also used to inform and remind consumers of their outstanding amounts from earlier usage. The modification of billing systems makes it easier to track consumers with bad debt or those engaging in fraudulent operations. These modifications encourage market players to launch new innovative accounting solutions for a variety of applications. For example, the Siemens EnergyIP Meter Data Management (MDM) program streamlines smart meter data management business operations. Its extensive collection of tools enables utilities to handle conventional use cases, such as meter-to-cash billing data and emergent use cases, which leverage loT-driven data from registers, times, and time-of-use to serve a variety of mission-critical business applications. Furthermore, distributed power generation and multiple distribution lines make the invoicing process more complex and prone to errors. This is increasing demand for the standardization and automation of utility communication billing and bill payment methods, resulting in a desire for individualized communication networks.
Development of Smart Grid Infrastructure - An Opportunity in the Utility Communication Market
Smart grid infrastructure is crucial in the communications industry of energy and power utilities. A smart grid influences ICT to converge and allow for the flow of real-time information between power utilities and their suppliers, partners, and commercial and residential customers operating inside power utilities. The implementation of smart grids heavily relies on a strong, secure, highly ascendable, and constant availability of communication network. An effective communication network has the willingness to increase service efficiency by allowing the utility industry to assure regulatory compliance and reduce the negative effects of cost-cutting measures. Thus, the utility communications network serves as the foundation of a two-way connection between systems with all data points. It helps utility operators to track and manage grid equipment, measure network output, and provide real-time data. Hence, the expanding use of smart grid systems in the utility communications sector is expected to create opportunities for the worldwide utility communication market during the forecast period.
Utility Communication Market Report Segmentation Analysis
Key segments that contributed to the derivation of the utility communication market analysis are technology and utility type.
- Based on technology, the utility communication market is divided into wired and wireless. The wired segment is further subsegmented into optic fiber, power line carrier (PLC), ethernet, other technology types. The wired segment held a larger market share in 2023.
- In terms of utility type, the utility communication market is categorized as private utility and public utility. The public utility segment held a larger market share in 2023.
Utility Communication Market Share Analysis by Geography
The geographic scope of the utility communication market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
The market in Asia Pacific is projected to expand during the forecast period, due to the expanding utility industry and the growing demand for smart city infrastructure. Governments of various nations, including China, India, Japan, and others, are making significant investments to develop and upgrade existing power infrastructure. Moreover, the growing demand for real-time monitoring, power consumption, and reducing outages surging the demand and incorporation of utility communication networks. Moreover, the rising adoption of the Internet of Things (IoT) and artificial intelligence (AI) technologies to automate the utility communication system is expected to create opportunities for market growth.
Utility Communication Market News and Recent Developments
The utility communication market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for utility communication and strategies:
- In July 2022, The Truckee Donner Public Utility District (TDPUD) unveiled a new Outage Management System, which will improve the timeliness and accuracy of outage communication with customers. The TDPUD has committed to providing this community with the best power and water service possible and continuing to reinvest rate-payer dollars back into our utilities and infrastructure. (Source: Truckee Donner Public Utility District (TDPUD), Press Release, 2022)
- In March 2021, Itron Inc. announced the launch of its eHZ-B residential smart meter for utilities and cities in Germany. The latest addition to Itron’s proven 3.HZ FNN-compliant portfolio, the eHZ-B smart meter is built with advanced functionality to support Germany’s ongoing energy transition to a low carbon, environmentally sound, reliable, and affordable energy supply and equip utilities and cities to safely migrate to a smart and connected distribution network. (Source: Itron Inc., Press Release, 2021)
Utility Communication Market Report Coverage and Deliverables
The “Utility Communication Market Size and Forecast (2023–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology ; Utility Type
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The incremental growth expected to be recorded for the global utility communication market during the forecast period is US$ 11.12 billion.
The global utility communication market is expected to reach US$ 32.28 billion by 2031.
The key players holding majority shares in the global utility communication market are ABB Ltd, Fujitsu Limited, General Electric Company, Honeywell International Inc, and Omicron Electronics GmbH.
The evolution of the Industry 4.0 concept and the growing number of renewable energy projects to play a significant role in the global utility communication market in the coming years.
The growing need for billing process modification surged the demand for personalized communication networks and the increasing demand for distributed energy resources (DER) are the major factors that propel the global utility communication market.
The global utility communication market was estimated to be US$ 21.16 billion in 2023 and is expected to grow at a CAGR of 5.4% during the forecast period 2023 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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