The success story of smart grids and smart meter deployment is one of the vital factors that may have pushed IoT in utility industry size in recent years, on the grounds of the fact that the incorporation of IoT in electric meters has indeed helped in power conservation. Today, IoT is being prominently adopted across the utility sector, with the deployment of cost-effective sensor technology in synchrophasors and smart grids. As per reliable estimates, in 2016, more than 6 billion connected devices were used across the globe, and the figure is anticipated to touch 21 billion by 2020. The massive use of IoT enabled smart grid is predicted to discharge a substantially large repository of information for examination by utility bodies that would ultimately enable effective decision-making regarding the networks. The application of this technology in meter data management and cybersecurity will further promote the development of IoT in utility market.
UK IoT utilities market, by application, 2016 & 2024 (USD Million)
The advent of IoT has paved the way for new utility services and business prototypes. Experts have forecast that network management systems will serve as a main component of the IoT utility industry, with utility service providers handling heterogenous communication systems such as multi-vendor and multi-protocol networks. In addition, the deployment of network management systems would have a considerable impact on IoT in utility market size, which is likely to accrue substantial gains subject to the robust growth of the telecommunications sector.
With the internet of things revolutionizing the utility sector, entities across the power supply domain have also been making robust investments in the IoT technology. According to the reliable sources, the number of IoT devices managed by organizations across the utility sector is anticipated to reach nearly 1.53 billion by 2020 from a humble 485 million in 2013. The current scenario demonstrates that utility units have been exploiting IoT to quite a considerable level to improve their information flow processes, asset performance, operational efficiency, power supply, maintenance processes, and energy conservation. Furthermore, growing IoT applications in the utility sector to avoid outages for enhancing consumer experience will also help IoT in utility market garner renewed popularity.
Experts predict that utility companies will certainly exploit IoT to encourage consumers FOR operating and adjusting smart & programmable thermostats via their smartphones in the most cost-effective way possible. On the other hand, firms across the utility sector that have commenced the construction of basic smart grid communications & metering infrastructure are looking forward to optimally deploy IoT further in their projects, which would facilitate the expansion of IoT in utility industry in the near future.
IoT is deployed across gas management, electricity grid management, and water & waste management sectors. The escalating popularity of the Internet of things across the electricity grid management fraternity is anticipated to create a profitable roadmap for IoT in utility industry over the next few years. In addition, even the gas management business is forecast to make substantial contributions toward IoT in utility market share over the coming seven years, subject to the growing necessity of utility units for providing customized consulting solutions to the end-users.
IoT in utility industry has penetrated deeply across myriad geographies, and is expected to continue demonstrating its appreciable growth rate. The U.S. IoT in utility market share for instance, is likely to driven by the robust use of IoT technology for resource management. In addition, mounting demand for the most advanced technologies in large gas production units to save time and energy will further accelerate the growth of the regional industry. The growing digitization trends and use of modern technologies by electricity production & distribution units are also expected to generate lucrative growth avenues for APAC IoT in utility industry.
The competitive hierarchy of IoT in utility market is rather big-league, comprising top-shots such as Microsoft Corporation, Cisco Systems Incorporation, IBM Corporation, Huawei Technologies Company Limited, Trilliant Incorporated, General Electric Incorporation, and Honeywell International Incorporation. Given the robust competition prevalent in this business space, these giants have been undertaking exceptional initiatives that would augment the product landscape of IoT in utility industry. In all probability, their efforts are certain to bear fruit, with IoT in utility market size forecast to cross a valuation of USD 15 billion by 2024.