The Global Utility Communication Market size is expected to reach $27.5 billion by 2028, rising at a market growth of 5.4% CAGR during the forecast period.
A collection of tools and technology known as utility communication are used to coordinate the many components of a complex utilities distribution system. It provides real-time information, measures network performance, and monitors and controls grid equipment. Modern power systems perform more effectively due to the establishment of automated distribution networks for utilities (such as power and energy).
Due to the need for automation, the utility communication industry is anticipated to experience rapid expansion in the next years. This communication technology enables the efficient and well-regulated transport of utilities like gas and electricity. All of the data points throughout the utility can communicate with each other in both directions through the utility communications network.
Utilities all over the world are spending a lot of money to upgrade communications infrastructure in order to prevent an ecosystem of disjointed communication networks. Demand response (DR), advanced metering infrastructure (AMI), and distribution automation (DA) are supported by this infrastructure, which is funded by legal obligations, government grants, and the high cost of inefficient energy delivery.
Communication is becoming even more vital in the field of utilities as distributed power generation, and the development of smarter grids gain momentum. To regulate their multi-vendor, multi-technology networks, utilities are establishing to look for a variety of communication solutions.
Due to the difficulties in managing numerous advanced metering infrastructure platforms, many utilities are having trouble getting the most out of their current systems. Utility communication systems are becoming more and more in demand worldwide as a result of sudden increases in power consumption that have not been accompanied by an increase in generation and transmission capacity.
The coronavirus is already having negative consequences on the world, and in 2020, those effects will be moderately felt in utility communications. The COVID-19 virus epidemic in December 2019 prompted the World Health Organization to declare a public health emergency. There has been a high death toll globally as a result of the disease's global expansion over more than 100 nations. The global manufacturing, finance, tourist, and export-import sectors have all suffered huge losses. The downward pressure on the economy has once again increased worldwide after primarily showing the scope for improvement. The viral pandemic has already increased the risky aspects of the slow-growing economy.
The majority of nations are concentrating on putting advanced metering infrastructure (AMI) into place, which involves installing smart metres and other electronic equipment that allow for two-way communication and data transfer across end customers and utilities. The transition from conventional meters to smart meters is being influenced by issues including incorrect invoicing, electricity theft and fraud, late payments, and meter reading fees. As a result, expanding smart city projects demonstrate the market's growing demand for utility communications.
The power distribution network needs utility communication technology to be more dependable. To increase the operational effectiveness of power distribution systems, data is collected, automated, analysed, and optimised using sensors, processors, switches, and communication networks. The many field devices used to increase grid reliability, and operating efficiency include remote fault indicators, automated voltage regulators, smart relays, automated capacitors, automated feeder monitors, automated feeder switches/reclosers, transformer monitors, and remote terminal units.
The COVID-19 pandemic has slowed the expansion of the oil and gas sector by lowering demand and, as a result, the price of oil. Due to the global shutdown and related problems in the supply chain, the spread of COVID-19 is also adversely affected the producers of field devices used in utility communication. Due to the lack of supply, raw material prices also rose, thereby caused order closures to be delayed.
Based on technology, the Utility Communication Market is classified into Wired and Wireless segments. The wireless market accounted for a considerable revenue share in 2021. The foundation for two-way communication between all of the data points throughout the utility is the utility communications network. It aids in measuring network performance, regulating grid equipment, and providing real-time information. You can do this by utilizing wireless technologies.
Based on utility type, the Utility Communication Market is classified into Public and Private. The private segment generated the significant revenue share in 2021. Private financial supporters or partners own private utilities. Private utilities either operate their own electricity facilities or buy power through contracts. They operate on a large scale and devote greater resources to the implementation of intelligent utility correspondence innovation.
Based on component, the Utility Communication Market is segmented into Hardware and Software. The hardware classification held the largest revenue share in 2021. The utility communication equipment is comprised of parts, for example, handsets, power supplies, microcontrollers, transceivers, modems, wideband associations such as Lan, and optical fibres. The industry will most likely be pushed by a greater emphasis on employing parts that perform various tasks, for example, transportation framework control.
Based on application, the Utility Communication Market can be classified into Transmission & Distribution, Oil & Gas, and Others. The transmission and distribution segment generated the largest revenue share in 2021. The segment is expected to be driven by increasing power consumption and the replacement of aging power infrastructure. T&D managers rely on technological innovations to screen and detect flaws in their electrical organisations and hardware.
Based on end-user, the Utility Communication Market is categorized into Commercial, Residential, and Industrial. In 2021, the commercial segment held the prominent revenue share. The microgrid's ability to run in an island mode is its most crucial component. This implies that the commercial facilities can continue to generate and use energy even after being cut off from the main grid. The ability to island distinguishes a microgrid from other related ideas, like on-site renewable generating, which do not necessarily require to operate independently.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 19.2 Billion |
| Market size forecast in 2028 | USD 27.5 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 5.4% from 2022 to 2028 |
| Number of Pages | 286 |
| Number of Tables | 503 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Utility Type, Application, Technology, End-user, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on geography, the System Integrator Market is divided into North America, Europe, Asia Pacific, and LAMEA. In 2021, the major revenue share was generated by the Asia Pacific region. The key markets in the region include China, Japan, Australia, India, South Korea, and Malaysia. The area needs power severely because of its growing population and sizable manufacturing base. Therefore, these nations are actively investing in matrix extension projects to improve the dependability and adaptability of appropriation organizations.
Free Valuable Insights: Global Utility Communication Market size to reach USD 27.5 Billion by 2028
The major strategies followed by the market participants are Acquisitions and Partnerships. Based on the Analysis presented in the Cardinal matrix; Siemens AG and Schneider Electric SE are the forerunners in the Utility Communications Market. Companies such as Nokia Corporation, Motorola Solutions, Inc., and Fujitsu Limited are some of the key innovators in Utility Communications Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Fujitsu Limited, Schneider Electric SE, General Electric (GE) Co., Siemens AG, Motorola Solutions, Inc., Xylem, Inc. (Sensus), Itron, Inc., Trilliant Holding Inc., Digi International Inc., and Nokia Corporation.
By Component
By Utility Type
By Application
By Technology
By End-user
By Geography
The global Utility Communication Market size is expected to reach $27.5 billion by 2028.
The Expanding Scope Of Smart City Initiatives are driving the market in coming years, however, Covid-19's Impact On The Oil Market Decreased Oil Demand, And Supply Chain Breakdowns restraints the growth of the market.
Fujitsu Limited, Schneider Electric SE, General Electric (GE) Co., Siemens AG, Motorola Solutions, Inc., Xylem, Inc. (Sensus), Itron, Inc., Trilliant Holding Inc., Digi International Inc., and Nokia Corporation.
The expected CAGR of the Utility Communication Market is 5.4% from 2022 to 2028.
The Public segment acquired maximum revenue share in the Global Utility Communication Market by Utility Type in 2021 thereby, achieving a market value of $18.8 billion by 2028.
The Asia Pacific market dominated the Global Utility Communication Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $10.2 billion by 2028.
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