Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

Global Digital Power Utility Market Analysis Report 2026-2031: Renewable Energy and Distributed Resources Reshape Grid Operations

globenewswire.com
AEP American Electric Power is mentioned for its USD 350 million smart-grid deployment in Ohio, indicating investment in grid modernization which is a key driver for the digital power utility market. DTE DTE Energy is mentioned for its USD 4 billion program, highlighting significant investment in grid modernization and digital transformation within the power utility sector. NGG National Grid's USD 35 billion modernization program is cited as a driver for demand in North America's digital power utility market, indicating substantial investment in grid upgrades. FE FirstEnergy's USD 1.42 billion grid enhancement initiative is mentioned as a factor supporting demand in the North American digital power utility market. MSFT Microsoft is listed as a key company in the digital power utility market landscape, suggesting its involvement in providing solutions for the sector. IBM IBM is identified as a key player in the digital power utility market, indicating its role in providing technology solutions for grid modernization and data management. GE General Electric is mentioned as a company within the digital power utility market, suggesting its participation in providing relevant technologies or services. HON Honeywell International is listed as a company operating within the digital power utility market, indicating its potential involvement in providing solutions for the sector. ORCL Oracle Corporation is listed as a company within the digital power utility market, indicating its potential involvement in providing software and data management solutions. ITRN Itron Inc. is mentioned as a company in the digital power utility market, likely providing smart metering and grid management solutions. ACN Accenture PLC is mentioned as a company in the digital power utility market, likely providing consulting and implementation services for digital transformation. INFY Infosys Limited is mentioned as a company in the digital power utility market, likely offering IT services and solutions for the energy sector.

Global Digital Power Utility Market Analysis Report 2026-2031: Renewable Energy and Distributed Resources Reshape Grid Operations Dublin, Sept. 07, 2026 (GLOBE NEWSWIRE) -- The "Digital Power Utility - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The global digital power utility market was valued at USD 131.60 billion in 2025 and is projected to increase from USD 142.68 billion in 2026 to USD 213.88 billion by 2031. The market is expected to register a compound annual growth rate of 8.42% between 2026 and 2031, supported by smart-grid modernization, renewable energy integration, edge artificial intelligence, advanced metering infrastructure and growing demand for reliable electricity networks.

Smart-Grid Modernization Drives Digital Power Utility Market Growth

Utilities allocated more than USD 40 billion to smart-grid upgrades during 2024, establishing digital modernization as a core capital investment priority. Major initiatives include American Electric Power's USD 350 million deployment in Ohio and DTE Energy's USD 4 billion program. These investments reflect a broader transition from conventional hardware replacement to interoperable, data-driven infrastructure that combines advanced metering, distribution automation and real-time grid monitoring.

Digital power utility solutions enable operators to reduce service interruptions, improve outage response and lower field maintenance costs. Access to detailed consumption data also creates opportunities for utilities to introduce value-added services and more responsive customer programs.

Renewable Energy and Distributed Resources Reshape Grid Operations

The continued expansion of rooftop solar systems, battery storage and electric vehicle charging infrastructure is increasing the need for advanced grid orchestration. FERC Order 2222 has further supported the participation of aggregated distributed energy resources in wholesale electricity markets, accelerating demand for platforms capable of managing bidirectional power flows.

Edge computing and AI-enabled devices help utilities manage local fluctuations before operational data reaches centralized control systems. These technologies can improve renewable energy ramp management, reduce curtailment and support customer incentive programs focused on flexible electricity consumption. Additional market growth is being encouraged by decarbonization regulations, energy-efficiency requirements and real-time grid optimization initiatives.

However, high initial capital requirements remain a significant barrier. Full-scale smart-grid deployments can cost between USD 2 million and USD 5 million per thousand customers, while investment recovery periods may extend beyond standard regulatory cycles. Smaller utilities and cooperatives can face financing constraints, and lengthy approval processes may expose projects to changing equipment costs. Legacy-system interoperability also continues to complicate large-scale digital transformation.

Integrated Solutions Maintain Market Leadership

Integrated solutions accounted for 60.35% of digital power utility market revenue in 2025, reflecting strong demand for unified platforms that reduce data silos and simplify technology management. Digital twin platforms allow utilities to model asset performance under changing load and climate conditions, while AI-powered analytics can identify potential equipment failures six to twelve months in advance. Predictive maintenance capabilities may reduce unplanned outages by as much as 30% and enable repairs to be scheduled with minimal service disruption.

Hardware is forecast to expand at an 11.02% CAGR through 2031 as utilities deploy 5G-enabled smart meters, intelligent electronic devices, reclosers and phasor measurement units. Growth is especially strong across emerging Asia-Pacific markets, where advanced metering supports revenue protection, accurate billing and prepaid electricity services. Mature markets are also upgrading substation automation and protection systems to accommodate higher levels of renewable generation.

Cybersecurity is becoming a critical procurement requirement, with regulators increasingly assessing component-level vulnerabilities before approving new devices. Open-standard application programming interfaces are also gaining importance as utilities seek greater interoperability and reduced dependence on single-vendor technology ecosystems.

North America Leads While Asia-Pacific Records the Fastest Growth

North America generated 37.45% of global market revenue in 2025. Regional demand is supported by National Grid's USD 35 billion modernization program, FirstEnergy's USD 1.42 billion grid enhancement initiative and federal investment under the Infrastructure Investment and Jobs Act. These programs are increasing adoption of advanced conductors, dynamic line-rating sensors, protection systems and electricity trading optimization platforms.

Asia-Pacific is expected to record the fastest regional growth, advancing at a 12.25% CAGR from 2026 to 2031. China has invested more than USD 4.3 billion in smart-grid pilot projects incorporating AI-based fault detection and blockchain-enabled settlement. India is targeting 250 million smart-meter installations, while Southeast Asian countries are developing modern grids designed to manage bidirectional electricity flows. Japan and South Korea continue to test edge-AI voltage-control systems that could provide models for other densely populated markets.

Europe's digital power utility market is supported by the European Green Deal, cross-border renewable electricity trading and investment in high-voltage direct-current interconnectors. The Middle East and Africa offer emerging opportunities as Gulf countries diversify their energy systems and sub-Saharan markets connect off-grid solar resources with mini-grids. In South America, Brazil's transmission expansion is creating demand for real-time thermal monitoring, while Argentina's renewable energy growth is increasing adoption of distributed energy resource management systems.

Across all regions, data governance, cybersecurity and operational resilience will continue to influence utility technology decisions. Localized cloud environments, edge computing infrastructure and secure, interoperable platforms are expected to remain central to the digital transformation of the global power sector through 2031.

Key Topics Covered

1 Introduction

1.1 Study Assumptions & Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Market Drivers

4.2.1 Accelerated smart-grid investments

4.2.2 Integration of renewable energy & DERs

4.2.3 Regulatory push for decarbonization & efficiency

4.2.4 Edge-AI deployment for real-time grid optimisation

4.2.5 Data-centre flexibility procurement surge

4.2.6 Cyber-resilience mandates driving digital-twin uptake

4.3 Market Restraints

4.3.1 High upfront CAPEX requirements

4.3.2 Legacy-system interoperability barriers

4.3.3 Utility-grade data-scientist scarcity

4.3.4 Rising cyber-insurance premiums

4.4 Supply-Chain Analysis

4.5 Regulatory Landscape

4.6 Technological Outlook

4.7 Porter's Five Forces

4.7.1 Bargaining Power of Suppliers

4.7.2 Bargaining Power of Consumers

4.7.3 Threat of New Entrants

4.7.4 Threat of Substitutes

4.7.5 Intensity of Competitive Rivalry

5 Market Size & Growth Forecasts

5.1 By Technology

5.1.1 Integrated Solutions

5.1.1.1 Digital Twin Platforms

5.1.1.2 AI and Analytics Suites

5.1.1.3 IoT and Edge-Computing Middleware

5.1.2 Hardware

5.1.2.1 Intelligent Grid Devices (IEDs)

5.1.2.2 Advanced Metering Infrastructure

5.1.2.3 Communication Infrastructure

5.2 By Sector

5.2.1 Power Generation

5.2.2 Transmission and Distribution

5.2.3 Energy Storage

5.2.4 Energy Trading and Retail

5.3 By Geography

5.3.1 North America

5.3.1.1 United States

5.3.1.2 Canada

5.3.1.3 Mexico

5.3.2 Europe

5.3.2.1 Germany

5.3.2.2 United Kingdom

5.3.2.3 France

5.3.2.4 Italy

5.3.2.5 NORDIC Countries

5.3.2.6 Russia

5.3.2.7 Rest of Europe

5.3.3 Asia-Pacific

5.3.3.1 China

5.3.3.2 India

5.3.3.3 Japan

5.3.3.4 South Korea

5.3.3.5 ASEAN Countries

5.3.3.6 Rest of Asia-Pacific

5.3.4 South America

5.3.4.1 Brazil

5.3.4.2 Argentina

5.3.4.3 Rest of South America

5.3.5 Middle East and Africa

5.3.5.1 Saudi Arabia

5.3.5.2 United Arab Emirates

5.3.5.3 South Africa

5.3.5.4 Egypt

5.3.5.5 Rest of Middle East and Africa

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves (M&A, Partnerships, PPAs)

6.3 Market Share Analysis (Market Rank/Share for key companies)

6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)

6.4.1 ABB Ltd

6.4.2 Accenture PLC

6.4.3 AutoGrid Systems Inc.

6.4.4 Capgemini SE

6.4.5 Cisco Systems Inc.

6.4.6 General Electric Company

6.4.7 Hitachi Energy Ltd

6.4.8 Honeywell International Inc.

6.4.9 IBM Corporation

6.4.10 Infosys Limited

6.4.11 Itron Inc.

6.4.12 Landis+Gyr Group AG

6.4.13 Microsoft Corporation

6.4.14 Oracle Corporation

6.4.15 OSI (Open Systems International)

6.4.16 SAP SE

6.4.17 Schneider Electric SE

6.4.18 Siemens AG

6.4.19 Wipro Limited

7 Market Opportunities & Future Outlook

7.1 White-space & Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/eo32kt

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.