Utility Communication Market Report 2025

The utility communication market size has grown strongly in recent years. It will grow from $22.45 billion in 2024 to $24.38 billion in 2025 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to grid modernization initiatives, demand response programs, cybersecurity concerns, customer engagement programs, regulatory compliance requirements, globalization of utility operations.

The utility communication market size is expected to see rapid growth in the next few years. It will grow to $39.86 billion in 2029 at a compound annual growth rate (CAGR) of 13.1%. The growth in the forecast period can be attributed to increased interconnectivity, rise in distributed energy resources, smart city initiatives, focus on environmental sustainability, grid decentralization. Major trends in the forecast period include adoption of 5g technology, integration with IoT devices, global collaboration on standards, artificial intelligence in grid management, data analytics for predictive maintenance.

The growing demand for smart grids is projected to drive the utility communication market's growth in the coming years. A smart grid is an electrical network that incorporates automation, communication, and information technology systems, allowing it to monitor power flows from supply points to consumption sites and regulate the power flow or limit the load in real time to align with the supply. The rising need for operational efficiency has increased the demand for smart grids. These grids facilitate the use of distributed smart sensors, distributed power generation, real-time measurements, metering infrastructure, and monitoring systems, providing real-time operational information between utilities and consumers. For example, in September 2022, statistical data released by Enedis, a France-based utility company managing the electricity distribution network, indicated plans to boost its annual investments from €4.4 billion in 2022 to over €5 billion by 2032, peaking at €5.5 billion in 2027 due to heightened construction of electric vehicle charging infrastructure in condominiums. Thus, the growing demand for smart grids is propelling the utility communication market's expansion.

The anticipated rise in energy consumption is expected to further drive the growth of the utility communication market. Energy consumption refers to the total energy utilized over a specific timeframe within a given system or entity. It measures the amount of energy consumed to perform various activities, power devices, or support processes. Utility communication plays a crucial role in optimizing and managing energy consumption across different sectors. By enabling real-time communication between utility providers and consumers, it allows for efficient monitoring, control, and coordination of energy distribution. Smart grids, a key element of utility communication, use advanced technologies to gather data on energy consumption patterns, pinpoint inefficiencies, and facilitate timely responses to demand changes. Consumers benefit from accurate information about their energy usage, empowering them to make informed decisions to reduce consumption during peak periods or implement energy-saving practices. For instance, in April 2023, a report from the U.S. Energy Information Administration (EIA), a US federal statistical agency, revealed that renewable energy production and consumption reached record highs in 2022, comprising approximately 13% (13.4 quads) of total energy production and 13% (13.18 quads) of total energy consumption. Additionally, both hydropower generation and geothermal energy usage experienced a 4% increase in 2022 compared to 2021. Consequently, the rise in energy consumption is driving the utility communication market.

Technological advancements have become significant trends gaining traction in the utility communication market. Innovations in private industrial 5G networks employ specialized hardware and software, such as base stations and antennas, enabling companies to create customized wireless communication systems that enhance control, security, and performance in industrial environments. For example, in September 2023, Siemens, a technology company based in Germany, announced the integration of 5G into its utility communication solutions to improve smart grid systems. By leveraging 5G technology, Siemens facilitates the quicker deployment of edge computing and AI technologies, which are essential for predictive maintenance and grid automation. Siemens uses 5G to promote real-time data exchange within smart grids, optimizing both performance and decision-making. With its 5G-enabled systems, Siemens enhances grid automation and remote control capabilities, allowing utilities to manage complex operations such as fault detection and load balancing more efficiently.

Key players in the utility communication market are forming partnerships to reinforce their market positions. A strategic business partnership refers to a structured relationship between two or more commercial entities, typically established through one or more business agreements or contracts. For instance, in October 2023, Sekisui Chemical, a Japan-based plastics manufacturer, partnered with LATYS Intelligence Inc. This collaboration aims to create wireless networking solutions for Wi-Fi, 5G, and next-generation telecommunications in the 6G field. LATYS Intelligence Inc. is a Canada-based company specializing in wireless infrastructure.

In August 2022, Motorola Solutions, a telecommunications equipment, software, and systems services provider based in the US, acquired Barrett Communications for an undisclosed sum. This acquisition enhances Motorola Solutions' portfolio and strengthens its presence in international markets, reaffirming its commitment to innovation and leadership in mission-critical communications. Barrett Communications is an Australia-based company that specializes in providing tactical high-frequency, extremely high-frequency, and commercial high-frequency communications equipment.

Major companies operating in the utility communication market are Schneider Electric SE, Siemens Aktiengesellschaft, General Electric Company, DIGI International Inc., ZTE Corporation, Cisco Systems Inc., Black & Veatch Holding Company, Valiant Communications Limited, ABB Ltd., Omicron Electronics GmbH, Hitachi Energy Ltd., Motorola Solutions Inc., Milsoft Utility Solutions Inc., Honeywell International Inc., Rockwell Automation Inc., Texas Instruments Incorporated, Power Systems Engineering Inc., Fujitsu Limited, Xylem Inc., Itron Inc., Trilliant Holding Inc., Nokia Corporation, RAP Data Communications Ltd., SmartMark Communications LLC, Smarter Grid Solutions Ltd., Robert Bosch GmbH, LG Corporation, Emerson Electric Co., Yokogawa Electric Corporation, Inductive Automation LLC, AVEVA Group PLC, Tatsoft LLC, Advantech Co. Ltd., Mitsubishi Electric Corporation.

Asia-Pacific was the largest region in the utility communication market share in 2024. The regions covered in the utility communication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the utility communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Utility communications encompass the procedures dedicated to establishing interactive communication channels between utility providers and end-users throughout the networked data points in use. These networks play a vital role in enhancing transmission reliability and resilience by facilitating real-time situational awareness and control.

Two primary technologies employed in utility communication are wired and wireless systems. Wired communication involves data exchange among devices through physical connections. This method utilizes ethernet and fiber-optic cables to transmit electrical signals between points. It finds applications in both public and private utility sectors and consists of essential components such as hardware and software. Wired communication is deployed across various sectors including transmission and distribution, as well as within industries like oil and gas. It caters to diverse end-users including residential, commercial, and industrial entities.

The utility communication market research report is one of a series of new reports that provides utility communication market statistics, including utility communication industry global market size, regional shares, competitors with a utility communication market share, detailed utility communication market segments, market trends and opportunities, and any further data you may need to thrive in the utility communication industry. This utility communication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The utility communication market consists of revenues earned by entities by providing distribution management, tele-protection, supervisory control and data acquisition (SCADA), energy management, outage management, smart metering, and substation automation. The market value includes the value of related goods sold by the service provider or included within the service offering. The utility communication market also includes sales of optical fiber, PLC (programmable logic controller) and ethernet that are used in providing utility communication services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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