Utility Asset Management Market

Utility Asset Management Market Overview

The utility asset management (UAM) market generated total revenue of USD 4.63 billion in 2022. The industry is predicted to grow at a healthy CAGR of 5.8% over the forecast period to attain a market revenue of USD 8.61 billion by 2033. Growing demand for utility asset management solutions to help boost energy grid efficiency, reliability, and safety is projected to bolster market growth.

Key Drivers Propelling the Utility Asset Management Industry

• An increasing number of administrations are introducing significant electrification initiatives for distant places, consequently creating immense opportunities for the utility asset management industry.
• Constant plans to stretch the electricity supply to remote areas are projected to boost the setup of new distribution and transmission lines, in addition to the integration of modern electrical systems for effective grid connections.
• The escalating distribution of green energy to support strict emission regulations is anticipated to enhance the industry landscape.
• Rising integration of Artificial Intelligence (AI) and big data analytics in utility asset management is predicted to invigorate market growth.
• Surging measures to combat the rising frequency of sudden long power outages are projected to induce market growth over the forecast period.
• Growing deployment of the Internet of Things to better conserve energy and boost consumption efficiency is spurring industry advancement.
• Increasing use of UAM to gain a comprehensive view of asset health, eliminate downtime, and improve equipment operations is projected to fuel industry growth.
• With the help of UAM, businesses can track trends for a better return on investment.

Few Limitations that Might Have an Adverse Impact over the Market Growth

• The requirement for expensive and unpredictable installation procedures, in tandem with extreme risks associated with the maintenance of necessary equipment over long durations across multiple technologies, such as condition-based maintenance, corrective maintenance, and predictive maintenance, may restrict the market growth.
• The dearth of technical expertise required for connecting hardware, placing tools, and detecting errors in functional layouts, can greatly impact the system’s effectiveness, resulting in constrained repair durations.

Utility Asset Management Market Value (2023)	USD 4.9 billion
Utility Asset Management Market Forecast Value (2033)	USD 8.61 billion
Utility Asset Management Market CAGR (2023 to 2033)	5.8%

(2017 to 2022) Demand Outlook for Utility Asset Management Market Compared to Forecast Period (2023 to 2033)

The utility asset management market attained a market revenue of USD 4.63 billion in 2022. The demand for utility asset management has witnessed healthy growth in the past few years. Key players in the industry have adapted to the strong demand for energy, enabling lower emissions, more renewable energy on the grid, and increasing plant productivity. The adoption of utility asset management has also been influenced by the rising demand for mission-critical software to improve water reliability and availability.

According to Future Market Insights (FMI) analysis, the utility asset management industry is anticipated to reach USD 8.61 billion by the end of 2033, registering a CAGR of 5.8%. FMI details the anticipated developments that are estimated to bode well for the market.

Year	Expected Valuation
2025	USD 5.48 billion
2028	USD 6.49 billion
2032	USD 8.14 billion

Short Term (2022 to 2025): In the short Term, the market is likely to benefit from the heightened demand for utility asset management in the oil and gas, power generation, and food and beverage/CPG sectors, among other sectors. The usage of utility asset management enhances productivity and minimizes the risk involved. In the power generation sector, the solution offers affordable, reliable, and cleaner electricity.

Medium Term (2025 to 2028): The industry is anticipated to be positively impacted by the growing adoption of utility asset management solutions to reduce outages and streamline maintenance. Further, regulators and citizens expect significant outcomes from utility asset management solutions. As a result, Environmental, Social, and Governance (ESG) measures are required to be ingrained into every business process and workflow. To leverage this momentum, utilities should cast themselves as businesses for a sustainable future.

Long Term (2028 to 2032): In the long run, the market is anticipated to be propelled by advancements in tools and technologies. A propagation of sensors offers an increasing variety of metrics with more frequency. New communications technologies allow quick data transmission from these sensors, while cloud computing extends the scope and pace of data analysis. With the help of Artificial Intelligence (AI), future behavior can be predicted from historical data. Such advances in technology open up doors for new possibilities to manage assets.

Category-wise Analysis

Private Utility Segment to Lead the Market Due to its Broad Range of Electricity Networks

Based on type, the private utility sector accounted for a significant market share in the historical period. The sector is expected to lead the market in the forecast period. The accelerating investments to transform the grid to reduce power outage issues and extensive electricity networks of non-government companies are projected to propel segment growth over the forecast period. In addition, the deployment of utility asset management in private utilities to manage, monitor, and improve the functional ability of critical assets is estimated to enhance the segment scope. With the help of utility asset management, the asset life is prolonged, maintenance cost is reduced, and utility usage is alerted, along with many other benefits.

Extensive Adoption of Software Segment in the Utilities Sector to Boost the Segment Growth

The software segment is projected to supersede the hardware and services segments. The high demand for software is the mounting requirement for mobile and remote detection, diagnostic tools, and inspection in far-reaching networks. As a result, key players in the utility asset management industry are launching advanced asset management software. For instance, IBM’s Maximo application suite is an integrated cloud-based platform that utilizes AI, IoT, and analytics to boost performance, reduce operational costs and downtime, and extend the lifecycles of critical assets. It further delivers enhanced reliability with inspection, AI-powered monitoring, and predictive maintenance systems.

Electric Segment to Maintain its Dominant Position

The electric segment is slated to exhibit dominance over the forecast period. The electric segment is trifurcated into transformers, transmission and distribution systems, and substations. Out of these three, transformers are considered a crucial part of the power transmission network. Transformers constantly operate and require periodic maintenance and monitoring for an uninterrupted supply of electricity to end users and distribution centers. As a result, the demand for utility asset management from transformers is rising.

The management solutions have considerably incorporated the system to evaluate and optimize operating conditions, failure reduction, and life expectancy. Intensifying concerns related to the upkeep of reliable operations at reduced costs and the rising use of asset lifecycle planning, condition-based maintenance activities, and prediction are projected to support the growth of the electric segment.

Country-wise Analysis

United States is Assessed to Spearhead the Utility Asset Management Market

The United States utility asset management industry is projected to be at the forefront over the forecast period. The complete electricity grid in the country includes low-voltage power lines and high-voltage power lines with transformers, connecting thousands of power plants to power consumers nationwide.

The country is concentrating on upgrading its current electricity grid to boost the electricity supply and minimize thermal losses caused by aging. In line with this, the United States government invested USD 2.5 billion in May 2022 to upgrade the country’s power grid capacity under the Transmission Facilitation Program (TFP) developed by President Biden’s Bipartisan Infrastructure Law.

Growth of regional market can also be attributed to the adoption of IoT sensors and surging digitalization in the utility sector. In addition to this, the high presence of key players in the country is offering ample growth opportunities for market growth.

China to Witness Expeditious Growth

China utility asset management market is projected to grow at a rapid pace over the upcoming years. The regional growth can be credited to the upgradation of power distribution infrastructure by installing automated tracking and monitoring systems. Further, the rising construction activities, urbanization, surging electric access, and rapid industrialization have led to an increase in electric transmission and distribution projects.

Several regional industries, such as chemical, automotive, petrochemical, and fertilizers, are demonstrating steady growth. This has resulted in high demand for electricity and proper upkeep of multiple components of an electricity grid. Reducing concerns related to distribution and transmission losses, along with the adoption of the Internet of Things to enhance efficiency in energy consumption, is anticipated to propel market growth in China.

Key Players Emphasizing on Acquisition of New Contracts to Brace their Market Position

Global players in the utility asset management industry are providing multiple products, services, and software to cater to the distinct requirements of an electrical power grid. Many companies are proactively functioning at regional and global levels to fulfil particular demands of the utilities.

• ABB, a significant player in the market, is assessed to hold a significant market share due to its wide-ranging solution offerings and huge brand recognition and presence worldwide. In addition, the company emphasizes launching new developments and significantly investing in product developments to strengthen its market position. Other key participants in the market are zeroing in on broadening their product offerings and expanding their reach.

• In February 2022, the Asset Performance Management (APM) of GE DIGITAL was recognized as a leader in capabilities across utilities, oil and gas, manufacturing, and mining industries. The company’s APM is a combination of software solutions and services developed to maximize the performance of crucial assets for industrial companies.
• In October 2022, Black & Veatch Holding Company was appointed by Adani Group to boost operations and enhance the performance and reliability of its power assets in India. The company’s main goal is to reduce the overall emissions of CO2. The execution is expected to support the efficient, reliable, and sustainable operations of about 12 gigawatts (GW) of thermal power generation in India by reducing unplanned shutdowns and augmenting operational efficiencies.
• In February 2022, Siemens launched a new sustainable, electronic vehicle charging concept structure engineered to electrify fleets and extensive high-demand charging applications in the United States. The new VersiCharge XL concept was developed to swiftly and effectively electrify parking lots and new or existing buildings via a modular and scalable design created in partnership with Nexii Building Solutions. The solution, a lookalike of the modern gas station, was produced in H2 2021 and installed in merely three days at Siemens’ research and development center for mobility solutions and electrical products in Peachtree Corners, Georgia.

Given below are the key players active in utility asset management industry

• General Electric
• ABB
• Eaton
• Siemens
• DNV GL
• Aclara Technologies
• Sentient Energy
• IBM
• Hitachi Energy
• Black & Veatch
• ABS Group
• Schneider Electric
• IFS
• Getac
• Fujitsu
• Lindsey Manufacturing

Scope of Utility Asset Management Market Report

Attributes	Details
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD million/ billion for Value
By Type	Public Utility, Private Utility
By Component	Hardware, Software, Services
By Application	Electric, Gas, Water
By Region	North America; Latin America; Europe; Asia Pacific; Middle East and Africa
Key Countries Covered	The United States, Brazil, Mexico, Canada, the United Kingdom, Germany, France, Spain, Italy, Russia, Argentina, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Australia, Poland, China, New Zealand, Japan, GCC countries, South Africa, others
Key Players	General Electric; ABB; Eaton; Siemens; DNV GL; Aclara Technologies; Sentient Energy; IBM; Hitachi Energy; Black & Veatch; ABS Group; Schneider Electric; IFS; Getac; Fujitsu; Lindsey Manufacturing

Key Market Segmentation

By Type:

• Public Utility
• Private Utility

By Component:

• Hardware
• Software
• Services

By Application:

• Electric
  • Substations
  • Transformers
  • Transmission and Distribution Lines
• Gas
• Water

By Regions:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

Frequently Asked Questions

How much the Global Utility Asset Management Market is likely to be Worth in 2033?

The global utility asset management market is projected to reach a valuation of USD 8.61 billion by 2033.

Which are the Top Companies Providing Utility Asset Management?

ABB and Siemens are the top players in the utility asset management market.

Which Region is Expected to Dominate the Utility Asset Management Market?

The United States is expected to dominate the utility asset management market throughout the forecast period.

At what CAGR is the Global Utility Asset Management Market Projected to expand in the Forecast Period?

The global utility asset management market is projected to expand at a CAGR of 5.8%.