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
| 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% |
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.
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.
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.
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.
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 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.
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.
| 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 |
The global utility asset management market is projected to reach a valuation of USD 8.61 billion by 2033.
ABB and Siemens are the top players in the utility asset management market.
The United States is expected to dominate the utility asset management market throughout the forecast period.
The global utility asset management market is projected to expand at a CAGR of 5.8%.
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Utility Asset Management Market
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