In 2022, the Global IoT in Smart Utility and Energy Market was valued at $27.41 Billion and is projected to reach a market size of $66.92 Billion by 2030. Over the forecast period of 2023-2030 market is projected to grow at a CAGR of 11.8%. The increased demand to reduce energy expenses and improve energy efficiency is driving market revenue growth. Concerns about climate change and rising oil and gas prices are pushing a greater emphasis on energy saving, which has resulted in a rise in the use of building energy management systems. Moreover, industries now are integrating the Internet of Things (IoT) in production activities as it improves operational efficiency. IoT uses technologies like AI/ML, and machine-to-machine (M2M) communication which has enabled high-speed data transmission and data analytics which has eventually resulted in better real-time control and assessment.
INDUSTRY OVERVIEW:
Industry 4.0, which includes the Internet of Things, is considered the next industrial revolution. The Internet of Things (IoT) is a concept that aims to provide enhanced solutions and services, increase productivity and efficiency, address crucial problems, and make better real-time decisions. Industries are incorporating the Internet of Things with energy and utility verticals to modernize operations. Internet of Things (IoT) has the major purpose to upgrade operational effectiveness and automate processes in industries. Internet Of Things refers to a combination of numerous techniques that allows devices and objects to interact with each other over a network. These interconnected devices provide real-time relatively rich data and analytics that make real-time controlling and monitoring very easy. This has proven very beneficial as it has increased productivity, and operational efficiency and has reduced complexity in the process.
The Internet of Things (IoT) is a new trend in all industries, and the utility and energy sectors are investing in this technology to enhance operations and the overall experience of their consumers. IoT has the potential to automate complicated processes. There are multiple benefits of using IoT in the energy and utility sector, it can help in automating many processes. It can ensure the safety of workers, reduce operating expenses and increase output. Furthermore, IoT is aiding the industries with predictive and prescriptive analytical solutions by using advanced techniques like AI and Machine Learning, thereby creating solutions in areas such as asset management, remote servicing, operational intelligence, and predictive maintenance. Increasing integration of digitalization in operational processes and industrial control systems including human-machine interfaces (HMIs), supervisory control and data acquisition (SCADA) systems, distributed control systems (DCSs), and programmable logic controllers (PLCs) to optimize the processes leveraging smart sensors, remote access and control are acting as prominent factors towards the growth of the market. However, a major concern that surrounds IoT is the security and privacy of the data that could hamper the adoption of this technology.
COVID-19 IMPACT ON IOT IN THE SMART UTILITY AND ENERGY MARKET:
Due to the lockdown imposed by the government of several countries, the manufacturing operations remained suspended across many manufacturing hubs that causing a slowdown in production. This has affected the Industrial IoT industries severely. The supply chain disruptions caused difficulty in the procurement of raw materials, shortage of labor, and also price rise due to an increase in demand has affected the industry negatively. Although with remote working policies adopted by companies have created a demand for transparency in operations. The use of IoT and smart connected devices are going to play a vital role in providing operational visibility at an organizational level. Many industries and businesses are incorporating IoT techniques for remote working and automating their business activities accordingly. All these factors are working as proponents for the growth of the (IoT) in the utility and Energy market growth during the forecast period.
MARKET DRIVERS:
The surge in the demand for asset tracking in Logistics Industry is boosting the IoT in the Smart Utility and Energy Market:
With the combination of software and hardware enabling the capture of data within, and automation of, industrial processes IoT has revolutionized the supply chain management industry. Asset tracking sensors are now being used by the logistics company to ensure the complete integrity and quality of the product which is fueling the growth of the Internet of Things Market (IoT) in the smart energy and utility market. Delivery, scheduling, and placement have been incredibly optimized and enhanced and are being automated by using IoT in transportation and logistics increasing productivity. With the enhancement in the adoption of SCADA, hand-held scanners, bar codes, RFID tags, and other data monitoring and data acquisition systems in freight operation, warehousing, and last-mile delivery to get real-time visibility on the movement of goods is augmenting the market.
Climate Change propelling the adoption of Energy Management Systems which is eventually propelling the IoT in smart utility and energy market growth:
Energy management systems are predicted to become more popular and adopted at a higher scale as requirements to decrease the environmental impact of carbon dioxide emissions and fossil fuel usage become more rigorous. Energy management systems are also being deployed across the industrial and commercial sectors in several nations due to regulations. Other significant drivers driving global demand for and implementation of energy management systems include the need to reduce electricity generation from nonrenewable natural resources as well as total energy usage. Increasing investments by leading market participants in energy management systems for quick innovation and technological improvements are likely to promote market growth over the forecast period.
MARKET RESTRAINTS:
Security and Privacy Issues related to the implementation of the IoT services are a major reason hampering the market growth:
The increase in the digitalization of processes also poses security and privacy issues. The business has confidential data with them and alarming growth in the number of cyber-attacks, data leakage, and false data injection in various industry verticals are hampering the adoption. However, significant investments in cyber security are set to offset this challenge and promote healthy growth during the later stages of the forecast period 2023 - 2030.
IOT IN SMART UTILITY AND ENERGY MARKET REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 - 2030 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2030 |
|
CAGR |
11.8% |
|
Segments Covered |
By Components, Solutions, Services, Applications and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Key Companies Profiled |
General Electric Digital (U.S.), ABB Ltd. (Switzerland), Siemens AG (Germany), IBM Corporation (U.S.), and Huawei Technologies Co. Ltd (China), Cisco Systems, Inc. (U.S.), HCL Technologies (India), Intel Corporation (U.S.), Dassault Systemes (France), Robert Bosch GmbH (Germany) and Schneider Electric SE Vodafone (UK), Telit (UK), and Landis Gyr (Switzerland) |
This research report IoT in Smart Utility and Energy Market has been segmented and sub-segmented based on Components, By Solutions, By Services, By Applications, and By Region.
Platform
Solutions
Services
Based on components, the IoT in the Smart Utility and Energy Market is segmented into Platforms, Solutions, and Services. Among these, the solution segment dominated the market share in 2021 and is projected to expand with a healthy CAGR over the forecast period. IoT technology solutions assist utilities in integrating a variety of business operations, accelerating the utility and energy industry's growth. With minimal infrastructure expenditure, integrating technology with current processes is projected to improve the overall operational efficiency of firms. Energy generation & transmission, infrastructure management, asset management, workforce management, security, energy management, consumer side analysis, and remote surveillance and monitoring are all examples of where IoT technology is being used in the energy and utility sector. In the energy and utility industry, IoT solutions improve analytics-based decision-making by reducing market risks and vulnerabilities with the use of effective tools and methodologies. Furthermore, IoT technologies have allowed energy businesses to remotely control and monitor their assets' performance. This reduces service outages, offers a consistent experience for customers, and improves the organization's overall operating efficiency.
Asset Monitoring Management
Safety & Security
Supervisory Control and Data Acquisition (SCADA)
Connected Logistics
Energy Management
Mobile Workforce Management
Others
Based on Solutions, the IoT in the Smart Utility and Energy Market is segmented into Asset Monitoring Management, Safety & Security, Supervisory Control and Data Acquisition (SCADA), Connected Logistics, Energy Management, and Mobile Workforce Management among others. Among these, the Energy management category and connected Logistics category contributed significantly to the market development. The energy management market was worth USD 19 billion in 2021 and is projected to reach USD 27 billion by 2030. The increased demand to reduce energy expenses and improve energy efficiency is driving market revenue growth. Concerns about climate change and rising fossil fuel prices are pushing a greater emphasis on energy saving, which has resulted in a rise in the use of energy management systems. Demand for energy conservation systems is increasing as the need to minimize reliance on fossil fuels grows due to natural resource depletion. By enabling real-time control and monitoring of a wide range of connected systems, energy management systems enable the maintenance of a comfortable and energy-efficient environment within a facility and thus driving the segment growth.
The connected logistics segment was valued at USD 20.47 billion in 2021 and is estimated to reach USD 35.6 billion by 2030, registering a CAGR of 10.6% during the forecast period of 2022 – 2030. The advancement in technologies like high-definition mapping, sensor processing technologies adaptive algorithms, and vehicle-to-vehicle communication technologies have played a vital role in vehicle tracking, safety management, predictive maintenance, etc. The logistics companies are putting a strong emphasis on asset management and are thereby using automation techniques for smart transportation. Smart tracking solutions like Bluetooth tags and beacons have replaced the conventional RFID tags, which has helped in a better and wide range of functionalities. Furthermore, the integration of IoT in vehicles will aid in connectivity and monitoring of various business activities that would eventually help in promoting efficiency.
Consulting
Integration and Deployment
Support and Maintenance
Based on Services, the IoT in the Smart Utility and Energy Market is segmented into Consulting, integration & Deployment, and Support & Maintenance. Among these, the integration & Deployment category was a major contributor to market development. Enterprises use integration and deployment services to connect IoT devices to IoT solutions and implement them into existing/desired IT infrastructure. By connecting enterprise IT solutions with business imperatives, these services increase company flexibility and operational efficiencies. The key motivation for businesses to use system integration services is to boost overall efficiency and quality of operations. The purpose of adopting these services is to integrate disparate IT systems inside a business to speed up information flow and save operating expenses.
Water and Wastewater Management
Oil & Gas Management
Electricity Grid Management
Coal Mining
Others
Based on applications, IoT services are widely used in Water and Wastewater Management, Oil & Gas Management, Electricity Grid Management, and coal mining among others. Among these, the Electricity Grid Management category is estimated to hold the largest market share in the IoT in the Smart Utility and Energy market. The effective administration and supply of power to its final consumers is primarily the responsibility of an electric grid. In comparison to a conventional grid, the use of network capabilities and computational intelligence can result in a smart, automated, and modern grid. Smart sensors, receivers, smart meters, and energy boxes all connect with one other in a grid with IoT capabilities. In a conventional electrical grid, consumers notified utility providers when there was a power outage. Due to the availability of Internet Protocol (IP) addresses and two-way communication across all components, the Advanced Metering Infrastructure (AMI) is now in place. This results in a faster reaction time and real-time info about maintenance concerns, enabling enhanced power distribution management. All tasks relating to power transmission, outage management, demand response management, and equipment maintenance are included in electricity grid management. Utility IoT solutions aid in the smooth administration of all of these processes and as a result businesses are widely adopting these solutions which in turn is driving the market growth.
The Oil & gas management segment is also poised to grow significantly over the forecast period. To fulfill their day-to-day operational requirements, companies engaged in oil and gas exploration and refining require a significant amount of money. To be competitive, energy businesses are always developing new technologies and improving their processes. The adoption of IoT technologies is projected to increase the oil and gas sector's operational efficiency, allowing enterprises in this field to endure the recent decline in oil prices. Remote monitoring of oil rigs and pipeline integrity can both benefit from IoT technology. As a result, IoT solutions aid in the detection of possible mishaps, allowing them to be avoided. Remote monitoring of operations and better end-to-end processes are possible with IoT-enabled sensors and devices in oil and gas plants and thus having a positive influence on the IoT in Smart Utility and Energy Market growth.
North America
Europe
The Asia Pacific
Latin America
The Middle East and Africa
By region, IoT in the Smart Utility and Energy Market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North American region contributed the maximum to the growth of the IoT in the Smart Utility and Energy Market followed by Europe and the Asia Pacific. Europe is also projected to witness fast growth during the forecast period due to initiatives taken by governments in the respective region. North America emerged as the market leader in the Internet of Things (IoT) market, registering a market share of 31% in 2020. It is estimated to remain the dominant region and grow with a CAGR of 19.56% during the forecast period. North America has been at the forefront of smart grid deployment, with a considerable percentage of the region's major institutions either completely implemented or in the planning phases of full-scale rollouts. Large investor-owned utility companies in the United States that have yet to roll out smart meters for their consumers are projected to generate sustained expansion in North America in the coming years. Furthermore, a significant number of small cooperative and municipal utilities are projected to play a key role in expanding the adoption.
Due to rapid urbanization, improved disposable income, and a shift toward digitalization Asia Pacific is also poised to be one of the fastest-growing markets with a CAGR of 24.67% during the forecast period. The region is increasingly witnessing a strong adoption of advanced factory automation solutions, typically in Japan, China, and Taiwan. Manufacturing organizations across the region are gradually realizing the benefits associated with the implementation of robot arm technology and are moving towards modernizing the factories.
IoT IN SMART UTILITY AND ENERGY MARKET- BY COMPANIES
Some of the prominent players in the market are:
The presence of so many large corporations in this space, makes this industry fragmented and highly competitive. Companies like General Electric, IBM, and others have been able to position themselves as market leaders. The key market players are focusing on adopting low-cost strategies making it difficult for new players to make an impact on the market. However, venture capitalists are showing faith in new IoT startups and making investments and helping them make inroads into the markets. Big players are focusing on product launches, acquisitions, and R&D activities to capture the market space.
NOTABLE HAPPENING IN IoT IN SMART UTILITY AND ENERGY MARKET
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
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