Utilities

Increasing global electricity consumption is putting a strain on current grid infrastructure creating competition to improve the service.

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What is the current position of the utilities industry?

In 2025, utilities companies are facing the pressure of a more dynamic, complex, and data driven environment. These new drivers create innovative opportunities for the industry, as well as challenges of adapting and implementing new infrastructure, system integration, and expansion.
Utilities providers will continue to face tough challenges throughout 2025. Ensuring secure, reliable, affordable, and clean electricity could become increasingly challenging. Factors such as inflation, high fuel costs, and supply chain disruptions may keep electricity prices elevated. Additionally, extreme weather events, cybersecurity threats, and the growing use of renewables will require innovative management strategies to ensure grid reliability.
Sustainability and decarbonization will remain a key topic in 2025. Many utilities companies are anticipated to boost their investment in R&D capabilities and exploit developments in decarbonization and recycling technology.
The competitive landscape is also consolidating, specifically in renewable energy, as companies, utilities, and governments prepare to meet ambitious climate targets. As well as consolidation at the generation level, there will also be consolidation in retailing too in response to demand and price fluctuations.

Utilities Industry Trends & Challenges

Utilities companies face a number of opportunities and threats to their businesses. The companies best placed to deal with a challenge will consider it as an opportunity, whilst those poorly prepared will face the challenge as a threat.

While the utilities industry is often thought of as slow-moving when it comes to adopting new technologies and business models, there are still some prominent trends emerging in the industry that are increasing the speed of change:

  • Digitization
  • Mergers & Acquisitions
  • New Business Models
  • New Entrants
  • Onshoring
  • Renewables

Before the COVID-19 crisis, there were several trends that utility companies were responding to. As the industry recovers from the pandemic some of those trends remain, and some new challenges have emerged. Those include:

  • Artificial Intelligence
  • Geopolitical Tension
  • Increased Competition
  • Matching Supply & Demand Stainability
  • Skilled Worker Shortage.

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Technology

For utility businesses to continue innovating, they must embrace digital transformation and create new technologies. The operational models of utility organizations are changing to deliver value at speed by incorporating new technologies.

Technology outside the IT function continues to grow and has an opportunity to adapt and scale new ways of working with disruptive technologies. Examples of technologies that are changing the way utility industries operate are:

  • Data analytics
  • Energy storage
  • Hydrogen
  • Internet of Things (IoT)
  • Renewable energy advances
  • Smart meters
  • Water reuse technologies

Here we can see the relative sizes of the Computer-Aided Technologies (Mechanical CAD, Mechanical CAE), PLM, BIM, and GIS software sectors in the global utilities market. The total is worth approximately $US2.5 billion annually. Note how BIM and GIS are the largest segments, given utility assets and infrastructure networks are widely dispersed geographically, seeing data on a map can help operational decisions, fault diagnosis, and strategic planning.

Learn more about our market data

Design/Engineering/Manufacturing Software Market Share – Utilities Industry

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