Global Utility Communication Market Overview
The key driver impacting the Utility communication market is the growing investment in smart grids project and the modernization of electricity. For instance, in n 2009, the U.S. Department of Energy (DOE) started the Smart Grid Investment Grant (SGIG) program, which was funded by $3.4 billion and invested via the American Recovery and Reinvestment Act of 2009 (ARRA). It is done to upgrade the electricity system of the nation. SGIG program represents an investment of about $8 billion in the nation's electricity delivery systems. There is a growing focus on improving grid reliability, increasing operating efficiency, and reducing outage length, leading to high demand for utility communication systems across the globe. Moreover, rising renewable resource generation and smart cities projects globally contribute to Utility communication market demand later.
According to Value Market Research, the global Utility Communication market size was valued at about USD 18 billion in 2021 and is expected to grow at a CAGR of around 5% during the forecast period 2021 to 2027.
The execution of advanced metering infrastructure (AMI), which comprises installing smart meters and electronic devices that facilitate data transfer and two-way communication between utilities and end-users, will likely augment the need for Utility communication in the forecast period. As per the official website of the European Union, nearly 225 million smart meters for electricity will be released in the EU by 2024. Also, by the end of 2024, it is anticipated that roughly 77% of European consumers will be going to have a smart meter for electricity. This is positively impacting market growth in the coming years. However, high upfront costs for grid technology solution installation and maintenance hinder the market in the long run. In addition, the lack of standards and interoperability of different IT protocols and components is negatively impacting the market growth. Nevertheless, the high number of new smart city projects in developing countries and the growing focus towards replacing old communication systems with superior communication networks might provide massive market opportunities to the market's key players.
The Utility communication market is widespread, with many local and international players. The market leaders follow diverse strategies to strengthen their market, such as extending product portfolio, acquisitions, contracts, amalgamation, product upgrades to raise their market share globally. The key players taken in the report are General Electric, Cisco Systems, Inc., Siemens AG, Milsoft Utility Solutions, Inc., ABB, Ltd., Motorola Solutions, Inc., Schneider Electric SE, RAD Data Communications Ltd, and Omicron Electronics GmbH.
In this research report, the Utility Communication market is segmented by technology type, utility type, and region.
Analysis by Technology Type:
By technology type, the report is segmented into Wired and Wireless. The Wired segment dominates the technology type segment with the highest share in 2020. The wired segment is further divided into Ethernet, optic fiber, SONET/SDH, powerline, MPLS-TP, and carrier MPLS-IP. It is because optic fiber and ethernet are the most favored medium for networking in utility communication. Moreover, wired technology type higher bandwidth support and speed, which helps provide high performance, reliability, and improved coverage contributing to the remarketing and value recovery segment's growth in the forecast period.
Analysis by Utility Type:
By utility type, the report is segmented into Public and Private. The servers segment dominates the utility type segment with the highest share in 2020. It is because the public utility policies, programs, and practices provide services at a reasonable price and serve the local community's priorities in a better way. Moreover, the huge investment of capital in Public utility is more considered a form of fixed assets that contribute to the public utility segment's growth in the forecast period.
Analysis by Region:
In the regional outlook of the global Utility Communication market, the North American region dominated with the largest market share in 2020. It is due to the high adoption rate of utility communication solutions in North America compared with other regions. Moreover, huge investment in smart grid projects and high implementation of advanced metering infrastructure (AMI) in the U.S. contribute contribute to the tremendous market demand across North America.
Market Segmentation covered in the Report:
By Technology Type:
By Utility Type:
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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