The utility asset management market is expected to grow at 9.7% CAGR from 2023 to 2029. It is expected to reach above USD 8.63 billion by 2029 from USD 3.75 billion in 2020.
Through utility asset management, electrical utilities can monitor and analyses important assets, usage, trailing age, maintenance history, and a variety of other variables. A utility management system lowers the likelihood of equipment failure since it relies on knowledge analytics and condition-based maintenance. Deregulation of the electrical industry across a number of nations has aided a number of private entities that are managing their strategic aims to lower the cost of power to clients and to own minimum losses to their business by monitoring and tracking their network at regular intervals.
Strong utility asset management assures compliance with environmental, health, and safety regulations, superior service, and increased safety for both people and equipment. The utility asset management industry is driven by an increase in energy consumption, ageing infrastructure, a rise in distributed energy resources, and the requirement for efficient and dependable energy. IoT and AI technology use in utility asset management for better insights also creates attractive potential for the expansion of the global market. The utilities asset management market is growing, but it is being constrained by a lack of competent labour and expensive implementation costs.
Energy demand has greatly increased as a result of the continuous rise in energy consumption caused by increasing urbanization and population growth. This has led to a demand for fresh ideas and particular procedures that can boost output while using the same resources. Asset and energy management solutions help smart grids efficiently handle rising demand while extracting greater value from the system. As a result, the adoption of asset management in the energy and utilities sectors is driven by the rise in energy consumption. For instance, the International Energy Agency predicts a 2.7% increase in global electricity use between 2022 and 2024.
| ATTRIBUTE | DETAILS |
| Study period | 2020-2029 |
| Base year | 2021 |
| Estimated year | 2022 |
| Forecasted year | 2022-2029 |
| Historical period | 2018-2020 |
| Unit | Value (USD Billion). |
| Segmentation | By Type, By Component, By Application, By Region. |
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| By Component
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| By Application
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| By Region
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Numerous technologies, including condition-based maintenance, corrective maintenance, and predictive maintenance, demand unpredictable, expensive installation procedures and come with significant risks when used to maintain equipment over extended periods of time. These variables may restrict market expansion. Lack of exact technical expertise while installing the tools and connecting the hardware, combined with mistakes when prioritizing the functional layouts, can significantly lower the system's performance, perhaps leading to over-maintenance.
Smart asset management may enhance operational performance in a number of ways by fusing artificial intelligence and big data analytics. Utilities can save their operating and maintenance expenses by using a smart asset management system (SAM). Regulatory restrictions, the importance of the asset, and other considerations should help companies set priorities. In order to understand real-time asset performance assessments, utility asset and services management makes use of technological intelligence, such as SCADA, CMMS, and enterprise asset management.
Utility asset management has been impacted by the COVID-19 epidemic, much like many other sectors. Due to the entire shutdown of major trade companies, processing facilities, and industrial businesses, there is a decrease in demand for electricity. The utility asset management sector has experienced a modest decline as a result during COVID-19. For instance, the U.S. Energy Information Administration (EIA) reports that as a result of many firms remaining closed as a result of COVID-19, power sales in the commercial sector fell by 4.7% in 2020. However, due to the increased use of remote working and process automation in the utilities sector globally, the market is anticipated to expand quickly after the pandemic.
The utility asset management market is expected to grow at 9.7 % CAGR from 2022 to 2029. It is expected to reach above USD 8.63 Billion by 2029 from USD 3.75 Billion in 2020.
North America held more than 38 % of the utility asset management market revenue share in 2021 and will witness expansion in the forecast period.
Energy demand has greatly increased as a result of the continuous rise in energy consumption caused by increasing urbanization and population growth. This has led to a demand for fresh ideas and particular procedures that can boost output while using the same resources.
The utility asset management market key players includes General Electric, ABB, Eaton, Siemens, DNV GL, Aclara Technologies, Sentient Energy, IBM, Hitachi Energy, Black & Veatch.
Transformer, sub-station, transmission, and distribution lines are the market segments for utility asset management depending on application. Under the category of transformer utility asset and services management, the utility asset management market's growth was noticeably high in 2021.
In 2021, North America dominated the worldwide UAM market. The market in the area will probably be driven by the deregulation of the electric sector. By continuously monitoring and measuring their networks, private organisations have been able to achieve their strategic goals to lower the cost of electricity for end users and to have minimal losses as a result of the deregulation of the power sector in many different countries.
The utility asset management market is segmented based on type, component and application.
The market is divided into public utility and private utility according to kind. The private utility category, which commanded the largest market share in 2021, is anticipated to continue to rule throughout the projection period. The prognosis for the category is expected to be favorable due to the huge energy networks operated by private enterprises and the rising investments made to revolutionize the grid and reduce power outage issues.
Software, hardware, and services make up the three segments that make up the market. The demand for remote and mobile detection, inspection, and diagnostic tools in huge networks is expected to drive the growth of the software sector in the market in 2021. Asset management software has been introduced by significant market participants. As an illustration, IBM's Maximo application suite is a single, integrated cloud-based platform that leverages IoT, AI, and analytics to improve performance, prolong the lifecycles of essential assets, and reduce operational downtime and costs. Additionally, it provides improved reliability thanks to AI-driven monitoring, inspection, and preventative maintenance systems.
Transformer, sub-station, transmission, and distribution lines are the market segments for utility asset management depending on application. Under the category of transformer utility asset and services management, the utility asset management market's growth was noticeably high in 2021. Transformers need routine inspection and maintenance in order to provide a steady supply of electricity to end users and distribution centers. Due to they run continuously, distribution transformers are the most widely used transformers worldwide.
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The utility asset management market key players includes General Electric, ABB, Eaton, Siemens, DNV GL, Aclara Technologies, Sentient Energy, IBM, Hitachi Energy, Black & Veatch.
16 February 2023: Siemens announced the launch of private industrial 5G user equipment, a critical component for the manufacturing industry in its digital transformation journey.
17 August 2021: Siemens Limited and Tata Power Delhi Distribution Limited (Tata Power-DDL) jointly announced the successful deployment of Smart Metering Technology for over 2,00,000 Smart Meters in North Delhi.
The utility asset management market by region includes North America, Asia-Pacific (APAC), Europe, South America, and Middle East & Africa (MEA).
In 2021, North America dominated the worldwide UAM market. The market in the area will probably be driven by the deregulation of the electric sector. By continuously monitoring and measuring their networks, private organisations have been able to achieve their strategic goals to lower the cost of electricity for end users and to have minimal losses as a result of the deregulation of the power sector in many different countries.
Additionally, Asia Pacific also controlled a sizeable portion of the market in 2021. The upgrading of electricity distribution and transmission infrastructure through the installation of automated monitoring and tracking systems is one of the elements influencing the market's expansion. Fertiliser, automotive, petrochemical, and chemical industries are all expanding steadily in the area, which has boosted demand for power and necessitated appropriate maintenance of the grid's many parts.
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