Utility Asset Management Market Size, Share & COVID-19 Impact Analysis, By Type (Public Utility, Private Utility), By Component (Software, Hardware, Services), By Application (Electric {Transformers, Substations, Transmission & Distribution System}, Gas, Water), and Regional Forecast, 2022-2029

The global utility asset management market size was valued at USD 4.45 billion in 2021. The market is projected to grow from USD 4.63 billion in 2022 to USD 6.88 billion by 2029, exhibiting a CAGR of 5.8% during the forecast period. North America dominated the global market with a share of 32.58% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with utility asset management experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global utility asset management market exhibited a decline of -4.7% in 2020 as compared to 2019.

Utility Asset Management (UAM) comprises software, hardware, and services essential for monitoring, managing, and improving the functional ability of critical assets. The essential assets include gas, water, and electric utilities. Electric utility consists of the transmission and distribution cables, substations, grid networks, and transformers required to transmit electricity in residential homes and commercial buildings. Water utility involves the assets utilized in municipal and industrial wastewater operations. Gas utilities include the support essential for power generation from natural gas, such as power plants, turbines, steam generators, and others. UAM is an integrated, data-driven ecosystem that gathers and analyzes information for informed decisions and higher asset efficiency.

COVID-19 IMPACT

Disruptions in Supply Chains amid COVID-19 Pandemic to Hamper Market Growth

The global emergency brought about by the COVID-19 outbreak has affected every country in strange circumstances. Financing new businesses are seen as a significant challenge with the disruption of supply chains amid economic downturns. Additionally, revenue for the year ended December 31, 2020, compared to the same period of 2019 for major players operating in the global UAM market, decreased due to the halt in operations. This unprecedented situation has also affected the global utility asset management market growth, as numerous state-owned and privately operated utilities have been scarred. The demand across the commercial and industrial sectors received a considerable depression propelling the establishments toward a reduction in incoming cash flows. Consequently, this has affected the investment potential of the organizations and governments, limiting the setup of new grid infrastructures.

LATEST TRENDS

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Rapidly Rising Energy Production and Demand Coupled with Growing Electrification Targets in Remote Locations to Propel Market Growth

Various administrations have introduced substantial electrification objectives for distant places unveiling immense opportunities for the UAM market size. Continuous plans to extend electricity supply to remote sites are anticipated to initiate a multi-fold increase in the setup of new transmission & distribution lines along with integrating modern electrical systems for efficient grid connections.

As per the Rural Electrification Corporation (REC) Limited, owned and operated by the Government of India, the number of total electrified villages in the country stands at just over 18,370 till 2018. However, over 51.7% or around 19,680 of the entire villages remain untouched, with the electric power depicting significant potential for new network infrastructures. Furthermore, the world has also observed a steep increase in the deployment of green energy technologies to support the stringent emission regulation norms set to boost the industry landscape further.

Integration of Big Data Analytics and Artificial Intelligence (AI) to Compliment Industry Outlook

A smart asset management model based on Big Data analytics and AI improves operational performance in several ways. Companies should prioritize based on regulatory requirements, asset criticality, and other factors. Smart Asset Management (SAM) solutions can reduce utility capital, Operations & Maintenance (O&M). The key feature of utility asset management is its ability to interpret asset performance assessment in real-time, using technological intelligence, such as SCADA, Computerized Maintenance Management System (CMMS), and Enterprise Asset Management (EAM).

DRIVING FACTORS

Growing Measures to Combat Increasing Number of Unexpected Long Power Outages to Favor Overall Market Growth

The increasing amount of sudden power failures across different countries, owing to factors, such as abrupt grid problems, faults in transmission & distribution lines, weather problems, natural disasters, and many others, is projected to propel the utility asset management industry. Many governments in both emerging countries worldwide increasingly view utility asset management as a strategic investment to upgrade infrastructure, which will focus on maintaining its long-term power grid and help minimize losses due to lack of regular maintenance and service. Additionally, unexpected power outages have significantly affected different residential, commercial, and industrial operations, generating a solid demand for revolutionizing transmission & distribution lines along with other electrical power grid infrastructures with more resilient systems.

Increasing Investments to Install Automated Monitoring and Tracking Systems 

A positive outlook of national administrations to support the expansion of smart grid infrastructures coupled with providing financial assistance and deploying different technologies, including peak load management, outage management, asset management, and distribution management, are likely to augment the market size.

The China National Energy Administration and the National Development and Reform Commission stressed the importance of smart grid development to improve functionality. The objective was to optimize the allocation of energy resources in the network to promote the efficient use of electrical components and distribution and transmission networks.

The China Electricity Commission issued 483 standards, including various standards for power grid maintenance and online monitoring of transmission and distribution equipment. Additionally, with the increase in population, governing bodies are now focusing on efficiently using electricity to meet the growing demand. Minimizing concerns over transmission and distribution losses and adopting the Internet of Things to improve energy conservation and consumption efficiency are fueling the growth of the global market.

RESTRAINING FACTORS

Capital Intensive Deployment with Limited Technical Expertise to Restrain Market Growth

The requirement of unpredictable, costly installation procedures coupled with high risks while maintaining the needed equipment for longer durations across various technologies, such as predictive maintenance, corrective maintenance, and condition-based maintenance, may hamper the market growth.

Additionally, the unavailability of precise technical knowledge while placing the tools and connecting the hardware, coupled with errors in prioritizing the functional layouts, can significantly impact the system's efficiency, leading to constrained repair durations and over-maintenance potentials. 

SEGMENTATION

By Type Analysis

Private Utility Segment to Dominate the Market Owing to its Wide Range of Electricity Networks

By type, the market is bifurcated into public utility and private utility. The private utility segment held the major market share in 2021 and is expected to dominate during the forecast period. Vast electricity networks of non-government companies and increasing investments to revolutionize the grid to lower power outage problems are set to favor the segment outlook.

By Component Analysis

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Software Segment is Leading the Global Market due to its Wide Adoption in the Utilities Sector

By component, the market is trifurcated into software, hardware, and services. The software segment is set to dominate the market in 2021, owing to the mounting requirement for remote and mobile detection, inspection, and diagnostic tools in vast networks.

Major players in the market have launched asset management software. For example, IBM’s Maximo application suite is a single, integrated cloud-based platform that uses IoT, AI, and analytics to enhance performance, extend the lifecycles of critical assets, and decrease operational downtime and costs. It also offers enhanced reliability with AI-powered monitoring, inspection, and predictive maintenance systems.

By Application Analysis

Growing Demand Backs Electric Utility Segment for Transmission & Distribution’s Predictive Maintenance 

Based on application, the market is trifurcated into electric, gas, and water. The electric segment is set to dominate the market in 2021 with a major utility asset management market share and is expected to hold the majority market share during the forecast period. Transformer is a vital part of the power transmission network. Management solutions have significantly incorporated the system to assess and optimize operating conditions, life expectancy, and failure reduction.

The growing concerns to upkeep reliable operations at lower costs and increasing usage of asset lifecycle planning, prediction, and condition-based maintenance activities are some of the key factors behind the electric segment growth in the market.

REGIONAL INSIGHTS

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The market has been analyzed geographically across five main regions, including Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.

North America dominated the global UAM market in 2021. The deregulation of the electric industry is likely to drive the region’s market. The deregulation of the power sector in various nations has facilitated many private organizations to achieve their strategic goals to reduce the cost of electricity to end consumers and to have minimum losses by monitoring & tracking their networks regularly.

Furthermore, Asia Pacific also held a substantial portion of the market in 2021. The factors contributing to the growth of the market include the upgrade of power distribution and transmission infrastructure by installing automated monitoring and tracking systems. Industries, such as fertilizers, automotive, petrochemical, and chemical, are witnessing steady growth in the region, which led to increased electricity demand and proper maintenance of various components of the electricity grid.

Besides, the Middle East & Africa, with a negligible utility asset management system, is expected to provide a huge opportunity to the companies involved in the UAM market shortly between 2021 and 2029.

KEY INDUSTRY PLAYERS

Panasonic is Focusing on Acquiring New Contracts through its Subsidiaries to Fortify its Position across the Industry

The global market has observed many utility asset management players delivering various products, software, and services to serve different aspects of an electrical power grid. Numerous companies are actively operating at regional and global levels to cater to the specific demands of the utilities.

ABB is estimated to account for a significant market share owing to its extensive range of solution offerings and its substantial brand value & presence across the globe. Furthermore, the company focuses on introducing innovations and investing significantly in product developments to fortify its market position. Other key industry participants include IBM, Schneider Electric, Siemens, Eaton, Sentient Electric, Black & Veatch, and others. They are continuously focusing on expanding their product offering and reach.

For example, in October 2022, Adani PowerLimited (APL) appointed Black & Veatch to optimize operations and improve the reliability and performance of its power assets in India, with goals including an overall reduction in CO2 emissions. The implementation will support the reliable, efficient, and sustainable operation of nearly 12 gigawatts (GW) of thermal power generation infrastructure in India by minimizing unplanned shutdowns and improving operational efficiencies.

LIST OF KEY COMPANIES PROFILED:

• General Electric (U.S.)


• ABB (Switzerland)


• Eaton (Ireland)


• Siemens (Germany)


• DNV GL (Norway)


• Aclara Technologies (U.S.)


• Sentient Energy (U.S.)


• IBM (U.S.)


• Hitachi Energy (Switzerland)


• Black & Veatch (U.S.)


• ABS Group (U.S.)


• Schneider Electric (France)


• IFS (Sweden)


• Getac (Taiwan)


• Fujitsu (Japan)


• Lindsey Manufacturing (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 – G.E. Digital's Asset Performance Management (APM) was recognized for leadership in capabilities across oil & gas, utilities, mining, and manufacturing industries. The company's Asset Performance Management (APM) is a package of service and software solutions designed to optimize the performance of critical assets for industrial companies.


• April 2021 – ABB launched the world's fastest, most sensitive drone-based gas leak detection and greenhouse gas measuring system. The company has introduced HoverGuard, which helps transform safety and environmental measurement capabilities for operators of millions of kilometers of pipelines traversing globally. The latest addition to ABB Ability Mobile Gas Leak Detection System, HoverGuard, provides the solution by finding leaks faster and more reliably.


• September 2020 – G.E. Renewable Energy signed a contract with Norwegian Power Company BKK to deploy its digital Asset Performance Management (APM) solutions to support the digital transformation of Norwegian Power Company BKK. Post-implementation, BKK will use G.E.'s Asset Performance Management (APM) under an initial 5-year license agreement to facilitate the digital transformation of BKK's operations and maintenance practices across a fleet of 30 hydroelectric power stations totaling more than 1.6 GW of capacity.


• February 2022 – Eaton Corporation partnered with L.G. Electronics to provide flexible load management for distributed renewable energy applications. Through this collaboration, Eaton Corporation has integrated its smart power management technology, including its smart circuit breakers and E.V. chargers, with the LG ThinQ Energy mobile app and L.G. power management solutions to simplify power management Load.


• February 2022 – Siemens Smart Infrastructure in the U.S. unveiled a new sustainable, E.V. charging concept structure designed to electrify fleets and large-scale, high-demand charging applications. The new VersiCharge XL (U.L. Standard) concept was created to quickly and efficiently electrify parking lots and new or existing building structures using a modular and scalable design made in partnership with Nexii Building Solutions using their exclusive low-carbon footprint sustainable building material in the U.S. The solution, which resembles a modern gas station, was developed in late 2021 and installed in just three days at Siemens' research and development center for electrical products and mobility solutions in Peachtree Corners, Georgia.

REPORT COVERAGE

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The research reports offer a qualitative and quantitative in-depth industry analysis of the global UAM market. It further details the adoption of utility asset management across several regions. The report provides a detailed competitive landscape by presenting information on key players and their strategies in the market. Information on trends, drivers, opportunities, threats, and market restraints can further help stakeholders gain valuable insights into the market.

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