Utility Asset Management Market Size, Share & COVID-19 Impact Analysis, By Type (Public Utility and Private Utility), By Component (Hardware, Software, Services), By Application (Transformers, Substations, and Transmission & Distribution Lines), and Regional Forecast, 2020-2027

The global utility asset management market size stood at USD 3.31 billion in 2019 and is anticipated to attain USD 6.20 billion by 2027, exhibiting a CAGR of 8.5% during the forecast period.

Asset management (AM) services are a combination of various hardware, software, tools, and solutions deployed to increase productivity and lower maintenance requirements in facilities. These systems widely incorporate prevention, prediction, and condition-based approach to enable electric utilities to monitor and track performance for continuous evaluation. The solution is based on data analytics and artificial intelligence (AI) to mitigate the risk of electrical system failures and plan replacement/repair operations strategically to enhance the unit’s efficiency.

Halt in Heavy-duty Operations amid COVID-19 Pandemic May Hamper Growth

The sudden spread of COVID-19 or coronavirus, a global crisis, has substantially affected different nations. Many countries have adopted strict measures to combat the viral infection and limit its human to human spread by shutting down various commercial and industrial operations. Consequently, the utility asset management industry has also been reasonably affected by the repercussions of this global turmoil.

Additionally, the halt in various heavy-duty end-user operations such as manufacturing industries, processing facilities, and temporary closure of large commercial offices has led to an unprecedented decline in the demand for electricity. This has left electric utilities with significant cash deficits, making them incapable of maintaining their operational capabilities with feasible incomes.

LATEST TRENDS

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Growing Measures to Mitigate Power Outage Problems is a Current Trend

Several countries across the globe have observed a significant spike in the number of power cuts caused by various reasons deteriorating operations. Numerous problems due to erratic human decisions and natural calamities have led different public and private grid owners/operators to adopt stringent actions like utility asset management to diminish the impact.

For instance, in April 2019, the Mexican state-owned utility company, Comisión Federal de Electricidad (CFE), stated that the Yucatán peninsula territory of the country was stuck with a second power outage in days after a first one. The company also reported a fire outbreak caused beneath the transmission lines leaving millions of its customers without electricity.

Development of Advanced Solutions through Partnerships Among Players is a Prominent Trend

Various utility asset management market players are regularly concentrating on growing their products & solutions offerings, along with expanding their portfolios to cater to a wide range of customers. Additionally, organizations are also focusing on collaborative hardware and software development to introduce new utility asset management solutions to analyze complex operational data.

For example, in July 2018, General Electric or GE joined forces with Microsoft to augment the adoption of the Industrial Internet of Things (IIoT) across different verticals and expand the digital transformation of industries. The partnership was labeled as the largest one between two organizations and targets to adjoin the former’s Predix portfolio and Microsoft’s Azure Data & Analytics and Azure IoT for enhanced results.

DRIVING FACTORS

Rapidly Increasing Energy Demand & Adoption of Green Energy Technology will Propel Growth

The energy consumption across the world has observed a steep increase over the years due to the continually growing residential and commercial infrastructures. Subsequently, various nations have observed a tremendous rise in the deployment of multiple power generation techniques to serve the growing demand. It would further drive the companies to undertake different utility asset management technologies to transfer the produced energy efficiently.

• For example, in March 2020, the International Renewable Energy Agency (IRENA) reported that the overall renewable capacity totaled over 2.53 terawatt (TW) across the globe in 2019, exhibiting 175.8 GW of annual increase from 2.36 TW in 2018.

Increasing Concerns to Upgrade Long-standing Transmission & Distribution Networks to Boost Growth

A positive outlook from national governments to invest and develop the aging infrastructure and support the extension of smart grid technologies is set to favor the utility asset management market growth. Furthermore, numerous public and private entities are readily adopting techniques such as outage management, distribution management, asset management, and peak load management, which is likely to augment the market.

• For instance, in March 2019, the China Southern Power Grid announced to invest about USD 24.6 billion between 2018 and 2022 to enhance power grids with better disaster prevention capacity. The state-owned utility also aims to diminish the annual power outage durations across various cities to balance the growing demand.

RESTRAINING FACTORS

Requirement of Significant Capital & High Technical Expertise May Hinder Growth

The capital intensive nature of advanced technology operations and high risks associated with maintaining the needed equipment for longer durations without optimum proficiency may hamper the utility asset management market growth. Additionally, the lack of correct technical knowledge while installing the expensive equipment and joining the hardware, coupled with inaccuracies in prioritizing the operational layouts, can significantly impact the efficiency of the system, thereby leading to constrained repair durations and over maintenance harms.

SEGMENTATION

By Type Analysis

Public Utility Division is Anticipated to Account For Significant Share Over the Forecast Period

Based on type, the global utility asset management market can be bifurcated into public utility and private utility. The existence of long-standing transmission & distribution setups by different national utility companies, coupled with the increasing cases of system malfunctions in the networks, is set to favor the growth of the public utility segment.

Additionally, the private utility segment is projected to observe significant expansion owing to the growing investments by non-government organizations to place new infrastructures to support different power generation technologies.

By Component Analysis

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Hardware Segment to Observe Considerable Growth Backed By Setup of New Power Generation Facilities

Based on the component, this market can be majorly categorized into hardware, software, and services. The growing demand for power across various sectors, coupled with the rapidly expanding power generation facilities, is likely to drive the growth of the hardware segment.

The software segment is also expected to grow substantially owing to the increasing concerns of diagnosing and combating mounting problems across electricity networks. Additionally, the growth of the services segment is assisted by the rising demand for various management checks to comprehend the technical aspects of old and new grids for improved efficiency.

By Application Analysis

Transmission & Distribution Lines Segment to Hold Major Share Stoked by Rising Natural Circumstances

Based on the application, the market is segmented into transformers, substations, and transmission & distribution lines. The transmission & distribution (T&D) lines segment is anticipated to hold the major share owing to the high susceptibility to overground lines & systems, as well as the increasing occurrences of human and natural circumstances jeopardizing the networks.

Furthermore, the abruptly increasing electrical infrastructure development across various nations is set to propel the growth of the substations segment. The transformers segment is also likely to observe steady growth due to the continuous development of new systems integrated with automated technology by numerous manufacturers.

REGIONAL INSIGHTS

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The industry has been analyzed across five key regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is likely to account for the dominating portion of the market owing to various factors such as favorable regulatory policies, positive green energy outlook, increasing utility expenditure, and the presence of key management companies, among others. For example, in July 2019, the United States Federal Energy Regulatory Commission (FERC) issued Order No. 860 (RM16-17-000, AD19-17-000) to streamline the collection of data for surveillance & analytics and eliminate duplicate entries.

Europe is also set to exhibit substantial growth over the forecast period due to the stern emission control regulations, along with encouraging financial support and targets for low carbon generation technologies. Furthermore, the setup of new renewable facilities such as solar and onshore & offshore wind power, coupled with the growing need to develop the T&D infrastructure to support the expansion, is set to propel growth in this region. In September 2020, the European Investment Bank (EIB) declared to allocate over USD 3.5 billion to propel clean energy projects across Europe, as well as the globe.

Asia Pacific utility asset management market is also projected to account for considerable market share over the forecast timeframe. The continuously evolving industrial infrastructures, advantageous rural electrification objectives, presence of long-standing T&D networks, high investments in smart grid developments, and the rising number of power outages are some of the factors augmenting the market size in the region.

KEY INDUSTRY PLAYERS

Black & Veatch is Focusing on Fabricating New Products & Partnering With Other Players

The utility asset management market includes a significant number of participants offering a wide range of products & services at country, regional, and global levels, thereby shaping the competitive landscape. These key players, such as ABB, Schneider Electric, IBM, General Electric Company, or GE, and many others are concentrated to serve different aspects of an electrical power grid and serve specific requirements of utility asset management operations.

Black & Veatch is readily aiming to undertake different collaboration initiatives to expand its geographical foothold and product reach along with unveiling new developments. For example, In February 2020, the company announced to join forces with a United Kingdom-based data analytics company called Rezatec, to uncover new possibilities for its utility asset management systems. The collaboration further targets to integrate BV Europe’s ECO-X cloud-based digital ecosystem along with Rezatec’s AI-driven analytics and data science for optimized asset management.

LIST OF KEY COMPANIES PROFILED: 

• GE (United States)


• ABB (Switzerland)


• Eaton (Ireland)


• Siemens (Germany)


• DNV GL (Norway)


• Aclara Technologies (United States)


• IBM (United States)


• Sentient Energy (United States)


• Black & Veatch (United States)


• Schneider Electric (France)


• IFS (Sweden)


• Getac (Taiwan)


• Lindsey Manufacturing Company (United States)


• Fujitsu (Japan)

KEY INDUSTRY DEVELOPMENTS:

• August 2020 – Emerson Electric declared to purchase the U.S.-based technology software provider, Open Systems International, Inc. (OSI Inc.), for about USD 1.6 billion. The company targets to enhance its offering with OSI’s portfolio to propel digitization and improve grid reliability.


• July 2020 – Schneider Electric introduced a new line of its EcoStruxure power SCADA software designed particularly for power networks. The Power SCADA Operation (PSO) 2020 is set to work as an open-source platform with enhanced speed & cybersecurity for fast decision support for electrical distribution systems.

REPORT COVERAGE

An Infographic Representation of Utility Asset Management Market

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The market research report presents a comprehensive assessment of the global utility asset management market sizing by offering valuable insights, facts, industry-related information, and historical data. Several research methodologies and approaches are adopted to formulate meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the global industry. 

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