Internet of Things (IoT) in Utilities Market

• In January 2022, Cisco announced a new ruggedized catalyst switch for industrial edge uses at utilities, railways, oil and gas facilities, and for deployment in highway traffic flow and safety operations. The new rack-mountable Catalyst Industrial Ethernet 9300 switch builds on Cisco’s Catalyst 9000 series switches are now used in multiple applications including smart buildings and other industries.

• In July 2019, HCL Technologies (HCL), a leading global technology company, expanded its strategic transformation partnership with AMS OSRAM to digitize one of the optical solutions leader’s key business processes and drive enterprise resource planning and customer relationship management systems standardization across the organization. HCL will also continue to lead IT infrastructure operations integration for the client.

In this report, the IoT in Utilities Market has been segmented by Component, Enterprise Size, Deployment Type, Application, and Geography.

IoT in Utilities Market, Segmentation by Component

The IoT in Utilities Market has been segmented by Component into Platform, Solutions, and Services.

Platform
The platform segment plays a foundational role in the IoT in Utilities Market, offering a centralized environment to manage connected devices and data flows. These platforms integrate various functionalities, including device management, data analytics, and connectivity services. With the rise of smart grid initiatives, the segment accounts for over 30% of the total market share, driven by the need for interoperability and scalable infrastructure.

Solutions
The solutions segment encompasses specialized applications such as smart metering, grid automation, and outage management systems. These solutions are instrumental in optimizing operational efficiency and enabling real-time decision-making across utilities. Representing approximately 45% of the market, this segment is witnessing increased adoption due to rising energy demand and infrastructure modernization.

Services
The services segment includes consulting, integration, and maintenance services that support the deployment and operation of IoT solutions. These services ensure seamless integration with legacy systems, reduce downtime, and enhance system reliability. Contributing to nearly 25% of the market share, this segment is growing steadily with the expanding complexity of utility networks and increasing demand for expert support.

IoT in Utilities Market, Segmentation by Enterprise Size

The IoT in Utilities Market has been segmented by Enterprise Size into Small and Mid-Sized Enterprises, and Large Enterprises.

Small and Mid-Sized Enterprises
The small and mid-sized enterprises (SMEs) segment is increasingly adopting IoT technologies to improve operational efficiency and reduce resource wastage. Despite budget constraints, SMEs are leveraging cloud-based IoT solutions to monitor energy usage and optimize infrastructure. This segment contributes to around 35% of the market, driven by the affordability and scalability of modern IoT platforms.

Large Enterprises
Large enterprises dominate the IoT in Utilities Market due to their ability to invest in advanced infrastructure and integrate customized IoT solutions across operations. These organizations use IoT for grid management, predictive maintenance, and asset optimization. Accounting for nearly 65% of the market, this segment benefits from economies of scale and enhanced data-driven decision-making capabilities.

IoT in Utilities Market, Segmentation by Deployment Type

The IoT in Utilities Market has been segmented by Deployment Type into Cloud-Based, On-Premises, and Hybrid.

Cloud-Based
The cloud-based deployment model is gaining significant traction in the IoT in Utilities Market due to its cost-effectiveness, scalability, and ease of access. Utilities are leveraging cloud platforms to streamline data storage, real-time analytics, and remote device management. This segment holds over 50% of the market share, driven by the widespread shift towards digital transformation.

On-Premises
The on-premises deployment model is preferred by utilities with strict data security and compliance requirements. This model offers greater control over infrastructure and is typically used in regions with limited cloud adoption. Representing around 30% of the market, it remains vital for legacy systems and mission-critical operations.

Hybrid
The hybrid deployment model combines the advantages of both cloud and on-premises setups, offering utilities a flexible approach to manage their IoT systems. It supports data localization and cloud-based scalability, making it an ideal solution for phased digital upgrades. This segment contributes approximately 20% of the market and is expected to grow as utilities seek a balanced IT strategy.

IoT in Utilities Market, Segmentation by Application

The IoT in Utilities Market has been segmented by Application into Water & Wastewater Management, Utility Gas Management, and Electricity Grid Management.

Water & Wastewater Management
Water and wastewater management applications in the IoT in Utilities Market focus on real-time monitoring, leak detection, and automated water quality control. IoT solutions enable utilities to reduce non-revenue water and enhance distribution efficiency. This segment represents nearly 30% of the market, driven by increasing demand for sustainable water management practices.

Utility Gas Management
In utility gas management, IoT technologies are used for pipeline monitoring, gas leak detection, and consumption analytics. These applications improve safety and operational efficiency while reducing losses and ensuring compliance with environmental regulations. Contributing to approximately 25% of the market, this segment benefits from the growing focus on infrastructure safety and efficiency.

Electricity Grid Management
Electricity grid management is the largest application area, leveraging IoT for smart metering, predictive maintenance, load balancing, and real-time grid monitoring. It supports the transition toward smart grids and enhances the reliability of power distribution. Accounting for about 45% of the market, this segment is rapidly expanding due to the global push for energy digitization and renewable integration.

IoT in Utilities Market, Segmentation by Geography

In this report, the IoT in Utilities Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

IoT in Utilities Market Share (%), by Geographical Region

North America
North America leads the IoT in Utilities Market with a strong focus on smart grid implementation, advanced metering infrastructure, and regulatory support. The U.S. and Canada are major contributors, with the region accounting for over 35% of the global market share. High technology adoption and government-backed modernization programs are key growth drivers.

Europe
Europe is a prominent region in the market due to its commitment to energy efficiency and sustainability goals. Countries like Germany, the UK, and France are investing in smart utility infrastructure and IoT-based monitoring systems. The region contributes around 25% of the market, supported by strong regulatory frameworks and digital transformation initiatives.

Asia Pacific
Asia Pacific is experiencing rapid growth in the IoT in Utilities Market, driven by the expansion of urban infrastructure and rising energy demand. Nations like China, India, and Japan are adopting IoT for grid modernization and resource optimization. This region accounts for nearly 28% of the market, with significant investments in smart city projects.

Middle East and Africa
The Middle East and Africa region is emerging as a growing market, focusing on utility automation and resource conservation. Countries such as the UAE and South Africa are adopting IoT solutions for water management and energy distribution. This region contributes about 7% to the global market, with increasing interest in sustainable utility practices.

Latin America
Latin America is steadily adopting IoT in utilities, with a focus on improving grid reliability and reducing non-technical losses. Brazil and Mexico are leading the region’s efforts in deploying smart meters and IoT-based energy management systems. This region holds close to 5% of the market share, fueled by public-private collaborations and infrastructure upgrades.

This report provides an in depth analysis of various factors that impact the dynamics of Global IoT in Utilities Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Enhanced Operational Efficiency
• Real-time Monitoring

• Commitment to achieving sustainability goals - Commitment to achieving sustainability goals is a key driver in the growth of the global IoT in utilities market. Utilities worldwide are under increasing pressure to reduce carbon emissions, improve energy efficiency, and transition to cleaner energy sources. IoT technologies enable real-time monitoring, predictive analytics, and automation that help utility providers optimize resource usage, reduce wastage, and support renewable energy integration more effectively.

  With governments and regulatory bodies enforcing stricter environmental compliance standards, utilities are turning to IoT solutions for smarter grid management, energy demand forecasting, and remote asset monitoring. These capabilities not only support long-term sustainability targets but also improve operational reliability and cost-efficiency. As sustainability becomes central to utility strategies, IoT adoption is expected to accelerate, fueling market expansion.

Restraints:

• Substantial upfront investment requirements
• Complex challenges in system integration

• Insufficient supporting infrastructure available - Insufficient supporting infrastructure available is a major restraint in the global IoT in utilities market. Many regions, particularly in developing economies, lack the foundational infrastructure necessary for seamless IoT deployment. This includes inadequate broadband connectivity, unreliable power supply, and the absence of standardized communication protocols, all of which are essential for real-time data transmission and remote monitoring of utility systems.

  Furthermore, legacy systems still dominate utility operations in several areas, making integration with modern IoT solutions technically challenging and cost-intensive. Without robust infrastructure, utilities face frequent disruptions, reduced efficiency, and limited data accuracy, undermining the core benefits of IoT. These gaps create barriers to scaling and fully leveraging intelligent technologies, especially in regions that stand to gain the most from smarter resource management.

Opportunities:

• Renewable Energy Integration
• Smart City Initiatives

• Advanced Analytics and Artificial intelligence - Advanced analytics and artificial intelligence present significant opportunities for the global IoT in utilities market. By leveraging AI and analytics, utilities can extract actionable insights from vast volumes of real-time sensor data to enhance grid performance, detect equipment anomalies, and predict maintenance needs. These capabilities allow providers to shift from reactive to predictive operations, resulting in improved reliability, reduced downtime, and optimized resource allocation.

  Additionally, AI-driven analytics support smarter energy demand forecasting, automated decision-making, and real-time consumption tracking, empowering utilities to deliver personalized services and enhance energy efficiency. This data intelligence not only strengthens grid resilience but also aligns with sustainability initiatives by minimizing energy waste. As digital transformation accelerates across the utility sector, the integration of advanced AI and analytics tools offers long-term value and competitive differentiation.