Digital Utility Market Size

Global Digital Utility Market size was valued at USD 516.4 billion in 2023 and is poised to grow from USD 593.86 billion in 2024 to USD 1816.63 billion by 2032, growing at a CAGR of 15.0% during the forecast period (2025-2032).

The transition to smart grids and digital power infrastructure is a key enabler of the digital utility market worldwide. Utilities are leveraging advanced technologies such as IoT, AI, and cloud computing to improve operational efficiency and lower energy losses. This evolution allows real-time monitoring, predictive maintenance, and automated grid management, making service more reliable and cost-effective. With governments urging energy transition and grid modernization, utilities are compelled to adopt digital solutions to incorporate renewable energy sources, optimize demand response, and guarantee a secure power supply—driving the rapid growth of the digital utility market.

As digital utilities integrate more connected devices and cloud-based systems, cybersecurity threats have become a critical factor shaping the market. Smart grids and digital infrastructure are highly vulnerable to cyberattacks that can disrupt power supply, invade customer data, or manipulate grid operations. Utilities must invest in advanced cybersecurity tools, such as AI-driven threat detection and blockchain-based security, to safeguard their networks. This increasing requirement for cybersecurity compliance and risk reduction is compelling utilities to invest substantial resources in digital security, shaping technology adoption and regulatory policies—ultimately leading to investments in digital utility solutions.

How do AI-Driven Algorithms Improve Grid Management?

AI is revolutionizing the digital utility market by enabling predictive analytics, grid automation, and demand forecasting. Utilities utilize AI-powered algorithms to process huge amounts of data from IoT devices, sensors, and smart meters to optimize energy in real-time and effectively manage the grid. This saves on operations, reduces outages, and optimizes energy delivery. AI also enhances security by identifying anomalies and countering cyber threats ahead of time. One such breakthrough is Google's partnership with UK's National Grid through DeepMind AI, which optimizes energy demand and increases efficiency. These innovations spur AI adoption, speeding up digital transformation in the utility industry while promoting sustainable and resilient operations.

In February 2025, TE Connectivity announced plans to acquire Richards Manufacturing for approximately $2.3 billion in cash. This strategic action plans to increase TE's visibility in the electrical utilities segment, which is responding to the increasing power needs fueled by developments in artificial intelligence and calls for more reliable infrastructure. Richards Manufacturing will bring approximately $400 million in sales annually to TE's Industrial Solutions business upon closure of the deal in June.

How do Startups Contribute to Renewable Energy Integration?

The global digital utility market is thriving with startups compelling smart grid innovation, renewable energy integration, and artificial intelligence-based energy management. Startups leverage IoT, blockchain, and AI to optimize grid efficiency, reduce energy loss, and boost consumer participation in energy markets. With growing regulatory backing and investments in clean energy, startups are revolutionizing conventional utilities, making decentralized power distribution and more intelligent energy trading a reality, creating a more sustainable and robust energy industry.

Founded in 2017, UrbanChain develops AI-driven energy exchange platforms that facilitate peer-to-peer trading of renewable energy, reducing reliance on traditional utilities. Its main product, an AI-driven distributed ledger platform, aligns energy demand with live supply, with transparent and effective transactions. An R&D milestone was achieved with UrbanChain acquiring an Ofgem license to become an energy supplier, bringing decentralized energy trading faster to the UK.

Established in the year 2016, Powerledger offers blockchain-powered energy trading solutions in consumers' backyards, and for trading of renewable energy. Its flagship product, a blockchain trading platform for energy, ensures transparency and safety through secure, decentralized energy peer-to-peer and renewable energy certificates trade. The big R&D accomplishment was when it launched its deployment of globalized decentralized models for trading on a worldwide market level, showcasing blockchain's workability for live-time energy transactional business and empowering green power delivery around the globe.