IoT In Utilities Market
Report ID: SQMIG45A2674
Report ID: SQMIG45A2674
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Report ID:
SQMIG45A2674 |
Region:
Global |
Published Date: December, 2025
Pages:
174
|Tables:
35
|Figures:
68
Global IoT In Utilities Market size was valued at USD 137.82 Billion in 2024 and is poised to grow from USD 160.56 Billion in 2025 to USD 544.81 Billion by 2033, growing at a CAGR of 16.5% during the forecast period (2026–2033).
The global iot in utilities market growth is fuelled by increasing demands for energy efficiency, the adoption of smart grid systems, and real-time monitoring solutions. Increased investments into smart metering, integration of renewable energy sources, and predictive maintenance drive development. Additionally, the promise of government-sponsored smart city initiatives and smart connected IoT infrastructure is giving momentum to the IoT in utilities market. Improved connectivity, including enhanced cloud capabilities brought by 5G, and the harboured potential of AI-led predictive analytics also help to optimize various utility operations while supporting reduced costs and greater reliability to those utilities and consumers. Urbanization will correspondingly force the need for sustainable utilization of limited resources and foster greater IoT in utilities growth. Utilities are finding benefit in utilizing IoT to strengthen customer experience, minimize outages, and limit voyages in distribution of energy. Together, these factors push the IoT in utilities market forward.
What Makes AI Integration Crucial for IoT in Utilities Market?
In the utilities market, AI integration will be critical for the IoT. This AI integration will allow benefits like predictive analytics, automation, and real-time decision-making. By analyzing large troves of data generated by the IoT, AI can identify anomalies, mitigate failures in equipment, optimize energy distribution, and using Machine Learning tools can enhance demand forecasting (reducing waste and costs). In addition, AI-powered smart grids allow utilities to reliably manage supply and demand by ensuring a dynamic balance between the two and customers can access accurate data regarding their own energy usage. Additionally, AI-driven analysis and chatbots can support the customer service experience by allowing utility personnel to resolve issue faster than traditional methods. All these benefits make AI essential for utility operations that are efficient, sustainable, and cost-effective and support the growth of the IoT in the utilities market.
Market snapshot - 2026-2033
Global Market Size
USD 118.3 billion
Largest Segment
On-premise
Fastest Growth
Cloud
Growth Rate
16.5% CAGR
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Global IoT In Utilities Market is segmented by Component, Deployment, Connectivity and region. Based on Component, the market is segmented into Hardware, Software and Services. Based on Deployment, the market is segmented into On-premises and Cloud. Based on Connectivity, the market is segmented into WIFI and Z- wave. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the global IoT in utilities market analysis, the hardware segment captured the largest revenue share to advancements in sensor technology, microprocessor, and wireless communication protocols that support the development of smaller, more efficient, and cost-effective IoT devices. The increasing focus on energy efficiency and sustainability is driving the demand for smart devices that can optimize resource consumption and reduce operational costs. Moreover, the growing adoption of IoT platforms and cloud-based solutions is providing the necessary infrastructure to support the deployment and management of IoT hardware devices, further contributing to the segment’s growth.
The software segment is expected to record the fastest CAGR. As IoT networks expand and become more interconnected, there is a growing need for advanced software platforms to manage, analyze, and optimize data from these devices. These software solutions enable utilities to improve operational efficiency, enhance customer service, and gain valuable insights into energy consumption patterns. The integration of artificial intelligence and machine learning capabilities within IoT software platforms is further creating significant growth opportunities for the market, as it enables utilities to automate tasks and optimize resource allocation.
Based on the global IoT in utilities market forecast, the on-premises segment held the largest revenue share. Organizations in industries such as manufacturing, energy, and transportation are increasingly deploying IoT solutions to optimize operations, improve efficiency, and reduce costs. On-premises deployments offer greater control over data security, privacy, and compliance, making them attractive to organizations with stringent data management requirements. In addition, this deployment mode provides lower latency and reduced reliance on external network connectivity, making it suitable for applications that require real-time data processing and control. These factors underline the dominance of on-premises segment in the market.
The cloud segment is expected to have the largest global IoT in utilities market share, Cloud-based IoT solutions offer cost-effective deployment and management, as well as enhanced security and reliability, which is driving their demand and favoring segmental growth. Moreover, cloud platforms offer scalable and flexible storage and processing capabilities required to manage the large volume of data generated by IoT devices. Furthermore, the integration of cloud-based analytics and machine learning tools enables utilities to extract valuable insights from IoT data, optimizing operations and improving efficiency. These factors, combined with the growing adoption of IoT technologies in the utilities sector, are contributing to the market expansion.
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The IoT in utilities market in North America accounted for the largest revenue share. The increasing focus on energy efficiency and sustainability has driven the adoption of smart grid technologies and IoT solutions for utilities. Moreover, advancements in sensor technology, data analytics, and cloud computing have enabled utilities to collect and analyse vast amounts of data to optimize operations and improve efficiency. With rising concerns over climate change and regulatory mandates, IoT-driven technologies are gaining wide prominence across utilities in the region. Additionally, increasing government investment in IoT-enabled utilities to enhance grid reliability and resilience is expected to enhance the market outlook over the coming years.
IoT in utilities market in the U.S. is expected to record significant growth, owing to increasing adoption of IoT solutions to optimize resource management, enhance grid reliability, and enable real-time monitoring of energy consumption in the country. These technologies allow for predictive maintenance, improved asset management, and more efficient distribution of electricity, water, and gas. Moreover, rise in renewable energy integration, along with government initiatives promoting smart infra and sustainability, are further accelerating the market growth.
The Canada IoT in utilities industry is growing because of the development of smart grids, government policies supporting clean energy and the need for a more integrated solution for the management of resources. Utility companies are using IoT-enabled smart meters, predicting maintenance schedules and performing real-time monitoring to decrease outages and provide a better energy distribution. Not only are they investing in the infrastructure for more 5G, in addition to increasing investments in cloud, they will be able to better dependable grid with analytics driven by AI.
The IoT in utilities market in Asia Pacific is expected to record a promising. Factors such as increasing adoption of smart grid technologies, need for efficient energy management, and emphasis on sustainability, are driving the market growth. The increasing government investments in grid infrastructure, including smart meters, sensors, and automated systems, to improve energy distribution and minimize waste is creating ample growth opportunities for the market. Rapid urbanization, rising energy demand, and the integration of sources have further accelerated the adoption of IoT solutions in utilities. These factors, combined with smart city initiatives and energy conservation, are driving the expansion of the Asia Pacific market.
The IoT in the utilities market in Japan is experiencing growth due to modernization of aging infrastructure, integration of renewable energy, and ongoing smart city initiatives headed by the government. Utilities are leveraging IoT technologies for smart metering, continuous grid optimization, and disaster-resilient energy management. Because of advanced artificial intelligence tools, supplemented with 5G technology, utilities are capable of real-time monitoring and predictive maintenance that minimize systemic outages. Furthermore, Japan's high adoption rate of digital technology, along with sustainability goals from the government and utilities, makes the country very proactive and an engine for IoT development in utilities with efficiency and decarbonisation.
China's IoT in utilities market is booming due to government-driven smart city mandates, a massive deployment of 5G, and AI-enabled grid modernization. The central and local governments are promoting state-backed smart meters, renewable integration, and real-time energy monitoring to improve efficiency in energy usage. Rapid urbanization and carbon neutrality objectives have positioned utility firms to use IoT for predictive maintenance, real-time service monitoring, and demand response, making China a world leader in smart utility solutions because of the industry’s ability to harness IoT.
IoT in utilities market in Europe accounted for a notable revenue share, owing to increasing focus on smart energy management, sustainability, and infrastructure modernization across regional countries. As European countries are prioritizing renewable energy integration, smart grids, and energy efficiency, IoT-enabled technologies are witnessing heightened demand for real-time monitoring, automation, and optimization. IoT devices and sensors help utility providers enhance operational efficiency, reduce energy waste, and offer predictive maintenance, thereby minimizing downtime and costs. Moreover, growing inclination toward carbon neutrality and stringent EU regulations on emissions and energy consumption are driving the adoption of IoT solutions, thereby contributing to the regional market growth.
The UK IoT in utilities market is growing at a rapid pace, in large part due to regulatory mandated smart meter rollouts, net-zero aspirations, and artificial intelligence powered grid optimization. The utilities sector uses the IoT for real-time monitoring of consumption, predictive asset maintenance, and integrating renewable power sources. The UK is a leader for smart utilities innovations driven by the tremendous 5G deployment and regulatory support for meaningful action to enhance the efficiency of utilities and customer engagement in their consumption of energy and water.
The utilities market for IoT in Germany is burgeoning following Energiewende (energy transition) policies, smart meter deployment, and industry 4.0 reality. Utilities are utilizing IoT to balance the grid with renewable energy sources, predictive maintenance, and consumption analytics and forecasting. The presence of a robust data privacy legislation and the expansion of 5G will continue to propel the rate of IoT adoption, securing Germany's position as the leader in Europe smart and sustainable utility solutions.
The IoT in utilities sector in France is developing at a rapid pace, fueled by EU clean energy directives and national investment in smart grids. Utilities are implementing connected smart meters that utilize IoT technologies, renewable integration systems, and demand forecasting systems powered by artificial intelligence to enhance operational efficiencies. France's future of decentralization and data-driven innovative strategies for energy resources looks promising based on the strong footprint across the nation of 5G infrastructure and practical government and private sector support for creating smart cities.
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Increasing Adoption of Smart Grid Technologies
Growing Demand for Energy Efficiency and Sustainability
High Implementation Costs
Data Security and Privacy Concerns
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Major players in IoT in utilities industry are focusing on developing innovative solutions to meet the evolving needs of their customers. IoT in utilities market is a highly competitive market, with several leading players competing for market share. Some of the key players in the market include Itron, Inc., Landis+Gyr, and General Electric Company. These companies are investing heavily in research and development to create new products and services that can meet the needs of their customers. They are also focusing on expanding their geographical reach and building strategic partnerships to gain a competitive edge. A leading player in the IoT-in Utilities Market, Itron, Inc. offers a range of smart metering solutions that help utilities improve their efficiency and customer service.
These solutions include smart meters, data collection systems, and software solutions that provide real-time insights into energy usage and consumption patterns. Itron has a global presence and has deployed its solutions in over 100 countries. It is known for its commitment to innovation and has invested heavily in research and development to create new products and services.
Aquasight (2017): Aquasight Specializes in AI-powered water utility IoT solutions, using smart sensors and predictive analytics to detect leaks, monitor water quality, and reduce non-revenue water loss by up to 25%. Their cloud platform helps municipalities optimize distribution networks.
Energomon (2017): Energomon Provides real-time energy monitoring IoT systems for industrial and commercial utilities. Their platform analyzes electricity/gas consumption patterns, enabling demand response and cost savings through automated efficiency improvements.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the IoT in utilities market is rapidly expanding with demand in the global push for grid modernization, energy efficiency and decarbonization. Leading this trajectory is the widespread introduction of AI-powered predictive analytics, enabling utilities to eliminate 35% of outages by real-time fault detection and better asset maintenance. With government mandates, especially in the EU, UK and North America, utilities are accelerating large smart meter rollouts, with over 100 million meters to be installed, providing the means for dynamic pricing and demand-side management. The rollout of 5G and edge computing is reshaping real time balance within the grid to support renewable energy sources. The regulatory pressures caused by the US Infrastructure Act and EU Green Deal is pushing IoT into smart water and energy networks at pace. Due to increasing cybersecurity threats, utilities are allocating upwards of 20% of their IoT budget toward zero-trust frameworks and blockchain-based data security.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 137.82 Billion |
| Market size value in 2033 | USD 544.81 Billion |
| Growth Rate | 16.5% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the IoT In Utilities Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the IoT In Utilities Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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