The utility communications market is projected to be worth $37 billion by 2032 growing at a compounded annual growth rate of 5.7% from the years 2023 to 2032.
This is according to a report released by Allied Market Research, Utility Communications Market, which analysed the systems and processes that utilities use to manage and organise their operations.
Utility companies rely on communication networks to monitor infrastructure, respond to service outages and guarantee service delivery to customers.
According to the report, the increase in adoption of distributed energy resources (DERs) has been a factor in the growth of the utility communications market. Utility communications play an important role because communication links need to be established among DERs, grid operators and control centres. Communication networks enable monitoring, control and coordination of DERs to ensure that they are integrated and effective grid performance.
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Asia-Pacific dominated the market in 2022. Many countries in Asia-Pacific have experienced rapid urbanization. As urban populations grow, there is a higher demand for reliable electricity, gas, and water supply, as well as effective communication systems to manage and monitor utility networks.
Asia-Pacific countries have also invested heavily in infrastructure development, including energy generation, transmission, and distribution systems. This includes the construction of new power plants, expansion of grid networks, and implementation of smart grids. Utility communications play a crucial role in connecting these infrastructure components and enabling efficient management of energy resources.
The report showed that the wired segment was the highest revenue contributor to the market in 2022. Wired utility communications offer high bandwidth and capacity, allowing the transmission of large volumes of data. This capacity is essential for handling real-time monitoring and control data, as well as supporting advanced utility applications such as smart grid technologies, AMI (Advanced Metering Infrastructure), and SCADA (Supervisory Control and Data Acquisition) systems.
According to the opinions of various CXOs of leading companies, the utility communications market is expected to witness increased demand during the forecast period due to a surge in demand for smart grid infrastructure.
Smart grid infrastructure will however require robust cybersecurity measures to protect against cyber threats and ensure the privacy of customer data.
Utility communications play a vital role in establishing secure communication networks, implementing encryption protocols, and monitoring network security to safeguard critical infrastructure and customer information.
