Energy & Utility Software: Market Activity Update H2 2023

We are pleased to present our views on the Energy & Utility landscape, doing so with the aim of helping increase transparency and communication among the companies themselves as well as financial and strategic investors.

We see the companies in this report as disruptors in the space focusing on technologies that provide improved energy efficiency and build sustainable relationships for key differentiators. Companies discussed in this report are at the forefront of serving the Energy & Utility sector using advanced technologies like IoT and Internet of Energy (IoE) in order to enhance energy efficiency. There is also a growing focus on Cybersecurity following rapid advancements in digitization of the sector.

Key trends:

  • The global digital utility market is projected to reach $594BN by 2032 with a CAGR of 10.8% during 2023-32, mainly driven by substantial investments in smart metering and EV charging infrastructure.
  • Similar to other sectors, IoT is being rapidly adopted by the utilities sector. Industry leaders like National Grid, E.ON, and American Water are using IoT to collect and monitor data in real-time
  • The energy industry is experiencing a transformative shift influenced by the ‘3Ds’: decentralization, decarbonization, and digitalization. IoE helps to optimize power grids by melding data, people, processes, and devices to create a digital-centric business model
  • Cybersecurity has become a crucial area for development following digitization as the rise of industrial IoT and heightened connectivity has caused the energy ecosystem of the future to become more susceptible to cyber threats
  • The global EV charging infrastructure market is expected to be valued at $6.4BN in 2023 and is expected to grow at a CAGR of 18.5% from 2023-2030, primarily driven by government policies, rising demand, and a need to reduce carbon emissions globally
  • AI & big data deployment are finding wider applications within the sector besides the well-known applications like improving power grids, managing energy, and keeping grids stable.
  • The global energy management systems (EMS) market size is estimated to grow from $40.7BN in 2023 to $75.6BN by 2028, clocking a CAGR of 13.2%.
  • During the first 10 months of 2023, there were 52 private placement deals in the Energy & Utility technology space versus 64 deals in the same period of 2022