IoT in Energy, Utility Applications Market: Strongest growth in Software, Services and Connectivity
The strongest growth factors for Internet of Things (IoT) solutions in the energy, utility applications market are software, services and connectivity. According to a new report, the market will double within the next five years and reach $59,9 billion in 2022 at an annual growth rate of 22,9 percent.
The new report “The Internet of Things (IoT) in Energy and Utility Applications” by BCC Research broadly categorizes the market into hardware, software, services and connectivity. While hardware and services dominate the market, software, services and connectivity are the three strongest growing categories. In connectivity, noncellular low power wide area (LPWA) is the strongest growing subsegment. According to the study, the global market for IoT in energy, utility applications should reach $59.9 billion by 2022 from $21.4 billion in 2017 at a compound annual growth rate (CAGR) of 22.9%.
Need for efficiency drives IoT Technologies
BCC identified some key factors, that are driving the adoption of IoT-Technologies in the energy and utilities industry: While there is a strong need of increased efficiency, the industry moves to next-generation smart meters and the implementation of an advanced infrastructure. This goes along with the need for real-time information and the usage of analytics. However, at the same time the industry needs to adhere to increasingly strict reforms and regulations. Finally, a renewed focus to engage with customers supports the growth of IoT in energy, utility applications market.
The utility gas management and electricity and supply management sectors are expected to outperform across all geographical regions (North America, Europe, Asia-Pacific, Middle East and Africa), the smallest segment water management is forecast to have improved growth in the coming years as well. In the services segment, the report covers all forms of services such as professional services, deployment and integration, support and maintenance.
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