IIOT Gateway for Utility Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The IIoT Gateway for Utility market is estimated to be worth USD 4.65 billion in 2023 and is expected to reach USD 12.5 billion by 2032, registering a CAGR of 11.6% from 2024 to 2032. This growth indicates the growing adoption of IIoT technology in the utility sector, driven by the need for real-time data analysis, asset management, and improved operational efficiency. As the utility sector continues to modernize its grid and embrace digital transformation, the demand for IIoT gateways is expected to rise. Several factors, such as the increasing emphasis on smart grids, the integration of renewable energy sources, and the growing need for predictive maintenance solutions, are expected to drive this market growth. The introduction of 5G and edge computing, which facilitates the faster and more reliable transfer of data, is also expected to drive the growth of the market. In addition, the major players in the market, such as Siemens, Cisco, and GE Digital, are focusing on investing in the development of new solutions and forming strategic alliances to enhance their product offerings and expand their market share. These alliances highlight the industry’s commitment to deploying IIoT technology for improved utility management and sustainability.

Regional Market Size

Regional Deep Dive

The IIoT Gateway for Utility Market is expected to grow at a CAGR of over 7% over the forecast period, driven by increasing demand for smart grids, and the need for real-time data analysis. North America is characterized by advanced technology and a focus on the environment. Europe is characterized by regulatory compliance and energy innovation. The Asia-Pacific region is characterized by rapid urbanization and industrialization, which leads to an increase in investment in utility. The Middle East and Africa are focused on modernization. Latin America is gradually introducing IIoT solutions to improve utility services and reduce costs.

Europe

• The European Union's Green Deal aims to make Europe climate-neutral by 2050, driving investments in IIoT technologies that support renewable energy integration and smart grid development.
• Organizations such as the European Network of Transmission System Operators for Electricity (ENTSO-E) are collaborating on projects that leverage IIoT gateways to improve grid management and energy distribution.

Asia Pacific

• China's government is heavily investing in smart city initiatives, which include the deployment of IIoT gateways to enhance energy efficiency and utility management.
• India's Smart Cities Mission is promoting the adoption of IIoT technologies in urban areas, with projects focusing on smart metering and real-time data analytics for utilities.

Latin America

• Brazil is implementing smart grid projects that incorporate IIoT gateways to enhance energy distribution and reduce outages, supported by government incentives.
• Mexico's energy reform has opened up the market for private investments in IIoT technologies, fostering innovation in utility management and service delivery.

North America

• The U.S. Department of Energy has launched initiatives to promote smart grid technologies, which include the integration of IIoT gateways to enhance grid reliability and efficiency.
• Companies like Cisco and Siemens are investing heavily in IIoT solutions for utilities, focusing on cybersecurity and data management to protect critical infrastructure.

Middle East And Africa

• The UAE's Energy Strategy 2050 aims to increase the contribution of clean energy, leading to the adoption of IIoT gateways for better energy management and efficiency.
• South Africa's Department of Energy is implementing smart grid projects that utilize IIoT technologies to improve electricity distribution and reduce losses.

Did You Know?

“By 2025, it is estimated that over 75% of utility companies worldwide will have adopted IIoT technologies to enhance operational efficiency and customer engagement.” — International Energy Agency (IEA)

Segmental Market Size

The IIoT Gateway for the Utility Industry plays an important role in the real-time data transfer between devices and central systems, and it is experiencing significant growth. The main drivers are the increasing demand for operational efficiency and reliability in the field of utility services and the regulatory policy promoting smart grids. Moreover, the trend towards improved data analysis is also influencing the use of IIoT gateways for the purpose of optimising resource management and improving customer service. The current trend in the utility industry is to move from the pilot phase to the scale phase, as shown by the examples of Pacific Gas and Electric in California and Enel in Italy, which are using IIoT solutions to improve grid management. The main applications include smart metering, predictive maintenance and real-time monitoring of assets. The integration of renewable energy sources and the growing trend towards sustainability are driving the trend towards greater data use. The use of edge computing and advanced analytics is also shaping the evolution of the industry and making it possible to use the data more effectively.

Future Outlook

The market for IoT gateways for the energy sector is expected to grow from $ 4.6 billion in 2023 to $12.5 billion by 2032, registering a CAGR of 11.6 percent. The growth is mainly driven by the increasing demand for smart grids, which are expected to increase the efficiency and reliability of power grids. The penetration of IoT gateways is expected to rise significantly as the penetration of smart grids increases, and is expected to reach more than 30 percent by 2032. The integration of artificial intelligence and machine learning into IIoT systems will further drive the market. These two technologies will enable the prediction of maintenance, real-time monitoring and improved decision-making, which are critical to the power sector in order to optimize resource allocation and reduce operating costs. In addition, the favorable government policies and the increasing investment in the development of the Internet of Energy will also drive the market. The trend of decentralization of energy resources and the increasing importance of security in power generation will also have a significant impact on the market. IoT gateways will be an important part of the evolution of power services.