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Internet of Things in Utilities Market by Component (Hardware, Services, Software), Communication Technology (Cellular, LpwAn, Rf Mesh), End Use, Deployment Mode - Global Forecast 2025-2032

Publisher 360iResearch
Published Dec 01, 2025
Length 180 Pages
SKU # IRE20629468

Description

The Internet of Things in Utilities Market was valued at USD 37.41 billion in 2024 and is projected to grow to USD 41.06 billion in 2025, with a CAGR of 10.18%, reaching USD 81.24 billion by 2032.

A focused introduction explaining how IoT is converting isolated utility assets into integrated, enterprise-grade systems that enable operational transformation

The Internet of Things (IoT) is reshaping utilities by converting legacy networks of isolated assets into connected ecosystems that deliver operational visibility, automated control, and data-driven decision-making. This transformation extends across hardware, software, and services, while enabling new use cases from predictive maintenance to dynamic demand response. As utilities contend with aging infrastructure, changing regulatory expectations, and evolving customer demands, IoT deployments are shifting from pilot projects to enterprise-grade systems that integrate across distribution, transmission, and customer-facing operations.

Early adopter utilities have demonstrated measurable improvements in outage response, asset utilization, and regulatory reporting through integrated IoT architectures. At the same time, the technology stack is maturing: edge intelligence reduces latency for critical protection functions, analytics platforms synthesize telemetry into actionable insights, and managed service models lower barriers to adoption for smaller utilities. Therefore, decisions made now around component selection, communication technologies, and deployment models will reverberate over the next decade, influencing capital allocation, vendor partnerships, and the pace at which new applications scale across service territories.

A strategic overview of the major technological, regulatory, and market shifts reshaping utility operations and IoT deployment strategies

The landscape of utility operations is experiencing several transformative shifts driven by technology, policy, and stakeholder expectations. First, intelligence is moving to the edge: controllers and gateways are increasingly capable of local decision-making that preserves system stability while minimizing round-trip dependencies on centralized servers. Second, software-defined operations are disaggregating functionality from hardware, enabling providers to iterate analytics, asset management, and network orchestration independently of meter and sensor refresh cycles. These developments are accompanied by a service economy in which managed and professional offerings accelerate deployments and reduce time-to-value.

Concurrently, communication technologies are diversifying to match a wider range of use cases. Cellular and LPWAN options provide distinct tradeoffs between bandwidth and power consumption, while RF mesh and wired PLC remain vital for certain distribution and meter-level contexts. This multi-protocol reality is prompting vendors and utilities to adopt interoperable, standards-aligned approaches that minimize vendor lock-in and future-proof networks. Regulatory drivers and decarbonization targets are also shaping investment priorities, pushing utilities to prioritize grid management and distribution automation capabilities that support distributed energy resources and two-way flows. Taken together, these shifts are creating an environment in which strategic technology choices and ecosystem partnerships determine which utilities convert pilot gains into sustained operational and customer outcomes.

An in-depth analysis of how United States tariff adjustments in 2025 are reshaping procurement, sourcing strategies, and lifecycle planning across the IoT value chain

The introduction of new tariff measures in the United States during 2025 has exerted concentrated pressure across the IoT value chain, altering procurement economics, supplier strategies, and deployment timetables. Tariffs on imported electronic components and subassemblies increased the effective landed cost of controllers, gateways, meters, and many sensor types, prompting procurement teams to reassess sourcing strategies. In response, some utilities accelerated orders for planned upgrades to lock in prior pricing, while others delayed noncritical rollouts to re-evaluate total cost of ownership and alternative sourcing. This divergence of tactical responses has created uneven demand cycles that suppliers must manage carefully.

Moreover, higher input costs have shifted vendor focus toward software and services as margin cushions; analytics platforms, asset management suites, and managed service contracts have become focal points for differentiation because they are less exposed to tariff volatility. At the same time, tariffs have encouraged regional manufacturing investments and strategic supplier diversification, with procurement teams exploring domestic production, nearshoring, and design modularity to reduce reliance on affected supply chains. These adjustments have attendant implications for deployment mode choices: utilities that opt for on-premise or hybrid architectures may gain negotiating leverage over hardware procurement timelines, whereas cloud-centric strategies allow for some decoupling of hardware refresh from software innovation.

Finally, tariffs have magnified the importance of lifecycle cost analysis. Utilities and vendors are increasingly evaluating asset interoperability, upgradeability, and software extensibility to mitigate future cost shocks. This has accelerated industry conversations about standardization, open interfaces, and the reuse of gateway and controller platforms across multiple applications-ranging from distribution automation to condition monitoring-so that higher initial hardware expenditures can be amortized through expanded functionality over time.

A detailed segmentation-driven insight synthesis linking components, solutions, end uses, applications, communication technologies, and deployment modes to operational priorities

Understanding the market through segmentation clarifies where value is created and where operational priorities diverge across utilities. Component-level dynamics show that hardware remains foundational: controllers composed of programmable logic controllers and remote terminal units serve protection and control functions, gateways that include data concentrators and edge gateways aggregate and pre-process telemetry, meters spanning electric, gas, and water capture consumption data, and a broad sensor base-flow, pressure, and temperature devices-feed condition-aware analytics. Services complement this hardware footprint; managed offerings such as monitoring and support services provide ongoing operational continuity, while professional services covering consulting and installation integration accelerate deployment and ensure systems meet operational and regulatory requirements. Software layers-analytics for descriptive and predictive insight, asset management across inventory and performance modules, and network management encompassing configuration and fault handling-tie components and services together into actionable operations.

Solution-oriented segmentation highlights where functional investment is concentrated. Asset monitoring, subdivided into thermal and vibration surveillance, targets equipment health and failure prevention. Distribution automation capabilities emphasize fast fault detection and self-healing to reduce outages. Grid management focuses on demand management and network optimization to accommodate distributed energy resources. Safety and security solutions combine access control with surveillance to protect critical sites, while smart metering differentiates between advanced metering infrastructure and automated meter reading for billing and customer engagement. End-use segmentation reveals distinct requirements by utility type: electricity deployments vary across commercial, industrial, and residential use cases; gas applications mirror those categories but with unique metering and safety imperatives; water solutions prioritize agriculture, industrial, and municipal contexts with differing priorities for leak detection and resource optimization.

Application-centered segmentation further refines technical design choices. Condition monitoring delivered via offline or online modes dictates sensor selection and data transport strategies. Demand response programs that are incentive-based versus time-based create different control and communication demands. Fault detection must distinguish permanent from transient events to trigger appropriate remediation, and load management strategies such as load shifting and peak shaving require fast telemetry and automated control. Communication technology choices underpin all of these segments: cellular networks (4G and 5G) provide scalable backhaul for high-bandwidth use cases, LPWAN alternatives like LoRaWAN, NB-IoT, and Sigfox optimize for low-power endpoints, RF mesh technologies including Wi-SUN and Zigbee support local distribution networks, satellite options spanning GEO, LEO, and MEO address remote connectivity needs, and wired media such as Ethernet and PLC remain essential where reliability and deterministic latency are required. Finally, deployment mode segmentation-cloud models split into private and public clouds, hybrid strategies that balance core and edge responsibilities, and on-premise installations hosted either in customer data centers or utility data centers-frames operational, compliance, and cost tradeoffs that ultimately determine system architecture and governance.

A comparative regional assessment describing how policy, infrastructure maturity, and supply chain realities shape IoT adoption patterns across the Americas, EMEA, and Asia-Pacific

Regional dynamics drive distinct adoption patterns and investment priorities across utility IoT deployments. In the Americas, regulatory emphasis on reliability and resilience combines with mature grid modernization programs to favor integrated deployments that prioritize distribution automation, smart metering, and asset monitoring. This region shows robust interest in hybrid deployment models and multiservice managed offerings as utilities seek to balance capital constraints with the need for rapid capability gains. Conversely, Europe, the Middle East & Africa exhibits a heterogeneous set of drivers: regulatory frameworks and ambitious decarbonization targets in parts of Europe accelerate grid management and demand-side programs, while in the Middle East and Africa the focus often turns to extending reliable connectivity and improving water and gas metering in rapidly urbanizing markets. These differences produce a market mosaic in which standards alignment, interoperability, and tailored professional services are especially valuable.

Asia-Pacific presents a combination of high-volume deployments and rapid technology uptake. Several markets prioritize large-scale smart metering and distribution automation programs, and there is growing momentum behind domestic and regional manufacturing to support local value chains. Communication technology adoption in this region spans the spectrum-from extensive cellular rollouts to experimental LPWAN and satellite pilots-reflecting varied geography and density challenges. Across all regions, cross-border supply chain considerations and tariff dynamics have heightened interest in local sourcing and partnerships, while regulatory compliance and data sovereignty concerns push many utilities toward hybrid and on-premise deployment options in specific jurisdictions. Therefore, regional strategies must integrate policy, infrastructure maturity, and supplier ecosystems to be effective.

A competitive landscape analysis showing how integrated solutions, modular software vendors, and service-led partnerships are redefining supplier value propositions in utility IoT

Competitive positioning in the IoT for utilities space is evolving along several axes including hardware breadth, software capabilities, services depth, and ecosystem partnerships. Leading providers focus on integrated stacks that combine resilient field hardware with advanced analytics and robust network management to reduce integration friction for utilities. At the same time, a wave of specialized software providers has emerged, delivering best-in-class analytics, asset performance management, and grid orchestration tools that emphasize modularity and API-based interoperability. These vendors often partner with hardware manufacturers and systems integrators to deliver end-to-end solutions that accelerate deployments.

Service providers and integrators are increasingly critical to customer outcomes, offering managed services that assume operational responsibility for monitoring, support, and upgrades. Strategic alliances between software vendors and communications providers are also prominent, as they enable turnkey connectivity options-particularly where LPWAN, cellular, or satellite links are necessary. New entrants and niche specialists are capitalizing on gaps in condition monitoring, cybersecurity for operational technology, and edge analytics, while incumbent utilities and industrial firms are exploring strategic partnerships, minority equity investments, and co-development programs to secure differentiated capabilities. As a result, procurement teams must evaluate not only product features but also long-term roadmaps, partnership networks, and service commitments to ensure continuity and innovation over the asset lifecycle.

Actionable recommendations for utility leaders to prioritize high-impact use cases, adopt interoperable architectures, and mitigate supply chain and security risks

Industry leaders should adopt a pragmatic, portfolio-based approach to IoT investments that balances immediate operational needs with longer-term strategic goals. Begin by prioritizing use cases that deliver measurable operational improvements and clear regulatory compliance benefits-such as fault detection, distribution automation, and condition-based maintenance-so capital and organizational attention is concentrated where returns and risk reduction are highest. Allocate procurement strategies that combine long-term partnerships for core platforms with modular vendors for analytics and niche functionality to preserve flexibility and accelerate innovation.

In parallel, invest in interoperability and open interfaces to reduce vendor lock-in and enable multi-vendor orchestration. This includes adopting standards-based communication and data models, deploying gateways and controllers that support firmware upgradeability, and choosing software with robust API ecosystems. To mitigate supply chain and tariff exposure, diversify sourcing across regional suppliers and consider nearshoring or strategic inventory buffers for critical components. Security and governance must be elevated early: implement segmentation between OT and IT domains, deploy identity and access controls for field devices, and include cybersecurity performance objectives in vendor contracts. Finally, build internal capabilities through targeted hiring, vendor-managed operations, and joint training programs so that the organization can absorb new technologies and operational paradigms over time.

A transparent research methodology describing primary interviews, technical validation workshops, secondary source triangulation, and scenario-driven analysis used to produce the findings

The research approach combined qualitative and quantitative methods to produce a robust, validated picture of IoT adoption in utilities. Primary research included structured interviews with utility executives, network architects, procurement leads, and technology vendors to capture firsthand insights into deployment drivers, pain points, and procurement behavior. These conversations were complemented by technical workshops and validation sessions with operations teams to align architectural assumptions and confirm interoperability expectations. Secondary research drew on technical standards, regulatory filings, vendor whitepapers, and peer-reviewed engineering literature to triangulate technical benchmarks and policy influences.

Data synthesis employed cross-validation techniques to reconcile divergent perspectives and scenario analysis to explore sensitivity to supply chain shocks, tariff changes, and technology transitions. Segmentation mapping was applied to align component, solution, application, and deployment mode insights, ensuring findings are actionable at the program level. Finally, findings were stress-tested through stakeholder reviews with utilities and independent subject-matter experts to surface blind spots and refine recommendations. Limitations are acknowledged: rapid technology evolution and localized regulatory changes can alter some tactical implications, so readers are advised to treat strategic recommendations as frameworks for ongoing review rather than immutable prescriptions.

A concise conclusion emphasizing the strategic importance of interoperable architectures, edge intelligence, and supply chain resilience for successful IoT adoption in utilities

IoT is now a strategic imperative for utilities seeking to enhance reliability, optimize assets, and integrate new distributed resources. The technology stack-from controllers, gateways, and meters to analytics, asset management, and network orchestration-must be considered holistically, with procurement, deployment, and operational strategies aligned to manage cost, risk, and future extensibility. Tariff-induced supply chain pressures in 2025 have underscored the value of modular architectures, regional sourcing, and software-led differentiation. Utilities that prioritize interoperability, invest in edge intelligence, and partner with capable service providers will be best positioned to convert pilots into sustained operational transformation.

In closing, the path to a resilient, data-driven grid depends less on any single technology and more on governance, standards, and the ability to adapt procurement and operational models as the environment changes. Executives should use the insights in this report to align their investment roadmaps, accelerate high-impact use cases, and build the organizational capabilities necessary to capture the full benefits of IoT for utility operations.

Note: PDF & Excel + Online Access - 1 Year

Table of Contents

180 Pages
1. Preface
1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency
1.5. Language
1.6. Stakeholders
2. Research Methodology
3. Executive Summary
4. Market Overview
5. Market Insights
5.1. Deployment of advanced sensors and AI algorithms for predictive maintenance in utility infrastructure
5.2. Adoption of blockchain-based platforms for secure peer-to-peer energy trading among prosumers
5.3. Implementation of digital twin technology to optimize power distribution and asset performance
5.4. Integration of 5G connectivity in utility networks to support massive IoT device deployments and low latency
5.5. Use of advanced meter data analytics and machine learning for dynamic pricing and demand response programs
5.6. Development of IoT-enabled microgrid solutions for improved resilience and decentralized energy management
5.7. Expansion of remote monitoring and control systems for water and gas pipeline integrity using IoT sensors
5.8. Implementation of automated leak detection systems in gas networks using IoT-based acoustic and pressure sensors
5.9. Adoption of renewable energy forecasting models powered by IoT data and cloud-based analytics platforms
6. Cumulative Impact of United States Tariffs 2025
7. Cumulative Impact of Artificial Intelligence 2025
8. Internet of Things in Utilities Market, by Component
8.1. Hardware
8.1.1. Controller
8.1.1.1. Plc
8.1.1.2. Rtu
8.1.2. Gateway
8.1.2.1. Data Concentrator
8.1.2.2. Edge Gateway
8.1.3. Meter
8.1.3.1. Electric Meter
8.1.3.2. Gas Meter
8.1.3.3. Water Meter
8.1.4. Sensor
8.1.4.1. Flow Sensor
8.1.4.2. Pressure Sensor
8.1.4.3. Temperature Sensor
8.2. Services
8.2.1. Managed
8.2.1.1. Monitoring Services
8.2.1.2. Support Services
8.2.2. Professional
8.2.2.1. Consulting
8.2.2.2. Installation Integration
8.3. Software
8.3.1. Analytics
8.3.1.1. Descriptive Analytics
8.3.1.2. Predictive Analytics
8.3.2. Asset Management
8.3.2.1. Inventory Management
8.3.2.2. Performance Management
8.3.3. Network Management
8.3.3.1. Configuration Management
8.3.3.2. Fault Management
9. Internet of Things in Utilities Market, by Communication Technology
9.1. Cellular
9.1.1. 4G
9.1.2. 5G
9.2. LpwAn
9.2.1. LoraWan
9.2.2. Nb Iot
9.2.3. Sigfox
9.3. Rf Mesh
9.3.1. Wi Sun
9.3.2. Zigbee
9.4. Satellite
9.4.1. Geo
9.4.2. Leo
9.4.3. Meo
9.5. Wired
9.5.1. Ethernet
9.5.2. Plc
10. Internet of Things in Utilities Market, by End Use
10.1. Electricity
10.1.1. Commercial
10.1.2. Industrial
10.1.3. Residential
10.2. Gas
10.2.1. Commercial
10.2.2. Industrial
10.2.3. Residential
10.3. Water
10.3.1. Agriculture
10.3.2. Industrial
10.3.3. Municipal
11. Internet of Things in Utilities Market, by Deployment Mode
11.1. Cloud
11.1.1. Private Cloud
11.1.2. Public Cloud
11.2. Hybrid
11.2.1. Core Hybrid
11.2.2. Edge Hybrid
11.3. On Premise
11.3.1. Customer Data Center
11.3.2. Utility Data Center
12. Internet of Things in Utilities Market, by Region
12.1. Americas
12.1.1. North America
12.1.2. Latin America
12.2. Europe, Middle East & Africa
12.2.1. Europe
12.2.2. Middle East
12.2.3. Africa
12.3. Asia-Pacific
13. Internet of Things in Utilities Market, by Group
13.1. ASEAN
13.2. GCC
13.3. European Union
13.4. BRICS
13.5. G7
13.6. NATO
14. Internet of Things in Utilities Market, by Country
14.1. United States
14.2. Canada
14.3. Mexico
14.4. Brazil
14.5. United Kingdom
14.6. Germany
14.7. France
14.8. Russia
14.9. Italy
14.10. Spain
14.11. China
14.12. India
14.13. Japan
14.14. Australia
14.15. South Korea
15. Competitive Landscape
15.1. Market Share Analysis, 2024
15.2. FPNV Positioning Matrix, 2024
15.3. Competitive Analysis
15.3.1. Actility, SA
15.3.2. Brightly Software, Inc.
15.3.3. Cisco Systems, Inc.
15.3.4. Energyworx
15.3.5. Honeywell International Inc.
15.3.6. International Business Machines Corporation
15.3.7. Itron Inc.
15.3.8. Landis+Gyr AG
15.3.9. LeewayHertz
15.3.10. Oracle
15.3.11. Rayven Ltd.
15.3.12. Saviant
15.3.13. Semtech Corporation
15.3.14. Software AG
15.3.15. Telenor Connexion AB
15.3.16. Telit
15.3.17. Trimble Inc.
15.3.18. Verizon
15.3.19. WAVIoT Integrated Systems LLC
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