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IDC FutureScape: Worldwide Utilities 2019 Predictions

IDC FutureScape: Worldwide Utilities 2019 Predictions

This IDC study provides the outlook of IDC Energy Insights' analyst team for the worldwide utility industry for 2019, as well as the planning horizon for the next five years. "Utilities are facing challenges in their transformation journey. They need to overcome siloed initiatives by integrating and orchestrating change across the organization. They need to strengthen weak road maps, which are responsible for the transformation deadlock. They must close their talent gap and overcome their inability to scale up innovation. Finally, they need to introduce new sets of key performance indicators (KPIs). This journey is neither easy nor painless, but if they will do it right, they will deliver value to customers, employees, shareholders, and society," said Roberta Bigliani, vice president, IDC Energy Insights.

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2022, 20% of digitally determined utilities' revenues will come from new products and services
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2021, 55% of utilities will derive 20% of gross margin on average from combined distributed generation and storage packages for prosumers
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2020, 65% of power, gas, and water companies will have invested in edge analytics/computing as they strive for operational excellence and the best optimization of their assets
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2023, 65% of electricity companies will have invested in digital technologies and platforms to support flexibility services, thereby activating a load potential of up to 35% of installed capacity
Associated Drivers
IT Impact
Guidance
Prediction 5: In 2019, utilities/energy retailers will double their investments in artificial intelligence to improve convenience, customization, and control for clients, thus enhancing customer experience
Associated Drivers
IT Impact
Guidance
Prediction 6: By 2023, utilities will have digitally connected 75% of their critical assets to predict and prevent equipment failure and prescribe best maintenance options to optimize and extend asset life cycles
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2021, 35% of utility CEOs will have access to an intelligent personal assistant at work
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2022, 55% of utilities will use a core digital platform to automate, optimize, and orchestrate assets, business processes, customers, and employees, thus improving efficiency and business outcomes
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2020, artificial intelligence applied to revenue protection will enable water, gas, and electricity companies to reduce revenue losses by 70%
Associated Drivers
IT Impact
Guidance
Prediction 10: In 2020, managing the risk of operational technology/IT cyberattacks and data privacy compliance will cost utilities an average of 1% of annual turnover.
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
The Race to Innovate — Speed of Change, Delivery, and Operations Separates Thrivers and Survivors
Platforms, Platforms, Platforms — Industry Competes for Innovation at Scale
Sense, Compute, Actuate — Turning Data into Value
New Nature of Risk — Innovation Requires New Thinking in Security and Risk Management
Emerging Autonomy — Learning to Live With AI
Rising Customer Expectations — More Convenience, Customization, and Control
The Future of Work — Bridging the Digital Talent Gap
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