Industrial Utility Communication Market

Market Definition

The Industrial Utility Communication Market size was valued at USD 3.16 billion in 2023 and is predicted to reach USD 4.74 billion by 2030 with a CAGR of 6.0 % from 2024-2030. The industrial utility communication market refers to the industries that focuses primarily on providing communication solutions and technologies personalized to industrial utility. It is used to facilitate the exchange of data, control signals, and information related to utility services. Industrial utility communication involves the use of various technologies and protocols such as Supervisory Control and Data Acquisition (SCADA), Industrial Internet of Things (IIoT), Distributed Control Systems (DCS), and industrial Ethernet networks. The communication system helps utilities provide faster service restoration, lower environmental emissions, and maintain high reliability and operating efficiency. Industrial utility communication plays a crucial role in connecting utility infrastructure components and enabling efficient management of utilities within sectors. 

Market Dynamics and Trends

The industrial utility communication market is driven by the rising energy sector, particularly nuclear energy sector, driven by the growing adoption of utility communication within the industry to manage the complex power systems efficiently. According to the World Nuclear Association, the nuclear energy is growing significantly, contributing around 10% of the total world’s electricity in the year 2022. As utility communication networks facilitate real-time energy usage monitoring for both utilities and consumers through the exchange of data between smart meters and sensors.

Moreover, the rising adoption of enhanced communication system within the oil and gas sector is further propelling the growth of the market. As it plays a pivotal role to ensure safety, efficiency, and productivity during drilling operations. According to the International Energy Association (IEA), the global oil production is increasing, due to the growing demand of oil by 5.9% between the year 2022-2028. Thus, with the rising oil and gas drilling sector around the world the demand for utilization communication sector rises, thereby fuelling the growth of the market.

Furthermore, the expanding global chemical industry is boosting the growth of the industrial utility communication system as it helps to monitor the processing and utility management. According to the European Chemical Industry Council (CEFIC), the global chemical industry is boosting with an increase in overall production of around 2%, while it was expected to reach 3.5% by the end of 2024. As it allows operators to monitor and control chemical processes for optimal performance, quality, and safety, while managing utilities such as electricity, water, and compressed air to optimize resource usage and reduce waste.

However, the high initial investment required to deploy and maintain the robust communication infrastructure in industrial settings hinders the growth of the industrial utility communication market. On the contrary, the integration of cloud computing solutions to store and analyze vast amounts of data collected from utility communication systems is expected to create future opportunities to the growth of the market. For instance, in February 2024, Itron launched the Itron Enterprise Edition (IEE) Cloud, a cloud-based Meter Data Management platform personalized for utilities transitioning to digitalization. This software-as-a-service solution offers seamless integration and scalability across utility operations in various industries. This integration offers potential for scalability, flexibility, and cost-effectiveness, paving the way for enhanced efficiency and innovation in the industry.

Market Segmentations and Scope of the Study

The industrial utility communication market share is segmented on the basis of component, communication type, end user, and region. On the basis of component, the market is divided into hardware and software. Hardware can be further divided into routers, switches, sensors, transmitters, IO-Link, and others. On the basis of communication type, the market is bifurcated into wired and wireless. On the basis of end user, the market is further divided into energy, water and wastewater management, oil & gas, transportation, manufacturing, mining, chemicals and petrochemical industry, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific holds the dominant share of industrial utility communication market at present and is expected to continue its dominance during the forecast period. This is due to the rising chemical industry within the region. According to a report published by India Brand Equity Foundation, the chemical sector in India is expected to rise from USD 220 billion in the year 2022 to USD 1 trillion by 2040. As they are used to control the chemical manufacturing processes, safety monitoring & emergency response, thereby propelling the growth of the market.

Moreover, the rising energy sector, particularly nuclear power energy within the Asia-Pacific is further propelling the growth of the market. These systems help to monitor the radiation emission, emergency shutdown system, and containment integrity, ensuring the safe operation of nuclear reactors. According to a report published by Press Information Bureau (PIB), the overall electricity generated in India from nuclear power plants increased from 35,334 million units in the year 2013-2014 to 46,982 million units in 2022-23, thereby boosting the growth of the market.

On the other hand, North America shows a steady rise in the industrial utility communication market due to the increasing emphasis on modernizing the outdated electricity infrastructure in the energy sector. For instance, in February 2024, Tantalus Systems, a grid modernization company launched TRUGrid Transformer for grid modernization and enhance utility communication. This technology allows real-time data access, analysis, and visualization from transformers, enhances grid reliability. The TRUGrid Transformer empowers utilities to analyse up to 36 months of transformer data, enabling real time detection of voltages issues and fluctuations.

Moreover, the rapid growth in oil & gas sector within the North America region further propels the growth of the market. These systems provide real-time monitoring of equipment and processes, allowing for early detection of potential issues. According to the Energy Information Administration (EIA), the U.S. emerged as the top crude oil producer in the year 2022, contributing 14.7% of the global crude oil production, thereby propelling the growth of the market.

Competitive Landscape

The industrial utility communication market comprising of various market players such General Electric, Nokia Corporation, Rockwell Automation, Schneider Electric, Motorola Solutions, Inc., Fujitsu Limited, Honeywell International Inc., Hitachi Energy Ltd., Telefonaktiebolaget LM Ericsson, and Azbil Corporation among others. These market players are adopting various product launches across various regions to maintain their dominance in the industrial utility communication market.

For instance, in February 2024, Hitachi Energy launched the TRO670 hybrid router. It is designed to provide secure, reliable, and flexible wireless communications even in remote and harsh environments, as it supports smart grid and Industrial Internet of Things (IIoT) applications.

Moreover, in February 2023, Schneider Electric launched its Industrial Digital Transformation Services, offering support for industrial businesses aiming to expedite digital transformation initiatives. The launch assists companies to effectively enhance operational efficiency, sustainability, energy efficiency, asset optimization, and cybersecurity through impactful digitalization strategies and implementations.

Furthermore, in April 2022, Motorola launched MOTOTRBO R7 and MOTOTRBO ION Smart Radio, two new products which enhance the industrial utility communication systems. The digital two-way radios offer clear and reliable team communications in noisy workplaces. The communication systems address the challenges faced by industries seeking to cut through noise and ensure operational efficiency and employee safety.

KEY BENEFITS

• The report provides quantitative analysis and estimations of the industrial utility communication market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of industrial utility communication market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the industrial utility communication market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

KEY MARKET SEGMENTS

By Component

• Hardware

  • Routers

  • Switches

  • Sensors 

  • Transmitters 

  • IO-Link 

  • Others

• Software

By Communication Type

• Wired 

• Wireless 

By End User

• Energy

• Water and Wastewater Management 

• Oil & Gas

• Transportation 

• Manufacturing

• Mining 

• Chemicals and Petrochemical Industry

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 3.16 billion
Revenue Forecast in 2030	USD 4.74 billion
Growth Rate	CAGR of 6.0% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Growing energy sector drives the market. Rising oil and gas sector boosts the growth of the market. Growth in chemical sector propels the growth of the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• General Electric 

• Nokia Corporation 

• Rockwell Automation

• Schneider Electric

• Motorola Solutions, Inc.

• Fujitsu Limited 

• Honeywell International Inc.

• Hitachi Energy Ltd.

• Telefonaktiebolaget LM Ericsson

• Azbil Corporation