IDC FutureScape: Worldwide Utilities 2024 Predictions

Description

This IDC FutureScape provides the outlook of IDC Energy Insights' analyst team for the worldwide utility industry for 2024, as well as the planning horizon for the next five years."With their decades-long experience around electrification, decarbonization, and energy efficiency, utilities are not only in the driver's seat of the energy transition, but of the entire economy," said Gaia Gallotti, associate research director, IDC Energy Insights. "It is imperative they continue to use cutting-edge technologies as a lever to offload non-core burdensome work, enabling them to focus on their core business of steadfastly managing the critical infrastructure the economy thrives on and unleashing new business opportunities."

Product Code: US50062023

IDC FutureScape Figure

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers
Predictions: Impact on Technology Buyers
- Prediction 1: In 2024, 45% of frontrunner energy suppliers will leverage GenAI technologies, especially chatbots, to improve customers' digital journeys, cutting fallback calls to contact centers by over 60%.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 2: In 2025, 55% of utilities will prioritize supporting customer engagement with personalized energy efficiency & demand response programs, helping customers save 15% on utility bills' energy component.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 3: By 2027, 50% of utilities will implement digital twins, improving asset optimization of power grids, decreasing unplanned outages by 30%, and supporting simulations for network expansion.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 4: By 2025, 60% of electric utilities will have integrated non-wire alternatives in standard planning, deferring up to $7 in system capex for every $1 spent on procuring distributed energy resources.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 5: By 2026, 40% of utilities will implement GenAI, improving asset and equipment restoration times by 30% and establishing a knowledge management platform for the next generation of field technicians.
  - IT Impact
  - Guidance
- Prediction 6: By 2026, 50% of utilities in advanced markets will invest in ADMS or DERMS to optimize the influx of renewables and DERs coming online, decreasing their carbon footprints by 30% in the long run.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 7: By 2026, 25% of water distribution companies will have operationalized multispectral satellite imaging and AI-powered computer vision, improving the efficacy of leak detection by a factor of seven.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 8: By 2028, 35% of integrated electric utilities will offer integrated infrastructure, technology, and energy services for EV fleets, helping to accelerate public transport decarbonization.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 9: In light of escalating hacking incidents, by 2027, 25% of utilities will turn to managed security service providers for outcome-based services that align security performance with business outcomes.
  - Associated Drivers
  - IT Impact
  - Guidance
- Prediction 10: Due to shifting regulations requiring greater supply chain transparency and due diligence, by 2026, 60% utilities will invest in ESG data platforms to build sustainable supply chains and manage risks.
  - Associated Drivers
  - IT Impact
  - Guidance

Advice for Technology Buyers

External Drivers: Detail

AI Everywhere - Generative AI Takes the Spotlight
The Drive to Automate - Maximizing Efficiency and New Opportunities
Cybersecurity and Risk - Building Resilience Against Multiplying Threats
The Digital Business Imperative - Competitiveness and Outcomes
Everything as a Service Intensifies - Transforming Models to Drive Change
Dynamic Work and Skills Requirements - New Work Mode Era
Operationalization of ESG - Measuring and Implementing Sustainability

Learn More

Related Research