Power Distribution and Retail Digitalization Will Continue to Accelerate

Frost & Sullivan’s recent analysis finds that the digitalization of power distribution and retail companies will continue to accelerate this decade. By incorporating cloud computing, big data, analytics and Internet of Things (IoT) solutions, utilities and retailers are transforming businesses beyond commodity selling.

The analysis finds digital investments are directed toward three main areas: enhancing customer service, optimizing grid operations and developing connected businesses. Software, analytics and information technology services expenditure in key regions such as North America, Europe and Latin America is estimated to reach $33.42 billion by 2030 from $12.33 billion in 2020, with a compound annual growth rate of 10.5 percent.

“Power grids are the backbone of the energy transition because they are a fundamental enabler of demand electrification and decentralized renewable energy integration. Hence, the digital transformation of power distribution companies and energy suppliers is a major trend that represents a considerable business opportunity,” said Maria Benintende, energy and environment research analyst at Frost & Sullivan. “While digital investment has been traditionally aimed at the digitization of internal processes to reduce workloads and save costs, it is now increasingly being aimed at reinventing business models and creating new streams of income through connected businesses.”