IDC forecast on technology spending in utility sector

Power station
IDC has revealed its forecast on technology spending and trends in the utility sector for 2018 and beyond.

By 2019, 85 percent of utilities in the G2000 will have established a new business unitwith its own financing and governance, or a separate company, to speed up innovation and business transformation.

Through 2020, solar — the fastest-growing form of distributed power globally — will drive distributed energy management system implementations and expansions of existing advanced distribution management systems by as much as 50 percent.

Through 2020, emerging markets will offer the largest growth opportunity for microgrids, reducing the need for bulk transmission systems and creating new revenue streams for up to 25 percent of utilities worldwide in the form of microgrid as a service (MaaS).

With electric vehicles expected to increase 150 percent in the next three years, the number of electricity utilities with business units for emobility services will have doubled by 2021
By 2021, 50 percent of gas and electricity utilities that are currently piloting distributed ledger technologies (DLTs) will move to commercial deployment in at least one of the following use cases: peer-to-peer energy exchange, emobility, and data integrity and protection.

By 2020, 25 percent of utilities will have moved from traditional talent sourcing strategies and models to virtual, borderless, and task-oriented approaches, integrating online communities and platforms to acquire skills and temporary staff.

By 2019, 75 percent of gas, water, and electricity utilities will be using some form of APM to manage critical operational assets, leading to an improvement of up to 10 percent in operational performance.

By 2020, 50 percent of all electricity transmission and distribution utilities will be using drones to evaluate service lines, thus reducing asset and inspection costs and achieving savings of up to 5 percent and 30 percent, respectively.

In 2018, in targeting millennials, gas and electricity suppliers will dedicate 50 percent of their customer-experience–related IT budgets to digital channels, product marketplaces, and personalized services, leading to gains of up to 2 points in their Customer Effort Scores.

By 2019, driven by executive-board focus, 30 percent of utilities worldwide will have modified their security approaches, abandoning “perimeter defense” in favor of a resiliency-oriented model, which integrates IT and OT, cybersecurity and physical security, and data protection and privacy.