UTILITY COMMUNICATION MARKET Size and trends

Utility Communication Market Size and Trends

The utility communication market is estimated to be valued at USD 24.43 Bn in 2025 and is expected to reach USD 36.28 Bn by 2032, growing at a compound annual growth rate (CAGR) of 5.8% from 2025 to 2032.

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The utility communication market is expected to witness significant growth during the forecast period. The growth of this market is attributed to factors such as the growing demand for smart grid networks, adoption of Internet of Things (IoT) solutions for asset monitoring in utilities, increasing investments towards upgrading aging power infrastructure, and rising focus on integrating renewable energy into the existing grid. Various government initiatives to modernize the aging utility infrastructure also supports the demand for advanced communication networks. Emerging technologies such as private LTE/5G networks and distributed energy resources management systems are creating new opportunities for communication service providers operating in this market.

Growing Digitization of Infrastructure

The digitization of infrastructure and services has emerged as an inevitable trend across utility industries in recent years. Traditional energy, water, and transportation grids are progressively incorporating advanced digital technologies and internet-of-things solutions to improve operational efficiency, enable predictive maintenance, enhance customer services, and support sustainability goals. Two-way communication networks laying the foundation for smart grid applications have become essential for utilities to leverage real-time data insights. This allows the remote monitoring of assets, automated detection of faults and outages, as well as offering flexibility in demand response management. 5G cellular rollout is further making connectivity ubiquitous by ensuring high data speeds and low latency even in remote areas. Utilities are able to better optimize resource allocation, boost system resilience, and respond proactively to disruptions with enhanced communication infrastructure. Going digital also improves customer experience through personalized services, from online billing to demand forecasting tools. The digitalization drive ultimately helps organizations transition to a more decentralized, Cleanweb future with two-way power flow, localized storage, and distributed energy resources playing a much larger role. Robust utility communication networks therefore constitute a vital backbone supporting modernization initiatives across the sector.

For instance, in 2020, NetCom BW, one of the largest suppliers of energy in Germany and Europe, embarked on a project to upgrade the existing network to the IP standard, in support of EnBW’s mission to diversify operations and provide new customer-centric solutions.