Energy-utilities analytics market to grow 10.6% annually through 2031

The energy and utilities sector is undergoing a structural shift toward data-driven operations, with analytics becoming central to managing competing pressures: aging infrastructure modernization, renewable energy integration, and customer expectations for reliability. The market's 10.6% compound annual growth through 2031 reflects this necessity—utilities cannot optimize grid operations, forecast demand, or prevent outages at scale without advanced analytics.

Legacy infrastructure and cybersecurity concerns currently act as barriers, raising deployment costs and operational risk for utilities, particularly in mature markets. However, the body identifies two distinct opportunity zones: AI-driven predictive maintenance for cost and service gains, and edge analytics to manage distributed energy resources and electric vehicle charging. Cloud-based deployment (SaaS and PaaS models) is positioned as the fastest-growing segment because it alleviates the need for extensive on-premises infrastructure while enabling remote monitoring and rapid application deployment—a material advantage for utilities managing interconnected IoT-enabled grids.

Geographically, Asia Pacific's dominance is driven by government initiatives and capacity-addition mandates; China and India favor on-premise solutions aligned with state AI and machine learning directives, while newer digital markets in Southeast Asia adopt cloud-native architectures. Within service offerings, the body emphasizes that consulting, system integration, and managed support are becoming the highest-growth segment as utilities require expert guidance to implement, customize, and maintain complex analytics solutions. For technology vendors and professional services firms, this positions analytics services—not software alone—as the core growth lever.