Much has been written about why utilities have been slower to adopt new technologies but there are good reasons utility leadership has employed a measured and reliable pace of new IoT project implementation and IoT adoption. Regulatory pressures to keep rates low, unproven technologies, staffing shortages and the costs to implement wide-scale projects have all contributed to slower adoption rates across the industry. However, the utility industry is poised to increase IoT adoption by 20% by 2025 - and these investments are now able to be quantified and thoroughly vetted to ensure a positive return for utilities undertaking these projects. This post explores the top motivators driving the growth of IoT adoption in utilities.
As discussed in our earlier post, A Smarter Approach to Digital Transformation in the Utility Industry, the utility industry is falling behind other industries when it comes to digitization. This affects day-to-day operations on multiple levels, including personnel. In this post, we’ll walk through a few of these opportunities and provide a few strategies to help utilities consider different ways to make incremental forward progress in their own transformation process.
The utility industry is in a state of upheaval. With demand for electricity falling after 100+ years of steady growth, companies are in the hot seat about how to cover grid costs and deliver returns for shareholders. Digital transformation looks to be the path forward. In fact, 70% of utility executives say their companies need to become digital leaders in order to succeed in the current climate.