IDC FutureScape Figure

Figure: IDC FutureScape: Worldwide Utilities 2023 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers

Predictions: Impact on Technology Buyers

Prediction 1: By 2025, a third of competitive gentailers will have set up integrated supply, efficiency, decarbonization, and electrification service portfolios, growing average profit per customer by more than 20%.

Associated Drivers

IT Impact

Guidance

Prediction 2: By 2023, 60% of competitive power generators and traders will have AI-powered forecasting capabilities in production helping improve day-ahead demand and price forecast accuracy by more than 15%.

Associated Drivers

IT Impact

Guidance

Prediction 3: By 2027, driven by the need to detect and manage behind-the-meter flexibility, 70% of electric utilities in advanced markets will deploy distributed resource management and demand response solutions.

Associated Drivers

IT Impact

Guidance

Prediction 4: By 2024, 50% of gas utilities will use cloud platforms and drones, aircraft, or satellites equipped with image-based detection technology to detect fugitive emissions and deliver on net-zero targets.

Associated Drivers

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Guidance

Prediction 5: By 2024, 25% of utilities will invest in new talent management applications to become skills-driven high-performance organizations, boosting work productivity and quality by 15%.

Associated Drivers

IT Impact

Guidance

Prediction 6: In 2023, pushed by energy cost and security concerns, 55% of energy suppliers will leverage energy system data to identify those at risk of fuel poverty and foster more efficient consumption.

Associated Drivers

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Guidance

Prediction 7: By 2026, 60% of utilities will converge IT and OT security personnel, technologies and processes to better protect against both cyber and physical threats, reducing overall security breaches by 50%.

Associated Drivers

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Guidance

Prediction 8: By 2024, 70% of utilities will use specialized sustainability SaaS platforms to track and report Scope 1 and 2 and estimate Scope 3 emissions to meet regulatory and financial disclosure requirements.

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Prediction 9: By 2027, longer droughts and more volatile energy prices will have pushed 40% of water companies to invest in IoT- and AI-based smart applications to cut non-revenue water and power consumption by 20%.

Associated Drivers

IT Impact

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Prediction 10: By 2025, 50% of utilities will implement a platform approach to operations integrating core applications improving visibility, management and efficiency to boost tight operating margins.

Associated Drivers

IT Impact

Guidance

Advice for Technology Buyers

External Drivers: Detail

Storms of Disruption — Accelerating, Interconnected Uncertainty

Cybersecurity and Risk — Scaling and Evolving Threat Environment

Digital Business — Stepping-Stone to the Future Enterprise

Meaningful Intelligence — Differentiated Decision Power

Mainstream ESG — Sustainability Is Measured and Mandatory

Work Mode Upheaval — New Models and Leadership

Everything as a Service — Thriving Through the Change

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