Utilities Digital Services 2026 Market Insights™

August, 2026

This report identifies key demand-side trends in the utilities industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the utilities industry based on Avasant’s assessment.

Why read this Market Insights?

The utilities industry is entering a new phase of transformation driven by electrification, AI-enabled demand growth, renewable energy expansion, evolving cybersecurity requirements, and rising customer expectations. Utilities are modernizing grid infrastructure, strengthening digital planning capabilities, and deploying DERMS, energy storage, automation, AI, and advanced analytics across operations, workforce management, customer engagement, and asset management to improve reliability, resilience, and service quality. These investments are helping utilities address infrastructure constraints, integrate distributed energy resources, strengthen cybersecurity, and build more adaptive, efficient, and customer-centric operations.

The Utilities Digital Services 2026 Market Insights™ aids enterprises in the utilities sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 5–9)

    • Defining the utilities digital services scope
    • Utilities digital services: Value chain matrix
    • Key drivers and enterprise response
    • Avasant recognizes 23 top-tier service providers supporting the utilities industry in digital transformation

Demand-side trends (Pages 10–15)

    • Rising electricity demand is accelerating infrastructure planning and grid modernization initiatives.
    • Accelerating renewable adoption is driving utilities to modernize grid operations and flexibility management.
    • Utilities are scaling AI-enabled customer engagement models to improve responsiveness and service quality.
    • Utilities are adopting digital learning and AI-enabled workforce development to address skills gaps.
    • Expanding OT connectivity and rising cyber incidents are increasing cybersecurity requirements across utility operations.

Key contacts (Page 16)


Read the Research Byte based on this report. Please refer to Avasant’s Utilities Digital Services 2026 RadarView™ for detailed insights on the service providers and supply-side trends.

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DISCLAIMER:

Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.

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