The future’s so bright, you’re gonna need some shades. The utility industry is changing, and at an ever-increasing speed. New trends and new advances are making the industry more exciting than ever before.
The Internet of Things
Advances in the Internet of Things (IoT) have opened up a ton of opportunities in the utility industry—especially when it comes to smart meters. The data that used to be gathered once a month can now be gathered every few minutes, and it is far more accurate thanks to the IoT. This means that utility companies can get better at predicting demand, which helps them avoid huge spikes or drops in supply that can cause huge price swings for their customers. Other industries will also see these benefits as they learn how to use this data to optimize their production processes, which lowers costs for everyone else.
In terms of energy sources, renewables are starting to take over the market. In 2019, renewables accounted for 72% of all new energy generation added worldwide (according to the International Energy Agency). This is due in large part to their relatively low cost—which is expected to continue falling for years.
There are also technological advances being made in the transport sector, where we are seeing more electric cars on the road each year as well as advancements like hydrogen fuel cells and biofuels that
Over the next few years, the utility industry is going to change significantly—and we’re not just talking about the advent of solar power.
According to a recent study by Deloitte, the global demand for utility services is going to increase in the coming years. That translates directly into opportunity for companies in this field.
But it’s not just about rising tides. The nature of the demand itself will change: customers will increasingly expect to have their energy needs met using environmentally friendly methods and materials. This will open up avenues for those who innovate in that area, giving them a competitive edge over those who don’t invest in this trend.
As renewable energy sources like wind and solar become less expensive, it will become more profitable for many utilities to invest in these technologies. However, the transition from traditional sources like coal and natural gas will take time; it’s still important for utilities to maintain a diverse portfolio that includes various types of technology.
Another big change is happening in the way utilities are able to communicate with customers. In the past, utilities could only communicate with customers through monthly bills or occasional newsletters, but now there are new ways for utilities to keep in touch with customers. It’s likely that you’ll see more utilities experimenting with social media and other online communication channels in order to offer their customers a better experience.
It’s also increasingly important to give customers the opportunity to choose how they’d like to be communicated with. Personalization is a huge sticking point for consumers, with 90% of them finding marketing personalization very or somewhat appealing.
While change can be frightening for some, there’s no need to feel apprehensive. Improving the quality of all aspects of the utility sector will only bring good things.
If you want to learn how you can work toward a more connected customer communication system, get in touch with us today.