Electricity is the powerhouse on which the modern world runs. In fact, the global utilities market is one of the highest grossing industries in the world. Electric utilities provide energy services and deliver electricity to organizations.  Here is some good news for the stakeholders in the sector, the electric utilities market has immense growth potential especially with government authorities pledging incentives to promote the installation of renewable energy facilities. Furthermore, the players in this sector are increasingly contemplating the use of advanced renewable technologies for minimizing carbon emissions. (Source: Global Electric Utilities Procurement Report) This is a good sign for promoting environmental sustainability in the long run. Here’s a comprehensive view of the market trends and opportunities for the global electric utilities market:

Spend potential and key markets

The investments by manufacturers across end-user industries such as mining, chemical, and oil and gas in terms of production plant expansion to meet the global demand are on the rise. This will result in a consequent rise in the demand for energy and accelerate the demand for electricity in the years to come. The rising demand for electricity, especially from developing nations are expected to fuel the rate of electricity generation.  In fact, APAC is expected to have a high impact on the demand and supply of electric utilities, with countries such as China, India, and Japan being the major investors in the energy sector and also the largest consumers of electricity. Investments in electricity networks and storage for large-scale transmission of electricity are being made to meet the shortage of electricity in India. Furthermore, the increase in manufacturing capacities of the petrochemical and specialty chemical segments in the chemical industry will fuel the growth of the electric utilities market in the North American market.

Cost analysis: supplier costing

Two of the major cost components in the electric utilities market include the generation and transmission costs. With all eyes on new ways to generate renewable energy, which requires investment in better infrastructure, the costs incurred by players in this sector will shoot up. But the fact that the cost of generating electricity from renewable resources will be cheaper when compared to the traditional method is a great relief for companies in the electric utilities sector.

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Market innovations

The rate of energy concern has been one of the major concerns of the electric utilities sector for a long time. However, switching over to solar cooling systems is a great way to reduce the increased dependency on electricity. One of the leading suppliers in APAC has set up a solar energy research facility that includes the world’s largest HVAC system with storage capabilities. This combination of solar, thermal, and cooling systems procured by the buyer has high potential to replace the cooling systems that run only on electricity. This can help reduce electricity consumption, thus facilitating cost benefits for the buyer

Supplier selection and procurement best practices

If you are a buyer in the utilities market, here are some things that you need to keep in mind during supplier selection and procurement processes. Firstly, buyers must engage with suppliers that provide data analytics for installing systems. This will reduce data outage and transmission loss, and enhance load and demand forecasts. Also, it is important for buyers to rely on suppliers that use efficient electricity generation measures, including the use of sustainable fuels for power generation. This will help buyers to meet sustainability goals and minimize carbon emissions.

Read more about the market outlook of the electric utilities market along with procurement best practices, market trends, pricing insights, category management, and market challenges in SpendEdge’s upcoming report on the global electric utilities market.