Faced with growing demand, ageing infrastructure, and a push for sustainability across the board, the utilities industry is under pressure to modernise. With IoT, the utilities industry is undergoing continuous transformation.
From smart meters to grid-wide sensors and distributed energy resources, connected devices are enabling utilities to track usage in real time, respond to outages faster, and forecast demand with greater accuracy.
It’s not just about efficiency. It’s about building smarter, more responsive networks that support long-term sustainability and resilience. In this article, we take a look at how.
IoT, or the Internet of Things, refers to the network of connected sensors, devices, and systems that collect and exchange data in real time. In the utilities sector, this connectivity is helping providers automate operations, reduce waste, and gain visibility across increasingly complex infrastructure.
Rather than reacting to problems as they occur, utilities can use IoT to spot anomalies early, manage resources more intelligently, and optimise system performance on a continuous basis.
Today, many of us are familiar with applications of IoT in utilities now that smart meters have been rolled out. But IoT use cases extend beyond smart meters for the utilities providers tasked with ensuring seamless supply.
Smart grid automation allows utility companies to monitor and control the flow of electricity in real time. By embedding smart sensors, automated switches, and intelligent controllers throughout the grid, utilities gain the ability to collect data on voltage levels, current flows, and equipment status across the entire network.
These technologies work together to automatically detect faults, reroute electricity around problem areas, and restore power more quickly during outages, often without human intervention. For example, if a power line is damaged in a storm, the smart grid can isolate the issue and redirect electricity through alternate pathways to minimise service disruption.
This not only improves reliability, but also reduces peak loads and supports the integration of renewable energy sources. As of 2023, smart grid applications accounted for the largest share of the global IoT in utilities market, driven by the need for greater efficiency and resilience in power distribution.
To monitor the grid, IoT-enabled sensors are installed on critical infrastructure, such as transformers and transmission lines, to provide access to real-time visibility into the health and performance of the infrastructure. These sensors continuously monitor key operational parameters, including temperature, voltage, current, vibration, and load conditions.
This data allows utility companies to detect anomalies in the data quickly to prevent a failure within the system before it happens. Any unplanned outages are minimised, as problems can be addressed before they escalate. Equipment lifespans are also extended, and costly emergency repairs and downtime are greatly reduced.
In water and gas networks, IoT sensors monitor pressure and flow to identify leaks before they escalate. This kind of intervention not only improves efficiency, but also helps prevent costly repairs.
In electricity networks, smart devices provide ongoing visibility, helping pinpoint the location and cause of faults. For example, a blown transformer or a downed line, enabling faster repairs. This enables repair crews to be dispatched as soon as possible to the exact location and repair the fault, minimising the effect on consumers.
Workplace safety is a top priority for utility companies, particularly since employees frequently work in hazardous, high-risk environments. Wearable IoT devices, such as smart helmets, badges, wristbands, or vests, are equipped with sensors that can monitor a range of physiological and environmental factors, including:
In the event of a fall, sudden impact, or prolonged inactivity, many wearables can detect the incident and send automatic SOS signals, helping teams respond immediately and potentially saving lives.
Smart meters are one of the most widespread applications of IoT in the utilities sector. These devices replace traditional analogue meters by providing accurate, real-time measurements of electricity, gas, or water usage, and transmitting that data automatically back to the utility provider.
By eliminating the need for manual meter readings, smart meters reduce operational costs and human error, while enabling faster, more efficient billing cycles.
For consumers, through connected apps or customer portals, users can view their real-time and historical usage data, set alerts, and receive personalised recommendations to reduce waste and lower bills.
For utilities, the real-time data generated by smart meters provides a wealth of operational intelligence. Providers can:
There is a rapid growth in Distributed Energy Resources (DERs), such as rooftop solar panels, home battery systems, and electric vehicles (EVs). Instead of power flowing one way from centralised plants to consumers, energy is now being generated and stored with the consumer.
By connecting distributed assets to a centralised management system, utilities companies can gather detailed data on generation capacity, storage levels, consumption patterns, and grid conditions. This constant data flow allows grid operators to:
IoT is transforming utility fleet operations by equipping service vehicles with GPS, fuel sensors, and diagnostic tools that deliver real-time data on location, performance, and driver behaviour. This enables smarter dispatching, route optimisation, and predictive maintenance.
For utilities operating large fleets across wide service areas, these IoT capabilities collectively result in:
In addition, IoT platforms can monitor driver behaviour, including speed, harsh braking, cornering, and fatigue indicators, helping improve driver safety and accountability. This data can be used for training, policy enforcement, and insurance purposes.
These use cases reflect just a portion of what IoT can enable. Discover broader IoT applications across sectors.
To meet the challenges of rising energy demand, ageing infrastructure, climate-related risks, and the shift toward cleaner energy, utilities are increasingly adopting IoT technologies. These tools are helping providers modernise operations, improve reliability, and gain real-time insight into system performance, fuelling a market that is expanding rapidly.
According to Grand View Research, the global IoT in utilities market was valued at USD 47.53 billion in 2023 and is projected to grow to USD 102.36 billion by 2030, at a CAGR of 10.7%. North America led the market with a 36% share in 2023, while Asia Pacific is set to experience the fastest growth, at a projected CAGR of 13%.
This growth is being driven by several key factors:
As the utilities sector evolves, enterprise providers are under increasing pressure to modernise. From reducing operational costs to improving ESG reporting and enhancing customer transparency, the benefits of IoT are wide-ranging and measurable.
IoT enables real-time visibility into grid performance, equipment health, and resource consumption, allowing utilities to shift from reactive to proactive operations. By automating routine tasks like metre readings, outage detection, and asset diagnostics, utilities can significantly reduce labour costs and streamline field operations.
IoT provides the data foundation utilities need to measure and report on sustainability performance. Connected devices track emissions, monitor water usage, and analyse energy efficiency in real time, offering accurate metrics for ESG disclosures.
Modern utility customers expect more than just reliable service. IoT enables this shift by powering smart meters, mobile apps, and customer portals that provide real-time consumption data, personalised alerts, and usage forecasts. This transparency not only empowers customers to make informed decisions but also builds trust and satisfaction.
IoT helps utilities mitigate both operational and regulatory risks by delivering accurate, real-time data. This visibility allows providers to identify and address potential failures or hazards before they escalate. IoT also simplifies compliance by automating data collection and reporting for regulatory requirements.
The utilities sector has long been an early adopter of operational technologies. But the combination of improved sensors, faster connectivity, and advanced analytics is unlocking new opportunities.
At Three Group Solutions, we work with utilities to design and deploy scalable, secure IoT solutions tailored to their operational needs. From smart meter rollouts to grid-wide analytics and private 5G, our end-to-end approach helps future-proof critical infrastructure.
Let’s build smarter, safer, more sustainable networks. Talk to us today to learn more.