The changing utilities landscape
Everywhere across the region, the utilities sector finds itself pulled to economise and pushed to innovate, two goals that might seem to conflict, but that are actually in harmony. The pull comes from a prolonged downturn in oil revenue that continues to put a strain on public expenditure on infrastructure.
Revenue growth is almost certain to continue slowing. Offsetting this trends, however, is a surge in demand for new power and utilities offerings — a surge so strong that the industry hasn’t yet caught up to it. Innovations in power-sector technology, such as new storage battery options and smartphone-based thermostat apps, are advancing at a pace that has surprised developers and adopters alike.
Customers are asking for these products. To meet that demand, industry leaders are integrating those innovations into their operations and infrastructure as rapidly as they can.
If your company is in the power and utilities sector, the challenge you face is to close the demand gap and provide value for customers profitably. Do so, and you can expect a future of growth and customer loyalty. Fail, and you may risk being eclipsed by upstart competitors.
Because of the changes in customer demand, being a leading innovator is a much more compelling strategy than it used to be in the power and utilities sector. Digital technologies are evolving, and customers are quick to adopt them.
Both business and consumer energy users are clear about their expectations. They want to reduce their consumption, and they know that technological controls and data analytics can help them do it.
To capitalise on this emerging market opportunity, a number of local and international players are positioning themselves as the disruptors and innovators in the GCC utilities space, setting new drivers for growth and success.