The most consequential infrastructure decision an electric utility executive will make this decade has nothing to do with poles, wires, or substations; it's a software decision.
The global power grid is undergoing a transformation so fundamental to future economic growth. It's become a total re-imagining of energy generation and optimal delivery.
From a predictable, one-way system built around centralized generation, to a dynamic, bidirectional network that must simultaneously balance millions of decentralized inputs, while bracing for the twin pressures of climate volatility and surging demand.
For C-suite leaders across energy, technology, and finance, this shift is no longer a horizon event. It is the operational reality of today, and the strategic battleground of the next decade.
Grid Intelligence Market Development
According to the latest market study by ABI Research, the core Grid Management software market is projected to reach $77.2 billion by 2035. That figure is a proxy for how much value the world is placing on grid intelligence, stability, and infrastructure resilience.
Today, investment is concentrated in Advanced Distribution Management Systems (ADMS) — the foundational layer that gives utilities real-time visibility over their networks.
But the fastest-growing segment is Distributed Energy Resource Management Systems (DERMS). As rooftop solar proliferates and commercial battery storage becomes mainstream, utilities must manage not one power plant, but millions of them.
By 2035, DERMS investment is expected to nearly rival ADMS; it's a signal that the "edge" of the power grid is becoming as strategically critical as its core infrastructure.
Geographically, North America and Europe are leading, propelled by net-zero mandates and the urgent need to retire aging legacy infrastructure. However, the Asia-Pacific region is accelerating rapidly.
Urbanization at scale and the leapfrogging of traditional grid architecture are creating extraordinary demand for Smart Grid software capable of powering the next generation of mega-cities.
For modern technology vendors, this is where the long-term volume story lives.
Forces Reshaping the Global Power Industry
Three structural trends will determine which utilities thrive, and which technology providers capture the forward-looking market opportunity.
The first is the rise of the prosumer. The consumer who passively draws from the power grid is giving way to one who both consumes and produces energy.
Mass EV adoption and residential solar have created a "Grid of Things"; it's an ecosystem where a vehicle battery might supply power back to the city during a peak demand event.
Managing this bidirectional complexity at scale requires sophisticated orchestration software. Companies that can bridge residential hardware and utility-scale systems will define the next wave of competitive differentiation.
The second is AI-driven predictive resilience. Reactive grid management is no longer sufficient in an era of intensifying extreme weather. The next generation of platforms will use artificial intelligence (AI) and machine learning to anticipate failures before they cascade.
GIS technology is already evolving from static network maps into dynamic "Digital Twins" — essentially live virtual replicas of the grid that allow operators to stress-test scenarios in real time, compressing outage response from hours to minutes.
For corporate boards and executives thinking about enterprise risk, this capability is quickly shifting from competitive advantage to baseline expectation.
The third is cyber-security by design. A more digitized, interconnected grid is also a more exposed one. The integration of IoT sensors, cloud platforms, and remote management tools has expanded the attack surface for ransomware and state-sponsored cyber threats.
Security can no longer be bolted on after the fact. Utilities will increasingly demand Sovereign Cloud architectures and zero-trust frameworks as non-negotiable procurement criteria, A meaningful share of that growing market will flow to vendors who can deliver it credibly.
The Grid Intelligence Strategic Imperative
The path to 2035 is not without friction. Regulatory frameworks are struggling to keep pace with technological change, and a persistent workforce skills gap continues to constrain deployment timelines. These are very real marketplace headwinds.
But the strategic calculus is now clear. Software is the only mechanism capable of reconciling the intermittency of wind and solar with the relentless load growth driven by data centers and electrified transport.
For investors, the energy transition is fundamentally a software investment thesis. For utility leaders, digital orchestration is not a modernization project; it is an existential capability.
"Grid management software solutions will be critical technologies for utility companies and grid operators to connect critical infrastructure, commercial buildings, and households to the grid and meet their energy needs," said Michael Larner, distinguished analyst at ABI Research.
That being said, I believe the utilities that commit to this transformation today will be the ones with the operational agility to absorb tomorrow's disruption. Those that delay are not simply falling behind on technology; they are accumulating risk at a pace the grid can ill afford.