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Report 29 Aug 2025

Utilities - InSight Analysis - Germany

This report provides a detailed analysis of Germany’s utilities market transformation, driven by climate targets, digital innovation, and regulatory shifts. It examines the move from fossil fuels to renewable energy, the closure of coal and nuclear plants, and the growing use of smart grid technology, AI, and cloud services.

Key insights include:

• Energy transition – Renewable energy now accounts for more than 57% of electricity, as major utilities restructure to prioritize grids and sustainable energy.

• IT and digital transformation – Utilities are adopting IoT, AI, and cloud solutions to modernize operations, support smart grids, and enhance customer engagement.

• Challenges – High cost pressures, regulatory complexities, slow innovation, and outdated infrastructure impede rapid transformation.

• Opportunities for IT providers – Growth in CRM modernization, predictive maintenance, and SaaS/cloud integration.

• Smart technologies – Widespread adoption of SCADA, smart meters, digital twins, and customer engagement platforms.

This analysis is crucial for IT vendors and energy stakeholders seeking to understand the strategic direction and technology investment priorities guiding Germany’s journey to climate neutrality by 2045.

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Wolfgang Schwab

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