Utility Billing Software Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 6.22 Billion |
| Market Size (2030) | USD 9.12 Billion |
| Growth Rate (2025 - 2030) | 7.95% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Utility Billing Software Market Analysis by Mordor Intelligence
The utility billing software market size stands at USD 6.22 billion in 2025 and is forecast to reach USD 9.12 billion by 2030, reflecting a 7.95% CAGR during 2025-2030. Tight regulatory timelines, accelerating smart-grid programs, and pressure to retire legacy mainframes propel sustained investments in modern platforms. Cloud-first deployment strategies, elastic analytics workloads, and near-real-time tariff engines underpin rapid vendor adoption among both municipal and investor-owned utilities. Consolidation activity—exemplified by VertexOne’s recent financing and acquisition spree—signals growing private-equity confidence in the utility billing software market[1]Runway Growth Finance Corp., “VertexOne Secures USD 131 M Financing, Acquires MyMeter Creator Accelerated Innovations,” stocktitan.net. At the same time, utilities confront mounting cyber-risk exposures that elevate security features from optional extras to core buying criteria. Demand for convergent billing across electricity, water, gas, and telecom services further widens the addressable base for platform vendors.
Key Report Takeaways
- By deployment mode, cloud-based solutions led with 44.13% revenue share in 2024; the segment is projected to expand at a 13.81% CAGR through 2030.
- By end-user industry, electricity and power distribution held 40.93% of the utility billing software market share in 2024, while telecommunications utilities recorded the highest projected CAGR at 13% through 2030.
- By billing-function module, Customer Information Systems accounted for 37.95% of the utility billing software market size in 2024; Analytics & Reporting modules are advancing at a 13.41% CAGR to 2030.
- By geography, North America contributed 38.13% of global revenues in 2024; Asia-Pacific is forecast to grow at a 10.16% CAGR to 2030.
- By utility type, electricity providers commanded a 36.17% share of the utility billing software market size in 2024 and are expanding at a 12% CAGR through 2030.
Global Utility Billing Software Market Trends and Insights
Driver Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Improvement in legacy billing systems and IT infrastructure | +1.8% | North America and Europe | Medium term (2-4 years) |
| Growing investment in smart-grid / AMI roll-outs | +2.1% | Asia-Pacific core; spill-over to North America | Long term (≥ 4 years) |
| Rapid shift toward cloud-first utility IT architectures | +1.5% | Global | Short term (≤ 2 years) |
| Compliance pressure for itemised, near-real-time billing | +1.2% | North America and EU; expanding to Asia-Pacific | Medium term (2-4 years) |
| Rise of prosumer and V2G settlement requirements | +0.9% | EU and North America; early adoption in Australia | Long term (≥ 4 years) |
| AI-based anomaly detection reducing non-technical losses | +0.8% | Global with early gains in developed markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Growing Investment in Smart-Grid / AMI Roll-outs
Advanced metering infrastructure programs generate sustained platform demand by flooding utilities with high-frequency usage data that legacy batch systems cannot manage. India’s Revamped Distribution Sector Scheme alone targets 250 million installations by 2026, supported by USD 15 billion investment commitments. The design-build-finance-operate-own-transfer model shifts capital risk to service providers, guaranteeing recurring SaaS revenue streams for the utility billing software market. Each residential smart meter produces more than 35,000 readings annually, forcing utilities to favor cloud-native billing engines that scale elastically[2]U.S. Department of Energy, “Voices of Experience: Leveraging AMI Networks and Data,” energy.gov.
Rapid Shift Toward Cloud-First Utility IT Architectures
Oracle’s cloud revenue climbed to USD 5.9 billion in Q2 FY2025—up 24% year on year—as utilities migrate customer information systems and tariff engines into multi-tenant SaaS environments. Cloud frameworks shorten new-tariff launch cycles from months to weeks, a critical advantage when regulators approve dynamic time-of-use pricing. Lower upfront costs enable mid-sized municipal utilities to access feature depth once reserved for investor-owned enterprises, expanding the utility billing software market footprint among long-tail customers.
Compliance Pressure for Itemised, Near-Real-Time Billing
Mandates such as Pennsylvania Code § 56.265 require granular disclosure of readings and charges, compelling utilities to overhaul static bill-print workflows[3]Commonwealth of Pennsylvania, “52 Pa. Code § 56.265. Billing information,” pacodeandbulletin.gov. Real-time billing obligations, tied to consumer-protection and smart-meter directives, push platforms toward streaming data architectures capable of hourly rating calculations. Investor-owned utilities serving more than 100,000 accounts face heightened audit scrutiny, increasing willingness to invest in modern software.
AI-Based Anomaly Detection Reducing Non-Technical Losses
Machine-learning modules embedded in billing engines flag irregular consumption signatures with greater than 97% precision, enabling proactive theft mitigation. Non-technical losses in developing markets range from 15–25% of distributed energy, so predictive analytics deliver immediate bottom-line gains. Integration of IoT sensor feeds with billing data creates a unified observability layer that also detects equipment malfunctions, enhancing service reliability.
Restraint Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Digital-skills gap at small and mid-size utilities | -1.1% | Global; acute in rural and developing regions | Medium term (2-4 years) |
| High upfront integration and data-migration costs | -1.4% | Global; heavier impact on small utilities | Short term (≤ 2 years) |
| Escalating cyber-security and data-privacy risks | -0.8% | Global; stricter enforcement in EU and North America | Long term (≥ 4 years) |
| Workforce resistance from unionised meter readers | -0.5% | North America and EU | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High Upfront Integration and Data-Migration Costs
Legacy CIS conversion often consumes 40–60% of project budgets because decades-old records require cleansing and schema alignment. Small public-power utilities serving fewer than 50 000 customers lack dedicated IT staff, pushing them toward external consultants that double total implementation expense. These cost hurdles delay modernization unless offset by subscription-based SaaS alternatives, a trend that nonetheless shifts expense from capital to operating budgets.
Escalating Cyber-Security and Data-Privacy Risks
Utilities averaged 1,100 cyberattacks per week in 2022, and breach costs hit USD 4.78 million in 2023 for the energy vertical. Incidents like the ransomware strike on Veolia North America underscore operational exposure when customer-facing portals go offline[4]Cybersecurity & Infrastructure Security Agency, “Compendium of CISA Technology Evaluations,” cisa.gov . EU GDPR enforcement and pending U.S. state privacy laws require granular consent tracking and audit trails, elevating security certifications to gating criteria in software RFPs.
Segment Analysis
By Deployment Mode: Cloud Adoption Reshapes IT Economics
Cloud platforms captured 44.13% of 2024 revenue and will post a 13.81% CAGR to 2030, underscoring their status as the primary growth engine for the utility billing software market. On-premise implementations persist among large investor-owned utilities with sunk-cost datacenters, yet expansion remains muted. Hybrid rollouts act as bridge architectures, allowing regulated utilities to protect sensitive customer data on-premise while scaling meter-data crunching in public clouds.
Cost elasticity and always-current feature sets explain why municipal operators pivot toward SaaS. MuniBilling reports rising demand from water districts seeking real-time reporting without hardware refresh cycles. Oracle Cloud Infrastructure’s 52% revenue jump in fiscal 2025 illustrates enterprise-scale migration momentum, reinforcing the role of hyperscalers in the utility billing software market.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Telecom Utilities Spur Convergent Billing
Electricity distributors held 40.93% revenue share in 2024, reflecting legacy complexity and mandatory smart-grid investments. Telecommunications utilities, however, lead growth at 13% CAGR as 5G rollouts demand convergent charging systems that reconcile data, voice, and energy services on a single invoice. Water utilities trail due to slower smart-meter penetration, but present stable replacement demand.
Real-time rating engines originally built for telcos—such as Neural Technologies’ platform—are now repurposed for time-of-use energy tariffs, widening addressable functionality. This convergence bolsters the utility billing software industry as cross-sector operators seek unified customer journeys.
By Utility Type: Electricity Providers Extend Digital Lead
The electricity segment accounted for 36.17% of 2024 revenue and will grow at a 12% CAGR, reflecting regulatory mandates for demand-response and vehicle-to-grid settlement. Water and gas utilities lag, constrained by less granular usage patterns and episodic safety-related workflows that complicate automation. District heating and cooling, small today, gains attention in dense urban cores, pursuing decarbonization.
Bidirectional energy flow requirements outlined in the U.S. Department of Energy’s 2025 assessment demand billing engines capable of processing export as well as import kWh in near-real time. These evolving rules concentrate investment in the electricity-focused slice of the utility billing software market.
By Billing-Function Module: Analytics Outpaces Core CIS Growth
Customer Information Systems remained the revenue anchor at 37.95% in 2024, yet Analytics & Reporting outperformed every other module with a 13.41% CAGR, highlighting demand for insight-driven operations. Meter Data Management stacks mature alongside smart-meter rollouts, while payment modules expand to support digital wallets and real-time ACH rails.
Bidgely’s AI-fueled UtilityAI toolset enables granular appliance-level insights that strengthen engagement and reduce call-center traffic. SEW’s integrated billing-and-payment hub layers predictive collection algorithms on top of core ledger functions, signaling an era where value shifts from transaction capture to data monetization.
Note: Segment shares of all individual segments available upon report purchase
By Organization Size: Municipal Utilities Accelerate SaaS Uptake
Investor-owned utilities remain the largest revenue contributors owing to scale and regulatory complexity. Yet municipal and cooperative utilities exhibit the highest adoption velocity for cloud delivery, attracted by subscription pricing and faster go-lives. Private retail energy suppliers require agile billing for competitive markets with high churn, favoring configurable rule engines.
Hansen Technologies’ wins in Kingsport and Kinston illustrate vendor success in municipal conversion projects. These deployments affirm the widening footprint of the utility billing software market among smaller operators constrained by tight capex budgets.
Geography Analysis
North America generated 38.13% of global revenue in 2024, anchored by advanced regulatory frameworks and aging grid assets that mandate upgrade cycles. Widespread smart-meter penetration and state-specific transparency rules keep spending elevated. Canada’s nationwide meter refresh and Mexico’s distribution-sector reforms add incremental demand, though the United States remains the core revenue pool. Venture capital inflows into digital-first vendors underscore the region’s maturity and its outsized influence on functional roadmaps.
Asia-Pacific posts the fastest growth at 10.16% CAGR, propelled by India’s 250 million-meter program and China’s AI-centric grid modernization. Government-led funding mechanisms lower procurement barriers, while aggressive timelines accelerate tender volumes. Japan’s tariff liberalization and Australia’s rooftop solar boom further expand the utility billing software market across the Pacific Rim.
Europe delivers steady replacement demand as utilities integrate high renewable penetration and comply with GDPR. Extensive prosumer settlements and vehicle-to-grid pilots in Germany, the Netherlands, and the Nordics elevate billing complexity. Stringent privacy rules lengthen procurement cycles but favor established vendors with certified data processes, fortifying competitive moats.
Competitive Landscape
The utility billing software market is moderately fragmented, with global enterprise vendors, niche specialists, and cloud-native challengers competing on platform breadth and implementation agility. Oracle and SAP leverage horizontal ERP and database depth to secure long-tenure contracts with investor-owned utilities for mission-critical CIS overhauls. Hansen Technologies and Tyler Technologies differentiate through pre-configured regulatory templates and municipal-sector playbooks.
Consolidation remains active: VertexOne raised USD 131 million in growth capital and acquired Accelerated Innovations to fold MyMeter’s customer-engagement layer into its CIS stack. Tally Group’s purchase of Alinta Energy’s CORE platform exemplifies cloud-native expansion into mass-market retail energy segments. Strategic pivots toward AI-native analytics, open APIs, and low-code configuration distinguish emerging challengers that promise six-month deployments versus legacy multi-year rollouts.
Cybersecurity posture and data-residency assurances increasingly influence RFP scores, prompting partnerships such as KUBRA’s integration with Silverblaze for end-to-end CX and secure payments. Vendors able to couple fortified security with rapid functionality cadence strengthen their positioning as utilities prioritize resilience alongside innovation.
Utility Billing Software Industry Leaders
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ePsolutions Inc.
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Oracle Corporation
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SAP SE
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N. Harris Computer Corporation
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VertexOne, LLC
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2025: CivicPlus acquired Beehive's asset management and utility billing software solutions to enhance its Civic Impact Platform, expanding capabilities for local government operations with streamlined billing processes and real-time account management features.
- January 2025: VertexOne secured a USD 131 million financing commitment from Runway Growth Capital and BC Partners Credit, enabling the company to acquire Accelerated Innovations for USD 32.5 million and integrate MyMeter technology with existing customer information systems and billing solutions.
- December 2024: Accelerated Innovations, specializing in utility payment solutions, was acquired by an undisclosed buyer, highlighting ongoing consolidation trends in the utility billing software sector and the strategic value of customer engagement technologies.
- December 2024: VertexOne appointed Carlos Pullum as its first Chief Commercial Officer to lead commercial strategy and drive revenue growth, reflecting the company's expansion plans following recent financing and acquisition activities.
- November 2024: City of Kinston enhanced utility services by upgrading to Hansen CIS platform, modernizing customer care and billing processes to improve operational efficiency and customer satisfaction.
Global Utility Billing Software Market Report Scope
Utility billing software provides an effective billing solution to help municipalities and officials manage their daily operations. This software offers effective billing, and the collection system forms the core of successful utility businesses. Utility bills usually refer to water, electricity, and gas bills. It can also include accounts for essential services like sewer services, such as those provided by the council.
The Utility Billing Software Market is segmented by Deployment Mode (Cloud-based, On-premises), End-user Industry (Water, Oil & Gas, Power Distribution, Telecommunication), and Geography (North America (United States, Canada), Europe (Germany, UK, France, and Rest of Europe), Asia Pacific (India, China, Japan, and Rest of Asia-Pacific), and Rest of the World).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| On-premise |
| Cloud |
| Hybrid |
| Water Utilities |
| Electricity and Power Distribution |
| Gas Utilities |
| Telecommunications |
| Multi-service Municipal Utilities |
| Electricity |
| Water |
| Gas |
| District Heating and Cooling |
| Customer Information System (CIS) |
| Meter Data Management (MDM) |
| Payment Processing and Collections |
| Analytics and Reporting |
| Tariff and Rate Management |
| Investor-Owned Utilities (IOU) |
| Municipal / Cooperative Utilities |
| Private Retail Energy Providers |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| South Korea | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| United Arab Emirates | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Egypt | ||
| Rest of Africa | ||
| South America | Brazil | |
| Argentina | ||
| By Deployment Mode | On-premise | ||
| Cloud | |||
| Hybrid | |||
| By End-user Industry | Water Utilities | ||
| Electricity and Power Distribution | |||
| Gas Utilities | |||
| Telecommunications | |||
| Multi-service Municipal Utilities | |||
| By Utility Type | Electricity | ||
| Water | |||
| Gas | |||
| District Heating and Cooling | |||
| By Billing-Function Module | Customer Information System (CIS) | ||
| Meter Data Management (MDM) | |||
| Payment Processing and Collections | |||
| Analytics and Reporting | |||
| Tariff and Rate Management | |||
| By Organisation Size | Investor-Owned Utilities (IOU) | ||
| Municipal / Cooperative Utilities | |||
| Private Retail Energy Providers | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Egypt | |||
| Rest of Africa | |||
| South America | Brazil | ||
| Argentina | |||
Key Questions Answered in the Report
What is the projected revenue for the utility billing software market in 2030?
The market is forecast to reach USD 9.12 billion by 2030, reflecting a 7.95% CAGR from 2025.
Which deployment model is growing the fastest among utility billing platforms?
Cloud-based deployment is expanding at a 13.81% CAGR as utilities migrate legacy workloads to SaaS.
Which geographic region will add the most incremental demand over the forecast period?
Asia-Pacific, led by large-scale smart-meter programs in India and China, is set to post a 10.16% CAGR.
Which functional module shows the highest growth potential?
Analytics & Reporting modules are advancing at a 13.41% CAGR as utilities leverage data-driven insights.
How are cyber-security concerns influencing software procurement decisions?
Rising breach costs and stricter privacy regulations push utilities to select vendors with certified security frameworks and proven incident-response capabilities.
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