Energy and utilities trends: Enterprises are now infrastructure-heavy AND technology-led

The energy and utilities (E&U) industry is simultaneously adapting to, responsible for, and trying (on varying levels) to mitigate climate change, geopolitical instability, technological advancements, and changing consumer behavior. E&U companies are responsible in some way for well over three-quarters of global emissions. They are also deeply entangled with every aspect of society and politics. This sector is accelerating its digital technology adoption with a ruthless efficiency drive and striving (currently unsuccessfully) to be proactive ‘net-positive’ influences in customers’ lives.

The E&U sector is under immense pressure to overcome an ongoing talent challenge as a non-high-tech and non-sustainable industry. The current pace of change is not fast enough for the environment, societies, or our economies.

HFS Research recently collaborated with the energy and utilities industry ecosystem to publish the  Energy and Utilities Horizons market analysis (see Exhibit 1). In this report, we explore the study’s market trends and stories through multiple lenses: enterprises, the services sector, and the E&U sector’s wider systemic influence.

Exhibit 1: Energy and utilities industry trends and drivers from the recent HFS Horizons market analysis

Source: HFS Research, 2025

1. Energy transition and sustainability: Progress, but not enough, despite the short-term, medium-term, and long-term opportunities

Pressure from most regulators, investors, and the public is pushing the shift toward decarbonization. This is crucial for managing risks and ensuring business continuity, but it is also proving its efficiency benefits, even in oil and gas operations. However, the energy sector is shifting its capital investment plans from clean to fossil energy due to higher margins for the latter for the time being (note that the former got much more than 5% anyway).

The power and utilities sector is progressing more in electrification and broader decarbonization. According to the International Energy Agency (IEA), clean electricity is expected to meet 95% of the world’s increased demand from 2025 to 2027. By 2027, clean energy will account for an estimated 47% of global electricity supply. Investments in digital grid management, distributed energy resources (DER), and microgrids also indicate a move toward decentralized energy generation, allowing consumers to become producers.

In the UK, EDF Energy has transitioned over five million meter points to the Kraken platform, developed by Octopus Energy with support from Accenture and various other service partners working at different stages of the system. Kraken uses advanced analytics, AI, and machine learning to help customers manage their energy usage and costs effectively. In partnership with housing developers, Octopus’s Zero Bills Standard aims to give 100,000 homes—either built or retrofitted with solar, heat pumps, and insulation—guaranteed no energy bills for 5 to 10 years.

HCLTech helped a US-based energy delivery company integrate Environmental, Social, and Governance (ESG) metrics into its existing Governance, Risk, and Compliance (GRC) platform, creating a single view for regulatory compliance and sustainability performance. This enabled real-time tracking of ESG key performance indicators (KPIs) across business functions and significantly improved governance transparency, decision-making, and streamlined sustainability reporting.

There are mixed signs for the energy transition and broader sustainability. So much more is required, as we cover here by analyzing the systems change we need and the opportunity for leadership, still.

2. Digital technology aligned to clear goals will separate leaders from survivors

AI, IoT, and predictive analytics aren’t future capabilities for the E&U value chain. They’re the core of operational resilience today, driving efficiency, cybersecurity, and beyond. Again, we refer back to the E&U industry’s efficiency push, with clear goals enabling targeting technology use. However, service providers often do not meet the mark (see Exhibit 2).

Hitachi Digital Services offered Open Subsurface Data Universe (OSDU) development sandboxes to oilfield service companies, enabling them to test and scale digital workflows. This environment allowed for rapid prototyping of subsurface applications with secure IT and operational technology integration. The initiative highlighted Hitachi’s commitment to promoting open data platforms and transforming legacy systems into agile, cloud-native ecosystems.

EVs and the digital infrastructure needed to electrify global grids are also puzzles that most utilities firms and governments are unprepared to solve. Electrification introduces volatility, with more intelligent demand-side management and the core physics of the grid, which is a necessity.

Infosys helped a logistics real estate client increase its EV adoption through a digital platform integrating EVs, chargers, and third-party data. The platform offered bundled services, improved total cost of ownership (TCO), and set the foundation for transitioning to an Energy-as-a-Service model. Operational efficiency and cost reduction were also positive outcomes.

Exhibit 2: The consulting, technology, and services sector is not meeting the direction that the world demands of the energy and utilities industry

Source: HFS Research, 2025; 90 energy and utilities executives from the Global 2000

3. Today’s energy customers want personalization, affordability, and real-time engagement

Personalization is crucial for improving customer experience (CX) and profit margins. Influencing demand through behavioral nudges and tailored incentives is essential, especially in a decentralized market. Utilities that rely on uniform billing and tariffs risk losing customer goodwill and giving agile competitors a chance to gain market share.

Beyond our Octopus example above, Publicis Sapient led a CX transformation for a UK-based energy company, launching a new minimum viable product (MVP) app in 82 days. The app enabled real-time meter data visualization, two-click tariff changes, Apple Pay, and boiler service bookings. Over 50% of all customer interactions shifted to digital channels, with over 310K meter readings and £20M in card payments processed, demonstrating effective personalization and digital self-service at scale.

4. Geopolitics and cybersecurity are now core to energy resilience

Energy geopolitics is at the center stage, from the Russian invasion of Ukraine to supply chain blockades and tariffs. The response? Localized generation, capital redeployment, and cybersecurity hardening for critical infrastructure. The perfect response? All the above, plus clean energy investment, stronger global alliances, and newly revamped governance that balances cybersecurity with desperately needed AI and sustainable innovation.

Our energy CIO agenda goes deeper, while Exhibit 3 illustrates the balance in executive minds between security, performance, and cost. EY supports a UK-based utility transmission and distribution firm’s digital transformation in response to geopolitical pressures such as energy affordability and security. EY helped design a new global framework, upgraded outdated infrastructure with new platforms to support bidirectional energy flows, modernized operations, and ensured regulatory compliance. The initiative resulted in a further commitment of between £400 and £600 million for modernization efforts.

Exhibit 3: Energy and utilities executives need a perfect balance between cost, performance, and cybersecurity

Source: HFS Research, 2025; 90 energy and utilities executives from the Global 2000

The Bottom Line: Market short-termism might make it seem like the winners of 2025 will be those who cut cost through tech, M&A, or restructuring… but the real winners will build resilient, intelligent, and consumer-centric operations and ecosystems.

E&U enterprises must build better transition plans for the now and the long term. Their financial backers are requesting, if not yet demanding, improved transition plans aligned to the underlying direction of responsible, resilient, and net-positive business practices. This will insulate E&U companies from geopolitics and win favor with regulators, financial institutions, and the public.