
Industry Insights
Three Technology Trends Supporting Utility Modernization in 2026
Itron’s Takeaways from the recent Gartner® Hype Cycle™ Reports
Article Highlights
- Connected infrastructure is only as valuable as the operational insight utilities can generate from it.
- Customer engagement and grid edge intelligence are becoming more important as utilities support new programs, pricing models and DER-driven complexity.
- Digital twins can help utilities model potential impacts before operational or infrastructure changes are made in the field.
- Together, these technologies reflect a broader focus on practical modernization: delivering value today while preparing for future grid needs.
A common theme across the utility industry is the need to balance near-term operational priorities with longer-term modernization goals. As utilities navigate growing demand, aging infrastructure, distributed energy resources (DERs) and evolving customer expectations, many are reassessing which technologies can deliver value today while supporting future needs.
Here are some of Itron's key takeaways from these recent Gartner reports.
Trend #1: Industrial IoT Is Driving More Connected Utility Operations
Many utilities have spent the past decade expanding connected infrastructure across their networks. The next measure of value is how effectively organizations can use the data these networks generate to improve day-to-day operations and make more informed decisions as grid conditions change.
“To drive differentiation and establish an intelligent, enterprisewide data foundation, CTIOs must act decisively. This resolve requires prioritizing investments that unify IoT data with enterprise systems through edge-based processing, real-time data pipelines, and configurable, AI-enabled applications aligned to industry needs. Success will depend on breaking down persistent data silos across IT and operational technology environments, scaling AI across distributed IoT ecosystems, and embedding intelligence into connected operations to deliver measurable business outcomes.”
- Itron was recognized as a Sample Vendor for IIoT Technologies in Power and Utilities in the Gartner Hype Cycle for IoT, 2026. 1
Trend #2: Customer Expectations Are Shaping Technology Investments
Customer interactions are becoming more complex as utilities introduce new programs, pricing models and DERs. As customers take a more active role in energy management, utilities need better visibility and coordination across customer-owned and grid-connected assets.
"Smart Edge Metering Systems (SEMS) empower electric utilities to actively control distributed energy resources (DER) beyond the meter, driving customer engagement and achieving mutual objectives. SEMSs will provide secure communication and control beyond the grid edge, with customer-permissioned control and managed DER."
- Itron was recognized as a Sample Vendor the Smart Edge Metering Systems, Meter Data Analytics and IIoT Technologies in Power and Utilities categories, in the Gartner Hype Cycle for Power and Utility Industry IT, 2026. 2
Trend #3: Digital Twins Are Expanding How Utilities Evaluate Operations
Utilities are being asked to make operational and infrastructure decisions in environments that are changing faster than many traditional planning approaches can accommodate. Digital twins provide a way to evaluate potential impacts using a digital representation of real-world operations before changes are made in the field.
“Enterprises use digital twins to improve operations by embedding business logic into software design patterns and templates. Digital twins also act as the 'building blocks' for machine learning and generative AI foundation models, driving a growing convergence between simulation and digital twin technologies and accelerating the development of simulation twins. Their importance is reflected in enterprise gains in efficiency, cost savings, operational visibility and new revenue models."
- Gartner Hype Cycle for IoT, 2026. 1
In our view, these trends point to an industrywide approach to modernization: using technologies to navigate today’s demands while preparing for more complexity ahead. As modernization efforts continue, investments will increasingly be evaluated by how well they address current operational realities and lay the foundation for what comes next.
1 - Gartner, Hype Cycle for IoT, 2026, Kameron Chao, Scot Kim, et al., 22 June 2026
2- Gartner, Hype Cycle for Power and Utility Industry IT, 2026, Nicole Foust, 9 June 2026
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