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The Smart Grid marketplace is inspired by a myriad of factors that collectively form its dynamics and increase trajectory. One pivotal marketplace aspect is the increasing worldwide demand for reliable and efficient electricity distribution systems. As populations enlarge and urbanize, the strain on conventional energy grids intensifies, leading to a growing want for clever solutions that can decorate grid resilience, lessen power losses, and accommodate renewable strength sources. Government rules and guidelines play a critical role in shaping the Smart Grid market. Many international governments are prioritizing the transition to cleaner and more sustainable energy structures, and this dedication frequently translates into supportive rules and incentives for the adoption of the Smart grid.
Technological improvements and improvements contribute significantly to the evolution of the Smart Grid market. The integration of superior technologies, together with the Internet of Things (IoT), synthetic intelligence, and information analytics, complements the competencies of Smart Grid systems. These technologies permit actual-time monitoring, predictive upkeep, and optimized power distribution, fostering efficiency and reliability. As the pace of technological innovation speeds up, the Smart Grid market is expected to witness continuous improvements and upgrades. The growing emphasis on environmental sustainability is another pivotal marketplace factor. Cybersecurity issues are crucial to the Smart Grid marketplace dynamics. With the extended digitization and connectivity of grid components, there's a corresponding rise in cybersecurity threats.
Safeguarding Smart Grid infrastructure from cyber-assaults is paramount to ensuring the reliability and protection of the strength delivered. Economic elements, along with the overall financial health of regions or countries, also impact the Smart Grid marketplace. Economic stability and growth contribute to multiplied funding ability for each public and private entity, fostering the deployment of Smart Grid technology. Conversely, economic downturns may additionally result in financial constraints and a slower pace of Smart Grid adoption. Interoperability and standardization are vital elements influencing the Smart Grid market. The seamless integration of various components and systems from numerous carriers is critical for the efficient functioning of Smart Grids. Industry requirements and protocols facilitate interoperability, ensuring that Smart Grid solutions can paint collectively seamlessly. Standardization efforts contribute to a more cohesive and scalable Smart Grid environment.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2023 | USD 36.1305 Billion |
| Growth Rate | 14.70% (2023-2032) |
Smart Grid Market Highlights:
Smart Grid Market Overview
The Smart Grid Market is projected to grow from USD 41.44 billion in 2024 to USD 108.23 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.75% during the forecast period (2024 - 2032). Additionally, the market size for Smart Grid was valued at USD 36.13 billion in 2023.
The smart grid industry currently exhibits splendid and out-of-the-box opportunities in the electricity-producing energy industry are the key market drivers enhancing the market growth.
Figure 1: Smart Grid Market Size, 2024 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Smart Grid Market Trends
Supportive governments policies and regulations are driving market growth
The growing need to alleviate climate change for renewable energy expansion is expected to drive smart grid market CAGR initiatives worldwide. In addition, several governments are progressively investing in smart grid technology, which is expected to help them achieve their carbon emission reduction targets and enable long-term economic prosperity. Moreover, numerous countries already have net energy metering protocols and equipment. Some countries are still exploring the technology and its mechanism, which is expected to provide lucrative opportunities for the smart grid market. For instance, in 2017, under AMI (Advanced Metering Infrastructure), the U.S. installed around 76 smart meters and is anticipated to install approximately 90 million meters by 2020.
Additionally, the growing efforts for curbing carbon emissions and developing renewable and sustainable energy sources are boosting the adoption of smart grid technologies. Moreover, the energy demand is increasing and continuously rising, owing to a rapid increase in the adoption of hybrid and electric vehicles ly. The irregular power supply, especially in the merging and underdeveloped nations, is a major concern that needs to be fixed. Adopting smart grids can efficiently resolve the problem of irregular power supply. These factors drive the smart grid market revenue.
Smart Grid Market Segment Insights
Smart Grid Components Insights
The smart grid market segmentation based on type Components includes Hardware, Software, and Services. The software segment is expected to hold a significant portion of the market owing to the increase in the efforts to modernize the electricity grid and reduce the T&D losses. In addition, the increase in investments in advanced metering infrastructure (AMI) by the government is expected to propel the market growth for this segment. For instance, the U.S. government passed the Energy Independence and Security Act of 2007 to develop and deploy smart grid technologies. Furthermore, the hardware segment is expected to grow owing to the initiatives taken by the governments of various countries across the globe for the installation of smart electricity meters in their countries. The services segment provides applications, including installation and integration of various modules of utility smart grid operations. Hence, enterprises opt for these services to smooth the integration and deployment process and reduce costs.
Smart Grid Technology Insights
Based on technology, the smart grid market segmentation includes wired and wireless. The wireless technology segment will be the fastest-growing communication technology in the smart grid market in 2022. Wireless communication is the most advanced technology at present. It refers to transferring information over a distance without electrical conductors or wires. A reliable, secure, and low-latency bi-directional communication infrastructure is required between the intelligent electronic devices and the control center to implement wireless communication in a substation. Wireless technology ensures cost savings and secure data transmission compared to wired technology. This technology offers utility support by offering high bandwidth, covering a large area, and optimizing complex logistics and production processes.
Figure1: Smart Grid Market, By Technology, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Smart Grid End-User Insights
The smart grid market segmentation is based on end-user residential, corporate and government. The government sector is expected to rise substantially due to the deployment of grid technologies. Furthermore, the corporate sector is expected to grow significantly due to the government's favorable policies and fiscal incentives. In addition, a rise in the number of electric vehicles positively enhances the growth of this sector. The residential sector is estimated to grow due to the increase in awareness regarding the benefits of these technologies, including reduced energy consumption and money-saving across various end-users.
Smart Grid Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American smart grid market will dominate; the government's increased focus on forming appropriate and supportive regulatory frameworks for adopting smart grids in the Region will boost the market growth.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: SMART GRID MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's smart grid market accounts for the second-largest market share due to the encouraging government initiatives concerning clean power generation and the increasing demand for energy efficiency in the power supply. Further, the German smart grid market held the largest market share, and the UK smart grid market was the fastest-growing market in the European Region.
The Asia-Pacific smart grid market is expected to grow at the fastest CAGR from 2023 to 2032. This is dueto the wide adaptation of these technologies and a strong focus on the growth of renewable energy.Moreover, China’s smart grid market held the largest market share, and the Indian smart grid market was the fastest-growing market in the Asia-Pacific region.
Smart Grid Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the smart grid market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The smart grid industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the smart grid industry to benefit clients and increase the market sector. The smart grid industry has offered some of the most significant advantages in recent years. Major players in the smart grid market, including Wipro Ltd (India), IBM Corporations (US), Schneider Electric SA (France), Open Systems International Inc (US), Oracle Corporations (US), General Electric Company (US), ABB Ltd (Switzerland), Itron Inc (US), Cisco Systems Inc (US), Siemens AG (Germany), Aclara Technologies LLC (US) and others, are attempting to increase market demand by investing in research and development operations.
Siemens is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids to cleaner and more comfortable transportation and advanced healthcare, the company creates technology to add real customer value. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them transform daily for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a ly leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a leader in the transmission and generation of electrical power. In January 2019, Siemens announced the acquisition of Russelectric to mark its presence and strengthen its position in the smart grid market.
Schneider Electric SE is a French multinational company specializing in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries, by combining energy technologies, real-time automation, software, and services. In September 2019, Schneider Electric expanded its business by opening a smart distribution center in Brazil, which has helped reduce customer delivery time and optimize supply chain operations by reducing equipment downtime and overall power consumption. The distribution center is accessible to customers, partners, and educational institutions to experience and learn about the company's most innovative technologies delivered through its loT-enabled, open, interoperable architecture and EcoStruxure.
Key Companies in the smart grid market include
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Wipro Ltd (India)
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IBM Corporations (US)
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Schneider Electric SA (France)
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Open Systems International Inc (US)
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Oracle Corporations (US)
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General Electric Company (US)
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ABB Ltd (Switzerland)
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Itron Inc (US)
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Cisco Systems Inc (US)
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Siemens AG (Germany)
Smart Grid Industry Developments
In a report that was published in December 2023, ISGAN (International Smart Grid Action Network) started some new initiatives to enhance the global smart grids. A new 'Lighthouse Project' titled “Electricity network planning and implementation under uncertainty for the clean energy transition: The roles of smart distribution grids in energy systems" is meant to create stronger links between six groups within Networks concerned with smart distribution grids.
Schneider Electric acquired DC Systems BV, one of the leading suppliers of intelligent systems, in January 2021. Through this acquisition, Schneider Electric has been able to drive innovation in electrical distribution and smart grid spaces.
A partnership between GE Renewable Energy and Ccalpine saw the Santa Ana storage project located in Southern California completed by July 2021. This project will be able to feed up to twelve thousand homes during peak events or twenty-four thousand households at a typical load.
Siemens Limited and Tata Power Delhi Distribution Limited (Tata Power-DDL) have successfully deployed Smart Metering Technology for more than two hundred thousand smart meters in North Delhi in August 2021.
Schneider Electric acquired DC Systems BV, one of the largest providers of intelligent systems, in November 2021. Thus, it promoted its innovations regarding electric distribution.
The Versant Power company deployed Itron's AMI solution across its service territory for data management, analytics, and grid performance enhancement, as well as increased operational efficiency and better customer experience in January 2021.In addition,Itron's intelligently connected network supported by high-performance endpoints equip the utility with superior capability of outage management and serve as a basis for future consumer programs.
Siemens Energy introduced an enhanced Unified Power Flow Controller (UPFC) PLUS variety offering wider choices for stabilizing the grid system during September 2020. The UPFC PLUS assists system operators in grid stabilization as they can dynamically control the load flow in AC grids.
Energy Efficiency Services Limited (EESL), a joint venture of four public sector enterprises under the Union Ministry of Power of India, has announced an investment plan of INR 2,700 crore for the smart meter project in Uttar Pradesh, India during August 2019. Consequently, EESL is expected to install four million electricity meters on the premises of state power consumers within three years from 2019 to 2022 under this ambitious program.
With digital capabilities integrated into it, ABB introduced a digital integrated power transformer in April 2018. These digital functions enhance reliability and efficient utilization of grid assets and power networks.
June 2018: GE Power's Grid Solutions business launched a new Advanced Distribution Management Solution (ADMS) in collaboration with Tata Power Delhi Distribution (Tata Power - DDL), specially designed for India with advanced features, such as monitoring, planning, security, and analysis.
July 2018: ABB acquired GE Industrial Solutions to expand in North America to strengthen its product portfolio in the electrification area.
Smart Grid Market Segmentation
Smart Grid Components Outlook
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Hardware
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Software
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Services
Smart Grid Technology Outlook
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Wired
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Wireless
Smart Grid End-User Outlook
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Residential
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Corporate
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Government
Smart Grid Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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