Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The Smart Grid market has witnessed tremendous increases and extensive trends in recent years, pushed through the increasing integration of advanced technology in the power quarter. A Smart Grid refers to a power transport system that leverages virtual communication and sensing technologies to enhance the performance, reliability, and sustainability of power distribution. One prominent trend shaping the Smart Grid market is the rising demand for renewable energy assets. As the sector grapples with the demanding situations of climate change, there may be a developing emphasis on transitioning from conventional fossil fuels to cleaner options. This shift has caused a surge in the adoption of renewable energy technology together with solar and wind electricity, which in turn has created a demand for smart grids to manage the integration of these intermittent electricity sources into the prevailing power infrastructure effectively.
Another first-rate trend in the Smart Grid marketplace is the growing cognizance of grid modernization. Aging energy infrastructures in many regions are prompting utilities and governments to invest in upgrading their grids. The deployment of Smart Grid answers allows for the implementation of superior metering infrastructure (AMI), distribution automation, and other clever technologies. These enhancements empower utilities to monitor, manage, and optimize the flow of electricity in real time, thereby reducing losses, enhancing reliability, and permitting a more responsive grid. Modernization fashion isn't the handiest restrained to evolved economies; however, it is also gaining traction in rising markets searching to leapfrog traditional grid improvement ranges.
Cybersecurity concerns have ended up being a vital thing of the Smart Grid marketplace tendencies. With the growing interconnectivity and reliance on virtual technology, the vulnerability of Smart Grids to cyber threats has escalated. As a result, there may be heightened attention on enforcing sturdy cybersecurity measures to shield the integrity of Smart Grid systems. The advent of Internet of Things (IoT) technology is playing a pivotal role in shaping the Smart Grid panorama. IoT permits the mixing of numerous gadgets and sensors all through the grid, creating a community of interconnected devices that can speak and record percentages. Furthermore, authorities' initiatives and regulations are influencing the trajectory of the Smart Grid marketplace.
Many international locations are implementing guidelines that encourage the adoption of Smart Grid technology as part of their broader strength and environmental techniques. Incentives, subsidies, and regulatory frameworks are being put in the area to stimulate investments in Smart Grid infrastructure. These initiatives purpose to create an extra sustainable and resilient power environment, aligning with international efforts to reduce carbon emissions and mitigate the effects of climate trade.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | The smart grid market forecast is a clear picture showing that customers can now file complaints and seek redressals concerning the maintenance of the quality of the Smart Grid Market. |
| Market Dynamics | The smart grid industry currently exhibits splendid and out-of-the-box opportunities in the electricity-producing energy industry. |
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
-
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)
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
-
Hardware
-
Software
-
Services
Smart Grid Technology Outlook
-
Wired
-
Wireless
Smart Grid End-User Outlook
-
Residential
-
Corporate
-
Government
Smart Grid Regional Outlook
-
North America
-
US
-
Canada
-
Europe
-
Germany
-
France
-
UK
-
Italy
-
Spain
-
Rest of Europe
-
Asia-Pacific
-
China
-
Japan
-
India
-
Australia
-
South Korea
-
Australia
-
Rest of Asia-Pacific
-
-
Rest of the World
-
Middle East
-
Africa
-
Latin America
-
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
