Smart Energy Management Market Size, Share, Growth Analysis, By Energy Source(Renewable and Non-Renewable), By Offering(Solution, Software, and Consulting & Services), By Function(Grid Operation, Renewable Energy Management, Energy Storage, Grid Security/Cybersecurity), By End User(Energy Utilities Providers and Consumers), By Region - Industry Forecast 2024-2031

Global Smart Energy Management Market size was valued at USD 27.7 billion in 2022 and is poised to grow from USD 31.02 billion in 2023 to USD 76.81 billion by 2031, growing at a CAGR of 12% during the forecast period (2024-2031).

A smart energy management system is a computer-based system used by operators of electric utility grids to monitor, control, and optimize the performance of the generation or transmission system. The system is designed to reduce energy consumption, improve the utilization of the system, increase reliability, & predict electrical system performance as well as optimize energy usage to reduce cost. Over the past two decades, energy management systems have emerged as a proven best practice methodology to ensure sustainable energy efficiency and improve performance across industries.

The smart energy management market is broadly segmented into renewable and non-renewable/conventional. The non-renewable/conventional segment is estimated to account for the largest share of the overall smart energy management market and is expected to grow at the highest CAGR during the forecast period. Factors such as increasing energy consumption across different end-use industries and rising adoption of energy management systems to reduce greenhouse gas emissions are expected to drive market growth.

Rising energy demand and price volatility, increasing awareness about carbon footprint management, and growing inclination towards efficient energy management are the major factors driving the market growth. In addition, increasing investment in smart city projects and rising government investment in the modernization of aging infrastructure are expected to offer prominent growth opportunities for the growth of this market. However, the high cost associated with the replacement of existing infrastructure is expected to restrain the growth of this market. In addition, rising privacy & security concerns are also challenging the growth of the market.

US Smart Energy Management Market is poised to grow at a sustainable CAGR for the next forecast year.