USD 43.1 billion
Smart Grid Market Size, Share, Growth Analysis, By Component(Software (Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management), By Application(Generation, Transmission, Distribution, Consumption/End Use), By Communication Technology(Wireline, Wireless), By End Use(Residential, Utility, Commercial, Government), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG55E2012 |
Region:
Global |
Published Date: July, 2024
Pages:
157
|Tables:
93
|Figures:
76
Smart Grid Market Insights
Global Smart Grid Market size was valued at USD 43.1 Billion in 2022 and is poised to grow from USD 51.33 Billion in 2023 to USD 207.82 Billion by 2031, at a CAGR of 19.9% over the forecast period (2024–2031).
The smart grid market is experiencing notable growth supported by increasing demand for energy due to the ever-growing population, and the need for better grid reliability, and energy efficiency. Smart grids simplify the incorporation of renewable resources, such as solar and wind power, which increases their demand. Moreover, it offers improved monitoring and better control to decrease power outages and enhance response times. These drivers are significantly propelling the growth of the smart grid market. Nonetheless, the market is hampered by factors like issues with technological standardization. The lack of standardization protocols and technologies might result in compatibility problems and uneven solutions, making it complex for diverse devices and systems to work jointly. Yet, a few opportunities seen in the market include the expansion of integration of renewable energy and development of energy storage techniques.
US Smart Grid Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024–2031
Global Market Size
Largest Segment
Software
Fastest Growth
Software
Growth Rate
19.9% CAGR
Global Smart Grid Market ($ Bn)
Country Share for North America Region (%)
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Smart Grid Market Segmental Analysis
Global Smart Grid Market is segmented by Component, Application, Communication Technology, End Use, and Region. Based on Component, the market is segmented into Software (Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management, Substation Automation, Smart Grid Security, Billing and Customer Information System), Hardware (Smart Meters, Sensors, Programmable Logic Controllers, Others), Services (Consulting, Deployment and Integration, Support and Maintenance). Based on Application, the market is segmented into Generation, Transmission, Distribution, Consumption/End Use. Based on Communication Technology, the market is segmented into Wireline, Wireless. Based on End Use, the market is segmented into Residential, Utility, Commercial, Government, Industrial. By Region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.
Analysis by Component
Based on component, the smart grid market is categorized into software, hardware, and services. The software segment held a majority share of the market and is projected to lead over the forecast period as well owing to the advanced data analytics offered. Smart grids produce huge quantities of data that need to be studied for enhancing the performance of grid, forecasting maintenance requirements, and management of energy demand. Software solutions that provide real-time monitoring and advanced data analytics are important for connecting data effectively, thus driving the segment’s growth.
On the other hand, the services segment is projected to grow at a steady rate owing to better services offered like complex deployment and integration. Adopting smart grid technologies requires complex incorporation of software and hardware. Hence, services, such as system integration, consulting, and project management are vital for smooth and simplified operation and deployment. These factors are propelling the growth of the segment.
Analysis by End Use
Based on end use, the smart grid market is categorized as residential, utility, commercial, government, and industrial. The utility segment held a significant share in the previous years and is expected to continue dominance in the future as well. Utilities are the primary managers and operators of electrical grids. Hence, they are the key entities for funding and implementing improved technologies to enhance reliability, and grid operations, and cater to the growing energy needs, thus driving the segment growth.
However, the residential segment is expected to hold a major market share in the coming years due to increasing consumer demand for energy. The growing population, especially in developing countries, is increasingly demanding energy. There is a higher demand for energy among residential consumers for better control over costs and use. Smart grid technologies like home management systems and smart meters (HEMS) enable owners to manage and monitor their real-time energy consumption.
Global Smart Grid Market Size By Component
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Smart Grid Market Regional Insights
North America held majority share of the market in the past years and will continue dominance over the forecast period owing to advanced infrastructure in the developed nations like Canada and the United States. These countries hold well-established infrastructure that is actively being advanced with smart grid tools. In addition, growing investments in technologies is another key driver of the market in the region. Companies in the region and the utilities are the key investors in smart grid solutions. They are actively adopting improved solutions for energy storage, grid management, and consumer participation to enhance operational reliability and efficiency. The key companies operating in the region include Itron, Cisco, ABB Ltd., Honeywell, Oracle, CenterPoint Energy, Wipro, and more.
Asia-Pacific is observed to be the fastest-growing region among others owing to speedy industrialization and urbanization, especially in nations like India and China. This growth majorly stimulates investments in advancing energy infrastructure, comprising the deployment of smart grid solutions. The region is also experiencing huge demand for energy due to growing population, several industrial activities, and economic development.
Global Smart Grid Market Size By Region
- Largest
- Fastest
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Smart Grid Market Dynamics
Smart Grid Market Drivers
Growing Demand for Energy
- Growing consumption of energy ultimately demands more effective management of grid and infrastructure upgrades to cater to the ever-increasing demand and confirm reliable supply. Smart grids also allow smooth incorporation of intermittent sources of renewable energy like solar and wind by offering better flexibility and control.
Advancements in Technologies and Energy Efficiency
- Modernizations in communication technologies sensor technologies, and data analytics improve the competencies of smart grids, making them more appealing to energy providers and utilities. Furthermore, smart grids help enhance overall efficiency, better energy use, and reduced losses, aligning with universal efforts to encourage sustainability and energy conservation.
Restraints
Significant Initial Costs and Integration Complexity
- The adoption of smart grid solutions comprises high upfront funding in technology, infrastructure, and training, which could impede governments and utilities from implementing them. Moreover, it is challenging to integrate smart grid solutions with the current legacy systems which need more time and effort to guarantee interoperability and compatibility.
Data Security and Privacy Issues and Regulatory Challenges
- The rising collection and transfer of information increases issues regarding cybersecurity and privacy, which could restrain its adoption due to the increased threat of cyberattacks and data breaches. Moreover, inconsistent policies or regulations in different nations may also impact the deployment and development of these technologies, creating uncertainty for stakeholders and investors.
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Smart Grid Market Competitive Landscape
Smart Grid Market providers need to focus on maximizing their business scope by reaching into new markets and developing smart grid for different industrial and personal uses. Raising new capital to fund their R&D and business expansion efforts will be essential for new smart grid companies going forward. The development of custom robots for specific applications across different industry verticals will also help companies expand their sales potential in the future.
Smart Grid Market Top Player’s Company Profiles
- General Electric Company
- ABB Ltd.
- Siemens AG
- Schneider Electric SE
- Landis+Gyr Group AG
- Itron Inc.
- Honeywell International Inc.
- Cisco Systems Inc.
- Oracle Corporation
- IBM Corporation
- Eaton Corporation
- S&C Electric Company
- Wipro Limited
- Fujitsu Limited
- Mitsubishi Electric Corporation
- Toshiba Corporation
- Echelon Corporation
- Schweitzer Engineering Laboratories Inc.
- Trilliant Holdings Inc.
- Elster Group GmbH
Smart Grid Market Recent Developments
- In February 2024, Cisco signed a contract to buy nearly 60,000 MWh solar energy every year from IGNIS, a Spanish renewable energy leader. This contract form Cisco allowed IGNIS to construct a novel solar facility in ‘empty Spain’ or ‘España Vaciada’, in Teruel, a major domain of focus and investment for Spain Government.
- In April 2024, IBM declared novel storage capabilities, offering customers control and choice in data centers to optimize performance. The novel IT life cycle management alternate, known as IBM storage assurance, offers access to software and hardware of IBM FlashSystem modernizations to protect investments of customers.
- In February 2024, Itron and Schneider Electric are collaborating to enhance grid management and energy resources for utilities as businesses and homeowners are actively adopting DER (distributed energy resources) like battery energy storage, rooftop solar, microgrids, and electric vehicles at grid edge.
Smart Grid Key Market Trends
- Growing Use of Energy Management Solutions (EMS): Energy Management Solutions enable businesses and utilities to control, monitor, and maximize energy distribution. It also plays a key role in renewable energy integration and demand response. These systems aid in the management of peak loads by proper balance of demand and power generation.
Smart Grid Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing energy demand and the increasing number of technological advancements are driving the Smart Grid market. Nonetheless, integration complexity and policy and regulatory challenges are projected to hamper the growth of the Smart Grid market. North America is projected to dominate the market owing to advanced infrastructure, heavy investments in technologies, and rising consumer demand for smart technologies. Moreover, advancements in machine learning and artificial intelligence and progress in energy storage solutions are some opportunities for market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 43.1 Billion |
| Market size value in 2031 | USD 207.82 Billion |
| Growth Rate | 19.9% |
| Base year | 2023 |
| Forecast period | 2024–2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Smart Grid Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Smart Grid Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Smart Grid Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Grid Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Grid Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Smart Grid Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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