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Smart Grid Market Size By Technology (Smart T&D Equipment, Distribution & Network Automation, AMI, Consumer Interface, Communication & Wireless Infrastructure), Deployment, Service & Forecast, 2024 - 2032

  • Report ID: GMI1365
  • Published Date: Jun 2023
  • Report Format: PDF

Smart Grid Market Size

Smart Grid Market size surpassed USD 60.2 billion in 2023 and is anticipated expand at 10.7% CAGR from 2024 to 2032. The industry will gain traction on account of the aging electric grid infrastructure and the growing need for digitization in the power sector. Governments are progressively prioritizing environmental sustainability and implementing strict regulations to reduce carbon emissions, which will drive the product adoption. Furthermore, investments in digital grid infrastructure are on the rise, driven by the desire to reduce restoration time and leverage advanced technologies such as the Internet of Things. These developments are expected to positively impact the business outlook.

 

Smart Grid Market

The market landscape will be positively influenced by the increasing requirement of innovative communication technologies that provide real-time monitoring data and enable consumer load control. Leading manufacturers offer solutions, such as Software-as-a-Service (SaaS), that allow utilities to integrate various smart grid systems and manage them from a centralized location. Additionally, the liberalization of electricity generation will facilitate the incorporation of these systems, thereby promoting the espousal of these solutions.

 

COVID-19 Impact

The covid-19 pandemic had a mixed impact on the smart grid market in the last few years. the pandemic has disrupted supply chains, delayed project timelines, and led to budget constraints for utilities and governments. This has affected the implementation of smart grid projects and slowed down business growth to some extent. However, the pandemic has highlighted the importance of resilient and reliable electricity infrastructure as remote work and online activities became more prevalent. This has increased the urgency for grid modernization and the need of smart grid technologies.
 

Moreover, governments and utilities are recognizing the need for a more efficient and resilient grid, which includes smart grid solutions. As economies recover from the pandemic, there is expected to be an increased focus on infrastructure investment, including smart grid technologies. Furthermore, the pandemic has also highlighted the potential benefits of smart grids in managing and optimizing energy resources, enabling demand response, and supporting renewable energy integration, therefore driving the industry statistics positively.
 

Smart Grid Market Trends

Ongoing grid modernization with deployment of advanced sensors, smart meters, automation technologies, and communication networks to enable real-time monitoring and control of the grid will proliferate the smart grid market outlook. The integration of Distributed Energy Resources (DERs), such as solar panels, wind turbines, and energy storage systems, into the grid is gaining momentum, which is aiding the technology demand in the recent years.

 

Additionally, smart grid solutions facilitate energy efficiency initiatives by providing consumers with real-time energy consumption data and insights, which in turn complement its adoption. Furthermore, advanced data analytics and artificial intelligence (AI) technologies are being applied to smart grid data to gain insights, optimize grid operations, and enable predictive maintenance. These technologies help utilities make informed decisions, improve grid performance, and enhance customer engagement, and thus drive the market expansion globally.

 

Smart Grid Market Analysis

Smart Grid Market Size, By Technology, 2021 - 2032, (USD Billion)

The espousal of smart grid technologies is rapidly increasing with rapid deployment of advanced metering infrastructure, which holds a substantial smart grid market share of 27% in 2022. Advanced Metering Infrastructure (AMI) is a key component of industry segment. It refers to the integration of advanced metering technologies, communication networks, and data management systems to enable two-way communication between utilities and consumers.

 

The deployment of smart meters in AMI is expected to experience significant growth due to the increasing emphasis on efficient and reliable energy consumption. The installation of smart meters offers several advantages, including lower operating costs, improved customer relationships, and reduced peak demand, which ultimately leads to lower electricity rates. These factors contribute to the increased acceptance of smart meters and the expansion of AMI systems worldwide, which favors the overall industry expansion all regions.

 

Smart Grid Market Share, By Deployment, 2022

Smart grid market has witnessed a substantial demand from distribution industry and is further poised to attain 11.5% gains between 2023 and 2032. The growing demand for electricity in residential, commercial, and industrial sectors is a major driver for the implementation of smart grid solutions in the distribution industry. In addition, governments and regulatory bodies worldwide are implementing supportive policies, regulations, and incentives to promote the approval of this technologies. These measures encourage utilities to invest in smart grid solutions and accelerate the market development in the distribution sector.

 

Asia Pacific Smart Grid Market Size, 2021 - 2032, (USD Billion)

Asia Pacific smart grid industry size is projected to observe 12% growth rate till 2032 on account of increasing energy demand owing to the growing population and ongoing industrialization, urbanization in the region. Governmental promotion for the adoption of smart grid technologies through supportive policies, regulations, and incentives in order to enhance energy efficiency, grid reliability, and the integration of renewable energy sources in the province will further propelling the business development.

 

Furthermore, ongoing integration of renewable energy sources across the grid compels the utilization of efficient and smart technologies to facilitate their effective generation, storage, and distribution in APAC, which in turn drives the smart grid market statistics. Also, many countries in the Asia Pacific region are investing in grid modernization and infrastructure development to address the challenges of aging grid infrastructure, improve reliability, and reduce losses.

 

For instance, Indian government has introduced “Smart Cities Mission” in 2015 to convert 100 cities across the countries into smart cities by 2024, with the integration of technologies including Electric Vehicles (EVs), smart grid structure and others. Moreover, smart grid technologies, such as advanced metering, distribution automation, and grid analytics, play a crucial role in the modernization efforts, further posing as a potential driver for the regional growth.

 

Smart Grid Market Share

Key players associated with the smart grid market include

  • ABB
  • General Electric
  • Siemens AG
  • Schneider Electric
  • Hubbell
  • Fujitsu
  • Honeywell International Inc
  • Itron Inc.
  • Landis+Gyr
  • Belden Inc.
  • Cisco Systems Inc.
  • IBM
  • Oracle
  • Wipro

A diverse range of digital products, adherence to regulatory requirements strong system integration capabilities successful deployment of digital grids are key factors which are adhered to by the major players to gain a competitive business position.

 

Smart Grid Industry News:

  • In January 2023, ABB announced its partnership with OKTO GRID, a digital solution provider for electrical assets, based in Denmark. The collaboration will allow the companies to develop innovative and efficient solutions to digitalize the energy girds and augment the life span of electrical assets associated with the grid. The collaboration will allow the firms to refurbish the aging grids and provide reliable energy to the customers across the globe.

     
  • In May 2022, Schneider Electric announced the acquisition of AutoGrid, which is a sustainable energy solution provider. The acquisition will allow the firms to collectively develop new solutions for the reliable integration of renewable energy sources to the grid. The acquisition will further allow Schneider and AutoGrid to expand their global outreach and thus offer their product portfolio to a bigger customer base.
     

This smart grid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of USD Billion from 2019 to 2032, for the following segments:

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Market, By Technology

  • Smart T&D Equipment
  • Distribution & Network Automation
  • Advanced Metering Infrastructure
  • Consumer Interface
  • Communication & Wireless Infrastructure

Market, By Service

  • Consulting
  • Deployment & Integration
  • Support & Maintenance

Market, By Deployment

  • Generation
  • Transmission
  • Distribution
  • End Use

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Spain
    • Italy
  • Asia Pacific
    • China
    • Australia
    • Japan
    • South Korea
    • India
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa
  • Latin America
    • Brazil
    • Chile

 

Authors: Ankit Gupta, Vishal Saini

Frequently Asked Questions (FAQ) :

The market size of smart grid crossed a valuation of USD 60.2 billion in 2023 and is likely to expand at 10.7% CAGR during 2024 to 2032, explains GMI report.

The adoption of smart grid technologies is rapidly increasing with the rapid deployment of advanced metering infrastructure, which held a substantial industry share of over 27% in 2022.

Asia Pacific smart grid industry size will observe 12% growth rate during 2023 to 2032 on account of increasing energy demand owing to the growing population, ongoing industrialization, and urbanization across the region.

Fujitsu, ABB, General Electric, Siemens AG, Honeywell International Inc., Belden Inc., Itron Inc., Schneider Electric, Landis+Gyr, Cisco Systems, Inc., Oracle, IBM, Wipro, and Hubbell.

Smart Grid Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 14
  • Tables & Figures: 388
  • Countries covered: 18
  • Pages: 310
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