Smart Grid Market Analysis

Smart Grid Market Analysis

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 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 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.