Smart Grid Market Size & Share 2026-2035

Smart Grid Market Size

According to a recent study by Global Market Insights Inc., the smart grid market was estimated at USD 73 billion in 2025. The market is expected to grow from USD 80.5 billion in 2026 to USD 197.4 billion by 2035, at a CAGR of 10.5%. The growing energy demand across the globe owing to the rising population and urbanization will augment the smart grid industry statistics in the coming years.

Rising deployment of renewable energy sources will further demand the usage of modern grid technologies, thereby augmenting the product adoption. For instance, the Indian government announced an investment of USD 109 billion in 2024 towards the revamping of the power grids in order to accommodate green energy generation.
 

Moreover, integration of smarter technologies including smart meters to boost the efficient monitoring & control of power usage will further complement the growth of smart grid market. The National Grid Electric utility company in the U.S., disclosed plans to implement smart meters to more than 4,100 customers in New York during 2025 and 2026.
 

The growing energy need is attracting investments from the government and the utility companies for upgrading the existing grid systems to enhance efficiency and reliability. The US Department of Energy (D.O.E) commenced an investment of about USD 2 billion in 2024, catering it to nearly 38 projects which are supposed to enhance the capacity of the grid to meet the growth in load coming in from the manufacturing sector and other industries.
 

The shift towards electric vehicles is contributing to the production of distributed energy and facilitates the deployment of smart grids. For reference, the IEA announced that in 2023 the EV sales rose by 35% from the previous year, thereby allowing for the expansion of smart grids to integrate EV charging stations.
 

Smart Grid Market Trends

• The smart grid industry is witnessing significant impacts due to digital transformation, the adoption of renewable energy, and the decentralization of energy grids. The International Energy Agency estimates that in 2024, the world’s renewable energy generation capacity addition reached over 666 gigawatts, which greatly increases the demand for advanced grid infrastructure needed to ensure grid stability.
   
• The deployment of metering systems and automation systems further accelerates the growth of the smart grid market. In May 2023, Rich Mountain Electric Cooperative, Inc, the power utility service company for Arkansas and Oklahoma, issued a notification on the implementation of advanced metering infrastructure. This project initiates a clear view towards the smart technology adoption on a national scale, which is expected to foster growth in the specific area of the economy smart grid technologies.
   
• Favorable governmental policies and incentives including European Green Deal and U.S. Smart Grid Investment Grant (SGIG) support the adoption of smart technologies across the grid networks. As per the IEA, the U.S. government in 2022 launched GRIP program, which offered a funding opportunity of USD 10.5 billion towards the grid modernization and integration of smart technologies.
   
• Financial incentives, subsidies and grants aimed toward the acceptance of smart solutions will propel the business landscape. For instance, U.S. DOE has introduced smart grid grants, which will provide grants of over USD 600 million per year between 2022 and 2026. Such incentives will form a favorable growth scenario for the smart grid industry in the coming years.
   
• A large number of grid infrastructure across the globe are over 20 years old and require modifications to cope with the growing energy demand. As per IEA, over 80 million of grid infrastructure is required to be refurbished globally by 2040 in order to deal with the soaring energy demand. This in turn will augment the business growth.
   
• In addition, the need to achieve carbon neutrality and sustainability targets increases the necessity to invest in energy efficient and lower emission smart grid solutions. These trends indicate the industry's progress towards energy systems which are more resilient, efficient and more sustainable. As utilities invest in digital technology, there will be steady growth in the market for smart grid.
   

Smart Grid Market Analysis

• The smart grid industry was valued at USD 60.3 billion, USD 66.2 billion and USD 73 billion in 2023, 2024 and 2025 respectively. The industry is segmented in consumer interface, distribution & network automation, smart T&D equipment, advanced metering infrastructure, and communication & wireless infrastructure based on the technologies utilized.
   
• The distribution and network automation technologies is anticipated to grow to more than USD 55 billion by 2035. This increase is due to the rise in the use of renewable energy across the world. According to Eurostat, renewable sources of energy accounted for 43% of total energy produced in Europe in 2022, thus leading the continent in energy production.
   
• In addition, the rising adoption of smart transformers, digital substations, and high-voltage direct current systems is enhancing the reliability and effectiveness of the grid. Furthermore, the use of artificial intelligence together with Internet of Things is facilitating better distribution and automation of the network.
   
• Advanced metering infrastructure technologies accounted for over 26% market share in 2025 and is projected to grow substantially in the forecasted year. Utilities across the globe are addressing the growing non-technical losses including billing errors and thefts in the electricity networks. This in turn has boosted the rollout of smart meters as they improve monitoring and control of the usage data for utilities as well as the customers.
   
• Smart grid market from communication & wireless technologies was valued at over USD 14 billion in 2025. Advancements in data communication and wireless infrastructure, primarily 5G, LoRaWAN, and fiber optics, are improving the data transmission security and speed for grid operations. As a result, these new communication mechanisms are also aiding in the improvement of smart T&D infrastructure.

• Based on service, the market is segmented in deployment & integration, consulting and support & maintenance. The deployment and integration services held the major market share of over 44.1% in 2025 and is further anticipated to grow in the coming years. Key factors fueling this growth include the expanding base of smart technologies in use, and the increasing sophistication of IT systems across the globe.
   
• The need for smart grid technology has increased simultaneously with the improvement of infrastructure of EV charging stations. Such growing demand drives the need for integration of these systems and the subsequent deployment of other services. As per the instance of the US, which boosted the number of charging stations from 29,000 in 2020 to 61,000 by February of 2024. That is a tenfold increase in the stations over a period of time.
   
• The smart grid industry from consultation services is anticipated to grow at a CAGR of over 9.5% by 2035. With the expansion of smart grid ecosystems, consulting companies are augmenting their service offerings to include risk assessment and predictive modeling using AI, ML, and advanced data analytics, which in turn boosts the need for these services across all regions.
   
• The support and maintenance services market was valued at over USD 21 billion in 2025 owing to the rising focus on these services as utilities promote security measures, predictive maintenance, and monitoring to improve grid reliability. Furthermore, the development of cloud computing, IoT, and automation, as well as the growing need for digital transformation and the ability to scale enterprises will also increase the need for these services.

• As of 2025, North America holds more than 24.5% in market share, which is expected to increase further by 2035. The U.S. smart grid market in 2023, 2024 and 2025 was valued at USD 12.8 billion, USD 13.7 billion and USD 14.8 billion respectively. The primary shift can be attributed to the increased demand for energy operational management and the modernization of infrastructure.
   
• The Asia Pacific is likely set to cross USD 81 billion mark by 2035. Smart grids in Asia Pacific region are advancing due to rapid urbanization, which in turn fuels the energy demand from various sectors. Based on the data provided by the Indian government, the overall population of the country grew by over 0.8% between 2020 and 2023, thus boosting the electricity consumption at an average of 6% for the same period.
   
• China’s prominent position in the market is a result of its ambitious smart grid policies as well as the deployment of large scale advanced metering infrastructure (AMI) and state programs such as “New Infrastructure” that actively promote smart energy networks. Governments are also investing heavily in grid automation, smart metering and energy storage to increase the reliability of power grids.
   
• The European energy market is evolving due to strict regulations along with decarbonization objectives and substantial government support for new grid technology. The Green Deal and other energy efficiency targets established by the Union serve as catalysts to smart transmission and distribution infrastructure investments as well-advanced metering and demand response technologies.
   
• Germany leads in Europe owing to its high share of renewables, obligatory smart meter installations, and increasing investment in digital grid technologies. In 2024, net electricity generation in Germany from renewable sources constituted more than 62%, which improves the conditions for the smart grid market growth.
   
• Energy diversification, grid reliability, and digital transformation is driving smart grid development in the Middle East and Africa. In order to mitigate transmission losses and facilitate renewable energy deployment, governments are investing in infrastructure powered by smart grids.
   
• Saudi Arabia is at the forefront of the market with major investments in smart metering, grid automation, and demand-side management powered by an overarching Vision 2030 strategy which focuses on sustainability and energy efficiency. These investments will propel the smart grid industry growth across the nation in the coming years.
   

Smart Grid Market Share

The top 5 players operating in  market include ABB, GE Vernova, Schneider Electric, Cisco Systems, Landis +Gyr and Siemens amongst others. These organizations offer a wide range of digital solutions which can be integrated across smart grids, thus giving them a competitive edge over various other players. Furthermore, these companies have a significant global presence, thus gaining them a bigger market share and customer base across the world.
 

In smart grid market, ABB holds a noteworthy share owing to its offering of advanced grid solutions, its strong global presence, and its investment in innovation. In the smart grid technologies category, the company provides smart transformers, grid automation systems, advanced metering infrastructure (AMI), and digital substations for both transmission and distribution networks. The company’s adoption of artificial intelligence (AI), Internet of Things (IoT), and cloud-based analytic integration into grid management systems improves the efficiency, reliability, and resiliency of the grid. Its alliances with utility companies and governments around the world have also bolstered its market position.
 

Smart Grid Market Companies

• ABB is among the top companies providing smart grid solutions. During the end of 2025, ABB reported revenue amounting to USD 33.2 billion. Furthermore, in 2023, during the CIRED event, the company presented its latest technological solutions, including smart grids that are advanced, efficient, and secure, with the introduction of the world’s smallest switchgear which is called ABB Ability Asset Manager.
   
• GE Vernova maintained a sizeable presence in the smart grid market with reported revenue of approximately USD 38.1 billion in 2025, spending a noteworthy amount on research and development for products. Recently, it won a tender to supply 765 kV shunt reactors to the Indian conglomerate PGCIL, indicative of its shift toward enhancing the electrification infrastructure.
   
• Siemens Energy is focusing and investing strongly in the advanced and efficient electrical infrastructure in order to hold its position in the smart grid market. In 2024, it has unveiled a cutting-edge technology “SICAM Enhanced Grid Sensor (EGS)”, which will provide undisturbed, enhanced network transparency to the distributor operators.
   
• Schneider Electric also contributes significantly to the smart grid development through its new products and services. The company was able to generate a revenue of around USD 34.3 billion in 9 months of 2025. Furthermore, strategic alliance has been formed between Elektrilevi and Schneider Electric for the same purpose.
   
• Honeywell International remains a big market player in the North American smart grid market with the with revenue of USD 37.4 billion.in 2025. In 2024 it formed a partnership with the company called Enel to provide its service for regularizing and stabilizing the power grid in the region. This partnership reflects the company’s strategic initiative to remain the key player in the market.
   
• Landis + Gyr is known for its energy management solutions in the global market. In 2023, it has formed a 5-year strategic alliance with the UK company called “Egg” which provides clean energy solutions, to work on smart grid solutions in the renewable energy sector.
   

Major players operating in the smart grid industry are:

• ABB
• Belden
• Cisco Systems
• Eaton
• Emerson Electric
• Enel
• Fujitsu
• GE Vernova
• Honeywell International
• Hubbell
• IBM
• Itron
• Landis+Gyr
• Oracle
• S&C Electric Company
• Schneider Electric
• Siemens
• Sunverge Energy
• Uplight
• Wipro
   

Smart Grid Industry News

• In October 2024, during Enlit Europe 2024, Schneider Electric unveiled new smart grid application developments that enhance flexibility, net zero demand management, and increase the resilience of the grid’s infrastructure at Enlit Europe 2024. These include Virtual Substations, EcoStruxure DERMS, and the AI satellites for weather monitoring. Furthermore, the organization, through the new product launch, showcased the importance of the modernization of grids towards renewable energy, which further shows their commitment to sustainability and further strengthening of the energy system.
   
• In February 2024, Siemens announced the launch of its new offering Gridscale X, a modular software product intended for the autonomous management of utility grids and the digital transformation of a utility’s business processes. It allows for the rapid scaling of operators' capacity, better management of the increasing complexity of distributed energy resources (DERs) and increases the flexibility of the grid simultaneously. Gridscale X uses existing IT and OT systems, and improves planning, operation, and maintenance of the grid. Utilities are under extreme stress to balance grids, increase customer satisfaction, and meet net-zero goals as DERs proliferate sevenfold. This technology marks an inflection point in intelligent grid management and enables Siemens’ customers to more effectively and expeditiously manage the energy transition.
   
• In October 2023, The Provincial Electricity Authority (PEA) associated with Oracle to upgrade operational effectiveness and reduce costs. The PEA is utilizing the Oracle Utilities Meter Data Management (MDM) and Oracle Utilities Load Analysis as a part of its continual digital utility transformation strategy. The initiative is to develop an Advanced Meter Infrastructure (AMI) that is integrated and offers valuable data regarding the power consumption for all users daily. Through this infrastructure, the PEA hopes to manage demand variability, optimize asset utilization, and better control energy for its extensive client pool of 23 million residential and 300,000 commercial and industrial customers within 74 provinces.
   
• In October 2023, Landis+Gyr successfully achieved the acquisition of Thundergrid New Zealand, which is an EV infrastructure company based in Wellington. This acquisition is aimed at reinforcing Landis+Gyr smart infrastructure as well as advancing the EV projects in Australia and New Zealand where renewable resources are abundant. The partnership seeks to deliver EV solutions that are fully integrated and help in the decarbonization of the grid.
   

Smart grid market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue “USD Million” from 2022 to 2035, for the following segments:

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