Report Overview

2023

Base Year

2018-2023

Historical Year

2024-2032

Forecast Year

Global Smart Grid Market Outlook

The global smart grid market size reached approximately USD 56.71 billion in 2023. The market is projected to grow at a CAGR of 17.5% between 2024 and 2032, reaching a value of around USD 246.21 billion by 2032.

Key Takeaways

Features of Smart Grid Requirement of the Digital Age Opportunities
Reliable, efficient, facilitates advanced services, offers flexibility in topology, and
facilitates two way communication between meters and distribution companies
Smart grid has become necessary to improve safety and quality of supply, and support higher penetration of renewable resources or distributed generation Decentralised storage and cyber security improvements (to protect networks from damage or unauthorised access)

A smart grid is a digitally enabled grid infrastructure that utilises smart devices for electricity generation, transmission, and distribution. It uses a two-way communication network and enhances the energy efficiency of electricity generation to meet the growing requirements of consumers. It also employs sophisticated automated control systems and data analytics to optimise the production, distribution, and use of electricity.

The smart grid market growth can be attributed to advances in energy storage technologies that enable more effective integration of renewable energy sources, enhancing grid stability and energy efficiency. Governments worldwide are implementing policies and providing financial incentives to encourage the upgrade of existing grid infrastructures to smart grids, thus promoting smart grid market development. These include grants, subsidies, and regulations aimed at improving energy efficiency and integrating renewable energy sources. Commitments to reduce carbon emissions under international agreements like the Paris Agreement encourage the adoption of smart grids as part of broader strategies to increase the use of renewable energy and improve energy efficiency.

Key Trends and Developments

Utilisation of smart grid for renewable hydrogen energy; applications of smart microgrids in remote areas; growing emphasis on grid security and resilience; and deployment of advanced technologies; are the major trends in the smart grid market

Date Organisation/Company Action
Dec 29th, 2023 International Smart Grid Action Network (ISGAN) Initiated new programmes aimed at promoting the development and implementation of smart grid technologies worldwide
Feb 2nd, 2024 ENOWA (NEOM) Created a pioneering plan for the establishment of the first-ever smart grid powered entirely by renewable energy, designed to operate at high voltage
Feb 6th, 2024 Siemens and Areti Partnered to work on the RomeFlex project, which aims to introduce local grid flexibility in Rome and enhance the adaptability and efficiency of Rome's power grid
Feb 7th, 2024 BluWave-ai Entered into an agreement with the City of Summerside in Canada, to implement and launch its artificial intelligence-powered Smart Grid Optimiser at Summerside's Solar Farm
Trends Description/ Impact
Increased utilisation of smart grid for renewable energy Smart grids are used for effective management and distribution of renewable energy as they perform self-assessments regularly to address and resolve any service-related issues immediately.
Growing applications of smart microgrids in remote areas They are implemented in areas that require affordable electricity as well as in hospitals, data centres, and military facilities as a backup during main power outages.
Growing emphasis on grid security and resilience Improvement in grid security is crucial to offer protection against cyber-attacks and ensure the resilience of energy infrastructure against natural disasters and other disruptions.
Deployment of advanced technologies such as AI and IoT Smart grid leverages AI, IoT, and other technologies for the identification of patterns that can cause potential issues in the system to improve grid reliability.

Smart Grid Market Trends

Smart grids play a crucial role in the effective management and distribution of renewable energy, due to their advanced capabilities for self-assessment and real-time responsiveness. They perform self-assessments by continuously collecting data from various points across the grid. This data includes information on power flow, voltage levels, and the status of grid infrastructure. By analysing this data in real-time, the smart grid can identify anomalies, potential faults, or inefficiencies in the system. When smart grids detect an issue, such as a potential overload or a fault in the system, they can take immediate action to mitigate the problem. This might involve rerouting power, adjusting the load, or isolating sections of the grid to prevent widespread outages.

Sustainability is an area that has received increased attention from researchers and energy companies. In February 2024, ENOWA created a pioneering plan for the establishment of the first-ever smart grid powered entirely by renewable energy, in a bid to support smart grid market. This groundbreaking blueprint outlines the framework for an advanced electrical grid that leverages clean energy sources to supply power efficiently and reliably across vast distances. By integrating renewable energy into a high-voltage grid, ENOWA aims to set a new standard for sustainable energy infrastructure.

Market Segmentation

“Smart Grid Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup Categories
Component Solution, Services
Technology Wired, Wireless
Solution Advance Metering Infrastructure, Smart Grid Distribution Management, Grid Asset Management, Smart Grid Network Management, Substation Automation, Smart Grid Security, Others
Application Generation, Transmission, Distribution, Consumption
End-User Residential, Commercial, Industrial
Region North America, Europe, Asia Pacific, Latin America, Middle East and Africa

The solution segment accounts for a major market share as it encompasses the hardware and software involved in the proper functioning of smart grids

The solution segment holds the highest share in the smart grid market. This segment includes hardware and software solutions essential for the construction and functioning of smart grids, such as advanced metering infrastructure (AMI), smart grid distribution management, smart grid communications, smart grid network management systems, grid asset management, and substation automation.

The smart grid market encompasses energy services which include professional assistance such as consulting, deployment and integration, support and maintenance, and managed services. Services are critical for ensuring the successful deployment, operation, and optimisation of smart grid solutions. They help utilities and other stakeholders to effectively implement smart grid technologies, align them with specific operational needs, and ensure their ongoing efficiency and reliability.

The residential sector maintains its dominance in the market due to the growing usage of smart grids for enhancing energy efficiency

The residential sector occupies a significant portion of the smart grid market share, owing to the increased integration of smart metres in residential areas to provide real-time metrics on electricity consumption. Smart grids also reduce the probability of blackouts in residential buildings as they can detect and isolate the power outage, preventing it from spreading on a large scale. Smart grid technologies, such as smart meters and home energy management systems, provide homeowners with detailed information on their energy usage patterns. This enables residents to make informed decisions about their energy consumption, leading to increased energy efficiency and potential cost savings.

Meanwhile, the commercial sector is expected to witness robust growth in the smart grid market during the forecast period, due to the growing demand for uninterrupted power supply in commercial spaces. Smart grids enable commercial users to participate in demand response programmes, where they can benefit financially by reducing or shifting their energy usage during peak demand periods. This not only helps in stabilising the grid but also offers a direct economic benefit to commercial participants through reduced energy costs and incentives provided by utilities.

Competitive Landscape

The players in the smart grid market are adopting novel technologies and increasing their collaboration efforts to meet the evolving regulatory landscape

Company Headquarters Description Presence
Siemens AG Munich, Germany Leader in electrical engineering Over 200 countries
ABB Ltd. Zurich, Switzerland Global technology company More than 100 countries
Schneider Electric SE Rueil-Malmaison, France Specialist in energy management Over 100 countries
Honeywell International Inc. North Carolina, United States Diversified technology leader Over 70 countries

Other notable players in the smart grid market include General Electric Company, Cisco Systems, Inc., Eaton Corporation plc, ORACLE Corporation, Globema sp. z o.o., and Trilliant Holdings Inc., among others.

Smart Grid Market Analysis by Region

North America accounts for a substantial share of the market, supported by increased investment in smart grid infrastructure. The growing popularity of electric vehicles in the region also offers lucrative market opportunities as EVs can be used for the absorption of excess power from the grids. Both the U.S. and Canada have implemented supportive government policies, regulations, and initiatives that encourage the adoption of smart grids. For instance, the U.S. Department of Energy (DOE) has been actively supporting smart grid advancements through investments and research programmes.

Meanwhile, the Asia Pacific smart grid market is expected to witness a robust growth in the coming years, owing to the growing demand for electricity, coupled with the rising smart city projects in the region. The adoption of smart meters and home energy management systems is also growing in the Asia Pacific, empowering consumers with real-time information about their energy usage and allowing them to participate in demand response programs. This consumer-centric approach to energy management is expected to drive further interest and investment in smart grid technologies.

Key Highlights of the Report

REPORT FEATURES DETAILS
Base Year 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Component
  • Technology
  • Solution
  • Application
  • End-User
  • Region
Breakup by Component
  • Solution
  • Services
Breakup by Technology
  • Wired
  • Wireless
Breakup by Solution
  • Advance Metering Infrastructure
  • Smart Grid Distribution Management
  • Grid Asset Management
  • Smart Grid Network Management
  • Substation Automation
  • Smart Grid Security
  • Others
Breakup by Application
  • Generation
  • Transmission
  • Distribution
  • Consumption
Breakup by End-User
  • Residential
  • Commercial
  • Industrial
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Siemens AG
  • ABB Ltd.
  • Schneider Electric SE
  • Honeywell International Inc. 
  • General Electric Company 
  • Cisco Systems, Inc. 
  • Eaton Corporation plc
  • ORACLE Corporation
  • Globema sp. z o.o. 
  • Trilliant Holdings Inc. 
  • Others

Smart Grid Market Report Snapshots

Smart Grid Market Size

Smart Grid Market Trends

Smart Grid Market Share

Smart Grid Companies

Smart Grid Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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Key Questions Answered in the Report

In 2023, the market reached an approximate value of USD 56.71 billion.

The market is projected to grow at a CAGR of 17.5% between 2024 and 2032.

The market is estimated to witness a healthy growth in the forecast period of 2024-2032, reaching a value of around USD 246.21 billion by 2032.

The major market drivers are the modernisation of the ageing grid, rising investment in electrical infrastructure, and growing demand for improving energy efficiency in different end-use sectors.

The key trends of the market include increased utilisation of smart grids for the effective management and distribution of renewable energy, growing applications of microgrids in remote areas and mission-critical infrastructure, and deployment of advanced technologies such as AI and IoT in the utility sector.

The major regions in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Various solutions of smart grid are advance metring infrastructure, smart grid distribution management, grid asset management, smart grid network management, substation automation, and smart grid security, among others.

The major players in the market are Siemens AG, ABB Ltd., Schneider Electric SE, Honeywell International Inc., General Electric Company, Cisco Systems, Inc., Eaton Corporation plc, ORACLE Corporation, Globema sp. z o.o., and Trilliant Holdings Inc., among others.

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