The Global Smart Grid Market was valued at US$ 35.83 billion in 2021 and is predictable to reach US$ 162.10 billion by 2030; growing at a CAGR of 18.2 % during the forecast period from 2021- 2030.
Smart Grid is defined as an electrical grid that consists of a variety of operations and energy measures for transforming the electric power grid with the help of advanced automatic control and communications techniques and other types of information technology. The smart grid offers numerous benefits such as energy-saving via reduction consumption, better consumer service with more accurate bills, technical losses & fraud detection, and reduction of carbon emissions among others. Smart grids signify a new modern era in the electrical sector which goes from one-way management to dynamic two-way management thereby increasing efficiency and energy savings.
The increasing power demand across the consumers and industry verticals are the prime factors responsible for the growth of the smart grid across the globe. Factors pertaining to the growth of the smart grids are due to the government regulations for energy conservation. In addition, huge transmission & distribution losses are also major reasons expected to augment the smart grid market during the forecast period. Further, the rising need for reliable, secure, and quality in addition to diminishing the carbon footprint power would also boost revenue growth. With the growing industrialization and increasing population, the need for power demand has risen manifold times and the aging power infrastructure is needed to be replaced with smart grid networks to ensure better power delivery without any losses.
Ongoing smart city development in the emerging economies has created sustainable economic growth with improved quality of life which includes mobility, a better environment, and technology. Moreover, investments towards digital grid infrastructure via reduction of time and adoption of advanced technologies such as IoT to offer consumer load control and real-time data monitoring are expected to complement the market growth.
However, lack of standardization and privacy & security concerns are the major factors that are expected to hinder the smart grid market. In addition, a huge investment for smart grids and smart meters adoption are also expected to hamper the market growth. In the upcoming years. Increase in the adoption of electric vehicles among the consumers, strict government regulation for energy efficiency, and the development of smart cities projects in the emerging economies are expected to deliver productive prospects for the growth of the smart grid market during the forecast period.
The Global Smart Grid Market is segmented by component, application, end-user, communication technology, and region. Based on component, it is categorized into services, software, and hardware. Services are further bifurcated into support & maintenance, consulting, deployment & integration. Software further segments into Smart Grid Security, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management, Advanced Metering Infrastructure, Substation Automation, and Billing & Customer Information System. Hardware also bifurcates into sensors, smart meters, programmable logic controller (PLC), and others (energy storage & networking hardware). By application, it is categorized into transmission, generation, consumption/end-use, and distribution. End-User segments into commercial, industrial, and residential. Smart Grid communication technology parts into wireless and wireline. Based on regional insights, the global smart grids market is categorized into North America (US, Canada, Mexico, Rest of America), Asia Pacific (India, China, Rest of Asia Pacific), Europe (UK, Germany, Russia, Rest of Europe) and Rest of the world (Latin America and Middle East & Africa).
North America accounted for the largest market share owing to factors such as the high adoption of smart grids in this region, technological advancements in the fields of IT infrastructure, the presence of highly skilled experts, and the presence of a vast number of enterprises.
Prominent players inducing the Global smart Grids Market are GE, ABB, Siemens, Schneider Electric, Itron, Cisco, IBM, Oracle, Honeywell, Eaton, Tech Mahindra, Tantalus, Mitsubishi Electric, SAP, Wipro, Trilliant Holdings, Globema, Kamstrup, Xylem, ENEL X, Esmart Systems, Esyasoft Technologies, Grid4C, C3 Energy, and NES among others.
Segmentation and Scope of the Global Smart Grid Market
Global Smart Grid Market is segmented by component, application, end-user, communication technology, and region.
By Communication Technology
Rest of World
Middle East & Africa
Prominent players in the Global Smart Grid Market among other includes