Smart Grid Market - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022-2030

The global smart grid market size was valued at USD 141.5 billion in 2021 and is expected to reach around USD 846.1 billion by the end of 2030, estimated to expand at a CAGR of 17.7% from 2022 to 2030.

The global smart grid market is expected to witness substantial growth over the forecast period. There is an increasing popularity of smart grids due to rising need for power and supportive regulations by governments of countries in various regions across the globe. The rapid adoption of centralized grid distribution management and control is driving the global market. The popularity of smart meters and regional government initiatives & funding for smart grid projects are factors expected to drive the market. In addition, rise in the number of market players across the globe is contributing to the expansion of the smart grid market, thereby creating lucrative revenue opportunities for market players. Governments of various countries are transforming cities into smart cites. Moreover, collaborative efforts taken by market stakeholders to overcome challenges in the smart grid market are contributing to the market growth.

Smart Grid Market: Overview

• Smart grid is an electricity network that enables two-way flow of electricity and data with digital communications technology. It detects, react, and pro-acts to changes in usage and multiple issues. Smart grids are essential in digital transformation of the electricity sector.
• Demand for smart grids is high, owing to rise in need for power; and supportive regulations by governments of countries in various regions across the globe. Higher transmission and distribution losses are other factors that are expected to drive the market for smart grid.
• Rising demand for quality, secure, and reliable power supply is expected to ensure the significant growth of the market. Growing concerns regarding reduction in carbon footprints and the need to replace aging infrastructure are shaping the global smart grid market. In addition, there is a need for centralized grid distribution management and control.
• The market size of smart grids has been growing considerably in the past few years, owing to rising adoption of smart meters and regional government initiatives and funding for smart grid projects. Governments of various countries are striving to transform cities into smart cites. This is projected to drive the market.

Popularity of Smart Grid Due to Rise in Demand for Secure and Reliable Power Supply

The rising demand for quality, secure, and reliable power supply is expected to ensure significant growth of the market. Growing concerns regarding carbon footprint and need to replace aging infrastructure is shaping the global smart grid market. In addition, there is a need for centralized grid distribution management and control. The high demand for smart grids from several economies and surge in ICT spending will also aid in market’s growth. The market size of smart grids has been growing considerably in the past few years, owing to the rising adoption of smart meters and regional government initiatives & funding for smart grid projects. Governments across countries are striving to transform cities into smart cites, and this will also help driving the market toward growth. Smart grids are important in digital transformation of the electricity sector.

Rise in Awareness about Benefits of Smart Grids Accelerate Global Market

Smart grid offers energy efficiency, reliability of existing electrical supply, integration of more renewable energy into existing network, new solutions for customers to optimize their electricity consumption, and decline in carbon emissions. Conventional electricity grids installed in developing nations in the world are now aging and causing large-scale electrical blackouts. Thus, every nation has a growing need to reduce the cost of blackouts and power outages. The smart grid technology offers the liberty to consumers and suppliers to manage and protect the distribution network, save energy, and reduce such extravagant costs. Governments in most of the countries are incurring massive losses due to conventional electrical grids, and hence, they are now focusing on investing in smart grid technologies.

Transmission Upgrades Continue to Dominate Smart Grid Market

The increasing popularity of smart grid technologies such as advanced metering infrastructure, distribution automation, cyber security, software and hardware, communication technologies, and transmission upgrades is driving the global market. The global smart grid market is fragmented in nature. Big players in the industry are acquiring software vendors that have the most promising potential. An increasing number of mergers & acquisition activities are taking place in the global smart grid market. The inherent need to scale up the manufacturing capacity is resulting in high exit barriers, intensifying the degree of competition. Smart grids are in high demand, owing to the growing need for power and support regulations by governments across regions. Higher transmission and distribution losses are other factors that will drive the market for smart grids.

Lucrative Growth Opportunities for Market Players in Asia Pacific

The Asia Pacific smart grid market is expected to witness major market share during the forecast period. China holds the highest share of the smart grid market in Asia Pacific. Japan and India are other countries dominating the smart grid market. The rising need to reduce transmission and distribution losses in developing nations across Asia Pacific is expected to drive the market. The need to reduce carbon emissions from developed nations in the region and the growing consumption of electricity in China, South Korea, Australia, New Zealand, India, and Singapore are likely to drive the smart grid market. Prominence of the market in this part of the world is mainly due to the initiatives from various universities and governments.

Asia Pacific to Lead Smart Grid Market

• Although the growth of the smart grid market can be felt across the globe, Asia Pacific is particularly witnessing significant rise
• Asia Pacific is expected to account for 47% share of the market in 2020. China has the highest share of the smart grid market in Asia Pacific. Japan and India are other countries making progress in the smart grid market.
• The need to reduce transmission and distribution losses in developing nations across Asia Pacific is expected to drive the market. Moreover, the need to reduce carbon emissions from developed nations in the region and the growing consumption of electricity in China, South Korea, Australia, New Zealand, India, and Singapore are projected to drive the smart grid market.
• North America is expected to follow Asia Pacific in terms of growth. The U.S. is anticipated to be the most significant contributor to the North American smart grid market. With investment support from various universities, this region is likely to contribute to quite an extent in the near future.

Transmission Upgrades Continue to Lead in Smart Grid Market

In terms of technology, the smart grid market has been segmented into advanced metering infrastructure, distribution automation, cyber security, software and hardware, communication technologies, and transmission upgrades. Of these, the transmission upgrades segment not only led in the past, but also is expected to continue its leading position by 2031, accounting for 45.2% of the market. The market for transmission upgrades is projected to be significantly large in Asia Pacific.

Key players in the market include

• Aclara
• Alstom
• Comverge
• eMeter
• GridPoint Inc
• Landis+Gyr
• Schneider Electric
• Schweitzer Engineering Laboratories
• Sensus
• Siemens
• ABB Ltd
• Itron
• Opower
• General Electric

Market Segmentation

By Technology

• Advanced Metering Infrastructure
• Distribution Automation
• Software and Hardware
• Communication Technologies
• Transmission Upgrades
• Cyber Security

By Component

• Solutions
• Services

By Application

• Generation
• Transmission
• Distribution
• Consumption/End Use

By End User

• Residential
• Commercial
• Industrial

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

Primary research represents a bulk of research efforts, supplemented by extensive secondary research. Annual reports, press releases, and relevant documents of key players operating in various application areas have been reviewed for competition analysis and market understanding.

Secondary research also includes recent trends, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. These have proved to be reliable, effective, and successful approaches for obtaining precise market data, capturing market participants’ insights, and recognizing business opportunities.

The study objectives of this report are:

• To analyze and study the global smart grid capacity, production, value, consumption, status (2019-2020) and forecast (2022-2030);
• Focuses on the key smart grid manufacturers, to study the capacity, production, value, market share and development plans in future.
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• To define, describe and forecast the market by type, application and region.
• To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
• To identify significant trends and factors driving or inhibiting the market growth.
• To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
• To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
• To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
• To strategically profile the key players and comprehensively analyze their growth strategies.