17-May-2023 | Facts and Factors
According to the Facts & Factors report, the global smart grid market size was valued at $50.98 billion in 2022 and is predicted to reach USD 120.98 billion by the end of 2030. The market is expected to move with a CAGR of 20% during the projected period. The global smart grid market report covers all aspects, including the potential growth drivers, restraints, and leading market players. Also, it offers detailed key insights into the opportunities and challenges in the market environment. The report also explores the market segmentation and regional developments in the smart grid industry.
A smart grid is an advanced electricity supply network that offers digital communications between technologies. It proacts, reacts, and detects to adapt to the fluctuations in the network. Smart grids play an important role in the digital transformation. The smart grid offers high reliability and is more energy efficient. Additionally, it is likely to integrate renewable energy into the existing power supply network, thereby helping to lower carbon emissions.
Browse the full “Smart Grid Market Size, Share, Growth Analysis Report By Component (Services, Hardware, and Software), By End-user (Commercial, Residential, Industrial, And Utility sectors), By Communication Technology (Wireless and Wireline), By Application (Consumption, Distribution, Transmission, and Generation), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2023 – 2030” report at https://www.fnfresearch.com/smart-grid-market
The surging demand for reliable, secure, and quality power supply globally is likely to be a major factor driving the growth of the global smart grid market during the forecast period. There is serious concern regarding lowering the carbon footprint and replacing the aging infrastructure, thereby positively shaping the growth trajectory of the global market. Moreover, the increasing requirement for centralized grid distribution management and control from several economies is likely to surge the demand for smart grids. The conventional electricity system is causing large-scale electrical blackouts.
The increasing industrialization and urbanization cannot bear such long blackouts, thereby posing a huge demand for new solutions like smart grids to ensure continuous power supply. Many government regulations and initiatives are expected to drive the growth of the market. The growing trend of construction of roads and electrification has boosted the demand for effective power transmission, which in turn will also augment the growth of the smart grid industry.
However, such technologies require high investment, operational, and maintenance costs, which is likely to restrict the growth of the global smart grid market in the forthcoming years. Additionally, the limited accessibility of electricity in underdeveloped nations is further likely to hamper the market's growth.
The global smart grid market can be segmented into component, end user, communication technology, application, and region.
By component, the market can be segmented into services, hardware, and software. The services segment can further be bifurcated into support & maintenance, deployment & integration, and consulting. The hardware segment further bifurcates into the programmable logic controller, sensors, smart meters, and others.
The software segment can also be further bifurcated into the building & customer information system, smart grid security, substation automation, grid asset and management, smart grid network management, smart grid distribution management, and advanced metering infrastructure.
The software segment accounts for the largest share of the global smart grid market due to the rising requirement for smart grids to replace the aging electricity infrastructure globally. Furthermore, the high distribution and transmission losses are further likely to propel the growth of the segment.
By end user, the market can be segmented into the commercial, residential, industrial, and utility sectors. The utility sector dominates the global market owing to the increasing initiatives of the government to adopt advanced technology to lower carbon emission rates along with resolving other environmental problems.
By communication technology, the market can be segmented into wireless and wireline. The wireless communication segment is likely to be the fastest growing segment in the global market owing to the growing demand for information transfer without the hassle of using electrical wires.
By application, the market can be segmented into consumption, distribution, transmission, and generation. The distribution segment accounts for the largest share of the global smart grid market because the electricity is generated at high volts, and it cannot be transferred further at such high volts. Therefore, to lower the voltages, the electricity is transferred to lower distribution lines to supply the power to end users.
North America accounts for the largest share of the global smart grid market due to the growing adoption of electric vehicles in the region. Furthermore, the high investments by public, private, and government entities are further likely to expedite the growth of the regional market. The US is expected to be the major contributor to the smart grid in the regional market. The growing efforts to modernize the aging grid infrastructure in the region are also likely to pose a huge demand for smart grid technology in the region.
Asia Pacific is expected to witness a huge growth rate in the forthcoming years due to the high requirement to lower distribution and transmission losses in developing countries. Furthermore, the increasing initiatives of the government to lower carbon emissions are further boosting the demand for smart grids in the region.
Market Size in 2022
USD 50.98 Billion
Projected Market Size in 2030
USD 120.98 Billion
CAGR Growth Rate
Key Market Players
Sunverge, Tendril, Stem, S&C Electric Company, Enphase Energy, Itron, ABB, Cisco, Siemens, IBM, NES, C3 Energy, Grid4C, Esyasoft Technologies, Esmart Systems, ENEL X, Xylem, Kamstrup, Globema, Trilliant Holdings, Wipro, Mitsubishi Electric, Tantalus, Tech Mahindra, Eaton, Honeywell, Oracle, Schneider Electric , and others.
By Component, End-user, Communication Technology, Application, and Region
Major Regions Covered
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa
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The key players in the global smart grid market include Sunverge, Tendril, Stem, S&C Electric Company, Enphase Energy, Itron, ABB, Cisco, Siemens, IBM, NES, C3 Energy, Grid4C, Esyasoft Technologies, Esmart Systems, ENEL X, Xylem, Kamstrup, Globema, Trilliant Holdings, Wipro, Mitsubishi Electric, Tantalus, Tech Mahindra, Eaton, Honeywell, Oracle, Schneider Electric among others. However, the increasing number of strategic partnerships, collaborations, mergers, and acquisitions are likely to increase the competition in the global marketplace. Therefore, companies are innovating new technologies to position themselves as a leader in the market.
- The Ministry of Power announced in 2021 to allocate USD 41 billion under the Smart Meter National program substituting 50 million conventional electricity meters with smart meters by 2022 in Indian homes.
- Tata Power, in October 2021, partnered with the Indian Institute of Technology Delhi to jointly initiate testing and conduct research and development and commercialize smart grid and energy technologies.
- JV IntelliSmart Infrastructure Private Ltd, India's smart meter in November 2021, announced the installation of 600,000 smart meters in the northeastern state of Assam.
The global smart grid market is segmented as follows:
By Communication Technology
- North America
- The UK
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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