Analysis from GMI Research finds that the Smart Grid Market earned revenues of 2.9 USD billion in 2021 and estimated to touch USD 10.7 billion in 2029 will grow at a CAGR of 17.7 % from 2022-2029.
Smart Grid Market Trends and Drivers
The market is increasing due to the expansion of environmental protection concerns and the implementation of smart grid technologies to increase energy efficiency in both consumption and conservation. Government has introduced various policies on the implementation of smart grid, and providing awareness regarding the conservation of energy across the globe. Such regulations is boosting the smart grid technology across the industrial, commercial, and residential applications. In addition, the growing adoption of smart grid technologies like EV Chargers, smart metres and other associated smart grid technologies are predicted to strengthen the smart grid market size.
The smart grid market is significantly impacted by expansion of energy consumption as well as the requirement for efficient and dependable power delivery across the world. Smart grid market has created a revolutionary role in the consumption of energy all over the world. To meet the rising demand, smart grids market offers an improved and optimised energy resource due to which the demand for energy is increased which is simultaneously boosting the demand of the market. Furthermore, increased industrialization, rapid urbanization and the increasing number of supermarket and malls are propelling the growth of smart grid market. For instance, Canada invested in the next generation smart grid programme of 949,000 USD in 2018 to encourage the adoption of renewable energy sources. All these investments are expected to expand the smart grid market. Whereas increasing concerns about the security and privacy is expected to hinder the market growth. However, high installation cost, absence of common implementation standards and interoperability are likely to inhibit the smart grid market growth in the forecasted period across the world.
Based on Component, Hardware segment is expected to grow at highest CAGR.
Hardware segment is expected to observe a higher CAGR due to the increasing adoption towards environment friendly and inexhaustible energy sources from traditional energy sources. However, the government of various countries had taken some strategic initiatives to encourage the installation of smart electricity meters and rising demand for digitalized sensing field devices which are anticipated to drive the market growth. For instance, the installation of electricity meters and launching of an independent review in the rules of governing electricity meters are planned by the Australian Energy Market Commission to find more opportunities for enhancing the deployment.
Based on Communication Technology, Wireless segment is estimated to dominate the market.
Wireless communication technology is projected to dominate the smart grid market due to the technology support with higher bandwidth, help in the complex production process and logistics, and coverage over a large area. It helps to transfer information over klong distances with the use of electrical conductors or wire, which increase the smart grid market share.
Based on Region, Asia-pacific region is anticipated to increase at the fastest rate.
Asia-pacific smart grid market is the increasing at the fastest rate. In the upcoming years the Asia Pacific region is anticipated to dominate the smart grid market, owing to the rapid increase in industrialization and urban population. With the increase adoption and growing emphasis on the growth of inexhaustible energy have driven the regional market growth. For example, In 2020, Smart Meter National Program launched by Indian government. Such initiatives are projected to boost the market growth in the near future.
Europe is expected to have a higher share due to the increasing demand for power efficiency, government strategic initiatives and intensified investment in distribution automation. For example, the UK government enforced the implementation of the Smart Metering Program which resulted in 26.6 million electricity meters approximately activated by large energy suppliers in the domestic properties across Great Britain area.
Top Market Players
Some of the major companies operating in the Smart Grid market are Schneider Electric, ABB, General Electric, Cisco Systems Inc., Honeywell International Inc, Wipro Limited, Oracle, IBM Corporation, Siemens, Landis+Gyr., and among others.
Market Segmentation
Segmentation by Component
• Software
o Advanced Metering Infrastructure
o Smart Grid Distribution Management
o Smart Grid Network Management
o Grid Asset Management
o Substation Automation
o Smart Grid Security
o Billing and Customer Information System.
• Hardware
o Smart Meters
o Sensors
o Programmable Logic Controller (PLC)
o Others (Networking Hardware and Energy Storage)
• Services
o Consulting
o Deployment and Integration
o Support and Maintenance
Segmentation by Application
o Generation
o Transmission
o Distribution
o Consumption
Segmentation by Communication Technology
o Wireline
o Wireless
Segmentation by Region
• Asia Pacific
o China
o Japan
o India
o Rest of APAC
• North America
o United States of America
o Canada
• Europe
o United Kingdom
o Germany
o France
o Spain
o Rest of Europe
• RoW
o Brazil
o South Africa
o Saudi Arabia
o UAE
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About GMI Research
GMI Research is a market research and consulting firm which provides market insights and intelligence across 12 major sectors helping our clients in making effective investment and business decisions.
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