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Smart Grid Market Size, Share, and Analysis, By Component (Software, Hardware, Services), By Technology (Wireless, Wired), By Solution (Smart Grid Security, Smart Grid Communications, Smart Grid Distribution Management, Smart Grid Network Management, Advanced Metering Infrastructure, Substation Automation, Others), By Application (Generation, Distribution, Transmission, Consumption/End Use), By End User (Residential, Commercial, Industrial) and Regional Forecasts, 2022-2032
Smart Grid Market size was USD 33.18 billion in 2021 and projected to grow from USD 46.5 billion in 2023 to USD 216.6 billion by 2032, exhibiting a CAGR of 18.6% during the forecast period.
Smart Grids are usually referred as sensible electrical network which consists of a smart data communication technology and an electrical network. Smart grid was initiated to control the defects of conventional electrical grids through utilizing smart meters. It is capable of conveying electricity from multiple sources like solar energy systems, wind turbines to the user. A smart grid is an electricity network utilizing automated technology for giving electricity to consumers by two-part data communication. This system permits observing, examination, control, and communication within the supply chain to aid in improving the effectiveness and boost the transparency of the energy supply chain.
Smart Grid Market is expected to reach USD 216.6 billion, growing at a CAGR of 18.6% during forecast period owing to the growing issues related to the protection of environment and increasing usage of smart grid technology for enhancing effectiveness in energy preservation and utilization which are boosting the growth of the market. Favourable government strategies & regulations to utilize smart meters and growing investments in digital electricity infrastructure are also anticipated to drive the demand for the growth of the market.
Smart Grid Market is classified based on the Component into Software, Hardware, Services. Software segment dominated the market in 2021 and is expected to continue its dominance in forecast period owing to the growing efforts to update the electricity grid and minimize the loss. The rising investments in advanced metering infrastructure by the government is anticipated to drive the growth of the market. Hardware segment is expected to grow in forecast period owing to the initiatives taken by the governments for setting smart electricity meters in several countries.
Smart Grid Market is classified based on the Technology into Wireless, Wired. Wireless technology segment dominated the market in 2021 and is expected to continue its dominance in forecast period as it is an advanced technology and refers to shifting information at a distance without electrical conductors. Wireless technology assures cost savings and save data transmission compared to wired technology. This technology provides utility support by giving high bandwidth, optimizing complex logistics, covering a large area, production processes.
Enhanced Grid Reliability is Expected to Boost the Growth of the Market
Smart grids provide technologies that enhance detection of faults and allow in automatic self-repairing of network. The regular observation of disturbances, the modern system provide real-time assistance for management of energy systems, improves the situational awareness on smart grid distribution management. The strengthening of security with threat detection and response by certain smart grid solution providers in the industry resulted in the installation of nearly million smart meters recently for the new grid watch solution.
Supportive Governments Regulations are Expected to Boost the Market Growth
Certain regulations and initiatives by the government may boost the growth of the market. Various managements are investing in these technologies gradually which may aid in attaining the reduction of carbon emission targets by allowing long-term economic profitability. Few advancements in the mechanisms and technology made by certain countries which already have net energy metering protocols and equipment are expected to provide growth opportunities for the market. Few initiatives taken by the governments of developing countries like the replacement of traditional electricity meters with smart electricity meters are anticipated to drive the demand for market growth.
High Implementation Costs May Restrain the Growth of the Market
The high cost involved for the investment of grid systems is expected to hamper the growth of the market. The operational and maintenance costs post the installation are high which may also restrain the growth of the market. The deficit of standardization and increasing privacy & security issues may impede the growth of the smart grid market.
Smart Grid Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America dominated the global smart grid market in 2021 and is expected to continue its dominance over the forecast period owing to the rising focus of the governments in the countries of this region to form proper regulatory bodies relating to acceptance of smart grids in the region. The growing financial strength is also expected to boost the growth of smart grid market in this region during the forecast period.
The COVID-19 outbreak had resulted in the economic downfall. Several countries had imposed lockdowns and applied travel restrictions to control the spread of the virus. Smart grid market growth has also been stumbled by the outcomes of COVID-19. Additionally, manufacturers of innovative hardware components are facing several issues related to order closures on time due to global lockdown. Also, delays in obtaining raw materials and other parts from suppliers, majorly located in China and other Southeast Asian countries have emerged as the key factor impacting industry pace. However, the implementation of new projects across several regions to meet their low-carbon targets is expected to counterbalance the growth during the pandemic.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2021-2032 |
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Historical Period |
2019-2021 |
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Growth Rate |
CAGR of 18.6% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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Component |
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Technology |
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Solution |
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Application |
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End User |
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By Region |
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Smart Grid Market size was estimated at USD 33.18 billion in 2021 and is expected to reach USD 216.6 billion in 2032.
Smart Grids are usually referred as sensible electrical network which consists of a smart data communication technology and an electrical network. Smart grid was initiated to control the defects of conventional electrical grids through utilizing smart meters.
Software and Wireless segments accounted for the largest Smart Grid market share
Key players: ABB, Schneider Electric, Oracle, Cisco, Trilliant Holdings, GE, Siemens, Itron, Aclara, IBM, OSI, Wipro, Honeywell, Eaton, S&C, Globema and Other Prominent Players are the key players in the Smart Grid Market.
Enhanced Grid Reliability and Supportive Governments Regulations are the factors driving the Smart Grid market.
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