Global Smart Energy Market Outlook, 2029

Global Smart Energy Market Outlook, 2029

Smart energy is an umbrella term that encompasses a range of technologies and strategies designed to enhance the efficiency, reliability, and sustainability of energy systems. At its core, smart energy leverages advanced sensors, real-time data analytics, and communication technologies to optimize the generation, distribution, and consumption of power. In an era marked by rapid technological advancements and a growing consciousness about environmental sustainability, the energy sector is undergoing a profound transformation. Smart energy, often referred to as the next frontier in energy management and is revolutionizing the way we generate, distribute, and consume power. This innovative approach integrates cutting-edge technology with traditional energy systems to create a more efficient, sustainable, and responsive energy ecosystem. In recent years, the global energy landscape has undergone a significant transformation with the advent of smart energy technologies. The smart energy industry represents a paradigm shift, integrating advanced digital technologies with traditional energy systems to create a more efficient, sustainable, and responsive energy ecosystem. This industry encompasses a wide range of technologies and solutions, including smart grids, advanced metering infrastructure (AMI), demand response systems, energy management systems (EMS), and Internet of Things (IoT) devices. Investments in smart grid technology are one of the key market drivers for smart energy. Hardware and software components are required for smart energy installation, including instrumentation, network infrastructure, and network management software. Many systems, such as work management systems, mobile workforce management, SCADA/DMS, and distribution automation systems, must be integrated into the system. The Indian government plans to replace 250 million traditional meters with smart meters. Advanced metering devices are in high demand in homes, businesses, and industrial facilities for energy management and consumption monitoring. However, smart energy demands substantial capital expenditures and the integration of complicated technologies, which are the initial phase's most significant obstacles.

According to the research report, “Global Smart Energy Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 300 Billion by 2029, increasing from USD 167.22 Billion in 2023. The market is expected to grow with 10.54% CAGR by 2024-29. Smart grids represent the backbone of smart energy systems. These digitally-enabled electrical grids leverage advanced sensors and communication networks to monitor and control the flow of electricity. This enables real-time adjustments to match demand and supply, reduce transmission losses, and enhance overall grid resilience. Smart energy promotes the integration of renewable energy sources such as solar and wind into the traditional energy grid. Through advanced forecasting and monitoring systems, smart energy solutions ensure optimal utilization of renewable resources, maximizing energy output while minimizing environmental impact. Energy storage technologies, including advanced batteries, play a pivotal role in smart energy systems. These solutions allow for the storage of excess energy generated during peak times for later use during periods of high demand or low renewable energy production. Smart energy systems enable demand response mechanisms, empowering consumers to adjust their energy usage in response to real-time pricing and grid conditions. This not only helps balance supply and demand but also allows consumers to make informed decisions about their energy consumption. The Internet of Things (IoT) is a key enabler of smart energy. The global market is expected to experience significant growth owing to a notable increase in demand for dependable power solutions that can effectively support large-scale manufacturing processes. This surge in demand is driven by the commercial and industrial sectors, which are actively investing in new and advanced power sources. Notably, these investments are intended to address the energy needs of substantial data centers and telecommunications firms. By adopting new and efficient power solutions, these sectors aim to enhance the reliability and sustainability of their energy infrastructure. Furthermore, the rising global concern among governments regarding the challenges posed by growing global warming is expected to drive an increased demand for solar energy. Governments in various countries are tackling this concern by introducing new rebates and incentive programs specifically designed to encourage the adoption of smart energy technologies, with a focus on smart solar solutions.

Market Driverss
• Renewable Energy Integration: The increasing focus on sustainability and the need to reduce carbon emissions has been a major driver for the smart energy industry. Governments, businesses, and consumers are increasingly investing in renewable energy sources such as solar and wind. Smart energy technologies play a crucial role in efficiently integrating and managing these intermittent renewable sources into the existing energy grid.
• Advancements in Technology: Rapid advancements in technology, including the Internet of Things (IoT), artificial intelligence (AI), and data analytics, are driving the smart energy sector. Smart grids, sensors, and real-time monitoring systems enable more efficient energy distribution, demand response, and predictive maintenance, contributing to a more reliable and resilient energy infrastructure.

Market Challenges
• Cybersecurity Concerns: The increased connectivity and reliance on digital technologies in the smart energy sector also pose cybersecurity challenges. Protecting critical infrastructure from cyber threats and ensuring the integrity of data and communication networks is a major concern for the industry.
• Interoperability and Standardization: The smart energy ecosystem involves diverse technologies, devices, and systems. Achieving seamless interoperability and standardization across different platforms and solutions remains a challenge. This is crucial for ensuring a smooth integration of various components within the smart grid and related systems.

Market Trends
• Energy Storage Solutions: The demand for efficient energy storage solutions, such as advanced batteries, is a growing trend. Energy storage helps balance the intermittent nature of renewable energy sources, enhances grid stability, and enables better management of peak demand.
• Electric Vehicle (EV) Integration: The rise of electric vehicles is influencing the smart energy landscape. Integration of EV charging infrastructure with smart grids, along with the development of vehicle-to-grid (V2G) technologies, is a notable trend, allowing electric vehicles to become active participants in energy management.

Covid-19 Impacts

The smart energy industry, like many others, experienced disruptions in the global supply chain. Delays in the manufacturing and delivery of components and equipment, particularly those sourced internationally, impacted project timelines and deployments. Many construction projects related to smart energy infrastructure, such as the deployment of smart grids or renewable energy installations, faced delays due to lockdowns, travel restrictions, and social distancing measures. Economic uncertainties caused financial constraints, leading to budget cuts and a slowdown in investment. Some projects were put on hold or scaled back as companies and governments redirected resources to address more immediate concerns. The shift to remote working posed challenges in terms of project management, coordination, and collaboration. Implementation and maintenance of smart energy solutions often involve on-site activities, and the restrictions imposed by the pandemic affected the execution of these tasks. Lockdowns and changes in human behavior resulted in shifts in energy demand patterns. With more people working from home, there was an increased demand for residential energy, while commercial and industrial energy consumption saw reductions. This dynamic affected load forecasting and grid management strategies. Some governments adjusted their policy priorities in response to the pandemic, potentially impacting the regulatory landscape for the smart energy sector. Economic recovery plans and stimulus packages have influenced the direction and focus of energy policies. On the positive side, the pandemic accelerated the adoption of digital technologies. Companies in the smart energy sector increasingly embraced remote monitoring, digital collaboration tools, and advanced analytics to manage operations more efficiently in a challenging environment.

Smart grids are leading in the smart energy market because they enable enhanced control, efficiency, and resilience by leveraging advanced technologies to monitor, communicate, and optimize the generation, distribution, and consumption of electricity.

Smart grids are at the forefront of the smart energy market due to their pivotal role in revolutionizing the traditional electricity grid infrastructure. The primary reason for their leadership lies in their ability to harness advanced technologies, including sensors, communication networks, and data analytics, to create an intelligent and dynamic energy ecosystem. Unlike conventional grids, smart grids offer unprecedented levels of visibility and control across the entire energy value chain. Real-time monitoring of generation, distribution, and consumption enables utilities to optimize the flow of electricity, improving overall efficiency. One of the critical advantages of smart grids is their adeptness at integrating renewable energy sources. As the world increasingly pivots towards sustainable energy, smart grids facilitate the seamless assimilation of solar, wind, and other intermittent renewables into the grid. These grids can effectively manage the variability and unpredictability associated with renewable sources, ensuring a reliable and stable energy supply. Moreover, smart grids empower consumers by providing them with actionable insights into their energy consumption. Through bidirectional communication capabilities, consumers can actively participate in energy management, making informed decisions to optimize their usage and contribute to demand response initiatives. This not only enhances overall energy efficiency but also fosters a more engaged and conscious energy consumer base. The incorporation of automation and predictive analytics further solidifies the position of smart grids in the market. Automation streamlines grid operations, reduces downtime, and enhances response times to faults or outages. Predictive analytics, powered by artificial intelligence and machine learning, enables utilities to anticipate potential issues, allowing for proactive maintenance and improved grid reliability.

Industrial end-users are leading in the smart energy market because of their strong emphasis on operational efficiency, cost savings, and sustainability, driving the adoption of smart energy technologies to optimize processes, monitor energy consumption, and meet environmental goals.

Industrial end-users have emerged as leaders in the smart energy market, primarily due to their unwavering commitment to achieving operational excellence, reducing costs, and embracing sustainable practices. The industrial sector, characterized by energy-intensive operations, recognizes the transformative potential of smart energy technologies in enhancing efficiency and mitigating environmental impact. These end-users are motivated by a dual objective: ensuring uninterrupted, reliable energy supply for their operations and strategically aligning with global sustainability goals. The imperative for operational efficiency is a key driver behind the adoption of smart energy solutions. Industries deploy advanced monitoring and control systems to optimize their energy consumption, streamline production processes, and minimize wastage. Smart grids and energy management systems enable real-time visibility into energy usage patterns, allowing industries to make data-driven decisions that enhance overall operational performance. Cost savings play a pivotal role in the industrial sector's embrace of smart energy technologies. By leveraging intelligent energy management solutions, industries can identify areas for optimization, implement demand response strategies, and take advantage of dynamic pricing models. Additionally, predictive maintenance enabled by smart technologies helps prevent costly downtime, ensuring the continuous and reliable operation of industrial facilities. Sustainability is a core driver for industrial end-users leading the smart energy market. With increasing global awareness of environmental concerns, industries are under pressure to reduce their carbon footprint. Smart energy solutions enable industrial players to monitor and reduce their energy-related emissions, integrate renewable energy sources into their operations, and contribute to broader sustainability initiatives. This alignment with environmental goals not only meets regulatory requirements but also enhances the brand image and competitiveness of industrial entities in a market that values corporate responsibility.

North America is leading in the smart energy market due to a combination of robust regulatory support, widespread adoption of advanced technologies, and a strong emphasis on grid modernization, fostering an environment conducive to the growth of smart energy solutions.

The leadership of North America in the smart energy market is anchored in a confluence of factors that collectively create a fertile ground for the adoption and integration of smart energy solutions. Foremost among these factors is the region's commitment to fostering a regulatory framework that encourages innovation and sustainability. North American governments, at both federal and state levels, have instituted policies and incentives that promote the deployment of smart energy technologies. This regulatory support provides a clear signal to businesses and utilities, instilling confidence and incentivizing investments in smart grids, energy management systems, and other advanced technologies. The widespread adoption of advanced technologies is another critical driver of North America's leadership in the smart energy sector. The region has been at the forefront of embracing digitalization, the Internet of Things (IoT), artificial intelligence (AI), and data analytics across various industries. This tech-savvy environment facilitates the seamless integration of smart energy solutions, enabling utilities and businesses to harness the power of real-time data, automation, and intelligent decision-making for more efficient energy management. Furthermore, North America's strong emphasis on grid modernization plays a pivotal role in its leadership in the smart energy market. Aging infrastructure, coupled with the increasing complexity of energy systems, has prompted a heightened focus on upgrading and modernizing the electricity grid. Smart grids, with their ability to enhance grid reliability, accommodate renewable energy sources, and support demand response programs, are seen as a linchpin in this modernization effort. Utilities in the region are investing in smart grid technologies to improve grid resilience, reduce losses, and enhance overall operational efficiency.

Product launches and developments, followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations, have been the key business strategies utilized by leading companies to grow their market share. The companies used a variety of tactics to increase market penetration and strengthen their position in the competitive industry. For example, in February 2023, Itron Inc. collaborated with SEW, a well-known provider of cloud-based software solutions for the water and energy industries. The alliance hopes to create new solutions based on Itron's OpenWay Riva IoT system, which includes smart power meters and other smart grid technologies. Furthermore, it would offer utilities with vital information about their customers' energy usage and assist them control their energy consumption.
• In 2022, GE Digital has unveiled a Distributed Energy Resource Management System (DERMS) solution, contributing to a safer, secure, and resilient electric grid. The software integrates intelligence, operations, economics, and markets in a unified platform, empowering grid operators to efficiently manage and optimize Distributed Energy Resources (DERs) for clean, reliable, and affordable energy delivery.
• In 2022, GE Renewable Energy has secured orders from Continuum Green Energy Limited for 81 units of its 2.7-132 onshore wind turbines. The turbines, totaling 218.70 MW, will be installed across wind power projects in Tamil Nadu and Madhya Pradesh, India.
• In 2022, Itron is expanding its collaboration with Microsoft to accelerate the energy transition. The partnership merges Itron's energy management solutions with Microsoft's cloud offerings, revolutionizing how users perceive and manage energy. Together, they aim to provide utilities with innovative solutions, promoting grid resilience, consumer engagement, operational efficiency, and decarbonization.
• In May 2021, New carbon footprint reduction goals were set by the German government. According to the new targets, Germany will strive for a 65%, 88%, and nearly 0% net carbon emission by 2030, 2040, and 2045, respectively. Additionally, Governments are putting a number of policy measures into place in order to decarbonize their economies and electricity sectors in line with both medium- and long-term climate ambitions.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Smart Energy market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product
• Smart Grid
• Digital Oilfield
• Smart Solar
• Energy Management System

By End User
• Residential
• Industrial
• Commercial

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart Energy industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.