Global Smart Grid Market Report and Forecast 2024-2032

Global Smart Grid Market Report and Forecast 2024-2032

Global Smart Grid Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the global smart grid market size reached a value of USD 6,202.6 million in 2023. Aided by the integration of renewable energy sources and government incentives, the market is projected to further grow at a CAGR of 1.6% between 2024 and 2032 to reach a value of USD 7,183.29 million by 2032.

A smart grid incorporates digital technology that allows for two-way communication between the utility and its customers, and the sensing along the transmission lines. It is crucial for integrating renewable energy systems, enhancing grid reliability, and optimising electricity consumption patterns. The system includes various components such as smart meters, smart appliances, renewable energy resources, and energy-efficient resources.

The escalating integration of renewable energy sources like wind and solar into the grid is a significant driver for smart grid market growth. Smart grids facilitate the management of variable power outputs from renewable sources with enhanced grid stability, which is essential for reducing carbon footprints and promoting sustainable energy practices.

One of the significant trends reshaping the market is the move towards decentralised energy systems. These systems, which consist of smaller power generation and storage units located close to the point of use, reduce the strain on transmission and distribution networks and enhance energy efficiency. As per the smart grid market analysis, decentralised grids are particularly adaptive in integrating renewable energy sources like solar panels on residential and commercial buildings, contributing to a more resilient energy system.

Demand response programs are gaining traction as they play a critical role in shifting energy consumption from peak to off-peak periods. Smart grids enable these programs by allowing real-time communication between utility providers and consumers, enabling the latter to reduce or shift their electricity usage during peak periods in response to time-based rates or financial incentives, which propels the smart grid market expansion.

Blockchain technology is emerging as a transformative force in the smart grid sector, facilitating secure and transparent energy transactions. It enables peer-to-peer energy trading among consumers, allowing households with renewable energy sources to sell excess electricity directly to other consumers without the need for traditional intermediaries. As per the smart grid market outlook, this technology supports the decentralisation trend and could revolutionise how energy is bought and sold within the smart grid.

Governments worldwide are implementing regulations and providing incentives to promote the adoption of smart grid technologies. These initiatives, aimed at modernising the aging power infrastructure and making energy systems more resilient and efficient, are potent catalysts for market growth. The incorporation of IoT and AI in smart grid market is transforming how energy utilities operate and manage grid systems. These technologies enhance predictive maintenance, demand response management, and real-time energy analytics, driving the market forward.

Smart grids are integral to the development of smart cities, providing the necessary infrastructure to support various smart technologies that require reliable and efficient energy distribution. As urban areas continue to grow and become more technologically integrated, the deployment of smart grids will be crucial in managing everything from traffic systems to public services, all dependent on stable and efficient energy use.

North America holds a significant smart grid market share, primarily due to early adoption and significant investments in grid modernisation. The U.S. and Canada are focusing on upgrading their grid infrastructure to incorporate more renewable energy sources and improve energy efficiency. Europe follows closely with substantial growth in the smart grid market, driven by stringent regulatory policies aimed at enhancing energy efficiency and reducing reliance on fossil fuels. Countries like Germany, the UK, and France are at the forefront, leveraging smart grid technologies to meet their energy and environmental goals.

Market Segmentation

The market can be divided based on component, technology, solution, application, end-user, and region.

Market Breakup by Component

• Solution
• Services

Market Breakup by Technology

• Wired
• Wireless

Market Breakup by Solution

• Advance Metering Infrastructure
• Smart Grid Distribution Management
• Grid Asset Management
• Smart Grid Network Management
• Substation Automation
• Smart Grid Security
• Others

Market Breakup by Application

• Generation
• Transmission
• Distribution
• Consumption

Market Breakup by End-User

• Residential
• Commercial
• Industrial

Market Breakup by Region

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

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global smart grid market. Some of the major players explored in the report by Expert Market Research are as follows:

• Siemens AG
• ABB Ltd.
• Schneider Electric SE
• Honeywell International Inc.
• General Electric Company
• Cisco Systems, Inc.
• Eaton Corporation plc
• ORACLE Corporation
• Globema sp. z o.o.
• Trilliant Holdings Inc.
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.