Smart Grid Market Research

Smart Grid Market Research

The smart grid is widely recognized as the next generation of power grid systems, utilizing a sophisticated two-way exchange of power and information to create a distributed network of automated energy delivery. This innovative technology represents a significant advancement over the traditional grid, which delivers electricity from central generators to substations for distribution to end users. In contrast, the smart grid supports a two-way flow of power and information, creating an intelligent, automated, and distributed network of energy delivery. The global smart grid market expected to expand at a CAGR of 7.8% from 2023 to 2028. By 2028, it is forecasted that the market will reach a value of USD 58.06 billion.

The valuation of the hardware segment in 2022 was USD 16.66 billion, and it is projected to reach USD 21.67 billion by 2028. The smart grid market comprises several key hardware components that play a crucial role in collecting and distributing power from diverse sources, including centralized power plants, wind farms, solar installations, and tidal generating sources. These components work together to create an advanced power grid system that offers enhanced efficiency and reliability. In addition to the hardware components, the smart grid market also encompasses various software systems that play a critical role in controlling and managing the operations and communications within the grid. These software systems are designed to interlink the subsystems of generation, transmission, distribution, and utilization (GTDU) within the smart grid architecture. The software segment is anticipated to exhibit the highest CAGR of 10.8% during the forecast period from 2023 to 2028.

The smart grid market can be divided into residential, industrial, and commercial. The revenue of industrial segment has grown from USD 9.55 billion in 2020 to USD 11.35 billion in 2023, with a CAGR of 5.9%, and it is expected to further grow at a CAGR of 9.4% to USD 17.80 billion in 2028. The implementation of smart grid technology in the commercial market holds significant potential for enhancing the functionality and intelligence of industrial power distribution networks. Industrial power distribution networks already possess a considerable level of intelligence and functionality, with equipment often equipped with local intelligence and processing capacity. This allows for the collection of local data and measurement results from the equipment and processes within the industrial facility.

Prominent vendors shaping competitive dynamics include ABB Ltd., Siemens AG, Schneider Electric SE, General Electric Company, Itron, Inc., Landis+Gyr Group AG, Cisco Systems, Inc., Eaton Corporation plc, Xylem Inc., Honeywell International Inc., Oracle Corporation, Mitsubishi Electric Corporation, Wipro Ltd., Emerson Electric Co., Osaki Electric Co., Ltd., Enel S.p.A., Hitachi, Ltd., IBM Corporation, Tantalus Systems Corp., Fujitsu Limited, SAP SE, E.ON SE, Sensata Technologies Holding plc, Hubbell Incorporated, S&C Electric Company, Sagemcom SAS, Kamstrup A/S, among other players.

This study aims to analyze the global market for various segments of smart grid, including:

Component: Software, Hardware, and Services.
End-User: Residential, Industrial, and Commercial.
Region: North America (USA, Canada, and Mexico), Europe (Germany, France, UK, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia Pacific), and Rest of World (Latin America, Middle East, and Africa).