Global Smart Grid Technology Market – Industry Trends and Forecast to 2031

Global Smart Grid Technology Market, By Components (Hardware, Software, and Services), Technology (Wired and wired-less), Applications (Meter Hardware, Communications and Networking, Power Quality Equipment, and Technologies), Communication Network (Wide Area Network (WAN), and Home Area Network (HAN)), End-User (Residential, Commercial, Government, and Industrial) – Industry Trends and Forecast to 2031.

Smart Grid Technology Market Analysis and Size

In the smart grid technology market, advancements continually enhance efficiency, reliability, and sustainability. These innovations offer benefits such as optimized energy distribution, real-time monitoring, and improved integration of renewable sources. With evolving technologies such as IoT and AI, smart grids promise to revolutionize energy management, paving the way for a more resilient and eco-friendly energy infrastructure.

Data Bridge Market Research analyses that the global smart grid technology market size was valued at USD 49.40 billion in 2023, is projected to reach USD 208.20 billion by 2031, with a CAGR of 19.7% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation       

Market Definition

Smart grid technology integrates digital communication and advanced analytics into traditional electrical grids, enhancing efficiency, reliability, and sustainability. Enabling bidirectional communication between utilities and consumers optimizes energy distribution, monitors grid performance in real-time, and accommodates renewable energy sources. Smart grids empower users with data-driven insights, promoting energy conservation and cost savings.

Smart Grid Technology Market Dynamics

Drivers

• Rising Grid Reliability and Resilience

Smart grids bolster power system reliability and resilience through real-time monitoring, predictive maintenance, and swift outage response. For instance, advanced sensors detect anomalies in electricity flow, enabling proactive maintenance to prevent potential failures. Additionally, automated systems swiftly pinpoint and isolate faults, rerouting power to minimize service disruptions. These capabilities ensure uninterrupted power supply, even during adverse conditions, bolstering grid resilience and customer satisfaction.

• Growing Electric Vehicle (EV) Integration

The surge in the adoption of electric vehicle (EV) requires smart charging infrastructure and grid management solutions. These technologies accommodate rising electricity demand and optimize charging schedules. Through intelligently managing EV charging, they mitigate strain on the grid during peak periods, promoting efficiency and reliability in the transition to widespread electric transportation.

Opportunities

• Data Analytics and IoT Integration

Smart grid tech leverages advanced data analytics, machine learning, and IoT devices to analyze energy usage patterns, optimize grid operations, and forecast maintenance requirements for improved efficiency and reliability. For instance, by utilizing real-time data from smart meters and sensors, utilities can identify peak demand periods, optimize energy distribution, and proactively address potential system failures, resulting in significant cost savings and operational efficiencies.

• Initiatives for Grid Modernization

Governments and utilities globally are investing in grid modernization to upgrade aging infrastructure, boost grid security, and comply with evolving regulations. This commitment drives the adoption of smart grid technologies, facilitating real-time monitoring, predictive maintenance, and efficient energy management. Such initiatives are crucial for ensuring reliable, resilient, and sustainable power systems in the modern era.

Restraints/Challenges

• High Initial Investment

The implementation of smart grid technology demands substantial upfront investment in infrastructure, sensors, communication networks, and software systems. This financial barrier often deters utilities and governments from adopting these advancements, hindering the widespread deployment of smart grid solutions despite their potential benefits for efficiency and sustainability in the long term.

• Cybersecurity Concerns

Smart grids face cybersecurity risks such as hacking and malware, endangering power supply, and data integrity. Countering these threats demands robust measures, complicated by evolving cyber-attacks and grid system intricacies. Ensuring grid stability against cyber threats requires ongoing vigilance and investment in cybersecurity infrastructure.    

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In 2021, Impact Solar, a Thailand-based energy company, collaborated with Hitachi ABB Power Grids to deploy an energy storage system within Thailand's largest owned microgrid, enhancing energy management and reliability for the region's infrastructure
• In 2021, Schneider Electric completed the acquisition of DC Systems BV, a leading provider of smart systems. This strategic move enables Schneider Electric to integrate advanced innovations in electrical systems, strengthening its position in the evolving energy market
• In 2020, Siemens Energy introduced the Unified Power Flow Controller (UPFC) PLUS, expanding grid stabilization options. This innovative solution empowers system operators to manage load flow in AC grids dynamically, enhancing grid stability and resilience in response to fluctuating demand and supply dynamics

Smart Grid Technology Market Scope

The cloud-based contact centre market is segmented on the basis of components, technology, applications, communication network, and end-user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Components

• Hardware
• Software
• Services

 Technology

• Wired
• Wired-less

 Applications

• Meter Hardware
• Communications and Networking
• Power Quality Equipment
• Technologies

Communication Network

• Wide Area Network (WAN)
• Home Area Network (HAN)

 End-User

• Residential
• Commercial
• Government
• Industrial

Smart Grid Technology Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, components, technology, applications, communication network, and end-user as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

North America is expected to witness significant growth in the global smart grid technology market. This growth is driven by increasing investments and developments in the power supply sector, coupled with the modernization of grid infrastructure, contributing to regional market expansion.

Asia-Pacific is expected to dominate the global smart grid technology market due to the region's increasing demand for reliable and secure power supply. This trend is anticipated to persist over the forecast period, driving significant growth in the market.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Smart Grid Technology Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• General Electric (U.S.)
• ABB (Switzerland)
• Siemens (Germany)
• Schneider Electric (France)
• Itron Inc. (U.S.)
• Cisco Systems, Inc. (U.S.)
• IBM (U.S.)
• Oracle (U.S.)
• Honeywell International (U.S.)
• Eaton (US.)
• Tech Mahindra Limited (India)
• Tantalus (Canada)
• Mitsubishi Electric Corporation (Japan)
• SAP (Germany)
• Wipro (India)
• Trilliant Holdings INC. (U.S.)
• Globema (Poland)
• Kamstrup (Denmark)
• Xylem (U.S.)
• Enel X S.r.l. (Italy)
• eSMART Technologies SA (Norway)
• Esyasoft (India)
• Grid4C (U.S.)
• C3.ai, Inc. (U.S.)
• Networked Energy Services (U.S.)