The Global Smart Grid Market is expected to record a positive CAGR of ~12% during the forecast period (2022-2028) and is expected to reach approximately US$ 100 billion by 2028.
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Key Growth Drivers
- The market is anticipated to be driven by factors like the popularity of smart meters, regional government initiatives, and funding for smart grid projects.
- The favorable regulatory frameworks of the governments of various countries that promote the implementation of smart grids are what largely drive the global smart grid market. By raising awareness of the advantages of smart grids, the legislative framework established by the government encourages and requires the implementation of such grids. The network defect can be detected by smart grids, and the network problem can then be automatically self-healed. Thus, the economy and numerous businesses are anticipated to benefit significantly from the reliable and efficient power supply provided by smart grids in the years to come.
- The high initial cost of automation becomes the market limitation
- Smart grid implementation in industries is a step in the automation process. The process of adopting automation equipment can be one of the most expensive ones. The cost of automating a process as well as the price of upkeep, repairs, and research and development are some of these expenditures.
- COVID-19 harmed the market in 2020. The market has now returned to its pre-pandemic levels. Long-term market growth is anticipated to be fueled by elements like expanding the use of renewable energy sources and growing the number of smart grid meters installed. During the projection period, the growing investments in EV charging infrastructure to encourage the adoption of EVs and reduce carbon emissions from the transportation sector are projected to present a market opportunity for the smart grid market.
Key Trends by Market Segment
By Component: The software segment held the largest share of the global smart grid market in 2021.
Utilizing digital technologies, smart grid software solutions enable the two-way exchange of energy and data between suppliers and customers. Digitizing the power grid reduces carbon emissions, lowers operating and managerial costs, lessens outages, increases security, and facilitates integrations with both traditional and renewable energy sources. A smart-grid meter, for instance, can be remotely programmed by the software developer or the utility company to enable two-way communication between provider and consumer. This is transforming the utility environment. Additionally, some businesses offer smart meter systems that feature improved metering infrastructure, automatic meter reading, and meter data management.
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By Technology: The advanced metering infrastructure technology segment held the largest market share in the global smart grid market in 2021.
- The expanding use of smart meters around the world is linked to upgraded metering infrastructure technology. Smart meters guarantee a regular, efficient, and dependable power supply that promotes market expansion. The cutting-edge metering infrastructure lowers operational costs, guarantees data security, detects network errors, and does many other things. The adoption of AMI is associated with a wide range of advantages, which is a major factor in this segment's growth.
By Application: The transmission application segment held the largest share of the global smart grid market in 2021.
- This can be ascribed to the increased global demand for safe, high-quality, and dependable transmission. Additionally, a significant worry that encourages the expansion of the transmission segment globally is transmission and distribution losses.
- Contrarily, it is anticipated that during the forecast period, the consumption category will expand the fastest. The primary drivers of this market category are the short reaction time for outages, better energy efficiency, and effective resource usage. Additionally, the segment's growth is accelerated by the growing use of ICT technology in smart grid systems.
By Geography: North America accounted for the largest market share in 2021 within the total global smart grid market.
- The formation of adequate and supportive regulatory frameworks linked to the implementation of smart grids in the region has received growing attention from the government in nations like the USA and Canada. Due to the region's early adoption of the smart grid and the improved financial stability of its economy, North America has become the market leader in this sector.
- The most opportunistic segment, on the other hand, is anticipated to be Asia Pacific during the projected period. Due to increased government initiatives and investments in the construction of smart grid systems across the nation for the effective delivery of power, countries like China, Thailand, and India are expected to offer attractive growth prospects in the years to come. For instance, to improve the operational effectiveness of Thailand's energy generation facilities, the Ministry of Energy collaborated with the New Energy and Industrial Technology Development Organization and the Marubeni Corporation.
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Competitive Landscape
The Global Smart Grid Market is highly competitive with ~400 players which include globally diversified players, regional players as well as a large number of country-niche players.
Large global players hold the highest market share of 45% which is followed by the regional players holding a 30% share. Most of the regional and country-niche players are suppliers of components or assembling partners of global players. Some of the major players in the market include General Electric, Schneider Electric, ABB Ltd., Siemens, Itron, Inc., Cisco Technology Company, Aclara Software Inc., OSI Systems, Oracle, Wipro, IBM, and others.
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Recent Developments Related to Major and Emerging Companies
- In May 2022, the introduction of electric vehicle charging stations throughout Saudi Arabia was announced by Electromin, a fully-owned subsidiary of Petromin and a turnkey solutions provider for e-mobility. A customer-focused smartphone application powers the network, which consists of 100 locations across the nation. To serve all consumer segments, Electromin's charging network will provide a full range of services, including AC home/office chargers, DC fast chargers, and DC ultra-fast chargers.
- In November 2022, together with Vodafone Corporation, Qatar Electricity and Water Corporation (KAHRAMAA) installed roughly 600,000 smart meters across Qatar. On Vodafone's Internet of Things (IoT) SIM platform, the smart meters are distributed, giving KAHRAMAA real-time data. The smart meter is run on the Vodafone Managed IoT Connectivity platform, a safe self-service platform that makes IoT management simple and gives the state-owned utility corporation all visibility and control over the smart meter systems.
Conclusion
The Global Smart Grid Market is forecasted to continue a gradual growth that is witnessed during the forecast period. Key trends driving market expansion include the development of renewable and sustainable energy sources and growing efforts to reduce carbon emissions. Furthermore, the adoption of hybrid and electric vehicles has increased quickly around the world, which has led to an increase in energy demand. The market is highly competitive with ~400 participants concentrating on expansion strategies through product innovations as well as acquisitions and mergers.
Note: This is an On-Demand/Planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of two working weeks.
Ken Research has recently published report titled, Global Smart Grid Market Size, Segments, Outlook, and Revenue Forecast 2022-2028. In addition, the report also covers market size and forecasts for the four major regions’ smart grid market. The revenue used to size and forecast the market for each segment is US$ billion.
Market Taxonomy
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