Smart Grid Market
SHARE
PUBLISHED: 2022 ID: SMRC21327
SHARE

Smart Grid Market Forecasts to 2028 – Global Analysis By Component (Hardware, Software, Services), Application (Generation, Transmission, Distribution, Consumption), End User (Residential, Commercial, Industrial) and By Geography

4.0 (60 reviews)
4.0 (60 reviews)
Published: 2022 ID: SMRC21327

This report covers the impact of COVID-19 on this global market

According to Stratistics MRC, the Global Smart Grid Market is accounted for $43.81 billion in 2021 and is expected to reach $167.33 billion by 2028 growing at a CAGR of 21.1% during the forecast period. Smart Grids are often defined as a sensible electrical network that comprises an electrical network and smart data communication technology. It is capable of delivering electricity to the user from multiple and cosmopolitan sources such as wind turbines, solar energy systems, and even plug-in hybrid electric vehicles. A smart grid is an electricity network using digital technology to provide electricity to consumers via two-way data communication. This system allows for monitoring, analysis, control, and communication within the supply chain to help increase efficiency, lessen energy consumption and cost, and maximize the transparency and dependability of the energy supply chain. The smart grid was introduced to overcome the flaws of conventional electrical grids by using smart meters.

Market Dynamics:

Driver:

Supportive regulatory framework of governments worldwide


Governments across the world have imposed several supportive policies and mandates, focusing on implementing smart grids and spreading awareness about energy conservation. These regulations drive the adoption of smart grid technology for industrial, commercial, and residential applications. The Department of Energy (DOE) was allocated USD 4.5 billion through the American Recovery and Reinvestment Act of 2009 (Recovery Act) funds to modernize electric power grids. Under the Smart Grid Investment Grant (SGIG) program, the DOE and the electricity sector have jointly invested USD 8 billion in 99 cost-shared projects, wherein more than 200 electric utilities and other organizations have participated in modernizing the electric grid infrastructure, strengthening cybersecurity, improving interoperability, and collect an unprecedented level of data on smart grid operations and its benefits. The Smart Grid Investment Grant (SGIG) program aims to accelerate the modernization of the nation’s electric transmission and distribution systems.

Restraint:

High installation cost of smart grids


The initial phase of smart grid deployment is capital-intensive. It may restrain the growth of the global smart grid market. The role of the local and national governments is vital in transforming energy infrastructure. Smart grid technology requires huge initial investments to set up the transmission networks that allow two-way communication between the utility and its customers. Furthermore, effective deployment of a smart grid creates the need for strong coordination across customary organizational boundaries, high flexibility toward significant changes in processes, and rigorous governance. High investments for the successful deployment of smart grids may add an economic burden on the government. Similarly, high operational and maintenance cost after the deployment of smart grid technology is another big concern for utility providers. Developing countries with poor infrastructure, such as China, Brazil, and India, also need huge financial support for building and updating the infrastructure. Though billions of dollars are being invested in smart cities projects, the challenge to ensure a significant and favorable return on investment (ROI) is still there. Public and private organizations are going to play a major role by offering loans at low-interest rates or offering grants and funds for smart grid projects.

Opportunity:

Ongoing smart city projects in developing countries


Smart cities are developed urban areas that create sustainable economic growth and high quality of life by excelling in several fields, such as technology, mobility, environment, living standard, and government regulations. More than 100 smart city projects are going on across the world, presenting a huge opportunity for technology companies, utility service providers, and consulting service providers. In smart cities, key services pertaining to utilities, safety, transportation, and healthcare segments are managed more efficiently and intelligently with proper utilization of resources and the adoption of advanced technologies such as IoT and smart energy meters. Traditional power grid models cannot provide the same level of efficiency to citizens and find it difficult to meet the requirements for energy monitoring, real-time data gathering, and smart billing, which are generated due to modernization. Smart cities are likely to significantly depend on a robust smart grid platform to create a centrally planned and controlled infrastructure. Favorable conditions such as developed ICT infrastructure and better internet access are likely to result in widespread adoption of smart grids in smart cities.

Threat:

Proper storage and management of complex data generated by smart grid infrastructure


The deployment of smart grid technologies has led to the generation of vast volumes of highly complex data. The data is related to consumer information, utility consumption, transmission logs, etc. It is highly unstructured and needs to be processed to gain vital insights. The continuous generation of data from various nodes of networks is creating challenges for smart grid solution providers to store and manage this data efficiently. The unmanaged data can raise multiple threats, and it might eventually become difficult to gain valuable insights from the data. The respective authorities need to create high-volume data centers, as well as deploy analytical solutions without increasing the cost. Smart utilities are generating huge volumes of data from millions of smart meters, grid sensors, control devices, and networks of other electronic devices. Generating and gathering useful data insights from such vast data for intelligent decision-making is the challenge faced by utility technology providers. The processing of large volumes of data to provide real-time analytics is one of the major functions of smart grid technology. To gain a competitive edge, solution providers need to develop superior data analytical techniques and accurate predictive analysis models. Providing intelligent business solutions to predict equipment failure, natural disasters and their effects, and customer behavior patterns based on the historical data and usage patterns is the most complex challenge faced by utility providers.

The wireline segment is expected to be the largest during the forecast period

The wireline communication technology segment accounted for the largest share of the smart grid market. Wireline communication technology is driving the market as it is comparatively cost efficient and this type of transmission is less prone to third-party intrusions and interruptions. It mainly includes fiber optic, Ethernet, and powerline carriers. Fiber optic and Ethernet are the most preferred media for networking in distribution automation. Fiber optic offers higher bandwidth support and speed, which helps provide high performance, reliability, and improved coverage. Moreover, fiber optic communication technology is widely used in substations as it can operate at high voltages. Currently, commercial optical fiber transmission systems offer bit rates of up to 10 Gbps, using single wavelength transmission and approximately 40 to 1,600 Gbps using wavelength division multiplexing (WDM).

The transmission segment is expected to have the highest CAGR during the forecast period

Optimization of the grid performance owing to reduced balancing cost & technical losses to support the utilities is set to enhance the smart grid market penetration. Adoption of smart systems including home appliances and thermostats along with shifting focus toward digital sensing field devices & communication will propel the demand for grid modernization. Lower outage response duration, consumption patterns, improved resource utilization and high energy efficiency are some factors driving the demand for end-use smart systems. The devices enable utilities to provide information and services to the end users. Rising implementation of ICT technologies along with enhanced focus toward energy integration will propel the product installation.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. The US and Canada, contribute heavily to the growth of the regional market. The region is estimated to account for the largest share of the global smart grid market, and a similar trend is expected to continue in the coming years. One of the key reasons for the large market size is the early adoption of smart grid projects. The strong financial position of the US and Canada enables them to invest heavily in smart infrastructure platforms of the smart grid market. The market in US is expected to grow mainly because it is the most mature market in terms of smart grid deployment, advanced IT infrastructure, the presence of several enterprises, and the availability of technical expertise in the country. Smart grid technology in the US is undergoing a considerable transformation as digital technologies are being applied to distributed energy resources. All these factors are expected to drive the growth of the smart grid market in North America. The U.S will witness substantial growth owing to mounting severity & regularity of natural disasters coupled with unplanned power outages. In addition, increasing government initiatives with the objective to address climate changes and ensure mutual energy security coupled with the incorporation of renewable energy in the power grids will complement the business outlook.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR and China has the highest share of the smart grid market in Asia Pacific. Japan and India are other countries making progress in the smart grid market. The need to reduce transmission and distribution losses in developing nations across the region will drive the market. Moreover, the need to reduce carbon emissions from developed nations in the region and the growing consumption of electricity in China, South Korea, Australia, New Zealand, India, and Singapore will drive the smart grid market.

Some of the key players profiled in the Smart Grid Market include ABB, GE, Siemens, Oracle, Schneider Electric, IBM, Wipro, Honeywell, Itron, Eaton, Mitsubishi Electric, Tech Mahindra, SAP, Cisco, Trilliant Holdings, and Tantalus.

Key developments:

In January 2021: Schneider Electric acquired DC Systems BV, which is a major supplier of smart systems. This has helped the company in advancing innovations in electrical distribution.

In September 2020: Siemens Energy, a subsidiary of Siemens, launched its new Unified Power Flow Controller (UPFC) PLUS and expanded the options for grid stabilization. The UPFC PLUS helps system operators stabilize the grid by dynamically controlling the load flow in alternating-current grids.

In July 2018: GE Power’s Grid Solutions business launched a new Advanced Distribution Management Solution (ADMS) in collaboration with Tata Power Delhi Distribution (Tata Power - DDL), specially designed for India, with advanced features such as monitoring, security, analysis, and planning.

In May 2018: Itron entered a contract with Jamaica Public Service Company (JPS), an integrated electric utility company and the sole distributor of electricity in Jamaica, to provide Itron’s smart grid solution for Jamaica.

Table of Contents

1 Executive Summary     
       
2 Preface      

 2.1 Abstract     
 2.2 Stake Holders    
 2.3 Research Scope    
 2.4 Research Methodology   
  2.4.1 Data Mining   
  2.4.2 Data Analysis   
  2.4.3 Data Validation   
  2.4.4 Research Approach   
 2.5 Research Sources    
  2.5.1 Primary Research Sources  
  2.5.2 Secondary Research Sources  
  2.5.3 Assumptions   
       
3 Market Trend Analysis    
 3.1 Introduction    
 3.2 Drivers     
 3.3 Restraints     
 3.4 Opportunities    
 3.5 Threats     
 3.6 Technology Analysis    
 3.7 Application Analysis     
 3.8 End User Analysis    
 3.9 Emerging Markets    
 3.10 Impact of Covid-19    
       
4 Porters Five Force Analysis    
 4.1 Bargaining power of suppliers   
 4.2 Bargaining power of buyers   
 4.3 Threat of substitutes    
 4.4 Threat of new entrants   
 4.5 Competitive rivalry    
       
5 Global Smart Grid Market, By Component   

 5.1 Introduction    
 5.2 Hardware     
  5.2.1 Smart Meters   
  5.2.2 Sensors    
  5.2.3 Programmable Logic Controller (PLC) 
  5.2.4 Networking Hardware and Energy Storage 
 5.3 Software     
  5.3.1 Advanced Metering Infrastructure 
  5.3.2 Smart Grid Distribution Management 
  5.3.3 Smart Grid Security   
  5.3.4 Billing and Customer Information System 
  5.3.5 Supervisory Control and Data Acquisition (SCADA)
  5.3.6 Smart Grid Communication  
  5.3.7 Smart Grid Network Management 
  5.3.8 Grid Asset Management  
  5.3.9 Substation Automation  
 5.4 Services     
  5.4.1 Consulting   
  5.4.2 Deployment and Integration  
  5.4.3 Support and Maintenance  
       
6 Global Smart Grid Market, By Communication Technology 
 6.1 Introduction    
 6.2 Wireline     
 6.3 Wireless     
       
7 Global Smart Grid Market, By Technology   

 7.1 Introduction    
 7.2 Communication Infrastructure   
 7.3 Distribution & Network Automation  
 7.4 Transmission Upgrades (TU)   
 7.5 Consumer Interface    
 7.6 Cyber Security    
       
8 Global Smart Grid Market, By Application   
 8.1 Introduction    
 8.2 Generation    
 8.3 Transmission    
 8.4 Distribution    
 8.5 Consumption    
       
9 Global Smart Grid Market, By End User   

 9.1 Introduction    
 9.2 Residential    
 9.3 Commercial    
 9.4 Industrial     
 9.5 Government    
       
10 Global Smart Grid Market, By Geography   

 10.1 Introduction    
 10.2 North America    
  10.2.1 US    
  10.2.2 Canada    
  10.2.3 Mexico    
 10.3 Europe     
  10.3.1 Germany    
  10.3.2 UK    
  10.3.3 Italy    
  10.3.4 France    
  10.3.5 Spain    
  10.3.6 Rest of Europe   
 10.4 Asia Pacific    
  10.4.1 Japan    
  10.4.2 China    
  10.4.3 India    
  10.4.4 Australia    
  10.4.5 New Zealand   
  10.4.6 South Korea   
  10.4.7 Rest of Asia Pacific   
 10.5 South America    
  10.5.1 Argentina     
  10.5.2 Brazil    
  10.5.3 Chile    
  10.5.4 Rest of South America  
 10.6 Middle East & Africa    
  10.6.1 Saudi Arabia   
  10.6.2 UAE    
  10.6.3 Qatar    
  10.6.4 South Africa   
  10.6.5 Rest of Middle East & Africa  
       
11 Key Developments     
 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
 11.2 Acquisitions & Mergers   
 11.3 New Product Launch    
 11.4 Expansions    
 11.5 Other Key Strategies    
       
12 Company Profiling     
 12.1 ABB     
 12.2 GE     
 12.3 Siemens     
 12.4 Oracle     
 12.5 Schneider Electric    
 12.6 IBM     
 12.7 Wipro     
 12.8 Honeywell    
 12.9 Itron     
 12.10 Eaton     
 12.11 Mitsubishi Electric    
 12.12 Tech Mahindra    
 12.13 SAP     
 12.14 Cisco     
 12.15 Trilliant Holdings    
 12.16 Tantalus     


List of Tables      
1 Global Smart Grid Market Outlook, By Region (2020-2028) ($MN) 
2 Global Smart Grid Market Outlook, By Component (2020-2028) ($MN)
3 Global Smart Grid Market Outlook, By Hardware (2020-2028) ($MN)
4 Global Smart Grid Market Outlook, By Smart Meters (2020-2028) ($MN)
5 Global Smart Grid Market Outlook, By Sensors (2020-2028) ($MN)
6 Global Smart Grid Market Outlook, By Programmable Logic Controller (PLC) (2020-2028) ($MN)
7 Global Smart Grid Market Outlook, By Networking Hardware and Energy Storage (2020-2028) ($MN)
8 Global Smart Grid Market Outlook, By Software (2020-2028) ($MN)
9 Global Smart Grid Market Outlook, By Advanced Metering Infrastructure (2020-2028) ($MN)
10 Global Smart Grid Market Outlook, By Smart Grid Distribution Management (2020-2028) ($MN)
11 Global Smart Grid Market Outlook, By Smart Grid Security (2020-2028) ($MN)
12 Global Smart Grid Market Outlook, By Billing and Customer Information System (2020-2028) ($MN)
13 Global Smart Grid Market Outlook, By Supervisory Control and Data Acquisition (SCADA) (2020-2028) ($MN)
14 Global Smart Grid Market Outlook, By Smart Grid Communication (2020-2028) ($MN)
15 Global Smart Grid Market Outlook, By Smart Grid Network Management (2020-2028) ($MN)
16 Global Smart Grid Market Outlook, By Grid Asset Management (2020-2028) ($MN)
17 Global Smart Grid Market Outlook, By Substation Automation (2020-2028) ($MN)
18 Global Smart Grid Market Outlook, By Services (2020-2028) ($MN)
19 Global Smart Grid Market Outlook, By Consulting (2020-2028) ($MN)
20 Global Smart Grid Market Outlook, By Deployment and Integration (2020-2028) ($MN)
21 Global Smart Grid Market Outlook, By Support and Maintenance (2020-2028) ($MN)
22 Global Smart Grid Market Outlook, By Communication Technology (2020-2028) ($MN)
23 Global Smart Grid Market Outlook, By Wireline (2020-2028) ($MN)
24 Global Smart Grid Market Outlook, By Wireless (2020-2028) ($MN)
25 Global Smart Grid Market Outlook, By Technology (2020-2028) ($MN)
26 Global Smart Grid Market Outlook, By Communication Infrastructure (2020-2028) ($MN)
27 Global Smart Grid Market Outlook, By Distribution & Network Automation (2020-2028) ($MN)
28 Global Smart Grid Market Outlook, By Transmission Upgrades (TU) (2020-2028) ($MN)
29 Global Smart Grid Market Outlook, By Consumer Interface (2020-2028) ($MN)
30 Global Smart Grid Market Outlook, By Cyber Security (2020-2028) ($MN)
31 Global Smart Grid Market Outlook, By Application (2020-2028) ($MN)
32 Global Smart Grid Market Outlook, By Generation (2020-2028) ($MN)
33 Global Smart Grid Market Outlook, By Transmission (2020-2028) ($MN)
34 Global Smart Grid Market Outlook, By Distribution (2020-2028) ($MN)
35 Global Smart Grid Market Outlook, By Consumption (2020-2028) ($MN)
36 Global Smart Grid Market Outlook, By End User (2020-2028) ($MN)
37 Global Smart Grid Market Outlook, By Residential (2020-2028) ($MN)
38 Global Smart Grid Market Outlook, By Commercial (2020-2028) ($MN)
39 Global Smart Grid Market Outlook, By Industrial (2020-2028) ($MN)
40 Global Smart Grid Market Outlook, By Government (2020-2028) ($MN)
       
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

Frequently Asked Questions

In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929

Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.

Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.

All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929

We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.

We have 3 different licensing options available in electronic format.

  • Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
  • 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
  • Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.

All our reports are typically be emailed to you as an attachment.

To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.

We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.

Request Customization

We provide a free 15% customization on every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.

Note: This customization is absolutely free until it falls under the 15% bracket. If your requirement exceeds this a feasibility check will be performed. Post that, a quote will be provided along with the timelines.

WHY CHOOSE US ?

Assured Quality

Assured Quality

Best in class reports with high standard of research integrity

24X7 Research Support

24X7 Research Support

Continuous support to ensure the best customer experience.

Free Customization

Free Customization

Adding more values to your product of interest.

Safe and Secure Access

Safe & Secure Access

Providing a secured environment for all online transactions.

Trusted by 600+ Brands

Trusted by 600+ Brands

Serving the most reputed brands across the world.

Testimonials