Smart Grid Market Research Report- Global Forecast 2030

Smart Grid Market Research Report- Global Forecast 2030

ID: MRFR/ICT/0604-HCR | February 2023 | Region: Global | 110 pages

Impact of Covid-19 Outbreak on Smart Grid Market


The COVID-19 outbreak has had detrimental effects on the global economy as many industries, including the power industry, have been affected by the current circumstances while operations of various sectors have come to a standstill. In the energy & power industry, many companies are dealing with several challenges due to a decline in electricity prices post the COVID-19 outbreak. Moreover, as per the US Department of Homeland Security (DHS), the utilities industry is one of the 16 industries that is considered as critical infrastructure sectors facing high impact due to the COVID-19 outbreak. Other major sectors include power plants, dams, nuclear reactors, and transmission systems, among others. Furthermore, due to the pandemic and containment measures taken by governments globally, major sports events, concerts, commercial events, and businesses have scaled back drastically in the world, resulting in declining electricity demand. This has impacted the smart grid industry by a slowdown in hardware component installations. For instance, manufacturers of smart grid hardware devices are facing issues related to order sales, delays in raw materials from suppliers, and others. Furthermore, Italy has been one of the worst affected countries due to this pandemic. According to the Electric Power Research Institute (EPRI), Italy has witnessed a decline in electricity demand from 18% to 21% reduction in peak demand and energy use on a year-on-year basis.  


FIGURE: GLOBAL GRID EDGE DEPLOYMENTS, 2019


Despite the lowering demand for electricity, the distributed energy resources such as batteries, solar, sensors, smart meters, and other smart grid components are helping the utilities to assess the customer data through remote operations. However, smart grid deployment would be affected drastically. In general, utilities require long extended sales cycles of anywhere between one year and three years. Due to the pandemic situation, the grid edge sales cycles are expected to be delayed furthermore as the inspections, measurements, and installations are stopped. Moreover, as per the Energy Information Administration (EIA), solar and energy storage systems are expected to see a 1.2 GW decline in residential solar in the US and a 20% global decline in 2020. As a result, the solar and wind energy operators are in favor of extension on tax credit deadlines from the US government.


Smart Grid Market


Source: Primary Experts, Secondary Sources and MRFR Analysis


GRID EDGE DEPLOYMENTS


Source: Grid Edge Data Hub