ID: MRFR/E&P/9135-HCR | 111 Pages | Published By Chitranshi Jaiswal on April 2023
Grid Optimization Solution Market is expected to be valued at USD 7,731 Million, with a CAGR of 11% Forecast by 2030
The Grid optimization solution market size is expected to grow at a rate of 11% during the period 2022-2030. Due to the rise of distributed energy generation, which has resulted in increasing grid complexity, the worldwide Grid Optimization Solution Market Share and Grid Optimization Solution Industry Growth is predicted to grow rapidly during the forecast period. During the forecast period, this is projected to drive demand for grid optimization solutions. Grid optimization solutions are small electrical devices that detect and monitor equipment in power systems. These devices monitor electrical equipment located in power plants or substations, such as transformers, arrestors, power lines, and other equipment, as well as demand-side management in smart grids. These devices are used to improve energy efficiency in homes and offices. Grid optimization has the potential to lower the overall cost of supplying power to customers, improve grid stability, and assure asset efficiency, all while postponing expenditures in generating transmission, and distribution assets.
Hardware is an important part of a smart grid architecture since it increases the grid's flexibility. Smart meters, controllers, routers, switches, wireless access points, bridges, gateways, hubs, repeaters, load tap changers, protective relays, and sensors are among the power products included. These hardware devices collect a variety of data from users and energy providers to extract relevant information and insights. Until recently, the expansion of the hardware segment was fueled by the electric power sector's transformation, which focused on replacing aging assets with smart grid systems for power utilities to better monitor and control the supply chain. However, the situation has changed after the onset of COVID-19. Due to the global lockout, Grid Optimization Solution Market manufacturers are having trouble closing orders on schedule. There are also delays in acquiring raw supplies from vendors, most of whom are based in China and Southeast Asia. Manufacturers all across the world are feeling the effects of these difficulties.
The growing demand for energy efficiency and the changing energy landscape are the two primary reasons propelling the worldwide Grid Optimization Solution Market Size, Grid Optimization Solution Industry Share, and Grid Optimization Solution Industry Growth forward. The networks that were constructed a few decades ago are still in use and need to be transformed to meet the growing demand for reliable electricity. As a result, utilities are concentrating on increasing the efficiency of power networks by integrating renewable energy sources and utilizing information and communication technology, such as grid optimization solutions during the Grid Optimization Solution Market Analysis. Furthermore, as more smart grids are developed, the need for grid optimization solutions will increase, as this system is a vital aspect of smart grid infrastructure. Smart grids, for example, use monitors, controllers, sensors, and analyzers to access electrical load to regulate electricity demand and supply, cut prices, and save energy. They entail the employment of a variety of components as well as different solutions and energy monitoring techniques. These technologies aid in the grid integration of renewable energy sources and improve the efficiency and flexibility of the electrical grid network because of various Grid Optimization Solution Market Key Players. The Grid Optimization Solution Industry has grown at a faster rate in recent years as a result of many factors, including the deployment of smart metering infrastructure, which generates a massive amount of data, the limited nature of non-renewable energy sources, and the rising demand for consumer engagement. The development in cloud-based solutions/Software-as-a-Service (SaaS) solutions, increasing demand for system integrators, and a shift in focus on grid operation optimization are all market prospects in the Grid Optimization Solution Industry environment.
The market's growth has been hindered by the high costs of smart grid systems and a scarcity of experienced specialists. The most significant impediment to smart metering is the lack of capital finance. Smart systems are more expensive than traditional metering equipment used by the majority of service providers and users. Furthermore, different smart meters have been built with varying characteristics based on operational and customer needs, making them a complicated piece of equipment that requires specialized workers to handle and install.
Furthermore, due to several benefits such as reduced peak load, stable electricity, real-time monitoring, demand-side management, and lower carbon emissions, nations all over the world are focused on the development of smart grids and the integration of optimization systems. These grid optimization methods are often self-contained and hence aid in the mitigation of grid disturbances in a traditional grid network. According to the US Department of Energy, yearly smart grid infrastructure expenditure in the US is estimated to reach USD 13 billion by the end of the forecast period.
The Grid Optimization Solution Market Report has been bifurcated into various segments that will help the market to achieve the highest CAGR during the forecast period. The market segments are as follows:
Based on the type, the grid optimization solution market has been segmented as follows:
Based on the application, the grid optimization solution market has been segmented as follows:
Based on the region, the grid optimization solution market has been segmented as follows:
Due to the increased installation of DERs, particularly in the United States, North America has the greatest share of the grid optimization solution market. For example, the US electricity system has access to more than 50 GW of behind-the-meter flexible resources, including distributed energy resources that have already participated in demand response programs. All of these reasons will boost demand for grid optimization solutions in the region since grid complexity will lead to additional grid optimization solutions being installed. Furthermore, several large firms are working on product innovation to expand their portfolio of grid optimization solutions.
Furthermore, due to an increase in the share of renewable energy sources and government initiatives to promote the installation of these systems to reduce the complexity caused by the integration of renewable energy solutions in the grid infrastructure, North America is one of the leading regions in the grid optimization solution market. Residential Renewable Energy Tax Credits, USDA - Rural Energy for America Program (REAP) Grants, and corporate tax incentives are only a few of the policies and incentives put in place by the US government to encourage the installation of grid optimization solutions. During the forecast period, such factors are projected to boost demand for grid optimization solutions in North America.
Smart grids aid in fulfilling energy demand, reducing T&D losses, and bridging the gap between demand and supply for electricity. During the forecast period, the development and installation of Grid Optimization Solution are likely to lead to greater use of DERMS to control, maintain, and optimize the grid network. As a result, leading players in the globally distributed energy resource management system market are projected to benefit from the growth of the Grid Optimization Solution Market. The major Grid Optimization Solution Market Key Players are as follows:
Hitachi ABB Power Grids signed a contract with the Gulf Cooperation Council Authority (GCCIA). Hitachi ABB Power Grids offered RelCare, a new reliability-based service solution, as part of this deal. GCCIA has been able to improve operational performance and network system dependability thanks to this approach. During the projected period, such advancements are expected to propel the worldwide grid optimization solution market forward.
The Los Angeles Department of Water and Power (LADWP) has inked a deal with Itron Inc. to improve grid awareness and lower operational expenses. LADWP may use Itron's Industrial IoT network and Distribution Automation (DA) solution to modernize its grid as a result of this agreement.
The research, Global Grid Optimization Solutions Market, was created with input from industry experts and is based on an in-depth market analysis. The research also examines the market's current state and future growth potential. There is a discussion of the top vendors active in this market which is also included in the report. The report divides the Grid Optimization Solution Market into four categories: deployment, solution, applications, and end-users. Smart grids can also enable demand flexibility and customer participation in the energy system at the end-user level, such as through demand response, EV charging, and self-produced distributed production and storage.
|Market Size||2030: 7731.00 Million|
|CAGR||11% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, Application, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Hitachi ABB Power Grid, Hubbell, Eaton Corporation, GE, FirstEnergy, Green Mountain Power, Doble Engineering Company, Énergir Limited Partnership, EKM Metering, and CGI Group|
|Key Market Opportunities||development of more and more smart grids will also boost the demand for grid optimization solution|
|Key Market Drivers||advancement in landing string technologies and growing demand for landing string optimization in subsea wells|
Grid Optimization Solution market is predicted to grow at 11% through forecast period of 2022-2030.
Hitachi ABB Power Grid, Hubbell, Eaton Corporation, GE, FirstEnergy, Green Mountain Power, Doble Engineering Company, Énergir Limited Partnership, EKM Metering, and CGI Group
Global Grid Optimization Solution Market is dominated by North America region.
The forecast period for Grid Optimization Solution market research report is 2022-2030.
The major factors driving the growth of the global grid optimization solution market are the growing demand for energy efficiency and changing energy landscape.