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The Smart Grid market is experiencing dynamic shifts driven by technological advancements and a developing emphasis on sustainable power solutions. As societies globally search for more efficient and environmentally friendly ways to manipulate their energy intake, the Smart Grid market has emerged as a key player in reshaping the power panorama. One of the primary marketplace dynamics shaping the Smart Grid industry is the growing integration of digital technologies. Smart Grids leverage advanced communication and management systems to beautify the efficiency and reliability of electricity distribution.
These technologies permit actual-time tracking, information analytics, and automation, allowing utilities to optimize electricity shipping, reduce losses, and respond swiftly to fluctuations in demand. The international push towards renewable power resources is another essential issue influencing the Smart Grid market dynamics. With a developing emphasis on decreasing carbon emissions and mitigating the effect of weather change, there's a heightened consciousness of integrating renewable energy into the energy grid. Smart Grids facilitate the seamless incorporation of renewable resources like sun and wind by efficiently handling the range and unpredictability inherent in this energy paperwork. Moreover, the increasing attention to the need for grid resilience is riding the adoption of Smart Grid answers.
Traditional strength grids are susceptible to disruptions resulting from herbal screw-ups, cyberattacks, or system failures. Smart Grids, equipped with self-recovery talents and strong cybersecurity measures, enhance grid resilience, ensuring a more dependable and stable power infrastructure. Interoperability is a key marketplace dynamic that influences the growth of the Smart Grid quarter. As Smart Grid solutions involve numerous components from exclusive manufacturers, making sure seamless conversation and integration is critical. Standardization efforts and the development of interoperable protocols are vital for fostering a cohesive Smart Grid ecosystem, allowing extraordinary devices and systems to work collectively successfully.
Furthermore, patron engagement and focus make an extensive contribution to the dynamics of the Smart Grid marketplace. As quit customers emerge as more aware of their electricity consumption and its environmental effect, there is a developing demand for technologies that empower customers to participate actively in power control. Smart Grids allow features like demand for response, allowing clients to alter their strength usage based on actual-time pricing or grid situations.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | By Components, By Technology, By End-User, and Region |
Smart Grid Market Highlights:
Smart Grid Market Overview
Smart Grid Market Size was valued at USD 31.5 billion in 2022. The Smart Grid market industry is projected to grow from USD 36.1305 Billion in 2023 to USD 108.238 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.70% during the forecast period (2023 - 2032).The smart grid industry currently exhibits splendid and out-of-the-box opportunities in the electricity-producing energy industry are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Smart Grid Market Trends
Supportive governments policies and regulations are driving market growth
The growing need to alleviate climate change for renewable energy expansion is expected to drive smart grid market CAGR initiatives worldwide. In addition, several governments are progressively investing in smart grid technology, which is expected to help them achieve their carbon emission reduction targets and enable long-term economic prosperity. Moreover, numerous countries already have net energy metering protocols and equipment. Some countries are still exploring the technology and its mechanism, which is expected to provide lucrative opportunities for the smart grid market. For instance, in 2017, under AMI (Advanced Metering Infrastructure), the U.S. installed around 76 smart meters and is anticipated to install approximately 90 million meters by 2020.
Additionally, the growing efforts for curbing carbon emissions and developing renewable and sustainable energy sources are boosting the adoption of smart grid technologies. Moreover, the energy demand is increasing and continuously rising, owing to a rapid increase in the adoption of hybrid and electric vehicles ly. The irregular power supply, especially in the merging and underdeveloped nations, is a major concern that needs to be fixed. Adopting smart grids can efficiently resolve the problem of irregular power supply. These factors drive the smart grid market revenue.
Smart Grid Market Segment Insights
Smart Grid Components Insights
The smart grid market segmentation based on type Components includes Hardware, Software, and Services. The software segment is expected to hold a significant portion of the market owing to the increase in the efforts to modernize the electricity grid and reduce the T&D losses. In addition, the increase in investments in advanced metering infrastructure (AMI) by the government is expected to propel the market growth for this segment. For instance, the U.S. government passed the Energy Independence and Security Act of 2007 to develop and deploy smart grid technologies. Furthermore, the hardware segment is expected to grow owing to the initiatives taken by the governments of various countries across the globe for the installation of smart electricity meters in their countries. The services segment provides applications, including installation and integration of various modules of utility smart grid operations. Hence, enterprises opt for these services to smooth the integration and deployment process and reduce costs.
Smart Grid Technology Insights
Based on technology, the smart grid market segmentation includes wired and wireless. The wireless technology segment will be the fastest-growing communication technology in the smart grid market in 2022. Wireless communication is the most advanced technology at present. It refers to transferring information over a distance without electrical conductors or wires. A reliable, secure, and low-latency bi-directional communication infrastructure is required between the intelligent electronic devices and the control center to implement wireless communication in a substation. Wireless technology ensures cost savings and secure data transmission compared to wired technology. This technology offers utility support by offering high bandwidth, covering a large area, and optimizing complex logistics and production processes.
Figure1: Smart Grid Market, By Technology, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Smart Grid End-User Insights
The smart grid market segmentation is based on end-user residential, corporate and government. The government sector is expected to rise substantially due to the deployment of grid technologies. Furthermore, the corporate sector is expected to grow significantly due to the government's favorable policies and fiscal incentives. In addition, a rise in the number of electric vehicles positively enhances the growth of this sector. The residential sector is estimated to grow due to the increase in awareness regarding the benefits of these technologies, including reduced energy consumption and money-saving across various end-users.
Smart Grid Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American smart grid market will dominate; the government's increased focus on forming appropriate and supportive regulatory frameworks for adopting smart grids in the Region will boost the market growth.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: SMART GRID MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's smart grid market accounts for the second-largest market share due to the encouraging government initiatives concerning clean power generation and the increasing demand for energy efficiency in the power supply. Further, the German smart grid market held the largest market share, and the UK smart grid market was the fastest-growing market in the European Region.
The Asia-Pacific smart grid market is expected to grow at the fastest CAGR from 2023 to 2032. This is dueto the wide adaptation of these technologies and a strong focus on the growth of renewable energy.Moreover, China’s smart grid market held the largest market share, and the Indian smart grid market was the fastest-growing market in the Asia-Pacific region.
Smart Grid Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the smart grid market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The smart grid industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the smart grid industry to benefit clients and increase the market sector. The smart grid industry has offered some of the most significant advantages in recent years. Major players in the smart grid market, including Wipro Ltd (India), IBM Corporations (US), Schneider Electric SA (France), Open Systems International Inc (US), Oracle Corporations (US), General Electric Company (US), ABB Ltd (Switzerland), Itron Inc (US), Cisco Systems Inc (US), Siemens AG (Germany), Aclara Technologies LLC (US) and others, are attempting to increase market demand by investing in research and development operations.
Siemens is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids to cleaner and more comfortable transportation and advanced healthcare, the company creates technology to add real customer value. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them transform daily for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a ly leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a leader in the transmission and generation of electrical power. In January 2019, Siemens announced the acquisition of Russelectric to mark its presence and strengthen its position in the smart grid market.
Schneider Electric SE is a French multinational company specializing in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries, by combining energy technologies, real-time automation, software, and services. In September 2019, Schneider Electric expanded its business by opening a smart distribution center in Brazil, which has helped reduce customer delivery time and optimize supply chain operations by reducing equipment downtime and overall power consumption. The distribution center is accessible to customers, partners, and educational institutions to experience and learn about the company's most innovative technologies delivered through its loT-enabled, open, interoperable architecture and EcoStruxure.
Key Companies in the smart grid market include
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Wipro Ltd (India)
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IBM Corporations (US)
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Schneider Electric SA (France)
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Open Systems International Inc (US)
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Oracle Corporations (US)
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General Electric Company (US)
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ABB Ltd (Switzerland)
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Itron Inc (US)
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Cisco Systems Inc (US)
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Siemens AG (Germany)
Smart Grid Industry Developments
June 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, planning, security, and analysis.
July 2018: ABB acquired GE Industrial Solutions to expand in North America to strengthen its product portfolio in the electrification area.
Smart Grid Market Segmentation
Smart Grid Components Outlook
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Hardware
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Software
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Services
Smart Grid Technology Outlook
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Wired
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Wireless
Smart Grid End-User Outlook
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Residential
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Corporate
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Government
Smart Grid Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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