Smart Grid Networking Market

Growing use of grid technology is driving the market growth

Market CAGR for smart grid networking is being driven by the rising use of grid technology. These grids offer technologies that enhance problem detection and allow the network to mend itself automatically. The innovative technology continuously monitors for problems and provides energy management systems with real-time help, which improves situational awareness for smart grid distribution management.

For instance, Networked Energy Services Corporation (NES), one of the leading global providers of smart grid solutions with the industry's Energy Applications Platform (EAPTM), announced in May 2021 that it would be enhancing its security solutions with threat detection and response and deploying its new grid watch solution to more than 1 million smart meters by the middle of the year.

The market is anticipated to increase due to certain laws and regulations. As these technologies are predicted to promote long-term economic growth and assist governments in meeting their carbon emission reduction goals, they are increasingly being funded by various governments. Additionally, some nations have net energy metering protocols and equipment, while others are still researching the technology and its workings. This is likely to open up lucrative business prospects. For instance, the Indian Finance Minister stated in 2020 that the government plans to switch to smart electricity meters in three years to replace all existing conventional meters.

These government programs launched by governments of various nations worldwide promote market expansion.

The distribution of plug-in electric vehicles (PEVs) to consumers is now taking place in several countries to aid in the shift to low-carbon transportation. The infrastructure required to use these PEVs effectively is built into a smart grid system. Since various nations, including India, China, Europe, the United States, and others, are currently deploying electric vehicles and encouraging manufacture, increasing electric vehicle production presents a growth opportunity for the industry. For instance, in July 2021, PSE&G, a U.S. utility, will collaborate with Landis+Gyr in New Jersey to supply and install enhanced meters and supporting infrastructure and technologies.

The new, impending smart city initiatives in developing regions provide growth potential for these kinds of the grid.

For instance, the World Bank's Board of Executive Directors authorized a USD 212 million financing package in June 2021 for a new project in Ukraine that included a USD 177 million loan from the International Bank for Reconstruction and Development (IBRD). To help synchronize the Ukrainian power system with the European electrical grid and decarbonize the power industry, the project will significantly improve it. Thus, driving the Smart Grid Networking market revenue.

The Global Smart Grid Networking Market Industry is poised for substantial growth, with projections indicating a market size of 17.2 USD Billion in 2024 and an anticipated increase to 50.7 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 10.33% from 2025 to 2035. The expansion is driven by various factors, including technological advancements, government initiatives, and the rising demand for renewable energy. As countries worldwide continue to modernize their energy infrastructure, the smart grid networking market is likely to play a pivotal role in shaping the future of energy distribution and management.

Government initiatives play a crucial role in the expansion of the Global Smart Grid Networking Market Industry. Various countries are allocating substantial funding to modernize their electrical grids, enhancing reliability and efficiency. For example, the U.S. Department of Energy has launched programs aimed at advancing smart grid technologies, which include financial incentives for utilities to adopt innovative solutions. Such initiatives not only stimulate market growth but also encourage public-private partnerships, fostering technological advancements. The anticipated growth trajectory suggests that the market could reach 50.7 USD Billion by 2035, highlighting the impact of government support on the industry.

The Global Smart Grid Networking Market Industry is witnessing an increased focus on energy efficiency, as both consumers and utilities strive to reduce energy costs and environmental impact. Energy efficiency programs are being implemented globally, encouraging the adoption of smart grid technologies that facilitate better energy management. Utilities are investing in smart grid solutions that provide consumers with insights into their energy usage, promoting conservation behaviors. This shift towards energy efficiency is expected to drive market growth, as stakeholders recognize the economic and environmental benefits of adopting smart grid technologies.

The Global Smart Grid Networking Market Industry is experiencing a surge in demand for renewable energy sources, driven by global initiatives to reduce carbon emissions. Governments worldwide are implementing policies to promote solar, wind, and other renewable energy technologies. This transition necessitates advanced smart grid networking solutions to manage the integration of these variable energy sources effectively. For instance, countries like Germany and Denmark have made significant strides in renewable energy adoption, which requires robust grid infrastructure. As a result, the market is projected to reach 17.2 USD Billion in 2024, reflecting the growing emphasis on sustainable energy solutions.

The Global Smart Grid Networking Market Industry is also driven by rising urbanization and population growth, which are placing unprecedented demands on existing energy infrastructure. As urban areas expand, the need for reliable and efficient energy distribution becomes paramount. Cities are increasingly adopting smart grid technologies to manage energy consumption effectively and reduce outages. For example, cities like Singapore are implementing smart grid solutions to optimize energy use in densely populated areas. This trend is likely to propel the market forward, as urban centers seek to modernize their energy systems to accommodate growing populations.

Technological advancements in communication technologies are significantly influencing the Global Smart Grid Networking Market Industry. Innovations such as Internet of Things (IoT) and advanced metering infrastructure are enabling real-time data exchange between utilities and consumers. This enhanced communication facilitates better demand response strategies and energy management, leading to increased operational efficiency. For instance, smart meters are being deployed globally, allowing consumers to monitor their energy usage closely. The integration of these technologies is expected to contribute to a compound annual growth rate of 10.33% from 2025 to 2035, indicating a robust growth outlook for the market.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia Pacific Smart Grid, Networking market will dominate this market because of the widespread adoption of these technologies and a major emphasis on the expansion of renewable energy. The region's smart grid network market is expanding due to an increased focus on dealing with issues plaguing conventional electric networks, rising concerns about environmental protection, and a surge in smart grid technology to promote energy saving and consumption efficiency.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: SMART GRID NETWORKING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America Smart Grid Networking market accounts for the second-largest market share due to large investments in new and smart city projects; the region is projected to witness a high demand for smart grid technologies. Further, the US Smart Grid Networking market held the largest market share, and the Canada Smart Grid Networking market was the fastest-growing market in the North American region.

From 2023 to 2032, the Europe Smart Grid Networking Market is estimated to develop at the quickest CAGR. The rising demand for energy efficiency in power generation is expected to push the regional outlook. Growing investments in distribution automation and the increasing complexity of power distribution infrastructure are predicted to improve the market outlook. Moreover, the Germany Smart Grid Networking market held the largest market share, and the UK Smart Grid Networking market was the fastest-growing market in the European region.

Leading market companies are making significant R&D investments to diversify their product offerings, which will drive the Smart Grid Networking market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The market for Smart Grid Networking industry is becoming more competitive. Therefore, it needs to offer reasonably priced products to grow and thrive.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers employ in the worldwide Smart Grid Networking industry to assist customers and expand the market sector. The market for Smart Grid Networking industry has recently provided some of the most important benefits. Major players in the Smart Grid Networking market, including Schneider Electric SE and others, are attempting to increase market demand by investing in research and development operations.

Schneider Electric SE is a corporation specializing in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries by merging energy technology, real-time automation, software, and services. Schneider Electric owns Square D, APC, and other companies. It is also a research firm. In janaury 2021, Schneider Electric has purchased DC Systems, a start-up based in the Netherlands specializing in active AC/DC microgrids, DC power conversion, and a wide range of DC solutions.

Schneider Electric is streamlining its portfolio with the acquisition of DC Systems to enable its customers to boost simplicity and robustness for relevant applications such as creating microgrids in unreliable public grid situations and long-distance applications such as public lighting.

Siemens Energy AG is an energy firm founded by the spin-off of Siemens Group's former Gas and Power division. Siemens Energy was established as an independent entity in April 2020 due to the Siemens Group's reorganization. For this reason, Siemens' energy division was moved to the newly independent firm. In September 2021, Siemens Energy introduced the new Unified Power Flow Controller (UPFC) PLUS and increased grid stabilization options. The UPFC PLUS assists system operators in grid stabilization by dynamically managing load flow in alternating-current grid.