Smart Grid Networking Market Overview
The Smart Grid Networking Market size is projected to grow from USD 17.20 Billion in 2024 to USD 37.76 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.32% during the forecast period (2024 - 2032). Additionally, the market size for Smart Grid Networking was valued at  USD 14.8 Billion in 2023.
The increasing demand for smart grid technology and equipment, including EV chargers are the key market drivers enhancing the market growth.
Figure 1: Smart Grid Networking Market Size, 2022-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart Grid Networking Market Trends
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.
Smart Grid Networking Market Segment Insights
Smart Grid Networking Hardware Insights
Based on Hardware, the global Smart Grid Networking market segmentation includes cables, controllers, routers, smart meters, switches, and others. The smart meters segment dominated the market, accounting for 35% of market revenue. The rapid advancements in cloud computing, analytics, and electronics have fueled the need for smart gadgets. The smart-meter market is expanding due to governments' increased investments in smart cities. The expansion of remote power grid monitoring and control pushed the market for smart grids, which also drives up demand for meters.
Smart Grid Networking Software Insights
The global Smart Grid Networking market segmentation, based on software, includes network performance monitoring, IP address management, network traffic management, network device management, network configuration management, and network security management. Network performance monitoring segment dominated the market because of increased efforts to modernize the power system and reduce T&D losses. Furthermore, the government's increased investments in advanced metering infrastructure (AMI) will likely drive market growth in this area.
Smart Grid Networking Services Insights
Based on services, the global Smart Grid Networking market segmentation includes consulting, network planning, design & integration, network risk & security assessment, network maintenance & support, and others. The network risk & security assessment category generated the most income. Rising demand from the buildings and construction industry, especially in developing economies, will emerge as the major market growth driving factor. Surging global demand for cost-effective energy, increased adoption of new and advanced technology, increased adoption of software-based architecture in emerging nations, increased investment in workforce management and quality monitoring, and strengthening the IT industry in developing economies such as India and China will all exacerbate market growth.
Figure 2: Smart Grid Networking Market, by Services, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart Grid Networking Regional Insights
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, MRFR 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.
Smart Grid Networking Key Market Players & Competitive Insights
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.
Key Companies in the Smart Grid Networking market include
Smart Grid Networking Industry Developments
In a report that was published in December 2023, ISGAN (International Smart Grid Action Network) started some new initiatives to enhance the global smart grids. A new 'Lighthouse Project' titled “Electricity network planning and implementation under uncertainty for the clean energy transition: The roles of smart distribution grids in energy systems" is meant to create stronger links between six groups within Networks concerned with smart distribution grids.
Schneider Electric acquired DC Systems BV, one of the leading suppliers of intelligent systems, in January 2021. Through this acquisition, Schneider Electric has been able to drive innovation in electrical distribution and smart grid spaces.
A partnership between GE Renewable Energy and Ccalpine saw the Santa Ana storage project located in Southern California completed by July 2021. This project will be able to feed up to twelve thousand homes during peak events or twenty-four thousand households at a typical load.
Siemens Limited and Tata Power Delhi Distribution Limited (Tata Power-DDL) have successfully deployed Smart Metering Technology for more than two hundred thousand smart meters in North Delhi in August 2021.
Schneider Electric acquired DC Systems BV, one of the largest providers of intelligent systems, in November 2021. Thus, it promoted its innovations regarding electric distribution.
The Versant Power company deployed Itron's AMI solution across its service territory for data management, analytics, and grid performance enhancement, as well as increased operational efficiency and better customer experience in January 2021.In addition,Itron's intelligently connected network supported by high-performance endpoints equip the utility with superior capability of outage management and serve as a basis for future consumer programs.
Siemens Energy introduced an enhanced Unified Power Flow Controller (UPFC) PLUS variety offering wider choices for stabilizing the grid system during September 2020. The UPFC PLUS assists system operators in grid stabilization as they can dynamically control the load flow in AC grids.
Energy Efficiency Services Limited (EESL), a joint venture of four public sector enterprises under the Union Ministry of Power of India, has announced an investment plan of INR 2,700 crore for the smart meter project in Uttar Pradesh, India during August 2019. Consequently, EESL is expected to install four million electricity meters on the premises of state power consumers within three years from 2019 to 2022 under this ambitious program.
With digital capabilities integrated into it, ABB introduced a digital integrated power transformer in April 2018. These digital functions enhance reliability and efficient utilization of grid assets and power networks.
Smart Grid Networking Market Segmentation
Smart Grid Networking Hardware Outlook
Smart Grid Networking Software Outlook
Smart Grid Networking Services Outlook
Smart Grid Networking Regional Outlook
| Attribute/Metric |
Details |
| Market Size 2023 |
USD 14.8Â Billion |
| Market Size 2024 |
USD 17.20648 Billion |
| Market Size 2032 |
USD 37.76 Billion |
| Compound Annual Growth Rate (CAGR) |
10.32% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Hardware, Software, Services, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
ABB Group (Switzerland), Cisco Systems, Inc. (U.S.), Mitsubishi Electric (Japan), Fujitsu (Japan), General Electric Company (U.S.), Huawei Technologies Co. Ltd. (China), Itron (U.S.), Schneider Electric SE (France), Siemens AG (Germany) and Trilliant Holdings, Inc. (U.S.) |
| Key Market Opportunities |
The global smart grid networking market. Increasing deployment of smart grids will create opportunities for traditional energy and open market for new players. |
| Key Market Dynamics |
The growth of the market in North America is attributed to technological advancements |
Smart Grid Networking Market Highlights:
Frequently Asked Questions (FAQ) :
The global Smart Grid Networking market size was valued at USD 14.8 Billion in 2023.
The global market is projected to grow at a CAGR of 10.32% during the forecast period, 2024-2032.
North America had the largest share in the global market
The key players in the market are General Mills Inc., Amway, Conagra Brands Inc., Cargill Incorporated, Abbott Laboratories, Kraft Foods Group Inc., The Coca-Cola Company.
The beverage category dominated the market in 2023.
The store based had the largest share in the global market.
