Globally, the size of the Smart Power-Distribution System Market is projected to reach USD 43.58 billion and grow by 14% by 2023 driven by the development of the smart grid many industries benefit from its services.
Electricity management is active through technology; different industries benefit from the smart-power distribution system. The adoption of this smart-distribution system is higher. Energy, utilities, telecommunication and other organizations have more demand. It is a market that offers both power hardware and infrastructural support to the organization. The power meters provide accurate electricity billing.
Further, the system lessens electricity wastage. There is an exceptional feature in the smart-power distribution system for energy efficiency. The organization’s adoption of smart-power distribution can save more than 50% of electricity. In many regions, the traditional power systems are outdated. They lead to power cuts and other disturbances. However, with this technology, there are no such disturbances. Even a small power cut can cause huge losses to industries. However, a constant power supply is available for enterprises with this technology. The smart power distribution architecture is a way to cope with blackouts and power cuts. All these factors increase the overall market value of the smart power distribution system market.
The global pandemic is affecting the growth of profitable markets. The outbreak of covid 19 is slowing down the growth of the smart power distribution system market. The first half of 2020 is a devastating year for the market. The revenue losses are more due to less demand. Most of the industrial activities were considered non-essential by the government. The operations of the market came to a halt during this period.
The complete shutdown has to lead to no market operations during this period. Further, the smart grid is essential for organisations and industries. The shutdown of these operations has to lead to a complete financial crisis. However, all these market challenges are considered short term. As per Smart Power Distribution System Market Forecast the demand rate will gradually surge. Also, the market operation will lead to a high growth rate.
The development of grid infrastructure is a crucial driver for the smart power distribution system market. Today, most of the electrical grids in many countries are outdated. Issues in the grid and delays in the power supply are various issues of the market. These factors affect the operations of any industry. However, with the development of the smart grid, many industries benefit from its services. The development of the smart grid is leading to mobility and reliable connectivity for organisations. The demand and adoption rate of the smart power distribution system market rises due to the development of smart power grid infrastructure. Further, the inclination to renewable energy is more.
Today, many customers and end-users are inclined towards clean energy. Even the governments provide great support for renewable energy generation. The support framework by the government for smart-power is a demand driving factor of this market. The application of smart power is possible in the industrial residential and commercial sectors due to governmental help. The investments and the growth of the smart power distribution system market are due to governmental support. Also, the awareness about renewable energy will stir the overall demand for the market. In upcoming years, the demand and adoption rate will be immense due to these drivers.
The smart city and other smart projects will create several growth opportunities for the market. Smart cities will bring sustainable economic growth to any country. And the high quality of lifestyle will lead to other developments. Smart cities provide remarkable growth opportunities for the Smart Power Distribution System Market. The smart infrastructure is suitable for the smart-power distribution system.
The utilities, healthcare and transportation are efficient with a smart power grid. IoT and much more advanced technologies are integrable with smart cities. Also, the opportunities for smart power distribution will become wide with the smart city projects. The benefits of the smart grid are efficiency, smart monitoring, accurate billing, real-time data that will attract more end users. The demand rate will be robust as the smart-grid offer structure and planned infrastructure for these projects. The rapid urbanization in Asia pacific another region will create a high expansion rate for the smart power distribution system market.
The cost of the installation and maintenance of the smart-power control system is higher. There are technical costs that act as a barrier to disturbed-control system market growth. Due to this, the market players are considering the various cost-reducing initiatives. The high manufacturing cost is a restraint to the global smart-distribution market demand.
Also, the transformation to adapt to the smart-power system is high. This change can include a massive amount of cost and investment from and users. Due to these factors, many end-users are ready to adopt this advanced technology. The developing nation does not have enough funds to adopt this expensive infrastructure. Huge financial support is essential for regions that do not have enough funds for this process. All this can affect the demand and adoption rate of the smart power distribution system market in the forecast period.
Smart-power distribution is a complex system. The storage requirements are higher for this system. Further, proper storage and management are crucial for smooth market operations. It is a system that provides real-time data about utility, consumption and transmission. However, the massive amount of data available through the system is unstructured. Gaining proper insights from these data is a complex process.
For this high efforts are required for the data storage. The complexity in Decision making and data storage is a major challenge of the smart power distribution system market. These challenges can lessen the adoption rate of this technology. It can hamper the growth of the market in the forecast period.
Smart Power Distribution System Market Trends remain stable over the forecast period. The component and software segment of the market is witnessing the demand in the forecast period. There are plenty of drivers in the market that constantly boost the demand. Development in smart-grid and awareness about remarkable energy is driving the demand.
Also, the governmental support is massive for this market. However, the high implementation cost can hamper the growth of the smart power distribution system market. Also, the need to store complex data is another challenge in the market. Overall the market has plenty of growth opportunities that will lead to high revenue rates. Smart cities will provide growth opportunities for the smart-power distribution system market.
During the forecast year, the North American region is the fastest-growing market. The rapid urbanization and demand for sustainable energy are the key market drivers. The rising investments in these regions in the power industry subsequently increase demand.
The US is investing more in the power generation industry to meet the industrial demand of the country. This initiative by the government to offer renewable energy is high. North America will hold the highest smart-power distribution system market share.
The smart power distribution system market is highly competitive due to strong key players. The global distributors experience severe competition from the local vendors. Therefore, the prominent players in the market are raising their focus on R&D investments and massive productions for sustenance.
The key players of the smart power distribution system market are Asia Pacific, Europe and North America. The growth rate will reach a significant amount in this region. The presence of top leaders is propelling the demand in this region. There are plenty of initiatives taken to create more awareness about renewable energy. The adoption rate in this region will be immense.
Further, the Asia Pacific region is another key market. Rapid industrialization and urbanization will lead to tremendous demand. Energy efficiency and cost-efficient electricity will attract many end-users in this region. Europe will have a decent demand rate for the Smart Electricity Distribution Networks. Overall the regional players will contribute to the growth of the smart power distribution system market.
The key players of the smart power distribution system market are
Schneider Electric launched a new version of its distribution system, Eco-Structure Power. This IoT-enabled architecture and platform are designed to digitize and simplify electrical distribution infrastructure and deliver “always-on” power for commercial buildings, healthcare, data centres, industry and infrastructure. This new upgraded Eco-Structure has enhanced cybersecurity features, improved connectivity and predictive analytics features to reduce electrical fires and ensure the safety of equipment and personnel.
ABB (India Limited) signed a memorandum of understanding (MoU) with the Indian Institute of Technology Roorkee (IITR) for technical cooperation to build an operational smart electricity distribution network and management system (SDNMS) on its campus. This served as a pilot project for the Government of India’sIndia’s Smart Cities Mission. This agreement also included creating a Smart Grids Resource Centre and joint R&D facilities for inefficient power generation and distribution with a prime focus on clean energy over the next five years.
|Market Size||USD 43.58 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Application, Regions|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||General Electric Company (U.S.), ABB Ltd. (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), Aclara Technologies LLC (U.S.), Honeywell International Inc. (U.S.), Tech Mahindra (India), Oracle Corporation (U.S.), Eaton Corporation (Ireland), Itron, Inc. (U.S.)|
|Key Market Opportunities||New product launches and R&D Amongst major key Players.|
|Key Market Drivers||
The smart power distribution system market valuation would be USD 43.58 bn by 2023.
The smart power distribution system market CAGR would be 14% during the forecast period of 2018 to 2023.
The smart power distribution system market would get dominated by North America.
The smart power distribution system market has players like Aclara Technologies LLC (U.S.), General Electric Company (U.S.), Itron, Inc. (U.S.), Honeywell International Inc. (U.S.), Oracle Corporation (U.S.), Siemens AG (Germany), Schneider Electric SE (France), ABB Ltd. (Switzerland), Eaton Corporation (Ireland), Tech Mahindra (India), and others.
The segments mentioned in the smart power distribution system market are component and application.