Smart Grid Market

[350 Pages Report] The smart grid market is expected to grow from an estimated USD 161.1 billion by 2029 from an estimated USD 73.8 billion in 2024, at a CAGR of 16.9% during the forecast period. The demand for smart grid is growing due to the supportive regulatory framework of governments worldwide to promote deployment of smart grids and spreading awareness about energy conservation. Additionally, With the increasing complexity of the bulk power system and the growing focus on mitigating power outages, smart grid technology is poised to transform the traditional grid and is likely to become a more reliable and resilient approach.

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Smart Grid market Dynamics

Driver: Improved grid reliability and efficient outage response

As the world shifts towards sustainable development, renewable energy sources like wind, solar, biofuels, hydro, and geothermal now contribute over 15% of global energy generation. With the increasing complexity of the power system and a focus on reducing outages, smart grid technology is set to revolutionize the traditional grid, enhancing reliability and resilience. This technology enables utilities to expedite power restoration after major storms, cutting costs and downtime, thus minimizing financial losses. By providing superior situational awareness and utilizing cloud-processed data for autonomous control, smart grids enhance outage detection and restoration capabilities through automation and big data analytics. To further improve outage prevention, utility providers should incorporate outage mapping and analytical tools to leverage smart grid data fully. While integrating small-scale renewable sources into traditional grids can cause fluctuations and waste, smart grids help optimize electricity consumption and reduce carbon emissions. The smart grid infrastructure facilitates the integration of renewable energy at both transmission and distribution levels, making it more accessible for commercial and residential use.

Restraints: Low awareness of protocols and interoperability standards

Utility providers encounter several challenges in deploying smart grid technology, including issues related to security, standards, and interoperability. A major obstacle is the lack of awareness among smart grid system designers about existing standards, leading to non-compliance during manufacturing. Additionally, integrating interchangeable parts from various global providers poses significant difficulties for manufacturers. Although utility providers can purchase and deploy equipment from multiple vendors, there is a pressing need for interoperability standards to ensure seamless interaction with existing equipment. Many vendors and equipment providers also lack proper certifications, making it challenging for utility providers to access data from legacy systems. The insufficient knowledge of communication standards, IT protocols, and the need for the latest components and devices further impede smart grid deployment. Despite the efforts of the National Institute of Standards and Technology (NIST) in creating the Smart Grid Interoperability Panel (SGIP) and the recent publication of energy management standards by countries like China, Japan, Brazil, and India, there remains a strong need for global adherence to interoperability standards. Without the implementation of appropriate standards, the full benefits of smart grid technology cannot be realized.

Opportunity  Ongoing smart city projects in developing countries

Smart cities are advanced urban areas designed to foster sustainable economic growth and high quality of life through excellence in technology, mobility, environmental practices, living standards, and governance. With over 100 smart city projects underway globally, there are significant opportunities for technology companies, utility service providers, and consulting firms. In smart cities, utilities, safety, transportation, and healthcare services are managed more efficiently and intelligently by leveraging resources and advanced technologies such as IoT and smart energy meters. Traditional power grid models fall short in meeting the needs of energy monitoring, real-time data collection, and smart billing required by modern urban settings. Smart cities will heavily rely on robust smart grid platforms to establish centrally planned and controlled infrastructures. Favorable conditions, including developed ICT infrastructure and improved internet access, are expected to drive the widespread adoption of smart grids in these cities. The APAC region is experiencing rapid urbanization, with both developed and developing countries increasingly adopting smart city technologies. Developing countries like China, India, and Brazil are anticipated to build new infrastructure to support smart grid technology, enabling the private and public sectors to develop cost-effective, innovative solutions.

Challenges: Proper storage and management of complex data generated by smart grid infrastructure

The deployment of smart grid technologies has resulted in the generation of vast and highly complex data sets related to consumer information, utility consumption, and transmission logs. This data is often unstructured and requires processing to extract valuable insights. The continuous data generation from various network nodes poses challenges for smart grid solution providers in efficiently storing and managing this information. Unmanaged data can lead to multiple threats and make it difficult to derive meaningful insights. Authorities need to establish high-volume data centers and deploy analytical solutions without increasing costs.

Utility providers face the significant challenge of understanding the social, economic, and environmental value of smart grid data and developing solutions to aggregate and correlate this information. Smart utilities generate immense volumes of data from millions of smart meters, grid sensors, control devices, and networks of other electronic devices. The challenge for utility technology providers lies in generating and gathering useful data insights for intelligent decision-making. Processing large volumes of data for real-time analytics is a key function of smart grid technology. To stay competitive, solution providers must develop advanced data analytical techniques and accurate predictive analysis models. Offering intelligent business solutions to predict equipment failures, natural disasters, their effects, and customer behavior patterns based on historical data and usage patterns is a complex challenge for utility providers.

Siemens and General Electric are major providers of big data solutions that address smart grid data challenges. There is a need for more solutions and increased investment in analytics to manage and transform data into actionable insights.

Smart Grid  Market Ecosystem

Notable players in this industry comprise long-standing, financially robust manufacturers of smart grid Market and related components. These companies have a significant track record in the market, offering a wide range of products, employing cutting-edge technologies, and maintaining robust global sales and marketing networks. Prominent companies in this market include General Electric Company (US), ABB (Switzerland), Siemens (Germany), Schneider Electric (France), and Itron (US).

Hardware, is expected to be the second largest market, based on component

Due to the growing use networking hardware to enable communication between different elements of a smart grid. PLC carries out control and monitoring functions in the smart grid. The segment is witnessing significant growth in the market, with the number of players offering cost-effective hardware components. These hardware devices capture numerous data from both consumers and energy utilities to derive useful information and insights. Smart meters are used to capture the data from the end user’s sensors, which are deployed to regulate voltage and current in the system.  The expansion of this market is driven by government subsidies, increasing efficency, and environmental consciousness.

Distribution, by application, to hold the largest market share during the forecast period

The distribution segment in the smart grid market is growing rapidly due to the global shift towards reducing energy loss. Distribution intelligence, a part of the smart grid, is applied to the utility distribution system, including wires, switches, and transformers, which connects the utility substation to the customers. As the power industry accelerates electrification efforts, the demand for high-performance and efficient distribution channel is on the rise.

North America is expected to account for the largest market during the forecast period.

North America is the fastest-growing market for smart grid owing to several key factors. The region is witnessing a substantial increase in renewable energy projects, particularly in solar and wind, spurred by government initiatives, tax incentives, and heightened environmental awareness. The United States, in particular, is leading the charge in the adoption of clean energy solutions, creating a strong demand for smart grid technologies to efficiently integrate these renewable sources into the power grid. Advancements in smart grid technology are central to this growth, enabling better energy management, real-time data analytics, and enhanced grid reliability. The electrification of various industries, coupled with the surge in electric vehicle (EV) adoption, further accelerates the deployment of smart grids, as they are essential for supporting the necessary charging infrastructure. As consumers and businesses in North America increasingly prioritize sustainability, the market for smart grid solutions is expanding rapidly. Technological innovations, such as improved data analytics and predictive maintenance, are critical in managing the vast amounts of data generated by smart grids, ensuring efficient energy distribution and minimizing outages. Regulatory support and policies favoring clean energy and technological advancements play pivotal roles in shaping the dynamic and expanding landscape of the smart grid market in North America. This confluence of factors positions the region as a leader in the adoption and implementation of smart grid technologies, paving the way for a more sustainable and efficient energy future.

Key Market Players

The smart grid market is dominated by a few major players that have a wide regional presence.zerland) ABB Group. Leading digital technologies for industry — ABB Group (global.abb), Siemens (Germany) Siemens, Schneider Electric (France) Schneider Electric Glob The major players in the smart grid  market are General Electric Company (US) GE Companies: Next Generation and Future | General Electric, ABB (Swital | Global Specialist in Energy Management and Automation (se.com), Wipro (India) Wipro | Digital, Technology, Business Solutions,Oracle (US) Oracle | Cloud Applications and Cloud Platform, Cisco (US) Oracle | Cloud Applications and Cloud Platform, Eaton (Ireland) Global power management company | Eaton, MITSUBISHI HEAVY INDUSTRIES, LTD (Japan) Mitsubishi Heavy Industries, Ltd. Global Website (mhi.com), and Itron (US) Home - Itron.Between 2019 and 2023, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the smart grid market.

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Scope of the Report

This research report categorizes the smart grid market by component, application, technology, and region

On the basis of component, the smart grid market has been segmented as follows:

• Software
• Hardware
• Services

On the basis of application, the smart grid market has been segmented as follows:

• Generation
• Transmission
• Distribution
• Consumption/End use

On the basis of Communication Technology, the smart grid market has been segmented as follows:

• Wireline
• Wireless

On the basis of region, the smart grid market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In July 2021,  GE Renewable Energy, in partnership with Ccalpine, has completed the Santa Ana storage project in Southern California. The project will be able to provide energy to up to 12,000 households during peak events, and 24,000 households during normal load conditions.
• In April 2018, ABB launched a digitally integrated power transformer. The digital capabilities of this transformer enhance the reliability and efficient utilization of grid assets and power networks.
• In August 2021, Siemens Limited and Tata Power Delhi Distribution Limited (Tata Power-DDL) successfully deployed Smart Metering Technology for over 200,000 smart meters in North Delhi.
• In November 2021, Schneider Electric acquired DC Systems BV, which is a major supplier of smart systems. This has helped the company in advancing innovations in electrical distribution.
• In January 2021, Versant Power deployed Itron’s AMI solution across its service territory for data management, analytics, grid performance, increased operational efficiency, and a better customer experience. With Itron’s intelligently connected network and high-performance endpoints, the utility is equipped with better outage management capability and the foundation for future customer programs.

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