The global smart grid market size accounted for USD 32 billion in 2022, and it is expected to hit around USD 166.77 billion by 2032, poised to grow at a CAGR of 18% from 2023 to 2032.
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The U.S. smart grid market size reached USD 30.6 billion in 2022 and is projected to be worth USD 162.4 billion by 2032, at a CAGR of 18% between 2023 to 2032.
Based on region, North America dominated the global smart grid market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. The countries like US and Canada witnessed an increased focus of the government on forming appropriate and supportive regulatory frameworks relating to the adoption of the smart grids in the region. The early adoption of the smart grid in the region owing to the increased financial strength of the economy has fostered the growth of the smart grid market in North America and the region emerged as a market leader.
On the other hand, Asia Pacific is estimated to be the most opportunistic segment during the forecast period. The nations like China, Thailand, and India are providing lucrative growth opportunities in the forthcoming years owing to the increasing government initiatives and investments in the installation of the smart grid systems across the nation for the efficient power supply. For instance, the Ministry of Energy, in Thailand, joined hands with the New Energy and Industrial Technology Development Organization and the Marubeni Corporation to increase the operational efficiency of the energy generation plants in Thailand.
The global smart grid market is primarily driven by the favorable regulatory frameworks of the governments of various nations that encourages the deployment of the smart grids. The governments’ regulatory framework supports and mandates the installation of smart power grids by spreading awareness regarding the benefits of smart grids. The smart grids are capable of detecting faults in the network and it can automatically self-heal the fault in the network. Thus, the efficient power supply and reliability offered by the smart grids is expected to provide impressive opportunities to the economy and various industries in the forthcoming years. Furthermore, the rising concerns related to the protection of environment is fostering the growth of the smart grid market as the smart grids provide energy efficiency in consumption and conservation. The rising investments in the development of the digital electricity infrastructure is driving the market growth across the globe. The smart grid technology is also boosting the adoption of smart meters, electric vehicle chargers, and various other smart grid technologies, which contributes towards the development of the smart grid infrastructure.
The growing efforts for curbing carbon emissions and develop renewable and sustainable energy sources is boosting the adoption of the smart grid technologies. Moreover, the demand for the energy is increased and is continuously rising owing to a rapid increase in the adoption of the hybrid and electric vehicles across the globe. The irregular supply of power especially in the merging and underdeveloped nations is major concern that needs to be fixed. The adoption of smart grids can efficiently resolve the problem of irregular power supply. Moreover, the prosed plans of the government in various nations to develop smart cities is expected to drive the growth of the smart grid market. The rising government initiatives to develop strong infrastructure and rising initiatives to progress towards the electrification of the rural areas is driving the smart grids adoption in the developing nations that is expected have a significant impact of the growth of the global smart grid market.
|Market Size in 2032
|USD 166.77 Billion
|CAGR of 18% From 2023 to 2032
|Fastest Growing Market
|2023 to 2032
|Technology, Application, Region
|GE, Schneider Electric, ABB, Siemens, Itron, Cisco, Aclara, OSI, Oracle, Wipro, IBM, Honeywell
Based on the technology, the advanced metering infrastructure segment dominated the global smart grid market in 2022, in terms of revenue. This is attributed to the increasing adoption of the smart meters across the globe. The smart meters ensures reliable, efficient, and regular power supply that fosters the growth of the market. The advanced metering infrastructure reduces operational cost, ensures data safety, detection of network error, and many more. The wide range of benefits associated with the adoption of the AMI is significantly driving the growth of this segment.
On the other hand, the distribution is estimated to be the most opportunistic segment during the forecast period. The rising adoption of the cloud computing and improvements in the management system is fostering the growth of this segment. The rising expenditure on the research for the development of enhanced technologies is fueling the market growth.
Based on the application, the transmission segment accounted for over 26% of the market share in 2022. This is attributed to the higher demand for the secure, quality, and reliable transmission across the globe. Moreover, the transmission and distribution losses is a major concern that fosters the growth of the transmission segment across the globe.
On the other hand, the consumption is estimated to be the fastest-growing segment during the forecast period. The low response duration for outage, increased energy efficiency, and efficient resource utilization are the major drivers of this segment. Furthermore, the segment’s growth is augmented due to the increasing adoption of the ICT technologies in the smart grid systems.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
In January 2019, Siemens announced to acquire Russelectric to mark its presence and strengthen its position in the global smart grid market.
The various developmental strategies like acquisitions, partnerships, and collaborations fosters market growth and offers lucrative growth opportunities to the market players.
Segments Covered in the Report
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