The global smart grid market is anticipated to grow at an exponential CAGR of 20.0% during the forecast period. Smart grid applies metering, communications and control technologies for the generation, transmission lines, feeders’ substations, and on-premises technologies. The factors that propel the market growth are increased adoption of technologically advanced products and rising investments, government initiatives, and supporting policies are estimated to be one of the major factors that are fuelling the growth of the smart grid market. Some of the prominent projects initiated by the government include the Salt River Project, Advanced Grid Intelligence and Security (AGIS) initiative, Entergy AMI, gridSMART Phase-2, FirstEnergy Distribution Platform Modernization, and many others.

Moreover, infrastructure growth in developed and emerging countries is also expected to propel the overall growth of the smart grid market. Whereas factors such as high costs, and lack of standardization are some of the factors that restrain the market growth. Moreover, the lack of common implementation standards and interoperability across various regions is expected to hamper the smart grid market during the forecast period.

Impact of COVID-19 Pandemic on Global Smart Grid Market

The COVID-19 pandemic had a negative impact on the global smart grid market. During COVID-19, as of May 2020, 212 countries had been impacted by the pandemic, and the governments of these countries had ordered nationwide lockdowns which halted the operation of several industries including the smart grid. Additionally, production and supply chain delays poised a challenge to the smart grid market. However, as the COVID-19 situation normalizes, the global smart grid market started recovering as industrial operations normalized after the recovery.

Segmental Outlook 

The global smart grid market is segmented based on product. Based on the product, the market is sub-segmented into software (advanced metering infrastructure, smart grid distribution management, smart grid security, grid asset management, and billing and customer information system), hardware (smart meters, sensors, programmable logic controllers (PLC) and others), and service (consulting, support and maintenance and others).

Global Smart Grid Market Share by Product, 2021 (%)

Advanced Metering Infrastructure Holds a Prominent Share in the Global Smart Grid Market.

Based on the product, the advanced metering infrastructure under the software segment is expected to grow at a significant rate during the forecast period. The advanced metering infrastructure includes home network systems that consist of communicating thermostats and other smart meters, in-home controls, and communication networks from meters to local data concentrators. The primary driving factor driving the market for advanced metering infrastructure is the ability to generate timely, automatically and remotely measure electricity use, connect and disconnect services, detect tampering, monitor voltage, and many others.

Regional Outlook

The global smart grid market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Germany, Italy, Spain, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa, and Latin America). Europe is anticipated to grow during the forecast period due to smart grid projects in the region.

Global Smart Grid MarketGrowth by Region, 2022-2028

North America Region Holds a Prominent Share in the Global Smart Grid Market.

The North America region holds a prominent share in the smart grid market. The major factor driving the growth of the market due to the increased adoption of advanced and novel technologies and increased investments by the regional governments. Owing to the mounting severity and frequently occurring natural disasters and power outages are expected to increase the adoption of these technologies. Some of the prominent projects concerning the establishment of smart grids include gridSMART Phase 2, AEP Ohio wanted to implement phase 2, which includes the provision for advanced metering solutions.

Market Players Outlook

The major companies serving the global smart grid market include ABB Ltd., Siemens AG, IBM Corp., General Electric Corp., and Landis+Gyr AG, among others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, partnerships, geographical expansion, and collaborations to stay competitive in the market. For instance, in January 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.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global smart grid market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.