Smart Grid Software Market - Forecasts from 2025 to 2030

The smart grid software market is projected to grow from US$3.762 billion in 2025 to US$5.844 billion in 2030 at a CAGR of 9.21%.

Smart grid software is a vital part of the smart grid infrastructure that helps simplify the implementation and functions of the smart grid, improve process efficiency, and reduce energy production costs. Smart grids incorporate information and communication technology to minimize environmental impact, enhance markets, improve reliability and service, reduce costs, and improve efficiency.

Furthermore, the increasing global consumption of electricity is also propelling the smart grid software market growth during the forecasted timeline. Electric vehicles (EVs) utilize the smart grid infrastructure as a reliable source of energy for charging. The smart grid software in the automotive sector will help EVs detect energy fluctuations, faults, and other unexpected events with the use of AI-based technologies.

Smart grid software market drivers

• Booming electricity consumption is expected to drive the inductors demand globally.

A major factor propelling the smart grid software market growth worldwide is the rising global consumption of electricity. With this growing global consumption, the load on the existing grids will increase, raising the demand for smart grid management solutions.

The global consumption of electricity in 2023 witnessed a significant increase over the past years. The Enerdata, in its report, stated that in 2023, the total global consumption of energy witnessed a growth of about 2.6%. The agency further stated that in 2022, the total electricity consumed in China and India was recorded at 7,852 TWh and 1,318 TWh, respectively. Similarly, about 983 TWh and 576 TWh were consumed in Russia and Brazil, respectively. In 2023, electricity consumption in China was recorded at 8,392 TWh and 1,407 TWh in India. In Russia and Brazil, electricity consumption surged to 997 TWh and 594 TWh, respectively.

Smart grid software market geographical outlook

• North America will continue to be hold a remarkable share of the market during the forecast period.

Geographically, the smart grid software market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific.

During the forecast period, the North American region is estimated to show significant growth fueled by the ongoing investments in promoting smart grid automation followed by strategic collaboration & government support in new smart grid projects in major regional economies namely the United States

Likewise, the growing electricity consumption in such economies has stimulated the need for implementing grid software for optimizing power distribution. It renders enhanced effective management of the grid as well as curtailing the incidences of power outages to a minimum duration, especially during extreme weather conditions. As per EIA statistics in 2022, electricity consumption in the USA was at its all-time peak, estimated at 4.07 trillion kWh. Furthermore, there has been an increase in the uptake of smart grid software in the region due to the increasing investments in the smart grid.

Hence, financial and support provided by both federal & state government, environmental agencies, and utilities companies in form of loans & grants to support research and development activities, commercialization, and deployment of advanced digital technologies is also driving the regional market expansion. For instance, in October 2024, the U.S. Department of Energy awarded grants worth $70 million each to Arizona Public Service Company (APS) for enhancing its smart grid, adding preventative measures against wildfires, and fulfilling increasing energy demand from customers. These grants were approved as part of the Department of Energy's Grid Resilience and Innovation Partnerships (GRIP) program that seeks to enhance the electric systems in rural areas and tribal as well as disadvantaged communities across the country.

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Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The smart grid software market is analyzed into the following segments:

By Software Type

• Advanced Metering Infrastructure
• Grid Asset Management
• Distribution Management System
• Network Management System
• Substation Automation
• Grid Security
• Billing and Customer Information System

By Service

• Consulting
• Deployment and Maintenance
• Support and Maintenance

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Thailand
• Indonesia
• Taiwan
• Others