PUBLISHER: The Business Research Company | PRODUCT CODE: 1673982
PUBLISHER: The Business Research Company | PRODUCT CODE: 1673982
Smart grid technology refers to an electrical network designed to manage and monitor the transmission of power from various generation sources to meet the diverse electricity needs of end customers. This network utilizes digital and sophisticated technologies.
The primary components of smart grid technology include hardware, software, and services. Hardware encompasses both internal and external components that facilitate key operations, such as input, output, storage, communication, and processing. Upgrades in these components are essential for utilizing the grid's power more efficiently on a global scale. The application of outage management systems, demand management systems, geographical management systems, network operations, and both wired and wireless technologies is instrumental in electricity generation, transmission, distribution, and consumption. This technology finds applications among residential, commercial, industrial, and government end-users.
The smart grid technology market research report is one of a series of new reports from The Business Research Company that provides smart grid technology market statistics, including the smart grid technology industry's global market size, regional shares, competitors with a smart grid technology market share, detailed smart grid technology market segments, market trends, and opportunities, and any further data you may need to thrive in the smart grid technology industry. This smart grid technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The smart grid technology market size has grown rapidly in recent years. It will grow from $54.28 billion in 2024 to $64.11 billion in 2025 at a compound annual growth rate (CAGR) of 18.1%. The growth in the historic period can be attributed to increasing energy demand and consumption, aging grid infrastructure and rise in urbanization.
The smart grid technology market size is expected to see rapid growth in the next few years. It will grow to $131.49 billion in 2029 at a compound annual growth rate (CAGR) of 19.7%. The growth in the forecast period can be attributed to increasing renewable energy penetration, favorable government initiatives and regulations, growing electric vehicles (EVs) adoption, and energy sector digitalization. Major trends in the forecast period include increasing renewable energy penetration, favorable government initiatives and regulations, growing electric vehicles (EVs) adoption, and energy sector digitalization.
The rising demand for electricity generation is anticipated to drive the smart grid technology market's growth in the coming years. Electricity, a versatile form of energy, powers essential machinery that generates heat, light, and other effects. Smart grids supply electricity to households and businesses nationwide via a comprehensive network that integrates generation, transmission, and distribution systems. For example, in October 2023, the U.S. Energy Information Administration's *International Energy Outlook 2023* projected a global electricity generation increase of 30% to 76% by 2050 compared to 2022 levels. Thus, the growing demand for electricity generation is fueling the expansion of the smart grid technology market.
The smart grid technology market is expected to receive significant impetus from favorable government initiatives and regulations during the forecast period. Governments worldwide are actively incentivizing and supporting the adoption of smart grid technology through financial measures and initiatives. These efforts aim to expedite the development of a more efficient and sustainable energy infrastructure. In a notable example, the European Commission launched an EU action plan in October 2022, outlining a substantial investment of approximately $633 billion (€584 billion) in the electricity grid by 2030. A significant portion of this investment, around $434 billion (€400 billion), is allocated for digitalization efforts to enhance the efficiency and modernization of the electricity distribution infrastructure across the EU. Similarly, in July 2022, the Indian government initiated a comprehensive scheme worth INR 3.03 trillion ($36.8 billion) to modernize and reinforce power distribution infrastructure, including the mandatory implementation of smart meters. This scheme aims to install approximately 250 million smart meters by 2025, illustrating how supportive government initiatives and regulations will act as key drivers for the smart grid technology market.
Technological advancements are a prominent trend shaping the landscape of the smart grid technology market. Companies in this sector are actively embracing new technologies to solidify their market positions. For instance, in March 2023, the International Energy Agency introduced the Grid Integration Tool technology, designed as an add-on to the guidebook for policymakers on electric vehicle (EV) grid integration. This technology enables the evaluation of the impact of EV charging on the electricity system, allowing users to input characteristics such as EV fleet details, driving habits, charging patterns, and the type of electricity used.
Leading companies in the smart grid technology market are prioritizing advancements in digital transformation to boost grid efficiency, reliability, and adaptability, enabling better integration of renewable energy sources and improved energy management. Digital transformation involves adopting digital technologies across business operations, reshaping processes, and enhancing value delivery to customers. For instance, in February 2024, Siemens AG, a Germany-based technology firm, introduced Gridscale-a flexible framework that allows utilities to customize solutions to meet their unique requirements. This modular system supports quick deployment and seamless integration with existing IT and operational technology frameworks.
In January 2023, TE Connectivity, a Switzerland-based consumer electronics company, acquired Kries Energietechnik GmbH & Co. KG, a Germany-based pioneer in smart grid systems. This acquisition strengthens TE's energy business unit as a leading supplier of grid stability solutions, catering to utilities, power network owners, and renewable energy infrastructure developers globally. The move underlines the growing importance of smart grid technologies in enhancing grid stability and overall energy management.
Major companies operating in the smart grid technology market include Siemens AG, Hitachi, Ltd., Schneider Electric SE, Oracle Corporation, General Electric Company, Cisco Systems Inc., Eaton Corporation plc, Itron Inc., International Business Machines Corporation, Landis+Gyr AG, ABB, Mitsubishi Electric, Huawei Technologies, Toshiba, Panasonic, Smarter Grid Solutions, Kries, Enel, Elster Group, E.ON SE, EDF France, Engie, Elgama-Elektronika Ltd, NURI Telecom, AEM S.A, Iskraemeco Corp, Energotest, Elektromed Ltd, SWTCH Energy Inc, VRB Energy, BeaconTron, Solarwyse Ltd., Trilliant Incorporated, Smart Grid Observer, Windlogics, UBESS, Moura, Voltalia, Reuniwatt, Neoenergia, Iberdrola, HIMOINSA, Nidec Industrial Solutions, Edelar S.A., ALEC Energy, Mohamed Abdulrahman Al Bahar LLC, Honeywell International Inc, S&C Electric Co, Husk Power Systems, Engie Energy Access, PowerGen Renewable Energy, Abengoa, S.A., New Southern Energy, SOLA Group, SolarX
North America was the largest region in the smart grid technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart grid technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the smart grid technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The smart grid technology market includes revenues earned by entities by providing services such as more dependable power, producing renewable energy with greater efficiency, utilizing a variety of energy sources, lowering carbon footprint, laying the groundwork for electric vehicles, and producing intelligent job possibilities. The smart grid technology market consists of sales of electric power generators, smart meters (SMs), Collector nodes, Controllers, cables, circuit breakers, and power substations, which are used in providing smart grid technology services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Smart Grid Technology Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on smart grid technology market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for smart grid technology ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The smart grid technology market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.