Smart Grid Market

Supportive governments policies and regulations are driving market growth

The growing need to alleviate climate change for renewable energy expansion is expected to drive smart grid market CAGR initiatives worldwide. In addition, several governments are progressively investing in smart grid technology, which is expected to help them achieve their carbon emission reduction targets and enable long-term economic prosperity. Moreover, numerous countries already have net energy metering protocols and equipment. Some countries are still exploring the technology and its mechanism, which is expected to provide lucrative opportunities for the smart grid market.

For instance, in 2017, under AMI (Advanced Metering Infrastructure), the U.S. installed around 76 smart meters and is anticipated to install approximately 90 million meters by 2020.

The increasing global emphasis on renewable energy sources is a pivotal driver for the Global Smart Grid Market Industry. Governments worldwide are implementing policies to reduce carbon emissions and promote sustainability. For instance, the integration of solar and wind energy into the grid necessitates advanced smart grid technologies to manage variability and ensure reliability. As a result, the market is projected to reach 41.4 USD Billion in 2024, reflecting a significant shift towards cleaner energy solutions. This transition not only enhances energy security but also aligns with global climate goals, thereby fostering a robust demand for smart grid infrastructure.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American smart grid market will dominate; the government's increased focus on forming appropriate and supportive regulatory frameworks for adopting smart grids in the Region will boost the market growth.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: SMART GRID MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's smart grid market accounts for the second-largest market share due to the encouraging government initiatives concerning clean power generation and the increasing demand for energy efficiency in the power supply. Further, the German smart grid market held the largest market share, and the UK smart grid market was the fastest-growing market in the European Region.

The Asia-Pacific smart grid market is expected to grow at the fastest CAGR from 2023 to 2032. This is dueto the wide adaptation of these technologies and a strong focus on the growth of renewable energy.Moreover, China’s smart grid market held the largest market share, and the Indian smart grid market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the smart grid market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The smart grid industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the smart grid industry to benefit clients and increase the market sector. The smart grid industry has offered some of the most significant advantages in recent years.

Major players in the smart grid market, including Wipro Ltd (India), IBM Corporations (US), Schneider Electric SA (France), Open Systems International Inc (US), Oracle Corporations (US), General Electric Company (US), ABB Ltd (Switzerland), Itron Inc (US), Cisco Systems Inc (US), Siemens AG (Germany), Aclara Technologies LLC (US) and others, are attempting to increase market demand by investing in research and development operations.

Siemens is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids to cleaner and more comfortable transportation and advanced healthcare, the company creates technology to add real customer value. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them transform daily for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a ly leading medical technology provider shaping the future of healthcare.

In addition, Siemens holds a minority stake in Siemens Energy, a leader in the transmission and generation of electrical power. In January 2019, Siemens announced the acquisition of Russelectric to mark its presence and strengthen its position in the smart grid market.

Schneider Electric SE is a French multinational company specializing in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries, by combining energy technologies, real-time automation, software, and services. In September 2019, Schneider Electric expanded its business by opening a smart distribution center in Brazil, which has helped reduce customer delivery time and optimize supply chain operations by reducing equipment downtime and overall power consumption. The distribution center is accessible to customers, partners, and educational institutions to experience and learn about the company's most innovative technologies delivered through its loT-enabled, open, interoperable architecture and EcoStruxure.