Smart Grid Market Size, Share, Opportunities, And Trends By Component (Software (Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management, Substation Automation, Smart Grid Security, Others), Hardware (Sensors, Programmable Logic Controller, Smart Meter, Networking Hardware), Service (Consulting, Deployment and Integration, Support and Maintenance)), And By Geography - Forecasts from 2025 To 2030

The smart grid market is expected to grow at a CAGR of 14.90%, reaching a market size of US$114.798 billion in 2030 from US$57.323 billion in 2025.

The grid is a well-connected electro-supply network that uses modern digital communication technology to identify and respond in real-time variations in usage at a locality. This innovative system is part of today's electrical grid network because it is very sophisticated in feedback management such as demand response management systems (DRMS) and active network management (ANM), among others. This whole energy flow is automatically monitored, automated, and controlled by a highly interconnected network using meters, sensors, digital controls, and analytical tools. The network makes this electricity reliable and efficient in delivering it to its consumers where and when they want it from many modern applications and technologies and makes way for the environment and the economy as well. Emerging economies are considering these technologies to be a strategic advantage in infrastructure development which would be beneficial in terms of reducing their carbon emission targets as well as becoming integral to future practice in overall economic prosperity.

What are the Smart Grid Market Drivers?

• Growing interest in energy efficiency is contributing to the smart grid market growth

One of the major driving factors for the global smart grid market is increasing energy efficiency demands for electrical supply systems. Because the infrastructure is mostly old and there are no real-time monitoring capabilities, the antiquated power grids usually have increased energy losses during transmission and distribution. Smart grids have cut down these losses by harnessing advanced technologies such as smart meters and grid automation for efficient control and optimization of the electricity flow. Therefore, optimal use of resources results in reduced operating costs and wastage of energy. Smart grids, in addition, support demand response programs for better load management and energy savings.

• Utilizing renewable energy sources is anticipated to boost the smart grid market.

Smart grids will connect solar and wind energy sources to electrical systems. Unlike traditional sources, these renewables produce energy sporadically and unpredictably. Attempting to manage such variations with the conventional power grid has proven ineffective. Smart grids, being high-tech, present a highly dynamic and responsive infrastructure, which arbitrates the management and distribution of variable amounts of energy from renewable sources. This augmentable capability becomes necessary to increase the proportion of renewable energy added to our electrical networks to transform energy practices into more sustainable ones. But thanks to their cutting-edge technology, smart grids are better able to control and balance these variations.

Moreover, integrated power systems will enable even real-time monitoring and control of energy generation and consumption, assuring a constant and reliable electricity supply. Integration among forms of energy is critical for reducing dependence on fossil fuels and moving to more sustainable energy systems. Smart grids also support distributed generation, where energy is generated closer to its point of consumption, lowering transmission losses and promoting renewable energy resources.

• Expanding government laws and regulations is anticipated to increase the market demand

Rules and regulations from the Government Affect the Completion and Operation of Smart Grids. It has also been noted as having a high potential for achieving energy efficiency, reducing carbon emissions, and transitioning to renewable energy. Countries around the world have already legislated for all these policies, for instancing laws, rules, and regulations that support and sometimes mandate smart grid technologies. Some are financial incentives, subsidies, and regulatory frameworks that encourage investments and innovations in that regard. Such laws include the installation of smart meters in homes and businesses, which have catalyzed the growth of smart grids significantly. The complete and safe development of the smart grid is also undertaken by government initiatives aimed at setting up standards and protocols towards interoperability and security.

• Increasing advancements in ICT are anticipated to increase the market demand

Real-time data collection, analysis, and management are made possible by the integration of contemporary ICT into grid infrastructure. Because it allows for predictive maintenance, improved load management, and prompt response to power outages or other problems, this data is essential to the effective operation of smart grids. Smart grid capabilities are further enhanced by technologies like artificial intelligence and machine learning, which enable more complex data analysis and decision-making. In addition to increasing the power supply's dependability and efficiency, these developments open the door for cutting-edge energy management services and applications.

Smart Grid Market Restraints:

• High investment cost is anticipated to hamper the market growth

The market growth is expected to be restrained by the very high investment costs of these grid systems. The setting up of transmission networks connecting the end users to the advanced grid requires massive upfront investments in these technologies. High post-deployment maintenance and operating costs are another major concern for utility providers. Some emerging economies like Brazil, Mexico, and India also have adequate infrastructure but need substantial investments to update their system. It is worth stating that poor government regulations regarding the upgrading and expansion of grid infrastructures and low accessibility of electricity especially in developing nations also constrains the growth of the market.

Geographical Outlook of the Smart Grid Market:

• North America is witnessing exponential growth during the forecast period.

Emerging demands for revitalizing decrepit electrical infrastructures and the ever-increasing trend for utilization of alternative energy sources among others drive the smart grid market within North America. Also supportive of the development of smart grids are incentives and policies advocating the adoption of a smart technology installation, all integrated into the solid regulatory framework of the region. Lastly, there would also be increased demands for increased grid efficiency and reliability in the wake of severe weather conditions. Furthermore, the market is encouraged through the popularization of smart metering infrastructure and the promotion of energy independence. 

Key Launches in the Smart Grid Market:

• In October 2024, Schneider Electric Introduces New Smart Grid Solutions at Enlit Europe 2024 to Manage Net-Zero Demands and Enhance Grid Flexibility and Resilience. At Enlit 2024, Schneider Electric, a pioneer in the digital revolution of energy automation and management, will unveil its most recent developments.
• In February 2024, Siemens announced the launch of Gridscale X, which will accelerate digital transformation for grid operators at scale and speed while paving the way towards the goal of autonomous grid management. Siemens offers modular software called Gridscale X to help utilities address their most urgent energy transition issues. Gridscale X provides software that is simple to deploy and quick to integrate into current IT and OT environments, allowing for rapid grid capacity scaling, handling the complexity of DERs, and increasing grid flexibility. Planning, operations, and maintenance lead to a new era of grid management and offer both new and current customers more value. 

The smart grid market is segmented and analyzed as follows:

• By Component
  • Software
    • Advanced Metering Infrastructure
    • Smart Grid Distribution Management
    • Smart Grid Network Management
    • Grid Asset Management
    • Substation Automation
    • Smart Grid Security
    • Others
  • Hardware
    • Sensors
    • Programmable Logic Controller
    • Smart Meter
    • Networking Hardware
  • Service
    • Consulting
    • Deployment and Integration
    • Support and Maintenance
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5. SMART GRID MARKET BY COMPONENT

5.1. Introduction

5.2. Software

5.2.1. Advanced Metering Infrastructure

5.2.2. Smart Grid Distribution Management

5.2.3. Smart Grid Network Management

5.2.4. Grid Asset Management

5.2.5. Substation Automation

5.2.6. Smart Grid Security

5.2.7. Others

5.3. Hardware

5.3.1. Sensors

5.3.2. Programmable Logic Controller

5.3.3. Smart Meter

5.3.4. Networking Hardware

5.4. Service

5.4.1. Consulting

5.4.2. Deployment and Integration

5.4.3. Support and Maintenance

6. SMART GRID MARKET BY GEOGRAPHY

6.1. Introduction

6.2. North America

6.2.1. By Component

6.2.2. By Country

6.2.2.1. USA

6.2.2.2. Canada

6.2.2.3. Mexico

6.3. South America

6.3.1. By Component

6.3.2. By Country 

6.3.2.1. Brazil

6.3.2.2. Argentina

6.3.2.3. Others

6.4. Europe

6.4.1. By Component

6.4.2. By Country

6.4.2.1. United Kingdom

6.4.2.2. Germany

6.4.2.3. France

6.4.2.4. Italy

6.4.2.5. Spain

6.4.2.6. Others

6.5. Middle East and Africa

6.5.1. By Component

6.5.2. By Country

6.5.2.1. Saudi Arabia

6.5.2.2. UAE

6.5.2.3. Others

6.6. Asia Pacific

6.6.1. By Component

6.6.2. By Country

6.6.2.1. China

6.6.2.2. Japan

6.6.2.3. India

6.6.2.4. South Korea

6.6.2.5. Indonesia

6.6.2.6. Taiwan

6.6.2.7. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Market Share Analysis

7.3. Mergers, Acquisitions, Agreements, and Collaborations

7.4. Competitive Dashboard

8. COMPANY PROFILES

8.1. Schneider Electric SE

8.2. Duke Energy Corporation

8.3. General Electric Company

8.4. Itron Inc.

8.5. Siemens AG

8.6. IBM Corporation

8.7. Hitachi, Ltd.

8.8. Landis+Gyr

8.9. S&C Electric Company

8.10. Networked Energy Services

8.11. ABB Ltd.

8.12. Cisco

8.13. Oracle

8.14. Eaton

8.15. L S Electric

Schneider Electric SE

Duke Energy Corporation

General Electric Company

Itron Inc.

Siemens AG

IBM Corporation

Hitachi, Ltd.

Landis+Gyr

S&C Electric Company

Networked Energy Services

ABB Ltd.

Cisco

Oracle

Eaton

L S Electric