Smart Grid Software Market Size, Share, Opportunities, and Trends 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 Integration, Support and Maintenance), And By Geography - Forecasts from 2025 To 2030
- Published : Dec 2024
- Report Code : KSI061613053
- Pages : 148
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.
What are the 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.
The smart grid software market restraints:
- Technical complexities can act as an obstacle to market growth
Software solution plays an important role in energy management since it signifies the level of consumption and energy requirements per consumer. Since the power distribution varies as per different geographies the algorithm needs to be based keeping in mind such variations so that billing & maintenance and gird asset management can be done properly. For achieving such functional software, high level of technical expertise is required followed by high initial integration cost, which can pose a challenge for the overall market expansion especially in least developed and under economies.
Segment analysis of smart grid software market:
- Advanced metering infrastructure, based on software type will account for a considerable market share.
By software type, the advanced metering infrastructure is expected to hold a considerable share of the market since AMI integrate an entire system consisting of smart meters, communication networks, control center hardware, and applications that enable almost real-time collection and transfer of energy usage data. AMI encompasses software for metering electricity, water, and gas consumption. These applications and their two-way communication with the utility provider allow the end user to make an informed decision.
This software is also advantageous in producing an accurate output measure that has helped companies operate more efficiently since there is no need for onsite meter readings. The urbanization of several nations in pursuit of smart technologies and the technological boom are some of the few growth factors paving the way for the AMI solution. Municipal authorities of various countries have also turned to AMI software to reduce utility wastage.
Moreover, the adoption of the AMI software by the utilities is also attributed to the rise in energy use worldwide and the need to cut back on energy losses, thus requiring AMI to track the real-time energy use changes, thus boosting the smart grid software market. OurWorldinData.org showed that the increase in per capita primary energy consumption distributed globally (in kilowatt-hours per person) went up from 21,154 kWh in 2022 to 21,394 kWh in 2023.
What are the key geographical trends shaping the smart grid software market:
- 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.
Recent development in the smart grid software market:
- In October 2024: Aspen Technology Inc. launched its “Microgrid Management System™” to optimize the energy storage and distribution of sectors with heavy electric power requirement. The software solution assist in managing and orchestrating the on-site conventional & renewable power generation with the industrial operations.
- In February 2024: Siemens launched its modular software product “Gridscale X” which provide support to utilities in managing their energy transition by handling the complexity DERs. The easy installation and deployment of the software further improves the grid flexibility and matches the dynamic changes of energy distribution and power utilities.
Smart Grid Software Market Scope:
Report Metric | Details |
Smart Grid Software Market Size in 2025 | US$3.762 billion |
Smart Grid Software Market Size in 2030 | US$5.844 billion |
Growth Rate | CAGR of 9.21% |
Study Period | 2020 to 2030 |
Historical Data | 2020 to 2023 |
Base Year | 2024 |
Forecast Period | 2025 – 2030 |
Forecast Unit (Value) | USD Billion |
Segmentation |
|
Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
List of Major Companies in Smart Grid Software Market |
|
Customization Scope | Free report customization with purchase |
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
- North America
Frequently Asked Questions (FAQs)
The global smart grid software market is projected to grow at a CAGR of 9.21% during the forecast period.
The smart grid software market is projected to reach a market size of US$5.844 billion by 2030.
Smart Grid Software Market was valued at US$3.762 billion in 2025.
North America holds the largest share of the global smart grid software market.
A major factor propelling the smart grid software market growth worldwide is the rising global consumption of electricity.
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