Global Smart Grid Market Size By Technology [Distribution & Network Automation, Smart T&D Equipment, AMI, Communication & Wireless Infrastructure, Consumer Interface], By Service [Deployment & Integration, Consulting, Support & Maintenance], By Deployment [Transmission, Generation, Distribution, End-use], By Region [North America, Europe, Asia Pacific, Middle East & Africa and Latin America], Forecast & Opportunities, 2020-2027

Market Overview

Global Smart Grid Market is expected to reach over USD 172 billion by 2027 due to growth in smart grid technology and the rising need for improving energy efficiency.

Smart grid technology refers to a self-sufficient electricity network system comprising of substations, transmission lines and transformers among others, used to deliver electricity from the power plant to homes. The smart grid operates on digital automation technology for control, monitoring, and analysis within the supply chain. It provides consumers with easy integration and reliable energy service. It has real-time monitoring of the electricity consumed and thereby ensures transparency in power infrastructures.

The growing need for renewable energy in the energy mix, favorable government policies, emerging digital technologies in the power sector to improve energy efficiency are major drivers of the growth of the smart grid market globally.

However, increasing cyber threats poses a challenge for the growth of the global smart grid market.

Market Segmentation 

Global Smart Grid Market can be categorized into Application, Temperature, End-user industry and region.

By Technology, Global Smart Grid Market can be categorized into Distribution & Network Automation, Smart T&D Equipment, AMI, Communication & Wireless Infrastructure, Consumer Interface. The Smart T&D Equipment segment is expected to grow significantly during the forecasted period of 2020-27 due to the increasing adoption of cloud computing technology.  

By Service, Global Smart Grid Market can be categorized into Deployment & Integration, Consulting, Support& Maintenance. The Consulting segment is expected to grow significantly during the forecasted period of 2020-27 due to unplanned power outages, restructuring of the existing electricity system to avoid losses and inaccuracy.

By Deployment, Global Smart Grid Market can be categorized into Transmission, Generation, Distribution, End-use.  The Transmission segment holds the largest market share due to grid optimization owing to controlling cost and technical losses. An increase in the adoption of smart systems such as home appliances and various digital devices is expected to propel the growth of the market. 

By Region, Global Smart Grid Market can be categorized into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Regional Analysis

Regionally, Europe Smart Grid Market holds the largest market share due to stringent policies and rising energy conservation initiatives by the government. Germany leads the European countries in terms of smart grid adoption. The country has heavily invested around USD 2 billion in smart grid technologies. Moreover, R&D activities in clean energy are likely to enhance the business opportunities for the smart grid market in Germany.    

North America Smart Grid market is expected to grow significantly during the forecasted period of 2020-27 due to rising natural disasters like wildfires, hurricanes have led to power outages. The smart grid is increasingly adopted due to unplanned power outages coupled with various government initiatives.  

Competitor Analysis

The key market players in Global Smart Grid Market are General Electric, Cisco Systems, Honeywell International, Itron Inc., International Business Machines Corporation (IBM), Oracle, Siemens, Schneider Electric, Tech Mahindra Limited, Wipro Limited.