< Key Hightlight >

The smart grid market is projected to reach USD 103.4 billion by 2026 from an estimated USD 43.1 billion in 2021, at a CAGR of 19.1% during the forecast period. Governments worldwide are undertaking many initiatives to meet the future electricity demands and focusing on reducing carbon footprint by promoting the use of renewable energy sources to produce energy. Increasing need of efficiency and stability of electric grid are expected to offer lucrative opportunities for the smart grid market during the forecast period. However, high installation costs of smart grid acts as a restraint for the installing the smart grid systems.    

“The software segment by component is expected to grow at the highest CAGR from 2021 to 2026.”

Based on the component of smart grid systems, the software component is estimated to be the fastest-growing market from 2019 to 2026. The smart grid software helps ensure effective management of smart grid operations, improves process efficiency, and reduces energy production costs; hence, the segment captures the major market share. 

“Distribution segment by application is expected to emerge as the largest segment for smart grid implementation”

The distribution segment, by application, is projected to hold the highest market share during the forecast period. Distribution substations isolate the faults in transmission systems. Distribution feeders transport power from the distribution substations to end users, serving many premises. Efficient distribution application helps in quicker restoration of electricity after power disturbances, reduces operations and management costs for utilities, and ultimately lowers the power costs for consumers.

“North America: The largest smart grid market”

North America is currently the largest smart grid market, followed by Europe and the APAC. US accounted for the maximum share of the North America market in 2020. It is also projected to grow at the highest CAGR from 2021 to 2026. One of the key reasons for the large market size is the early adoption of smart grid projects. The strong financial position of the US and Canada enables them to invest heavily in smart infrastructure platforms of the smart grid market. 

Breakdown of Primaries:

In-depth interviews have been conducted with various key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects. The distribution of primary interviews is as follows: 

By Company Type: Tier 1- 65%, Tier 2- 24%, and Tier 3- 11%

By Designation: C-Level- 30%, Director Level- 25%, and Others- 45%

By Region: Asia Pacific- 40%, North America- 25%,  Europe- 20%, the Middle East & Africa- 10%, and South America- 5% 

Note: Others includes sales managers, engineers, and regional managers.

Note: The tiers of the companies are defined on the basis of their total revenues as of 20120. Tier 1: > USD 1 billion, Tier 2: From USD 500 million to USD 1 billion, and Tier 3: < USD 500 million

The leading players in the smart grid market include GE (US), ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Itron (US).

Research Coverage:

The report defines, describes, and forecasts the global smart grid market, by component, by application, by communication technology, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include an analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the smart grid market.

Key Benefits of Buying the Report

1. The report identifies and addresses the key markets for smart grid, which would help smart grid manufacturers review the growth in demand.

2. The report helps system providers understand the pulse of the market and provides insights into drivers, restraints, opportunities, and challenges. 

3. The report will help key players understand the strategies of their competitors better and help them in making better strategic decisions.