Global Smart Grid Market Projected to Value Over US$ 65 Billion During Forecast Period, 2019 to 2026

  • 24 Jun 2019

The global smart grid market is forecasted to value over US$ 65 billion by the end of 2026 and expand at a CAGR of over 17% during the forecast period of 2019-2026.

Smart grids find application in energy sources. Grids are used in maintaining the efficiency of electricity supply and cycle  and steady flow of supply even during power cuts. The grid is built upon the electricity network on digital technology. This system is used for surveillance, analysing, monitoring communication within the supply chain for maximizing the transparency and reliability of the energy supply chain.

With an increase in digitalization in the power sector along with rising concerns of unplanned power outages and power being a necessity, these factors are expected to drive the growth of the global smart grid market. In addition, increasing the need to upgrade traditional smart grid systems to support various smart cities and smart grids is one of the other factors expected to drive the growth of the global smart grid market. Furthermore, an increase in government incentives to promote the building of a better grid is also favourable to the market. 

The major firms are investing in research and development initiatives to produce improved products and induce technological advancements  to gain a competitive edge over others. Besides, the market is also expected to record mergers and collaborations, new product launches, to enhance their market positions and cater to a diverse product portfolio. Increased investments such as the State Grid Corporation of China (SGCC), which overlooks the electricity distribution in China has announced investment plans of over 100 billion toward the development of the smart grid between by 2020. This will motivate the market and provide huge revenue. 

Smart Grid Market Restraints: 
+ High nstallation cost 
+ Massive initial investment 
+ Data security and privacy issue
+ Lack of interoperability

Smart Grid Market Segmentation: 
By Component 

+ Hardware
+ Software
+ Services 

By Hardware 
+ Smart Meter

By Software 
+ Smart Grid Network Mangement
+ Advanced Metering Infrastructure  (AMI) 
+ Smart Grid Distribution  
+ Substation Automation
+ Grid Asset Management 
+ Smart Grid Security   
+ Billing and Customer Information System 

By Service 
+ Deployment and Integration
+ Support and Maintenance 
+ Consulting
Growing investments, the undertaking of small scale grid projects will fuel the growth of deployment & integration services.  Increase in investments will also help drive the market’s growth and the deployment and integration system will have the highest CAGR during the forecast period.
 

By Region:
+ Europe 
+ North America 
+ APAC 
+ Latin America
+ Rest of World Rest of World
The global smart grid markets in North America are  growing significantly. It is projected to continue its dominance over the forecast period. Moreover, government initiatives in the U.S. for planned energy consumption are likely to further drive the industry growth in this region in the future. For instance, in April 2017, a massive power outage in San Francisco was triggered in the utility substation leaving over 90,000 electricity customers without power. Furthermore, Harvey and Irma, both Category 4 hurricanes caused damages of over USD 130 billion in 2017 to the country’s power infrastructure. Thus the growing severity and regularity of natural disasters including storms and unplanned power outages have significantly imposed the adoption of smart grid across the country. 
Europe smart grid market will witness growth on account of substantial investments. 
Asia Pacific market is set to grow. Brazil industry will witness growth owing to rising electricity demand .

Competitive Landscape: 
+ Tier 1 players- established companies in the market with a major market share 
+ Tier 2 players
+ Emerging players which are growing rapidly
+ New Entrant
Significant market players are Schneider Electric, Cisco, Honeywell, GE, Kamstrup, Tech Mahindra, Oracle, Siemens, Globerma, Itron, eSmart Systems, IBM, Eaton and others. 
The key players are investing in research and development initiatives to develop technologically advanced products to gain a competitive edge over others. Besides, the market will also witness various mergers and collaborations, new product launches, to enhance their market positions and cater to a diverse product portfolio

FutureWise Takeaways: 
+ Growth prospects 
+ SWOT analysis
+ Key trends
+ Key data points affecting market growth 

Objectives of the Study:
+ To provide an exhaustive analysis on the Smart Grid Market by Component, by Hardware, by Software, by Service and by Region
+ To cater comprehensive information on factors impacting market growth (drivers, restraints, opportunities, and industry-specific restraints)
+ To evaluate and forecast micro-markets and the overall market 
+ To predict the market size, in key regions (along with countries)—North America, Europe, Asia Pacific, Latin America, and the Middle East.
+ To record evaluate and competitive landscape mapping- product launches, technological advancements, mergers and expansions
+ Profiling of companies to evaluate their market shares, strategies, financials and core competencies 

 

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