The sales of Active Network Management are estimated to be worth USD 1.3 billion in 2025 and are anticipated to reach a value of USD 8.9 billion by 2035. Sales are projected to rise at a CAGR of 21.3% over the forecast period between 2025 and 2035. The revenue generated by Active Network Management in 2024 was USD 1.05 billion. The market is anticipated to exhibit a Y-o-Y growth of 21.3% in 2025.
The global active network management (ANM) market is currently booming, which is largely due to the growing demand for effective energy distribution, grid upgrading, and the incorporation of renewable energy. Active network management solutions are the best way to perform real-time monitoring and control of electricity networks, therefore optimizing electricity distribution and grid stability. The additional driving force behind the growth is the wider implementation of smart grids and digital energy management systems.
The primary driver is the rising share of renewable energy sources such as wind and solar power. As the generation of energy through decentralized systems moves ahead, utility companies and grid managers start involving ANM solutions to control congestion in the grid, handle the disparity between the energy supply and demand, and increase the efficiency of distributed energy resources (DERs). Moreover, government campaigns encouraging energy efficiency and grid resilience led to the further implementation of ANM technologies.
Moreover, the smart city project extension and the development of IoT-based energy management cannot be overlooked as far as the sales increase is concerned. ANM solutions resort to artificial intelligence (AI), machine learning, and real-time data analytics to achieve predictive maintenance, fault detection, and grid control automation. The contemporary trend of microgrids and virtual power plants (VPPs) being installed more frequently has also caused the demand for active network management systems to rise.
The growth of cloud-based ANM platforms has become technologically more advanced, and edge computing technology has also made scalability and flexibility in network management easier. The introduction of blockchain technology for secure and transparent energy transactions is becoming a trendsetter in the sector. Along with that, the development of 5G networks and advanced communication networks are supporting the implementation of ANM more effectively and reliably.
The industry, however, is also facing some obstacles, such as the requisite high initial cost, cybersecurity worries, and diverse regulatory requirements in different places. The requirement for both old and new grid hardware to work with maximum efficiency could also be regarded as an interoperability issue, which may lead to integration difficulties for utilities and energy providers.
Nevertheless, the scope for multitudes of expansions is massive. The changes in energy demands to energy-as-a-service (EaaS) models and the move towards effective demand response management are some of the major contributing factors to the new growth paths. Another important aspect is the appearance of electric vehicles (EVs) and energy storage systems, which are anticipated to promote the further deployment of ANM technology. The world energy sector is getting digital and decentralized. As a result, the active network management market is going to grow over the next few years.
Active Network Management Industry Assessment
| Attributes | Key Insights |
|---|---|
| Industry Size, 2025 | USD 1.3 billion |
| Industry Size, 2035 | USD 8.9 billion |
| CAGR ( 2025 to 2035 ) | 21.3% |
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Between 2020 and 2024, the ANM industry witnessed robust growth based on the adoption of smart grids, rising penetration of renewables, and power decentralization. Utilities and energy suppliers applied real-time grid management solutions to manage fluctuations in renewable sources such as solar and wind power. IoT and edge computing played a key role in the preservation of grid efficiency at an optimal level.
At the same time, advanced cybersecurity functionalities were embedded in order to secure digitized energy grids against cyber threats. The global regulatory environment for grid modernization impacted the deployment of ANM as a move towards carbon neutrality and peak power generation.
Predictive analytics with AI, blockchain-enabled decentralized trading, and grid optimization with ultra-low latency on 5G from 2025 to 2035 will propel the ANM system to maturity. Autonomous microgrids complemented by self-healing networks will further boost energy resilience.
Cybersecurity models based on artificial intelligence will offer defense against emerging threats to facilitate a safe supply of energy. Regulatory bodies and governments will implement worldwide common standards for regulations in order to boost the cross-border exchange of energy as well as flawless integration of decentralized sources of energy, placing ANM on the future energy management platform.
A Comparative Market Shift Analysis 2020 to 2024 vs. 2025 to 2035
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Increased adoption to strengthen the grid and introduce renewable energy sources. | Growth spurt fueled by the spread of distributed energy systems and real-time grid management. |
| Governments require the integration of renewable energy and advanced grids. | Stricter regulations promoting interoperability, cybersecurity, and carbon-neutrality goals. |
| The rollout of rudimentary network monitoring and control systems. | Merging AI, machine learning, and digital twins in predictive maintenance and autonomous grid optimization. |
| Early automation concentrated on load balancing and outage detection. | Sophisticated AI-powered self-healing grids, dynamic load management, and real-time fault detection. |
| Early integration with SCADA systems and utility operations. | Smooth interoperability between heterogeneous energy sources, IoT devices, and smart grid infrastructure. |
The industry is growing primarily due to the need for efficient energy distribution, grid modernization, and real-time network optimization. Its demand is highest in smart grids and the energy and utility sector, where the ANM systems play the role of a balancing agent of power supply and demand, not only integrating the respective renewable energy resources but also resiliently strengthening the existing grid.
ANM solutions are also being adopted in the telecommunications and industrial automation sectors, as they are interconnected and promise benefits like network efficiency improvement, reduced latency, and optimized real-time data management. Tightened grid reliability and energy efficiency rules enforced by governments come with the responsibility of regulatory compliance, which is one of the top issues faced by ANM solution providers.
With respect to the high rate of investment in smart grid projects, North America and Europe are overcrowded in the industry. Meanwhile, Asia-Pacific is carving a niche for itself as a high-growth regional area that is gaining momentum from the burgeoning renewable energy projects and digital transformation initiatives. Besides, sustainability, interoperability, and cost-effectiveness in deployment are the decision-making factors impacting organizations positively for the investment of ANM solutions.
The global active network management (ANM) market is on the rise, largely due to the integration of more renewable energy sources and smart grids. Regulatory uncertainties, compliance challenges, and data security issues lead to problems. Businesses ought to be well informed of changing regulations and accordingly install the latest safety software to meet the requirements.
The technical difficulties incurred in the integration of ANM solutions with the currently existing power grid infrastructure have made it almost impossible for the operations to be carried out as planned. Issues of compatibility, the heft of deployment costs, and interoperability doubts compel utilities and technology providers to devise methods that are both scalable and flexible while at the same time keeping them standardized so that both parties can manage the network without a hitch.
The supply chain shortages plaguing hardware components, including sensor communication modules, are likely to lead to delays in the deployment of ANM and a subsequent rise in costs. To tackle these risks and offer customers continuous service, making the supplier base more diverse, improving inventory management, and utilizing software-driven approaches could be strategies.
The challenges of energy optimization alternatives curtail the popularization of ANMs. To be ahead of the competition, suppliers should enlarge their focus on real-time analytics, automation features, and the application of artificial intelligence to enhance the efficiency and reliability of networks in energy distribution.
The probable impact of the economic uncertainties and the limitations on the budget faced by utilities and enterprises could drag off the progress rate for the conversion to ANM technology. The strategies that would be the most effective in solving this problem would be providing more practical pricing models, government-backed funding partnerships, and means of deploying the product, which would bring about cost savings.
This section contains information about the leading segments in the Active Network Management industry. End users, the Power Grids segment held a share of 21.9% in 2025. By Component, the Professional Services segment is estimated to grow at aCAGR of 22.8% during the forecasted period.
| End Users | Share (2025) |
|---|---|
| Power Grids | 21.9% |
The Active Network Management (ANM) market has power grids accounting for 21.9% of the share. The increasing demand for grid modernization and integration of renewable energy sources can primarily account for this. Renewable inputs are intermittent, and traditional power grids are challenged to balance energy demand with the intermittency.
ANM solutions allow for real-time supervision and monitoring of power flows, which in turn increases the responsiveness of the grid and load balancing to eliminate congestion. Ciena Corporation has optical networking technology that enables upgraded power grids.
They offer solutions that will allow the transfer of data signals, which is vital for updated monitoring and control in ANM systems. Also, Ciena technology enables the integration of renewable sources, thus improving the reliability and performance of the grid.
The power generation segment takes 18.5% of the ANM market. The increase in the proportion of renewable energy in the power generation sector enables these energy sources to be efficiently controlled by advanced management systems to handle the uncertainty due to the variability of wind and solar.
With ANM solutions, power generation facility manager firms can optimize energy production in their facilities, improve operational efficiency, and maintain grid stability. Nutanix is a cloud-computing network management software; the services provided by Nutanix enable powering generation companies to manage the connectivity of complex networks.
Their solutions help integrate renewable energy sources and enhance operational efficiency, contributing to more stable and reliable power generation. Automatic Network Management (ANM) solutions will play a key role in modernizing the power grids and the power generation segments, which are major markets.
| Component | CAGR (2025 to 2035) |
|---|---|
| Professional Services | 22.8% |
The ANM market will experience substantial growth during the 2025 to 2035 period, particularly in the Services and Professional Services segments. During this period, the Services segment, comprising offerings like implementation, support, and maintenance, is expected to register an approximately 22 0% CAGR. The growing complexity of network infrastructures and the increasing use of renewable energy sources is fueling this growth, which requires expertise that will become increasingly specialized.
In the Services category, the Professional Services sub-segment, which includes consulting, system integration, and training, is projected to have a marginally higher CAGR of 22.8%. This growth is indicative of the growing need for customized solutions and advisory support for implementing ANM systems. General Electric (GE) and Siemens AG are such companies in this space. Examples: Siemens has extensive comprehensive professional services that help utilities to integrate renewable energy sources and improve the reliability of their grids. Their deep knowledge helps clients navigate the complexities of modern energy management systems.
The growing shift towards renewable energy and the need for grid modernization will significantly drive the demand for ANM services. Utilities pushing to integrate more DER and improve grid resiliency are turning to professional service providers for expertise that can make all the difference. This growing trend highlights the importance of the services segment in enabling the successful deployment and operation of ANM solutions globally.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 19.7% |
| UK | 18.9% |
| France | 17.5% |
| Germany | 18.2% |
| Italy | 17.3% |
| South Korea | 19.0% |
| Japan | 18.4% |
| China | 22.5% |
| Australia | 18.1% |
| New Zealand | 17.8% |
The USA leads in the Active Network Management (ANM) space due to attempts to modernize its aging grid infrastructure and introduce renewable energy sources into the mix. Its energy policy and massive investment in smart grid technology fuel the adoption of ANM systems, which guarantee the best power distribution and immunity from climate-related disruptions.
Utilities are also integrating AI and IoT-based technologies to stabilize the grid and improve distributed energy resources increasingly. Moreover, increasing EV and energy storage system penetration has compelled more sophisticated grid management solutions. Decentralized energy resource incentives and policies and regulation policies also drive growth.
The UK is driven by its ambitious net-zero targets and rapid renewable energy expansion, as well as the government's focus on offshore wind farms and decentralized energy systems necessitating sophisticated grid management. Dynamic balancing in grids is possible with ANM systems, which are highly efficient in incorporating large-scale renewables and battery storage units.
Further, energy flexibility policy and demand response systems are facilitating easier adoption of ANM systems. The application of distributed generation as community energy systems is rapidly changing the paradigm of grid operation, and it calls for advanced network management systems.
France's ANM industry is driven by its strong nuclear power base and increased investment in renewable power. The transition towards a dynamic grid, as well as attempts to improve energy efficiency and reduce carbon emissions, is leading to the demand for ANM.
The concentration of smart substations and digitalized management of energy also help in development. Higher deployment of microgrids, particularly in rural parts, is also on the rise in France to enhance energy resilience and provide a stable power supply. Government-led pilot projects for expanding smart grids are also providing additional prospects.
Germany, the leader in renewable energy, is still the pioneer in ANM adoption based on its active promotion of Energiewende (energy transition). The need to stabilize intermittent power supply from solar and wind farms is driving the need for ANM solutions to ensure grid stability and uninterruptible power supply.
Decentralized power management is becoming more prominent as most consumers supply power to the power grid. Smart metering infrastructure and real-time data analysis are becoming increasingly important in improving grid performance.
Italy is expanding, and it is emphasizing the development of its smart grid infrastructure. Relying heavily on clean sources of power such as solar and hydro, Italy emphasizes digital energy management transformation to achieve peak power supply and prevent grid congestion. Energy storage products such as battery energy storage systems (BESS) are enhancing grid flexibility in the country. In addition, regulatory reform in favor of grid modernization and capacity enhancement is fueling expansion.
South Korea is influenced by energy policy and technological innovations. South Korea's top priority for incorporating ANM systems to enhance grid reliability and flexibility are smart cities, digital grid platforms, and the use of hydrogen energy.
South Korea's government's ambitious program for industrial energy efficiency is giving rise to the implementation of AI-based energy management systems. The rising adoption of peer-to-peer energy trading mechanisms and blockchain-based energy transactions complement the increase in ANM even more.
Japan's focus on integrating renewable energy and energy efficiency accelerates its growth. Utilities implement ANM solutions following energy reforms to optimize decentralized electricity generation and grid dependability to supply reliable power in the event of peaking electricity consumption.
Not only is Japan's strategic initiative for hydrogen-fueled power solutions accelerating the adoption of ANM, but Japan's focus on energy systems that can weather disasters, particularly for regions impacted by earthquakes, is also stimulating high-end grid modernization efforts.
China is leading globally due to increasing renewable energy growth and smart grid investment. Domestic bidding to balance high solar and wind penetration necessitates ANM systems for grid stability, efficiency, and improved energy control.
Fast-growing transportation electrification, including the widespread use of electric buses and rail systems, has fueled demand for advanced grid optimization technologies. China's ultra-high-voltage (UHV) transmission systems, deployed on a grand scale, are also adding to power distribution capacities.
Australia's ANM market is transforming with the country's transition to distributed energy sources and battery storage units on a mass scale. Investments in digital grid management contribute to countering energy intermittency problems and ensuring an effective electricity supply.
The superior performance of rooftop solar installations and virtual power plants (VPPs) is transforming the grid. Industry incentives towards the adoption of energy storage and demand response programs are also strengthening ANM deployment.
In New Zealand, the ANM rollout is supported by its intentions to use 100% renewable electricity. Hinged mainly on hydro and wind power generation, ANM devices ensure maximum grid efficiency while enabling quick integration of renewable resources onto the national grid. Rollouts of smart meter infrastructure are making the power supply more dynamically efficient. In addition, improved predictive analysis and real-time monitoring technology are strengthening its capability to assist the country in maximizing energy loads.
There is rapid growth in the ANM sector, supported by the modern complexities of the energy grid and fast moving towards decentralized renewable-oriented power systems. Schneider Electric, Siemens, GE Grid Solutions, and ABB have all harnessed AI-enabled automation, predictive analysis, and edge computing, thereby enhancing grid stability, resilience, and DER integration as utilities, as well as grid operators, try to address their real-time energy optimization needs.
As competitors now begin to cross swords among themselves on scalability, interoperability, and next-generation automation, investments into grid-edge intelligence, demand response solutions, and IoT-enabled energy management platforms are changing the shape of this industry with an emphasis on flexibility and cybersecurity. Moreover, the growing penetration of electric vehicle charging networks and microgrids is creating demand for intelligent ANM platforms that can flexibly and rapidly respond to shifting supply as well as demand.
Emerging and niche players are disrupting AI-and cloud-based energy orchestration solutions that go against the grain of established infrastructure providers. ANM solutions that can unlock a flexible grid with dynamic loading and smooth DER integration will find increased uptake as utilities push for decarbonization and regulatory compliance.
The ANM market is thus set to rapidly change due to grid modernization, regulatory requirements, and a push toward net zero. Companies investing through strategic alliances, acquisitions, and advanced grid analytics technologies will be poised to lead in this dynamic and competitive environment.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Schneider Electric | 20-25% |
| Siemens AG | 15-20% |
| GE Vernova (General Electric) | 12-17% |
| ABB Ltd | 10-15% |
| Oracle Corporation | 8-12% |
| Other Companies (combined) | 30-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| Schneider Electric | Provides EcoStruxure Grid, offering real-time grid monitoring, automated load balancing, and integration of DERs. |
| Siemens AG | Delivers Spectrum Power solutions for grid optimization and automated demand response, enhancing grid reliability. |
| GE Vernova (General Electric) | Offers GridOS solutions to manage DERs, ensuring grid stability through predictive analytics and real-time control. |
| ABB Ltd | Focuses on modular ANM systems with microgrid management capabilities, supporting energy transition efforts. |
| Oracle Corporation | Provides utilities with cloud-based ANM platforms, enabling predictive maintenance and real-time load forecasting. |
Key Company Insights
Schneider Electric (20-25%)
Schneider Electric leads with its EcoStruxure Grid platform, designed to optimize power distribution and enhance resilience in increasingly complex grids.
Siemens AG (15 to 20%)
Siemens AG plays a pivotal role in advancing ANM through its Spectrum Power solutions, which provide utilities with real-time insights and automated control over grid performance.
GE Vernova (General Electric) (12-17%)
GE Vernova strengthens its position with the GridOS platform, which offers a comprehensive suite of tools for managing DERs and enhancing grid resilience.
ABB Ltd (10-15%)
ABB focuses on modular ANM solutions that offer flexibility and scalability for utilities of all sizes.
Oracle Corporation (8-12%)
Oracle stands out for its cloud-based ANM solutions, which empower utilities to harness real-time data for predictive maintenance and load forecasting.
Other Key Players (30-40% Combined)
The industry is expected to reach USD 1.3 billion in 2025.
The market is projected to grow to USD 8.9 billion by 2035.
Key companies include Schneider Electric, Siemens AG, GE Vernova (General Electric), ABB Ltd, Oracle Corporation, Cisco Systems, Eaton Corporation, Smarter Grid Solutions, IBM, Itron, and Landis+Gyr.
China is expected to witness the fastest growth, with a projected CAGR of 22.5% during the forecast period.
The Power Grids segment is among the most widely used in the market.
The segmentation is into software/platforms and services (professional services and managed services).
The segmentation is into Power (Power Generation, Power Grids), Energy and utilities, Oil and gas, Manufacturing, and Others.
The segmentation is into North America, Latin America, Europe, South Asia and the Pacific, East Asia, and the Middle East and Africa.
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Active Network Management Market
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