The Smart Grid Technology Market is anticipated to flourish at a strong CAGR of 19.6% between 2023 and 2033. The market is expected to hold a market share of USD 2.5 trillion by 2033, whereas, the market is likely to reach a value of USD 429 billion in 2023.
FMI explains how different benefits delivered by smart grid technology help the market thrive at a strong growth rate. The first and key market river is enhanced electrical transmission efficiency which regulates and calculates the electrical transmission. The faster electrical restoration post outages and quick damage analysis also make it a cut-above technology of the future. The smart mitigation of electrical losses and wastage is also one factor that the grid authorities look for in any grid. The remotely monitored meters also help the authorities to reduce electrical theft.
These factors help the market system directly or indirectly. Technology not only delivers energy in a better way, but it also encourages the authorities to switch to renewable energy platforms.
The increased population, higher urban settings, more working spaces, and increase in the systems are expected to fuel the market growth. Alongside this, the minimum and reduced maintenance expenses are also due to the monitoring and talking of energy consumption dimension and source. Lastly, the concept of smart cities, a rapid rise in electric vehicle consumption, is likely to boom with the flourishing sale of smart grid technology.
Recent Trends in the Market:
| Attributes | Details |
|---|---|
| Smart Grid Technology Market CAGR (2023 to 2033) | 19.6% |
| Smart Grid Technology Market Size (2023) | USD 429 billion |
| Smart Grid Technology Market Size (2033) | USD 2.5 trillion |
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From 2018 to 2022, the smart grid technology market thrived at a lower CAGR of 28.3%, reaching a market size of USD 359 billion in 2022. The market thrives at a CAGR of 19.6% between 2023 and 2033. The shrunk growth rate is attributed to the slowed research and development projection
From 2018 to 2022, smart grid technology was a new concept and was highly adopted during that time. The inactivated work people usually residing at their homes are expected to garner the market’s success. The higher access to homes, and appliances, higher sales of electric cars, and maintenance fueled the adoption of higher supply-based smart grid technology.
The enhanced communication network is another challenge that turned into a win through the smart grid technology. All these smart elements during the phase between 2018 and 2022 have worked in favor of the smart grid technology market. Now, the market and numerous hydro or coal-based power alternatives are returning to normalcy. The popularity of solar power, biofuel-based power generation, and other sources have slightly slowed down the market.
The subsequent dependency on conventional power supplies is expected to garner market growth at a CAGR of 19.6% during the forecast period. Therefore, the market is expected to reach USD 2.5 trillion by 2033.
The energy, power, and fuel-based markets are large and have several verticals all around the industries. Reduced electricity costs, minimal equipment failure, limited oil usage, and scale blackouts are some growth drivers that contribute positively to the market.
The governments are ensuring the constant supply of electricity with reduced electricity theft. The expansion of businesses that require a continual flow of electricity to function properly is helping garner market growth. Furthermore, the supportive government policies around the deployment of these smart grids are anticipated to expand the market size. The installation of smart meters is also projected to help the deployment of smart grid technologies.
The few restrictions to the market growth can be discussed as higher initial deployment costs and hacking of some smart meters. Increased challenges of network congestion or performance.
| Country | United States |
|---|---|
| CAGR % (2023 to 2033) | 18.4% |
| Anticipated Value (2033) | USD 829.63 billion |
The United States thrives at a CAGR of 18.4% and is expected to hold a value of USD 829.63 billion by the end of 2033. The growth is attributed to government policies on electricity model upgrades, the adoption of new systems, and rapidly increasing urbanization.
Furthermore, new companies producing flexible grid systems with higher efficiency and security detail are projected to add value to the regional market. The government’s plans to shift to efficient, sustainable, and green energy are expected to garner growth in the market.
| Country | United Kingdom |
|---|---|
| CAGR % (2023 to 2033) | 18.7% |
| Anticipated Value (2033) | USD 130 billion |
The United Kingdom market is expected to flourish at a CAGR of 18.7% between 2023 and 2033, while it is anticipated to reach a value of USD 130 billion by 2033. The regional market is expected to flourish in the electricity need through different technologies.
Through key initiatives and emissions, the smart grid in the United Kingdom is increasing the traction for the market. The low-carbon economy is also promoting the adoption of smart grid technologies for the future.
| Country | China |
|---|---|
| CAGR % (2023 to 2033) | 20.7% |
| Anticipated Value (2033) | USD 224.74 billion |
China fuels at a CAGR of 20.7% between 2023 and 2033, while it reaches the value of USD 224.74 billion in 2033. The market growth is attributed to emerging economies building their power systems and higher electricity consumption. The countries like China and India are also focusing on creating sustainable energy.
| Category | By Communication Network |
|---|---|
| Leading Segment | WAN Network |
| CAGR (2023 to 2033) | 19.5% |
| Category | By Software and Hardware |
|---|---|
| Leading Segment | Distribution Management System - DMS |
| CAGR (2023 to 2033) | 19.4% |
The market is segmented into software & hardware, sensors, and communication network. These segments have different subsegments further. FMI analyzes these segments and explains which segment is leading and the reasons behind
Based on the WAN network, the WAN network segment leads the market with a CAGR of 19.5% between 2023 and 2033. The growth is attributed to it being the core communication technology. It also provides an efficient, secure, and reliable communication platform. The network also delivers goals for the smart grid NANs.
Based on software and hardware, the distribution management system segment is expected to lead as it thrives at a leading CAGR of 19.4 during the forecast period. The growth is attributed to the real-time visibility it provides for the end user's data and uniformity at all levels of the distributional channel. This way, the even share of power gets shared from one end to another.
The smart grid technology sector is fragmented and competitive and includes various players such as Siemens (Germany), Schneider Electric (France), S&C Electric Company (United States), Eaton (Ireland), and GE (United States). These companies mainly focus on mergers, collaboration, and other campaigns to enhance the supply chain and deployment capacity.
Market Developments
Key Players
The smart grid technology market is expected to reach USD 429 billion in 2023.
The market is anticipated to surge at a CAGR of 19.6% from 2023 to 2033.
United States is expected to reach a value pool of USD 829.63 billion until 2033.
China’s market is expected to augment at a CAGR of 20.7% from 2023 to 2033.
The WAN network segment is anticipated to remain preferred in the market till 2033.
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Smart Grid Technology Market
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