IMARC Group has recently released a new research study titled “Smart Grid Market Report by Component (Software, Hardware, Services), End-User (Residential, Commercial, Industrial), and Region 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.
The global smart grid market size reached USD 73.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 269.5 Billion by 2033, exhibiting a growth rate (CAGR) of 15.6% during 2025-2033.
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Industry Trends and Drivers:
Smart grid market trends
Smart Grid Market has the promise for a major transformation, with changes underway and consumer wants. In this context, investment in advanced technology, such as IoT and AI, will adapt grid efficiency and reliability and integration from 2024 renewable energy sources in grid fully. Regulatory frameworks will evolve as a result, and supportive policies will drive new installations of smart grid solutions which will see utilities adopt the smart grid to improve their infrastructure. Consumer engagement is quite significant as more and more people will demand for control over their energy consumption through ramping up smart meters, smart meters, and energy management systems.
This trend will encourage more participatory energy system, with the consumers getting involved & exercising control over on their energy consumption. In general, the smart grid market is going to grow very quickly because of the increase in technological advancements and government support than before as well as gaining consumer dominance in management.
Technology Advancements and Integration into the Market
Smart grid market is expanding rapidly due to the lucrative growth from the rapid technological advancements and integration with customized digital solutions into traditional functions like automation. New communication technologies, including IoT devices; advanced metering infrastructure (AMI) and cloud are transforming how energy is managed and delivered. These technologies are anticipated to make a significant impact on grid reliability, efficiency, and resilience; assisting in the ability of utilities to better maintain demand and supply by 2024.
And now, one of the key trends in this space is incorporating distributed renewable energy sources from things like solar and wind into grid (upon which balance/ stability controls must be effective).
Therefore, with utilities putting more money towards upgrading their infrastructure to support the technology; there will be a need to increase the usage of smart grid solutions which signals a larger move away from traditional energy practices and management.
Initiatives and Support under Regulatory Policies
The smart grid market landscape is rapidly being shaped by key trends in every corner of Regulatory support and policy initiatives. Across the world, governments are slowly starting to understand the necessity of an overhauled energy infrastructure to meet sustainability and climate goals. The growth of this sector will be pushed by policy and industry measures in place to advance smart grid technology, with investments expected in 2024 due to a rise of the various policies, inducements for various stakeholders. Tax credits, grants and funding programs for smart grid projects are being touted to get utilities to embrace cutting-edge technology and improve their grid functionality.
Also, ever more stringent regulatory frameworks requiring increasing amounts of renewable energy and energy-efficiency are pushing the demand for smart grids. As policy evolves, the smart grid market will likely expand in support with that change (creating more innovative and collaborative partnerships within energy pay-as-you-go).
The surge in consumer demand to manage energy.
In the smart grid market, consumer engagement is rising as more people want greater control over their energy consumption and prices. Consumers will be enabled the ability to access their real time energy consumption starting with smart meters and onward to energy management systems (EMS) by 2024, making smarter decisions on the amount and type of electricity they consume. Rising demand for this type of energy management systems is making utilities develop the consumer interface and applications to be more interactive and easier to use. In addition, as people become more aware about the potential savings on energy costs, they will look for ways to live a more sustainable life including adopting energy-efficiency practices that foster the need for smart grid technologies.
The evolution of a more participative energy framework, where consumers will directly regulate their own energy resources, is going to significantly change both market dynamics and the demand for smart grid solutions.
Smart Grid Market Report Segmentation:
Breakup By Component:
Software
- Advanced Metering Infrastructure
- Smart Grid Distribution Management
- Smart Grid Network Management
- Substation Automation
- Others
Hardware
- Sensor
- Programmable Logic Controller
- AMI Metre
- Networking Hardware
- Others
- Services
Consulting
- Support and Maintenance
- Deployment and Integration
Software account for the majority of shares as it plays a crucial role in optimizing grid performance through advanced analytics, demand response management, and real-time monitoring.
Breakup By End User:
- Residential
- Commercial
- Industrial
Commercial dominates the market as they have higher energy consumption and are increasingly adopting smart grid solutions to improve energy efficiency and reduce operational costs.
Breakup By Region:
- Asia Pacific
- Europe
- North America
- Middle East and Africa
- Latin America
North America holds the leading position owing to a large market for smart grid driven by its advanced infrastructure, supportive government policies, and significant investments in grid modernization projects.
Top Smart Grid Market Leaders:
The smart grid market research report outlines a detailed analysis of the competitive landscape, offering in-depth profiles of major companies.
Some of the key players in the market are:
- CISCO Systems
- IBM Corporation
- Siemens AG
- Schneider Electric
- Wipro
- General Electric
- Honeywell
- Oracle Corporation
- ABB
- Itron
- Fujitsu
- Eaton
- Tantalus
- eSmart Systems
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Key Highlights of the Report:
- Market Performance (2018-2023)
- Market Outlook (2024-2032)
- Market Trends
- Market Drivers and Success Factors
- Impact of COVID-19
- Value Chain Analysis
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
About Us
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
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