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Market Summary

The Smart Grid Market is expected to reach USD 102.2 Billion by 2027 at a CAGR of 21.9% according to a new report by Reports and Data. This can be mainly related to the growing investments made for grid digitalization by integrating smart and advanced technologies by business organizations. Government initiatives to enhance the use of renewable forms of energy, the current generation mix, and the rising demand for creating green infrastructure facilities are further expected to encourage market expansion in the future.

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The smart grid implements technologies to sort out fault detection and facilitate automatic self-healing of the network after the power disruptions. The whole smart grid system comprises of advanced controls with new technologies, computers, and automation and gears, for improving its operational performance. Furthermore, these systems are accomplished to surmount the limitations of traditional and conventional electric grids that utilize more energy. Also, the increasing need to digitalize energy and power sectors and the vast need to strengthen electric infrastructures are projected to impact this market positively.

The development tends to be driven by one of two main ideas for improving electric power connections for both customers and their utilities: the European Union and U.S. models. The European Union vision seems to be driven primarily by environmental concerns, whereas U.S. planning has been motivated mainly by a desire for reliability improvements. In the United States, desirable features of the smart grid include distribution power architectures and self-healing transmission that will be resilient to deliberate attacks and natural calamities and very high power quality echelons along with a wide range of metrics that can go beyond outage numbers.

Component Outlook:



The smart grid uses a broad range of solutions to find an efficient way to produce, transport and maintain and expend energy. This can be made possible by special monitoring systems. These eco-friendly solutions are more and more critical to today's ecosystem as climate change has an imminent role. The solutions also help to utilize new technologies to increase the safety and reliability of devices. Numerous study reports are stating that the increased reliability and safety of these systems makes it more opting among households and other end-users. The current energy transmission is getting aged and no longer meets the present energy and climate challenge, but the dawn of technology and IoT has revolutionized the platform and projected to have good market opportunities during the forecasted time period

Technology Outlook:



Advanced metering infrastructure (AMI) is a unified system of smart meters, data management systems and communications networks, that enables two-way communication between utilities and customers. The system offers several essential functions that are not previously possible or that are performed manually, such as detect tampering, the capability to automatically and remotely measure electricity use, connect and disconnect service identify and isolate outages, and monitor voltage. Combined with customer technologies, such as in-home displays and programmable transmitting thermostats, AMI also allows utilities to offer new time-based rate programs and incentives that promote customers to reduce peak demand and manage energy consumption and costs.

End-Use Outlook:

The smart grids are advanced electric power grid infrastructure for improved efficiency and reliability through modern communications infrastructure, automated control, high-power converters, sensing and metering technologies, and advanced energy management techniques based on the energy and network availability and optimization of demand. The role of buildings in this structure is very crucial. Grids consist of controls, computers, automation, new technologies, smart facilities and equipment working altogether, but in this case these machinery will work with the electrical grid to react digitally to the quickly shifting the energy demands of the users. Therefore grids create an excellent opportunity for the development of smart zero energy buildings and communities and offer the step towards the Internet of Things for the Energy and Building Industry.



Regional Outlook:

North America is projected to hold the largest market and dominate the market during the forecast period. The region has been very responsive toward embracing the latest technological developments, such as distribution management, communication, AMI and substation automation smart grids. The major drivers for this area are the large-scale investments in grid and smart city developments and the need for better grid and control mechanisms. The Middle East and Africa (MEA) are in its initial growth phase; however, it is one of the fastest-developing regions in the global market.

Market-O-Nomics

China and the EU use 22% and 12.5% of the global energy, respectively, and both the regions are endeavoring to cut short the dependence on fossil fuel imports. To achieve this goal, raising the share of renewable energy sources and improving the electricity distributions has been considered to be crucial steering towards the expansion in investment in the industry over the coming years.

The Indian government announced the plan for creating a smart grid plan in the financial and technological hub near New Delhi, and Gurugram. The underground systems are expected to be completed by 2022, preserving 120-150 MW of electricity every day and solving the long-standing issues of power theft and technological faults.

Smart Meter will replace the current analog mechanical meter owing to its advantages as compared with the traditional ones. The latest meters save electricity price and rate from utility organizations and familiarize the customers with the best rate policy. Electricity prices vary encouraged by the demand-and-supply situation, including weather conditions, demand changes over time and capacity.

Companies considered and profiled in this market study

The major Smart Grid companies such as Cisco Systems, Inc., Itron Inc., Honeywell International Inc, Wipro Limited, Oracle, General Electric, IBM, Siemens, Schneider Electric, Tech Mahindra Limited.

The players operating in the industry have commenced a number of strategies related to the market in the period 2017-2020. The key highlight is:

In July 2018, ABB acquired GE Industrial Solutions to extend its product portfolio in the electrification area in North America.

In December 2017, Hubbell Inc to acquired Aclara Technlogies LLC, for USD 1.1 Billion to boost the business

Start-up Traction

The industry offers numerous growth prospects. Thus, a number of startups offering innovative products and technologies have been entering the market. Some of them are Lition, Stem, BBOXX, Arcadia Power, Origami Energy, Power Ledger, Electrify among others.

Deals Landscape

Mergers and Acquisitions are a crucial part of the Smart Grid industry. Along with the companies operating in the market, other key companies have also been entering the industry.

In December 2019,Ingersoll completed the acquisition for data analytics company Agilis Energy. Agilis uses it patented, smart-meter energy analytics applications to quantify various energy platforms with the aim of assisting energy companies with business in the multi-family residential, commercial and industrial sectors to achieve annual energy savings.

In August 2017, AE Industrial Partners LP acquired BHI energy. The acquisition of BHI Energy is a company concentrated on maintenance and staffing which will help AE industrial partners LLP to boosts up the service capabilities and repairing for these systems.

Expert Insights:

Reports and Data forecast promising growth for increased adoption of Smart Grid According to industrial experts, the demand for smart electrification is projected to have good market opportunities during the forecasted time period, new service providers are expected to enter the market, which is likely to provide platform-centric software solutions for production applications. New firms entering the industry would focus on innovating and delivering through advanced technologies, thereby reducing intricacy and lowering the overall total cost of operation.

Segments Covered in the report

This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this report, Reports and Data have segmented the global Smart Grid Market on the basis of Component, Technology, end-use, and region:

Component Outlook (Revenue, USD Billion; 2017-2027)

Solutions

Services

Technology Outlook (Revenue, USD Billion; 2017-2027)

Advanced Metering Infrastructure (AMI)

Smart Grid Distribution Management

Smart Grid Communications

Smart Grid Network Management

Substation Automation

Smart Grid Security

Others

End-Use Outlook (Revenue, USD Billion; 2017-2027)

Residential

Commercial

Industrial

Regional Outlook (Revenue, USD Billion; 2017-2027)

North America U.S

Europe U.K France

Asia Pacific China India Japan

MEA

Latin America Brazil

