Smart Electric Grid Market: Current Analysis and Forecast 2021-2027

Global Smart Electric Grid solution market is expected to reach market valuation of US$ 98.9 billion by 2027, witnessing a CAGR growth of 15.2% during the forecast period 2021-2027. As per Northeast Group, smart electric grid is a power grid that is fully integrated with ICT (information and communications technology). These tools and other applications power's both utility company and end customer with improved analytics and control over power flows and usage, to better optimize supply and demand. Globally investment in smart electricity grids system declined for the 3rd consecutive year in FY2019, witnessing a decline of 7%, compared to the value in 2018. In 2019, total investment stood at US$ 271 billion, compared to US$ 294 billion in 2018. In addition, investment for full suite of digital technologies, including advanced metering infrastructure, utility automation and EV charging infrastructure, accounted for more than 15% of the total global smart electric grid spending in 2019. Furthermore, in 2019, investment in smart electric grid solutions by US, overtook China for the first time in 10 years. US investment in smart electric grid witnessed an increase of 12% in 2019, compared to 2018.
Covid-19 pandemic have impacted all section of the society and industry and Smart Electric Grid market is no exception. Temporarily postponed meter installations due to Covid-19 had a slightly negative impact on shipment levels in 2020, also the total number of Smart Electric Grids installed in 2020, declined by 10% compared to the previous year 2019. Annual smart electricity meter shipments amounted to 20.9 million units in 2019 and the corresponding figure for Smart Gas Meters was 8.5 million units.
Insights Presented in the Report
"Amongst component, Hardware segment dominated the market in 2020."
Based on component the global Smart Electric Grid market is bifurcated into software, Hardware, Service. Currently, hardware segment dominated the market. Investment in smart electric grid remained focused on hardware, from digital substations to smart metering and other power engineering equipment. However, utility companies worldwide have indicated that they are increasingly adopting sophisticated software tools for better tracking and distribution of electricity.
"Amongst Software, Smart grid distribution management segment to witness highest growth"
Based on software, the market is divided into Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management, Substation Automation, Smart Grid Security, Billing and Customer Information System. As pe EIA, US electric utilities had more than 94.8 million advanced (smart) metering infrastructure (AMI) installed as of 2019.
"Amongst Hardware, Smart Meter to witness immense growth"
Based on hardware, the market is divided into Sensors, Programmable Logic Controllers, Smart Meters, Networking Hardware. Europe has emerged as a major hub for smart meter, providing ample growth opportunities for the manufacturers, as smart metering is mandatory in the UK and across Europe. In 2018, globally, the installed base of smart electricity, gas and water meters stood at 1,190 million and the number is expected to reach 1,645 million by the end of 2020.
"Amongst Service, Deployment and Integration segment to witness high growth"
Based on Service, the market is bifurcated into Consulting, Deployment and Integration, Support and Maintenance. Services help in overcoming numerous business challenges, creating high growth opportunities, and accelerating technological innovations in the energy sector. For instance, in 2019, Schneider Electric announced the expansion of its business in Brazil, with the opening of smart distribution center in the country.
"North America represents as the largest markets in the Global Smart Electric Grid Market."
For a better understanding of the market adoption, report provide detailed analysis for major region and countries including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of APAC), MEA (Saudi Arabia, UAE, South Africa, Rest of MEA), Latin America (Brazil, Argentina, Rest of Latin America). In 2020, North America dominated the market, however, post 2022 Asia-Pacific is expected to overtake North America to become the largest market for Smart Electric Grid solutions. Furthermore, over the forecast period, emerging markets in the MEA region are estimated to be at the forefront of Smart Electric Grids deployment as a reliable source of energy supply & management. Some of the major players operating in the market include Honeywell International, Schneider Electric SE, Duke Energy Corporation, General Electric Company, ABB Limited, Siemens AG, IBM Corporation, Hitachi, Ltd., Landis+Gyr, Itron.
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As per Northeast Group, smart electric grid is a power grid that is fully integrated with ICT (information and communications technology). These tools and other applications power's both utility company and end customer with improved analytics and control over power flows and usage, to better optimize supply and demand. Owing to the increased investment on the overall deployment of smart electric grid technologies globally, investment on advanced metering solutions is expected to witness significant growth during the forecast period. Governments in both developing and underdeveloped economics have spotted smart grid technology as a strategic energy infrastructural investment as a long-term economic success and help in achieving the carbon emission targets. Together, these factors are expected to enhance market growth and provide ample opportunities for the smart electric grid companies to sustain in the growing market. For instance, Ministry of Natural Resources Canada has launched, Renewables and Electrification Pathways (SREPs) program, a four-year CA$960 million (US$795 million) investment plan to support the rollout of smart grid technologies.
Based on component the global Smart Electric Grid market is bifurcated into software, Hardware, Service. Currently, hardware segment dominated the market. Investment in smart electric grid remained focused on hardware, from digital substations to smart metering and other power engineering equipment. However, utility companies worldwide have indicated that they are increasingly adopting sophisticated software tools for better tracking and distribution of electricity.
Based on software, the market is divided into Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management, Substation Automation, Smart Grid Security, Billing and Customer Information System. It is estimated that smart grid distribution management segment would witness high growth during the analyzed period.
Based on hardware, the market is divided into Sensors, Programmable Logic Controllers, Smart Meters, Networking Hardware.
Based on Service, the market is bifurcated into Consulting, Deployment and Integration, Support and Maintenance. Services help in overcoming numerous business challenges, creating high growth opportunities, and accelerating technological innovations in the energy sector.
For a better understanding of the market adoption, report provide detailed analysis for major region and countries including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of APAC), MEA (Saudi Arabia, UAE, South Africa, Rest of MEA), Latin America (Brazil, Argentina, Rest of Latin America)
Some of the major players operating in the market include Honeywell International, Schneider Electric SE, Duke Energy Corporation, General Electric Company, ABB Limited, Siemens AG, IBM Corporation, Hitachi, Ltd., Landis+Gyr, Itron