According to a recent report published by Allied Market Research, titled,"Smart Grid Market by Component, Application, Solutions, and End User: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global smart grid market was valued at $66.96 billion in 2017 and is projected to reach $169.18 billion by 2025, growing at a CAGR of 12.4% from 2018 to 2025.
The global shift toward secure, sustainable, affordable, and uninterrupted electricity supply is driving changes in the production, transmission, distribution, and consumption of electricity. In addition, smart grid can support the reliability of the grid and can bring possibilities for management of the real-time electricity production, demand, and storage. Moreover, rise in concerns pertaining to environment protection and growth in adoption of smart grid technology to improve efficiency in energy conservation and consumption are the major factors that fuel the smart grid market trends. In addition, supportive government policies & regulations to use smart meters and rise in investments in digital electricity infrastructure are also some of the crucial factors that drive the market growth. However, lack of standardization and rise in privacy & security concerns are expected to hinder the smart grid market growth.
Furthermore, increase in the number of electric vehicles on the road and upcoming smart cities projects in developing regions are expected to provide major opportunities for the market growth during the forecast period. In addition, the full deployment of advanced meters is also expected to provide major energy efficiency potential for the smart grid market.
Based on component, the solution segment dominated the overall smart grid market size in 2017 and is expected to remain dominant during the forecast period. The growth of this segment is mainly attributed to cost savings on overall electricity bills and increase in need to shift from conventional energy sources to sustainable and renewable energy resources. In addition, growing concerns regarding security and data privacy are also the major factor that drives the growth of this segment.
North America dominated the overall smart grid market in 2017 and is expected to remain dominant during the forecast period due to emergence of electric vehicles and major investments done by private and public as well as government entities in this region. Furthermore, Asia-Pacific is expected to exhibit highest growth rate throughout the forecast period. The growing demand to link up the remote and rural communities to national grid and increase in need to overcome the electricity outage are expected to drive the smart grid market growth in this region.
Key Findings of the Smart Grid Market:
- Based on end user, the commercial segment generated the highest revenue for smart grid market share in 2017, the growth in demand for the uninterrupted, efficient, and reliable electricity source is the major factor that drives the market growth in this segment.
- Based on application, the transmission segment dominated the overall market in 2017 and is expected to generate highest revenue during the smart grid market forecast period.
- Some of the key smart grid industry players profiled in the report include Cisco Systems, Inc., General Electric, Honeywell International Inc, International Business Machines Corporation (IBM), Itron Inc., Oracle, Schneider Electric, Siemens, Tech Mahindra Limited, Wipro Limited, and others.