According to Marketsandmarkets research report ‘Smart Grid Market by Software, Hardware, Service, and Region – Global Forecast to 2023’, the smart grid market size is expected to grow from USD 23.8 billion in 2018 to USD 61.3 billion by 2023 at a Compound Annual Growth Rate (CAGR) of 20.9 per cent during the forecast period. Government policies and legislative mandates, the awareness of carbon footprints, modernisation of aging grid infrastructure, and improved grid reliability and efficient outage response are driving the adoption of smart grid solutions. With the increasing deployment of smart grid solutions in the smart cities, the smart grid market is expected to gain a major traction during the forecast period.
The smart grid distribution management segment is expected to hold the highest market share during the forecast period. Smart grid distribution management is a software platform that integrates Supervisory Control and Data Acquisition (SCADA), Energy Management System (EMS), Distribution Management System (DMS), Demand Response (DR) management, and Distributed Energy Resource Management (DERM) for energy distribution management and optimisation on a real-time basis.
The deployment and integration services segment is expected to have the highest market share and projected to grow at the highest CAGR during the forecast period. Deployment and integration services help in reducing the deployment and integration time. These services are crucial for developing end-to-smart grid solutions for the energy sector. The increasing requirement for upgrading traditional smart grid systems to support various smart cities and smart grids is increasing the growth of the deployment and integration services segment in the smart grid market.
North America is expected to hold the highest market share and dominate the smart grid market during the forecast period. The region has been extremely responsive toward adopting the latest technological advancements, such as Advanced Metering Infrastructure (AMI), smart grid distribution management, smart grid network, and substation automation.
The major factors driving this region are the large-scale investments in smart grid and smart city projects and need for better smart grid and control mechanisms. MEA is in its initial growth phase; however, it is the fastest-growing region in the global smart grid market. The region has huge reservoirs of conventional and renewable energy sources. The high adoption of solutions to minimize outages and revenue losses, and provide better smart grids and controls has led to a wider demand for smart grid solutions in MEA.
The major vendors offering smart grids are GE (US), ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Itron (US), Landis+Gyr (Switzerland), Aclara (US), Cisco (US), OSI (US), IBM (US), Wipro (India), Honeywell (US), Oracle (US), S&C Electric Company (US), Eaton (Ireland), Kamstrup (Denmark), Trilliant Holdings (US), Globema (Poland), Tech Mahindra (India), Enel X North America (US), eSmart Systems (Norway), Tanatalus (US), EsyaSoft (India), Grid4C (US), and C3 Energy (US).