Smart Grid Communications Market

Global Smart Grid Communications Market Size (2024 to 2029)

The smart grid communications market is predicted to reach USD 478.89 billion in 2024 and USD 645.40 billion by 2029, growing at a CAGR of 6.15% during the forecast period.

The growing installation of smart energy meters is expected to lead the Smart Grid Communications market during the forecast period. Smart grid communications refers to infrastructure that can be integrated with the electricity grid using advanced communications and automated control technology.

Global Smart Grid Communications Market Drivers:

The rise in the installation of smart energy meters and the rapid modernization of aging grid infrastructure is expected to play an essential role in the growth of the market of Smart Grid Communications across the globe. Another factor, such as increasing awareness about carbon footprint management across the globe, influences the growth of the Smart Grid Communications market during the forecast period. The implementation of advanced technologies and integration with the smart grid, which generates a large volume of data that needs to be analyzed carefully to plan the load scheduling for the generating stations, the level of security, and the capability to store the information at the same time by the implementation of smart grid communications systems are not just driving factors, but the very backbone of this industry's growth.

Global Smart Grid Communications Market Restraints:

The high replacement cost of the smart grid communication system is one of the important barriers to market growth. Also, the slow response time acts as an important deterrent to the growth of the Smart Grid Communications market.

Impact of COVID-19 on the global Smart grid communications market:

Due to the COVID-19 pandemic, almost all industries have faced many problems due to the lockdown situations imposed by the respective government authorities to reduce the spread of the coronavirus. Because of the lockdown, most companies have shut down their operations and allowed their employees to work from home to continue some operational aspects. The Smart Grid Communications market had a significant growth rate before the pandemic, and as per the experts' analysis, this market will have an impeccable growth rate after the pandemic.

GLOBAL SMART GRID COMMUNICATIONS MARKET REPORT COVERAGE:

The smart grid communications market is segmented based on software, hardware, services, and region.

Global Smart Grid Communications Market - By Software:

• Smart Grid Network Management

• Grid Asset Management   

• Substation Automation     

• Advanced Metering Infrastructure

• Smart Grid Distribution Management         

• Smart Grid Security             

• Billing And Customer Information System 

The Smart Grid Communications Market is divided into Smart Grid Network Management, Grid Asset Management, Substation Automation, Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Security, Billing, and Customer Information Systems. Among these segments, the smart grid distribution management segment holds the major share of the market. It is expected to hold dominance during the given outlook period owing to factors such as integration of the supervisory control and data acquisition, energy management system, distribution management system, demand response management, and distributed energy resource management for energy distribution management and optimization on a real-time basis.

Global Smart Grid Communications Market - By Services:

• Consulting               

• Deployment And Integration          

• Support And Maintenance

The Smart Grid Communications Market is classified into consulting, deployment and integration, support, and maintenance. Among these segments, deployment and integration services in the energy sector held a prominent share of the market since they help streamline business applications through adequate installation and integration of various modules of utility smart grid operations.

Global Smart Grid Communications Market – By Region:

• North America

  • The United States

  • Canada

  • Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus

North American region holds a prominent share of the market since this region is identified as extremely responsive towards adopting the latest technological advancements such as AMI, smart grid business management, smart grid communications, and substation automation. Furthermore, the increasing large-scale investments in the region, especially in some countries such as the US, Canada, and Mexico, propels the market's growth. The North American region is expected to hold dominance during the forecast period.

Asia Pacific region is also expected to increase the market growth due to the rising number of enterprises in the world, and the entry of new industry players in some of the major economies of the region, such as India, China, and Japan, propels the growth of the revenue rate of the smart grid communications market during the forecast period. Furthermore, the rapid modernization of aging grid infrastructure, the increasing investments by the major key players of the market for R & D activities, and the new advancements in technology are also some of the major driving factors that promotes the growth of the revenue rate of the Smart Grid Communications market.

Europe is expected to have a significant growth rate during the forecast period. Rising expenditures and a growing population are exponentially propelling the market's demand.

Key Market Participants:

Key market participants of the Smart Grid Communications market include Eaton Corporation Plc, Fujitsu Ltd., General Electric Co., ABB Ltd., Cisco Systems Inc., Honeywell International Inc., Siemens AG, S&C Electric Co., Schneider Electric SE, and Xylem Inc.

Recent Developments

• Schneider Electric, a key player in the industry, unveiled its smart distribution centers in Brazil in September 2019. Open to customers, partners, and educational institutions, these centers serve as hubs for experiencing and learning about the company’s most innovative technologies. These advancements, delivered through its IoT-enabled, open, interoperable architecture and EcoStructure, are a testament to the industry's commitment to continuous innovation and technological progress.

• In July 2018, ABB Company acquired GE Industrial Solutions in a strategic move to expand its portfolio and strengthen its position in electrification. This acquisition is not just a business deal but a testament to the market's potential and ABB's confidence.

• In a significant development, GE power grid’s solutions business launched a new advanced distribution management solution in June 2018 in collaboration with Tata Power Delhi Distribution. This solution, tailored for India and featuring advanced features such as monitoring, security, analysis, and planning, is a testament to the industry's commitment to meeting the unique needs of different markets. Such developments drive the market's growth and enhance its adaptability and resilience.