SMART GRID MARKET SIZE & SHARE BY OFFERING (HARDWARE, SOFTWARE, SERVICES), BY APPLICATION (GENERATION, TRANSMISSION, DISTRIBUTION, CONSUMPTION), BY COMMUNICATION TECHNOLOGY (WIRELINE, WIRELESS), END USE (UTILITY, INDUSTRIAL, COMMERCIAL, RESIDENTIAL) AND BY REGION & COUNTRY – FORECAST TO 2032
| Report Code: E&P4006-0201 | Number of Pages: 240 | Report Format: PDF, EXCEL, PPT |
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Trend Year: 2022 – 2024 |
Forecast Period: 2025 – 2032 |
Publish Date: JULY 2025 |
Market Overview: The global smart grid market was valued at approximately USD 75 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 15.2% from 2025 to 2032 to reach USD 233 billion by 2032. The smart grid market is propelled by various crucial factors aligned with the global transition toward more efficient, sustainable, and resilient energy systems. Key drivers include the surging demand for reliable and continuous power supply, growing integration of renewable energy sources, and the urgent need to upgrade outdated electrical infrastructure. Additionally, supportive government policies, regulations, and investments aimed at reducing carbon emissions are accelerating smart grid deployment globally.
MARKET DYNAMIC
GROWTH DRIVERS:
- Growing demand for uninterrupted and reliable power supply
- Smart grids enable efficient management and integration of renewable energy into the power network
- Ageing power infrastructure
- Strong policy support, incentives, and regulatory mandates are accelerating smart grid adoption globally
NEW GROWTH OPPORTUNITIES:
- Rapid urban growth and electrification in regions like Asia-Pacific, South America, present significant growth potential
- The rise in EV demands smart charging infrastructure and efficient energy distribution networks
- Increasing investments in smart city development open new avenues for smart grid solutions
MARKET RESTRAINTS:
- The deployment of smart grid infrastructure requires high initial capital investment
- Increased digitalization and connectivity expose smart grids to potential cyber threats
- Technical complexity
GROWTH HURDLES:
- Lack of consistent policies or delayed regulations can slow down market growth
- Supply chain disruptions
- Utilities and consumers may be hesitant to adopt new technologies due to lack of awareness or fear of disruption
Offering: Market Insights
In the smart grid market by offering, the software segment holds a dominant position due to its pivotal role in enabling the efficient, intelligent, and flexible operation of modern power grids. Software solutions are essential for integrating advanced technologies such as distributed energy resources (DERs), smart meters, and energy storage systems into the grid infrastructure. This software facilitates in real-time monitoring, data analytics, predictive maintenance, demand response, outage management, and grid automation, all of which are critical for improving grid reliability, resilience, and energy efficiency. As utilities and governments worldwide prioritize digital transformation and decarbonization, the demand for advanced software platforms that can manage complex grid dynamics, enhance cybersecurity, and support regulatory compliances has surged. Moreover, the growing adoption of cloud-based platforms and Artificial Intelligence-driven analytics tools further strengthens the software segment’s market dominance in the evolving smart grid ecosystem.
Communication Technology: Market Insights
By communication technology, wireless communication technology currently holds a dominant position and is witnessing faster growth compared to wireline solutions. This dominance is driven by the increasing need for flexible, scalable, and cost-effective communication infrastructure that can support widespread deployment of smart meters, remote sensors, and distributed energy resources (DERs).
End Use: Market Insights
In terms of end use, the utility sector is expected to dominate the smart grid market during the forecast period, primarily due to its central role in power generation, transmission, and distribution. Utilities are the key stakeholders responsible for modernizing grid infrastructure to meet the growing demands for reliability, sustainability, and efficiency. The integration of smart grid technologies allows utilities to enhance grid visibility, reduce operational costs, manage peak load, and efficiently incorporate renewable energy sources. Additionally, regulatory mandates and government initiatives aimed at upgrading aging power infrastructure and reducing carbon emissions have further accelerated smart grid adoption among utility providers. With a large-scale customer base and significant investment capacity, utilities continue to lead the deployment of smart meters, grid automation systems, and advanced distribution management software, reinforcing their dominant position in the market.
Regional: Market Insights
North America dominates the global smart grid market due to a combination of technological leadership, strong policy support, and early adoption of advanced grid solutions. The region, led by the United States and Canada, has made substantial investments in upgrading its aging electrical infrastructure to meet the growing demand for reliable, secure, and sustainable power. In the USA., initiatives like the Smart Grid Investment Grant (SGIG) program and American Recovery and Reinvestment Act (ARRA) have played a critical role in accelerating smart grid deployment. These programs have promoted the installation of millions of smart meters, automated distribution systems, and grid communication networks across utilities. Regulatory bodies such as the Federal Energy Regulatory Commission (FERC) and North American Electric Reliability Corporation (NERC) have set stringent guidelines that encourage grid modernization, cybersecurity, and integration of renewable energy resources. The increasing penetration of renewable energy (especially solar and wind) in the U.S. energy mix has also made smart grid solutions essential for balancing supply-demand fluctuations and managing distributed generation.
North America region is seeing rapid growth in electric vehicle (EV) adoption, which is driving the need for advanced charging infrastructure and intelligent grid management to handle the additional load. Smart grid technologies enable real-time communication and load balancing, which are vital for large-scale EV integration. Moreover, the presence of major global players such as General Electric, Cisco Systems, IBM, Honeywell, and Schneider Electric in North America has fostered innovation and enabled large-scale deployment of cutting-edge solutions like AI-powered grid analytics, demand response systems, and IoT-enabled asset monitoring. North America’s leadership in the smart grid market is a result of proactive regulatory support, robust infrastructure investment, a high level of digitalization, a strong ecosystem of technology providers, and a growing focus on decarbonization and electrification across sectors.
The USA smart grid market is experiencing robust growth, driven by the urgent need to modernize aging infrastructure, integrate renewable energy sources, and enhance grid resilience. Federal and state-level initiatives, such as the Smart Grid Investment Grant and the Infrastructure Investment and Jobs Act, have significantly boosted funding for advanced grid technologies, including smart meters, distribution automation, and digital substations. The rapid adoption of solar, wind, and electric vehicles has created new challenges in energy management, making smart grids essential for real-time monitoring, load balancing, and two-way power flow. Utilities across the country are embracing digital solutions powered by IoT, AI, and advanced analytics to optimize operations and improve service reliability. Additionally, strong involvement from leading private sector players and supportive regulatory frameworks are accelerating innovation and deployment. As the U.S. moves toward its clean energy and decarbonization goals, the smart grid market is poised to play a central role in transforming the nation’s energy landscape.
Competition: Smart Grid
The smart grid market is facing strong competition as major players work to grow their market share through constant innovation, new technologies, and strategic partnerships. Companies like General Electric, Schneider Electric, Siemens, ABB, and Itron lead this changing scene, using their global reach and technological resources to meet the changing needs of the energy sector. Along with technological advancements, partnerships, mergers and acquisitions, and regional expansions are important strategies these companies use to solidify their market position. Collaborating with technology providers, telecom companies, and government organizations helps these firms offer complete smart grid solutions and reach new markets. Additionally, the growing use of renewable energy sources, electric vehicles, and the need for energy efficiency and sustainability are driving the demand for smart grid systems. Governments and regulatory bodies worldwide are supporting smart grid deployment with favorable policies and funding programs, boosting market growth even more. The smart grid market’s competitive landscape is marked by ongoing technological changes, customer-focused product development, and strategic efforts aimed at addressing the global shift toward smarter, greener, and more reliable energy systems.
General Electric Company, Schneider Electric, Siemens, ABB, and Itron are among the leading companies active in the market.
General Electric (GE), through its business segment GE Vernova (formerly part of GE Power), is a key player in the global smart grid market. The company offers a wide portfolio of advanced grid solutions that span across generation, transmission, distribution, and grid modernization. GE’s focus is on enabling utilities and governments to build more reliable, efficient, and sustainable power systems through digital transformation and advanced energy technologies. GE is focused on supporting energy transition through decarbonization, decentralization, and digitalization. Its smart grid initiatives aim to enhance grid reliability, enable renewable energy integration, and empower utilities to meet dynamic energy demands in a more sustainable manner.
Siemens AG is a global technology leader with a strong footprint in energy automation, electrification, and digitalization. Through its energy business division, Siemens Smart Infrastructure, the company plays a pivotal role in the smart grid market by offering comprehensive solutions across generation, transmission, distribution, and consumption. Siemens is committed to enabling a resilient, intelligent, and sustainable power grid through cutting-edge technologies and digital platforms. Company Siemens is committed to drive the energy transition through decarbonization, digital transformation, and decentralization. The company’s smart grid portfolio aims to make grids more adaptive, secure, and efficient in supporting renewables, electric vehicles, and distributed energy resources (DERs). Siemens also promotes the vision of a self-healing, automated, and sustainable grid ecosystem.
Recent Development:
- In the year 2024, Schneider Electric reveals smart grid solutions for the future. Innovations in power distribution address complexities from the push towards net-zero emissions and integration of renewable energy sources. Schneider Electric’s launches the EcoStruxure platform, which includes two key components: the Advanced Distribution Management System (ADMS) and the Distributed Energy Resource Management System (DERMS). These systems are designed to manage the increasingly complex power grids that now incorporate various renewable energy sources such as solar panels and wind turbines.
- ABB acquired the power electronics business of Gamesa Electric. The acquisition by ABB will significantly improve its existing power conversion product and service offerings, specifically targeting renewable OEMs. The deal will also deepen ABB’s engineering capabilities in power conversion and grid connection, while offering significant opportunities to service an expanded installed base.
- GE Vernova acquired Greenbird to accelerate GridOS® innovation and help utilities reduce the complexity of energy data integration. Acquisition showcase GE Vernova’s commitment to invest strategically in technologies that help accelerate the sustainable energy grid. Reducing the complexity of big data integration for utilities creates more opportunities for AI-driven grid automation and enables them to move at speed to meet decarbonization targets and electrification demand while managing climate-related disruptions.
SMART GRID MARKET SNAPSHOT | |
Market size in 2024 | USD 75 Billion |
Market forecast in 2032 | USD 233 Billion |
Compound Annual Growth Rate (2025-2032) | 15.2% |
Historical Data (Years) | 2022-2024 |
Forecast Data (Years) | 2025-2032 |
Growth Drivers | Growing demand for uninterrupted and reliable power supply, Smart grids enable efficient management and integration of renewable energy into the power network, Aging power infrastructure, Strong policy support, incentives, and regulatory mandates are accelerating smart grid adoption globally |
Segments Covered | Offering, Application, Communication Technology, End Use |
Regions Covered | North America, Europe, Asia Pacific, South America, Middle East & Africa |
Countries Covered | US, Canada, Mexico, UK, Germany, Italy, France, Spain, Russia, China, India, Japan, South Korea, Australia, UAE, South Africa, Saudi Arabia, Brazil, Argentina |
Companies Profiled | ABB, SCHNIDER ELECTRIC, IBM, SIEMENS, GENERAL ELECTRIC COMPANY, ORACLE, CISCO SYSTEMS, INC., HONEYWELL, ESYASOFT TECHNOLOGIES, C3 ENERGY, EATON, SAP, GRID4C, ENEL X, ESMART SYSTEMS, GLOBEMA, ITRON INC., MITSUBISHI ELECTRIC CORPORATION, WIPRO, TECH MAHINDRA LIMITED, XYLEM, TRILLIANT HOLDINGS INC., TANTALUS, LANDIS+GYR, S&C ELECTRIC |
