The Smart Grid Technology Market is to Touch $128.16 Billion by 2030; Increase in demand for energy-efficient products and Deployment of Smart Grid technology to support rural electrification are fueling the propels market growth.

The Smart Grid Technology Market size is estimated to reach $128.16 Billion by 2030, growing at a CAGR of 10.2% during the forecast period 2023-2030, according to a recent report published by IndustryARC, titled, “Smart Grid Technology Market – By Grid Type (AC, DC) By Service Type Consulting, Implementation and Deployment, Maintenance and Others), By Technology (Advanced Metering Infrastructure (AMI) (Meter Data Management System, Analytics, AMI Security), Distributed Automation, Software, hardware (Sensors, Smart Meters and Others), Communication Technologies, Cyber Security and Others) By Vertical (Industrial, Military, Utility, Aerospace and Defense, Automotive, Others ), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030” Increase in demand for energy-efficient products and Deployment of Smart Grid technology to support rural electrification are fueling the growth of the Smart Grid Technology industry during the forecast period.

In 2023, North America led the global Smart Grid Technology Market with a 36% share. The surge in oil and gas production in the U.S., driven by interest in unconventional reserves and technological advancements, has boosted the demand for water and heat meters. Recently, McDermott secured contracts from North Oil Company for EPCIC services on the Ruya Development Project, which involves expanding the Al-Shaheen field in Qatar. This project, which includes engineering, procurement, construction, installation, and commissioning, is expected to positively influence market growth. Additionally, the White House has fast-tracked permits for new interstate transmission lines across Federal lands. Approved projects in 2022 include Energy Gateway South (up to 2,000 MW) in WY, CO, UT; Ten West Link (up to 3,200 MW) from AZ to CA; and Gateway West (up to 765 MW) from WY to ID. These developments are likely to create more opportunities for water and heat meters, which are crucial for measuring thermal energy in these systems.

Smart Grid manufacturers are stepping up their production of energy-efficient products to cut carbon emissions and offer cost savings for consumers. This trend is driven by strict government regulations on electric home appliances and technological advancements. For example, the U.S. Department of Energy has required manufacturers to adopt new technologies for creating energy-efficient meters, which are evaluated based on their thermal efficiency and standby losses. Energy-efficient appliances are designed to use minimal energy, and over 80 countries have implemented standards and labels to promote them. In 2022, U.S. electric utilities had 119 million Advanced Metering Infrastructure (AMI) installations, making up 72% of all meters, with 88% of these in residential areas and 73% of residential meters being AMI. The Bureau of Energy Efficiency (BEE) has included Smart Grid technologies in its Standards and Labelling Program, pushing manufacturers to produce even more energy-efficient products. This growing demand for energy-efficient products is expected to drive market growth from 2024 to 2030.

Smart Grid technology is proving to be an effective solution for rural electrification. It allows for quicker installation of power infrastructure and offers lower energy costs compared to traditional grids. This makes it a cost-effective option for providing electricity to rural regions. According to the International Energy Agency (IEA), global electricity access declined in 2022, impacting 760 million people, with Sub-Saharan Africa facing 80% of the challenge. This highlights the urgent need for electrification, which drives the expansion of Smart Grid systems.

• In October 2022, ABB's acquisition of ASKI Energy bolsters its digital energy  management portfolio, fostering the development of advanced energy optimization  and control technologies. This move aligns with ABB's strategy to offer innovative  solutions for CO2 reduction and energy cost savings across various sectors, including  Smart Grids and electric vehicle infrastructure. 

• In August 2023, GE Vernova's acquisition of Greenbird underscores its dedication to  advancing sustainable energy grids. Integrating Greenbird's technology into GridOS®  enhances data integration for utilities, facilitating AI-driven automation and aiding in  meeting decarbonization goals amidst climate challenges.  

• In November 2023, Schneider Electric urged swift adoption of Smart Grids to hasten  the energy transition. As pioneers in energy management and automation, they  emphasize global leaders' imperative to prioritize Smart Grid implementation for  achieving net zero objectives. Recent innovations unveiled at Enlit Europe 2023  bolster this call to action.

Key companies profiled in the Smart Grid Technology Market are ABB Ltd., Eaton Corporation PLC, General Electric (GE), Itron Inc, Schneider Electric Corporation, Siemens AG, Cisco Systems Inc, Osaki Electric  Co. Ltd products, Honeywell International Inc., Hitachi Ltd, and others.