Global Smart Grid Communications Market Size, Share & Trends Analysis Report, By Component, By Application, By Communication Technology, By Region (North America, Europe, APAC, and Others), and Segment Forecasts, 2024 – 2032
  • Published Date: Jan, 2024
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  • Pages: 200
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  • Table of Contents
  • Segmentation
  • Methodology
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Global Smart Grid Communications Market was valued at US $ 36.1305 Billion in 2023 and is expected to reach US $ 108.238 billion by 2032 growing at a CAGR of 14.70% during the forecast period 2024 – 2032.

One of the major market drivers is the modernisation of the deteriorated grid infrastructure. Moreover, governments across the globe are sponsoring investments in smart grid technologies.

This analysis is global in scope and considers key smart grid communications market trends up to 2028. This report intends to examine smart grid communication market according to different types and applications. The smart grid communication’s global market is expected to grow with significant potential during the projection period. Additionally, it highlights the major trends and growth drivers in the smart grid communications industry while giving invaluable information on the main player’s market share.

The Smart Grid Communications Trend Analysis

It’s now possible to deploy smart infrastructure in a supportive global governance environment.

Governments across the globe have implemented various supportive policies and mandates such as; deployment of smart infrastructure and advocations for energy conservation awareness. These regulations drive the implementation of smart grid technology for industrial, commercial, and domestic uses.

By an estimate, USD 4.5 billion was set aside by the Recovery Act for DOE to modernise the electric power infrastructure in America. To date, the DOE as well as the electricity sector have co-invested USD 8 billion in 99 cost shared SGIG projects. These projects comprise more than 200 electric utilities and other organizations with the objective of improving interoperability, increasing cybersecurity resilience, modernizing the electric grid infrastructure, accumulating unprecedented volumes of data on smart grid operations and benefits. SGIG plan aims at speeding up the modernization of national electric transmission and distribution infrastructure. The Canadian grid project utilizes IoT and digital communication technologies without destabilising the operational grids thus allowing the introduction of new renewable energy sources into the existing stable and reliable operational grids. One such project, as cited in Dunnavant (2017), includes the allocation of US$ 615 million towards Smart Grid Demonstration Initiatives while another is the smart grid investment grant program worth USD 3.4 billion provided under the umbrella An organization called NERC (North American Electric Reliability Corporation) inspects the reliability of the whole power bulk system in the North America. The fundamental change in the way people consume electrical power is at the heart of smart grid technologies. The intelligent grid meters have been adopted by sectors as a requirement of the legislative mandate.

China and other countries such as Japan, Australia, and South Korea, are expected to boost smart grid communications in Asia-Pacific (APAC) while, China emerges as the leading front runner for a smart grid implementation. Japan introduced ECHONET-lite, which is a standard for direct communication between domestic EMSs and smart meters, in 2019. Energy Conservation Law enacted in Japan (amended in 2010), obliges factories, buildings, and mechanical equipment to work on an integrated principle when using energy. In 2011, the Ministry of Power established ISGF so as to fast track the development of smart grid infrastructure in the Indian power sector.

Segmentation Analysis of the Smart Grid Communications Market

The highest demand was for software in 2020 from all smart grid communication segments worldwide.

They also help to reduce the power generation costs and simplify the smart grid operations management with enhanced efficiency of processes. Smart grid applications’ software lowers power generation costs, improve operational productivity, and simplifies control over the smart grid.

As expected, smart grid is expected to be dominated by this particular segment.

In a power plant, power is generated at high volts. Therefore, for efficiency purposes, the electric energy should be stepped down and connected to distribution lines with a low voltage. The power is made available for the distribution companies to distribute it to consumers through this process. It uses a distribution infrastructure that consists of transformers, substation and feeder. There is also intelligence injected as part of integrating smart infrastructure in the distribution.

The fastest growing segment of smart grid communication market in 2020 will be wireless communication technology.

Wireless communication is the most advanced technology today. This refers to information transmission over a distance without any electrical conduits or wires. In addition, there should exist an advanced bi-directional communication framework that connects intelligent electronic devices with the control centre, which should be reliable, secure, having very low latency for wireless communication to work properly in a substation. In contrast to wireline technology, wireless technology guarantees low costs and secure data transferring. Utility companies are offered support by this technology, which is characterized by pervasive coverage, large capacity and fine tuning of complex logistics and manufacturing processes.

Regional Analysis of the Smart Grid Communications Market

The fastest growing market is in Asia-Pacific smart grid communication as there are many modernizations in the old grid infrastructure.

It is projected that by 2020, Asia Pacific will be the fastest-growing market whereas in 2021 to 2026, its smart grid communication market was leading globally. It is mainly attributed to growing smart city projects and increasing demand for smart city infrastructure. This would in turn drive up the global demand for automation products e.g. smart grid solutions.

Intelligent communications will be one of the fastest-growing markets in Asia-Pacific nations over the next decade. The market has experienced consistent growth over the last few years. Examples of these countries include China, India and Japan which power consumption is growing forcing them look for new methods for effective production, transmission, as well as use of electricity. These include China, India, Japan, Australia, South Korea among other countries that utilize the smart grid technology.

The smart grid communication market has performed well in APAC; however, APAC is far behind in North America and Europe with respect to developments in energy industries. The growing popularity of advanced energy storage solutions in APAC, which drives expansion of smart grid communication market. Smart grids help energy distributors and end users enjoy some benefits such as optimal power management, power outages, demand response, and cost reduction. Smart grids have compelled energy industries in APAC to install it and construct the necessary infrastructure.

COVID-19 Impact Analysis on Smart Grid Communications Market.

Impacts of COVID-19:

Supply Chain Disruptions: Pandemic disrupted the global supply chain for communication devices in smart grids. This led to delays in project implementations as well as installations.

The pandemic also had a negative impact on the majority of many smart grid projects, which resulted in their postponement and even cancellation.. There was significant slow down in infrastructure projects relating to the same as the economic uncertainties together with lockdowns and social distancing protocols.

The pandemic had financial implications making it difficult for governments and utilities to allocate funds. This might have led to a review of how funding is allocated to smart grid communication projects and other related matters.

Coordination and Project Management Obstacles Arising From Remote Work Transition. Additionally, there could have been some unaddressed collaborations and com-munications issues that could also have brought about further delays.

Greater Emphasis on Resilience: The pandemic revealed the pivotal role of sound and durable infrastructure during its course. An increased sense of awareness may be what motivated focus back on clever communication mechanisms towards strengthening electrical networks, perhaps.

The positive part of the pandemic was acceleration of digitalization in most of the industries. Perhaps utilities understood that highly advanced communication systems were needed to improve the surveillance, supervision, and entire productivity of the grid.

Top Key Players

  • IBM Corporation
  • ABB Ltd
  • Schneider Electric SE
  • Cisco systems Inc.
  • Itron Inc.
  • Verizon communications Inc.
  • Siemens AG
  • Ingenu Inc
  • Eaton Corporation Plc
  • Xylem Inc.

Key Industry Developments in the Smart Grid Communications Market

  • • At the beginning of May 2021, Impact Solar became partners with Hitachi ABB Power grids to provide a microgrid powered by battery system to the biggest private one in Thailand.
  • In January 2021, Schneider Electric bought DC systems BV the major leader in developing and offering intelligent systems and solutions. Its enabled the development of new electric distribution technologies for the company. As an example, Siemens Energy, one of Siemen subordinates, presented a new type of Unified Power Flow Controller PLUS in September 2020 that widened the horizons of opportunities for stabilizing the grid. Therefore, the UPFC PLUS helps to stabilize alternating-current grids by adjusting the current flow in a dynamic way.
  • Tata Power-DDL took up a solution in ADMS specifically for the purpose of India in July 2018.ҽ Advanced functions of the ADMS are for instance planning, security, monitoring and analysis, etc.
  • In the May of 2018, itron along with Jamaica public service company (JPS), the sole distributor of electrical power in Jamaica and multi-product utility signed an agreement for itron’s smart grid solution for Jamaica.

Report Components Details
Base Year 2022
Forecast Period 2021-2026
Quantitative Units Revenue in US $
Segments Covered Based on component Software, Advanced Metering Infrastructure, Smart Grid Distribution Management, Smart Grid Network Management, Grid Asset Management, Substation Automation, Smart Grid Security, Billing and Customer Information System. Hardware, Smart Meters, Sensors, Programmable Logic Controller (PLC), Others (Networking Hardware and Energy Storage) Services, Consulting, Deployment and Integration, Support and Maintenance Based on Application, Generation, Transmission, Distribution, Consumption Based on Communication Technology, Wireline, Wireless
Countries Covered U.S. and Canada in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the APAC, Others include Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA), Brazil, Argentina, Mexico, and Rest of South America as part of South America
Market Players Covered IBM Corporation, ABB Ltd, Schneider Electric SE, Cisco systems Inc., Itron Inc., Verizon communications Inc., Siemens AG, Ingenu Inc, Eaton Corporation Plc, Xylem Inc.

Table of Contents

  1. Introduction Of Global Smart Grid Communications Market
    1. Overview of the Market
    2. Scope of Report
    3. Assumptions
  2. Executive Summary
  3. Research Methodology
    1. Data Mining
    2. Validation
    3. Primary Interviews
    4. List of Data Sources
  4. Global Smart Grid Communications Market Outlook
    1. Overview
    2. Market Dynamics
      1. Drivers
      2. Restraints
      3. Opportunities
    3. Porters Five Force Model
      1. Bargaining Power of Suppliers
      2. Threat of New Entrants
      3. Threat of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power among Buyers
    4. Value Chain Analysis
  5. Global Smart Grid Communications Market, By Component
    1. Overview
    2. Software
      1. Advanced Metering Infrastructure
      2. Smart Grid Distribution Management
      3. Smart Grid Network Management
      4. Grid Asset Management
      5. Substation Automation
      6. Smart Grid Security
      7. Billing and Customer Information System.
    3. Hardware
      1. Smart Meters
      2. Sensors
      3. Programmable Logic Controller (PLC)
      4. Others (Networking Hardware and Energy Storage)
    4. Service
      1. Consulting
      2. Deployment and Integration
      3. Support and Maintenance
  6. Global Smart Grid Communications Market, By End-User
    1. Overview
    2. Wireline
    3. Wireless
  7. Global Smart Grid Communications Market, By Technology
    1. Overview
    2. Generating
    3. Transmission
    4. Distribution
    5. Consumption
  8. Global Smart Grid Communications Market, By Region
    1. North America
      1. U.S.
      2. Canada
    2. Europe
      1. Germany
      2. U.K.
      3. France
      4. Rest of Europe
    3. Asia Pacific
      1. China
      2. Japan
      3. India
      4. South Korea
      5. Singapore
      6. Malaysia
      7. Australia
      8. Thailand
      9. Indonesia
      10. Philippines
      11. Rest of Asia Pacific
    4. Others
      1. Saudi Arabia
      2. U.A.E.
      3. South Africa
      4. Egypt
      5. Israel
      6. Rest of Middle East and Africa (MEA)
      7. Brazil
      8. Argentina
      9. Mexico
      10. Rest of South America
  9. Company Profiles
    1. IBM Corporation
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    2. ABB Ltd
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    3. Schneider Electric SE
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    4. Cisco systems Inc.
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    5. Itron Inc.
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    6. Verizon communications Inc.
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    7. Siemens AG
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    8. Ingenu Inc
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    9. Eaton Corporation Plc
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News
    10. Xylem Inc.
      1. Company Overview
      2. Key Executives
      3. Operating Business Segments
      4. Product Portfolio
      5. Financial Performance (As per availability)
      6. Key News

Global Smart Grid Communications Market Segmentation

Smart Grid Communications by component: Market Size & Forecast 2024-2032

Software

  • Advanced Metering Infrastructure
  • Smart Grid Distribution Management
  • Smart Grid Network Management
  • Grid Asset Management
  • Substation Automation
  • Smart Grid Security
  • Billing and Customer Information System.

Hardware

  • Smart Meters
  • Sensors
  • Programmable Logic Controller (PLC)
  • Others (Networking Hardware and Energy Storage)

Services

  • Consulting
  • Deployment and Integration
  • Support and Maintenance

Smart Grid Communications by Application: Market Size & Forecast 2024-2032

  • Generation
  • Transmission
  • Distribution
  • Consumption

Smart Grid Communications by Communication Technology: Market Size & Forecast 2024-2032

  • Wireline
  • Wireless

Smart Grid Communications by Geography: Market Size & Forecast 2024-2032

  • North America (USA, Canada, Mexico)
  • Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
  • Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
  • South America (Brazil, Argentina, Columbia, Rest of South America)
  • Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

  • IBM Corporation
  • ABB Ltd
  • Schneider Electric SE
  • Cisco systems Inc.
  • Itron Inc.
  • Verizon communications Inc.
  • Siemens AG
  • Ingenu Inc
  • Eaton Corporation Plc
  • Xylem Inc.

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