The smart grid market will grow from USD 43.1 billion in 2021 (estimated year) to USD 103.4 billion by 2026 (forecast year), smart grid market by component (software, hardware, service), application (generation, transmission, distribution, consumption/end use), communication technology (wired, wireless).
Smart grid technology enables the power gird transition from a traditional energy distribution network to a modern smart grid network which allowing two-way communication between utilities and customers/users. Smart grids use digital communication technologies, information systems, and automation system to monitor the energy flow and adjust energy demand and supply for changes in energy.
The smart grid also helps end users and suppliers monitor the power consumption in real time by connecting with smart metering systems. Thus, the smart grid helps us to improve the operating efficiency of the metering system, which can reduce the operating costs. The demand for smart infrastructure in industrial, commercial and residential environments continues to increase that providing profitable opportunities for the smart grid market.
In the future, the software sector is expected to dominate the smart grid market by component. The software part will be responsible for the largest share of the smart grid market in 2021 and future. The software part of the smart grid market is further divided into seven types-advanced metering infrastructure (AMI), smart grid distribution management, smart grid network management, grid asset management, substation automation, smart grid security, and billing and customer information systems.
In addition, the power distribution sector is also expected to dominate the smart grid market by application.
Calculated by application, the power distribution sector will account for the largest share of the smart grid market in 2021 and future time. Efficient power distribution applications help restore power faster after power disturbances, reduce the operating and management costs of utilities, and finally reduce the cost of electricity for consumers.
The wired segment is expected to dominate the smart grid market through communication technology too.
In 2021, according to the analysis of communication technology, the wired communication technology will account for the largest share of the smart grid market. Wired communication technology is driving the market because it is relatively cost-effective and this type of transmission is not susceptible to third-party intrusion and interruption. Mainly include radio frequency, Ethernet and power line carrier.
The America market is expected to grow, mainly because it is the most mature market for the smart grid deployment, advanced information technology infrastructure, the presence of multiple companies, and the availability of technical expertise in the country. With the application of digital technology to distributed energy, smart grid technology in the United States is undergoing major changes. All these factors are expected to drive the growth of the North American smart grid market.
Post time: Oct-12-2021