스마트 그리드 네트워크 시장 : 점유율 분석, 업계 동향 및 통계, 성장 예측(2026-2031년)

According to Mordor Intelligence, the smart grid network market size is expected to increase from USD 26.51 billion in 2025 to USD 29.28 billion in 2026 and reach USD 46.77 billion by 2031, growing at a CAGR of 9.82% over 2026-2031.

This report is Segmented by Component (Hardware, Software, Services), Grid Stage (Generation, Transmission, Distribution, Prosumer), Technology Application (AMI, Automation, Demand Response, Cybersecurity, Analytics), Communication (Wired, Wireless, Hybrid), End User (Residential, Commercial, Industrial, Utilities/DSOs), Geography (North America, Europe, Asia-Pacific, South America, MEA). Forecasts in Value (USD).

Global Smart Grid Network Market Trends and Insights

Government-Funded Grid Digitization Mandates

Government-backed grid spending has moved from policy signaling into direct procurement support, which shortens utility decision cycles in the smart grid network market. In March 2026, the U.S. Department of Energy announced the USD 1.9 billion Spark Initiative funding opportunity under the Grid Resilience and Innovation Partnerships (GRIP) program, including USD 614 million for smart grid deployments and USD 862 million for grid innovation. In Europe, the business case for digital grid upgrades is stronger because France's regulator reported EUR 1.7 billion in cumulative savings from smart grid deployments between 2017 and 2024. Germany also showed the scale of commitment required, as TenneT Germany invested EUR 10.047 billion, or USD 11.1 billion, in 2025 to expand and modernize power infrastructure. These programs lift demand in the smart grid network market because utilities can commit to long-cycle automation, communications, and software projects with more confidence. They also push utilities toward interoperable digital systems, since public funding programs increasingly favor platforms that can connect substations, field devices, and customer-side assets across the full network.

Renewable & Distributed Energy Resources (DER) Integration Pressure

The generation mix is changing fast, and that raises control requirements across the smart grid network market because utilities must manage more variable and bidirectional power flows. Global renewable electricity generation exceeded coal-fired generation for the first time in 2025, which marked a major shift in how grids must balance supply and demand. In Germany, TenneT Germany raised investment to EUR 10.047 billion, or USD 11.1 billion, in 2025 to support offshore wind integration and major transmission corridors, showing how renewable buildout now drives core network spending. The pressure is now strongest at the distribution edge, where rooftop solar, EV charging, storage, and smart inverters turn customers into active grid participants rather than passive loads. That shift increases the value of advanced metering, DER management, and demand response in the smart grid network market because operators need more granular data and faster control loops. It also makes curtailment, local voltage management, and flexible load orchestration practical priorities rather than secondary planning topics.

High CapEx Requirements

High capital intensity remains one of the clearest limits on the smart grid network market because utilities must fund hardware, communications, software, and systems integration at the same time. TenneT Germany invested EUR 10.047 billion, or USD 11.1 billion, in 2025 alone, which shows the scale required even in mature and well-funded grid systems. The Department of Energy's (DOE's) SPARK funding round also shows that public support is often needed to accelerate projects that would otherwise move more slowly through utility capital plans. In the smart grid network market, this spending burden is heavier for mid-tier utilities because they often face narrower financing options and slower cost recovery. The result is that many operators can justify grid digitization strategically but still phase projects more slowly than system needs would suggest. That constraint is strongest in markets where regulatory support, rate recovery, or local manufacturing depth are still catching up with modernization targets.

Other drivers and restraints analyzed in the detailed report include:

1. AI-Based Predictive Maintenance Adoption
2. 5G/ Low-Power Wide-Area (LPWA) Connectivity Enabling Edge Intelligence
3. Protocol & System Interoperability Gaps

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Hardware accounted for 60.8% of revenue in 2025, which reflects the physical scale of meter deployment, feeder automation, relays, and substation equipment across the smart grid network market. That position remains strong because utilities still need large installed bases of field devices before they can unlock the full value of software-led orchestration and analytics. Smart meters, automation devices, and protection systems continue to absorb a large share of capital budgets because many utilities are replacing first-generation installations or extending automation into new parts of their networks. This keeps hardware central to the smart grid network market even as competitive value moves further into software layers. Hardware demand also remains tied to the practical need for dependable sensing and communications across transmission, distribution, and customer endpoints.

Software is forecast to grow at 13.5% CAGR through 2031, which makes it the fastest-growing component in the smart grid network market. That growth reflects rising demand for Advanced Distribution Management System (ADMS), Distributed Energy Resource Management System (DERMS), outage analytics, and other platforms that help utilities turn field data into operating decisions across more dynamic grid conditions. The shift is visible in vendor strategy, because Honeywell expanded its utility portfolio in August 2025 by acquiring SparkMeter's Praxis, GridScan, and GridFin software assets. The hardware side is also facing price pressure, with Chinese manufacturers holding a 30%-to-40%-unit cost advantage in smart meters through vertical integration, which raises the need for margin protection through software and services. Services support both segments in the smart grid network market because utilities increasingly need integration, cybersecurity operations, and managed support to connect OT and IT systems at scale.

Distribution held 48.0% of revenue in 2025, which shows where utilities still concentrate the largest share of practical modernization spending in the smart grid network market. That allocation reflects the operational reality that outages, losses, and customer-facing reliability issues are often most visible on distribution networks rather than on generation or long-distance transmission assets. Feeder automation, outage management, Advanced Metering Infrastructure (AMI), and voltage control therefore remain central purchase areas in the smart grid network market. Distribution also serves as the connection point where utility systems meet prosumer assets, commercial loads, and new electrified demand from transport and digital infrastructure. This gives it a structural role that is likely to remain larger than other grid stages over the forecast period.

The consumption and prosumer segment is forecast to grow at 12.6% CAGR through 2031, making it the fastest-moving grid stage in the smart grid network market. The reason is clear: rooftop solar, EV chargers, residential batteries, and smart inverters are increasing the volume of two-way flows and local decision points that utilities must monitor and control. In markets with high distributed energy adoption, these customer-side assets are becoming useful grid sensors as well as sources of demand flexibility. Transmission modernization still matters, and TenneT Germany's 2025 investment program shows how renewable integration can lift backbone network spending at the same time. Even so, the most dynamic part of the smart grid network market now sits at the grid edge, where customer behavior, DER participation, and localized control requirements are changing the operating model of utilities.

Complete Report Scope:

• By Component
  • Hardware
  • Software
  • Services
• By Grid Stage
  • Generation
  • Transmission
  • Distribution
  • Consumption/Prosumer
• By Technology Application Area
  • Advanced Metering Infrastructure (AMI)
  • Distribution Automation
  • Transmission Upgrades and FACTS
  • Demand Response
  • Grid Cybersecurity
  • Grid Analytics and Software
  • Other Emerging Areas
• By Communication Technology
  • Wired (Fiber, PLC)
  • Wireless (RF Mesh, Cellular IoT, 5G, LPWA)
  • Hybrid Architectures
• By End User
  • Residential
  • Commercial
  • Industrial
  • Utilities and DSOs
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Italy
    • NORDIC Countries
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • ASEAN Countries
    • Australia and New Zealand
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • South Africa
    • Egypt
    • Rest of Middle East and Africa

Geography Analysis

North America held 35.5% of revenue in 2025, which gave it the largest regional position in the smart grid network market. The region benefits from a large installed smart meter base, ongoing second-wave AMI replacement, and a broad utility focus on feeder automation and digital control. The U.S. Department of Energy strengthened that demand path in March 2026 by releasing USD 1.9 billion under SPARK, including USD 614 million for smart grid deployments and USD 862 million for grid innovation. Europe follows a different path in the smart grid network market, with strong decarbonization pressure but tighter capital discipline around how fast operators can build. France's regulator reported EUR 1.7 billion in cumulative smart grid savings between 2017 and 2024, while TenneT Germany invested EUR 10.047 billion, or USD 11.1 billion, in 2025, which shows that digital and transmission upgrades are both moving into core utility spending plans.

Asia-Pacific is forecast to expand at 14.8% CAGR through 2031, making it the fastest-growing region in the smart grid network market size. The region combines large network expansion programs with faster rollout architectures, which supports both basic electrification upgrades and newer digital grid layers. India's transmission and distribution investment reached USD 26 billion in 2026 after growing at 15% annually over the prior five years, and the country is pushing large smart meter targets that support broader grid digitization. China remains the other major volume engine in the smart grid network market because state-backed infrastructure planning continues to support renewable integration and digital network investment. Across the region, utilities are moving quickly toward fiber-to-the-meter, wireless field-area networks, and software-enabled control, which helps Asia-Pacific compress modernization timelines relative to more incremental replacement cycles elsewhere.

South America remains a high-potential but underpenetrated part of the smart grid network market, where modernization needs are clear but rollout speed is uneven. Mexico has announced 163,540 million pesos, or USD 9.5 billion, in transmission modernization projects under its 2025 to 2030 strategic plan, while Brazil's CEMIG partnered with Huawei on a private 450 MHz Long-Term Evolution (LTE) network to improve grid automation over challenging terrain. In the Middle East and Africa, digital grid investment is tied more closely to energy diversification, remote operations, and leapfrog deployment models than to replacement of dense legacy communication networks. That creates room in the smart grid network market for wireless automation, intelligent substations, and remote monitoring solutions where conventional wireline expansion would take longer or cost more.

1. ABB Ltd
2. Cisco Systems Inc.
3. Eaton Corporation plc
4. General Electric Company
5. Itron Inc.
6. Osaki Electric Co. Ltd
7. Hitachi Ltd
8. Schneider Electric SE
9. Siemens AG
10. Honeywell International Inc.
11. Landis+Gyr AG
12. IBM Corporation
13. Oracle Corporation
14. Huawei Technologies Co. Ltd.
15. Kamstrup A/S
16. S&C Electric Company
17. Toshiba Corporation
18. Wipro Limited
19. Johnson Controls International plc

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

TABLE OF CONTENTS

1 Introduction

• 1.1 Study Assumptions & Market Definition
• 1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

• 4.1 Market Overview
• 4.2 Market Drivers
  • 4.2.1 Government-funded grid digitization mandates
  • 4.2.2 Rapid AMI roll-outs for demand-side management
  • 4.2.3 Renewable & DER integration pressure
  • 4.2.4 AI-based predictive maintenance adoption
  • 4.2.5 5G / LPWA connectivity enabling edge intelligence
  • 4.2.6 Blockchain-enabled transactive energy platforms
• 4.3 Market Restraints
  • 4.3.1 High capex requirements
  • 4.3.2 Protocol & system interoperability gaps
  • 4.3.3 Shortage of cyber-physical talent
  • 4.3.4 Geopolitical supply-chain restrictions
• 4.4 Supply-Chain Analysis
• 4.5 Regulatory Landscape
• 4.6 Technological Outlook
• 4.7 Porter's Five Forces
  • 4.7.1 Bargaining Power of Suppliers
  • 4.7.2 Bargaining Power of Buyers
  • 4.7.3 Threat of New Entrants
  • 4.7.4 Threat of Substitutes
  • 4.7.5 Competitive Rivalry

5 Market Size & Growth Forecasts

• 5.1 By Component
  • 5.1.1 Hardware
  • 5.1.2 Software
  • 5.1.3 Services
• 5.2 By Grid Stage
  • 5.2.1 Generation
  • 5.2.2 Transmission
  • 5.2.3 Distribution
  • 5.2.4 Consumption/Prosumer
• 5.3 By Technology Application Area
  • 5.3.1 Advanced Metering Infrastructure (AMI)
  • 5.3.2 Distribution Automation
  • 5.3.3 Transmission Upgrades and FACTS
  • 5.3.4 Demand Response
  • 5.3.5 Grid Cybersecurity
  • 5.3.6 Grid Analytics and Software
  • 5.3.7 Other Emerging Areas
• 5.4 By Communication Technology
  • 5.4.1 Wired (Fiber, PLC)
  • 5.4.2 Wireless (RF Mesh, Cellular IoT, 5G, LPWA)
  • 5.4.3 Hybrid Architectures
• 5.5 By End User
  • 5.5.1 Residential
  • 5.5.2 Commercial
  • 5.5.3 Industrial
  • 5.5.4 Utilities and DSOs
• 5.6 By Geography
  • 5.6.1 North America
    • 5.6.1.1 United States
    • 5.6.1.2 Canada
    • 5.6.1.3 Mexico
  • 5.6.2 Europe
    • 5.6.2.1 Germany
    • 5.6.2.2 France
    • 5.6.2.3 United Kingdom
    • 5.6.2.4 Spain
    • 5.6.2.5 Italy
    • 5.6.2.6 NORDIC Countries
    • 5.6.2.7 Russia
    • 5.6.2.8 Rest of Europe
  • 5.6.3 Asia-Pacific
    • 5.6.3.1 China
    • 5.6.3.2 Japan
    • 5.6.3.3 India
    • 5.6.3.4 South Korea
    • 5.6.3.5 ASEAN Countries
    • 5.6.3.6 Australia and New Zealand
    • 5.6.3.7 Rest of Asia-Pacific
  • 5.6.4 South America
    • 5.6.4.1 Brazil
    • 5.6.4.2 Argentina
    • 5.6.4.3 Colombia
    • 5.6.4.4 Rest of South America
  • 5.6.5 Middle East and Africa
    • 5.6.5.1 Saudi Arabia
    • 5.6.5.2 United Arab Emirates
    • 5.6.5.3 South Africa
    • 5.6.5.4 Egypt
    • 5.6.5.5 Rest of Middle East and Africa

6 Competitive Landscape

• 6.1 Market Concentration
• 6.2 Strategic Moves (M&A, Partnerships, PPAs)
• 6.3 Market Share Analysis (Market Rank/Share for key companies)
• 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
  • 6.4.1 ABB Ltd
  • 6.4.2 Cisco Systems Inc.
  • 6.4.3 Eaton Corporation plc
  • 6.4.4 General Electric Company
  • 6.4.5 Itron Inc.
  • 6.4.6 Osaki Electric Co. Ltd
  • 6.4.7 Hitachi Ltd
  • 6.4.8 Schneider Electric SE
  • 6.4.9 Siemens AG
  • 6.4.10 Honeywell International Inc.
  • 6.4.11 Landis+Gyr AG
  • 6.4.12 IBM Corporation
  • 6.4.13 Oracle Corporation
  • 6.4.14 Huawei Technologies Co. Ltd.
  • 6.4.15 Kamstrup A/S
  • 6.4.16 S&C Electric Company
  • 6.4.17 Toshiba Corporation
  • 6.4.18 Wipro Limited
  • 6.4.19 Johnson Controls International plc

7 Market Opportunities & Future Outlook

• 7.1 White-space & Unmet-Need Assessment