세계의 스마트 그리드 솔루션 시장 예측(-2032년) : 컴포넌트별, 솔루션 유형별, 용도별, 최종 사용자별, 지역별 분석

According to Stratistics MRC, the Global Smart Grid Solutions Market is accounted for $60.3 billion in 2025 and is expected to reach $161.4 billion by 2032, growing at a CAGR of 15.1% during the forecast period. Smart grid solutions combine sensors, communications, analytics, and automation to modernize electricity networks. They enable two-way power and data flows, enhancing reliability, outage response, demand management, and integration of distributed energy resources. Utilities use smart meters, advanced distribution management systems, and grid edge intelligence to optimize operations and customer services. Cybersecurity, interoperability, and regulatory incentives influence adoption, while decarbonization goals and electrification trends expand demand for intelligent, resilient grids that support variable renewable generation and evolving consumer behaviors.

According to the IEA, total installed grid-scale battery storage capacity was close to 28 GW at the end of 2022.

Market Dynamics:

Driver:

Rising demand for reliable and efficient electricity distribution

Utilities and large consumers are accelerating investments in smart grid technologies to reduce outages, optimize load balancing, and integrate renewables. Sensors, automated switches, and real-time monitoring enable faster fault detection, lower losses, and more accurate demand forecasting. Additionally, as industries and data centers use more electricity, the grid needs to be updated to handle higher demand without building a lot of new power lines; regulators and investors prefer projects that clearly improve reliability and efficiency, which supports the purchase of hardware and automation systems.

Restraint:

Lack of standardized regulations and interoperability

Fragmented standards and proprietary protocols complicate integration of devices, communications, and control systems across vendors and regions. Utilities often need custom adapters or middleware, raising implementation costs and project timelines. Inconsistent regulatory approaches and certification requirements across jurisdictions further slow cross-border deployments and partnerships. Additionally, vendors face higher validation burdens and longer time-to-market when products must be adapted to multiple technical regimes, which together dampens investment appetite and slows industry consolidation.

Opportunity:

Growth in distributed energy resources (DERs) and electric vehicles

Rapid expansion of rooftop solar, behind-the-meter batteries, and electric vehicle fleets is creating significant demand for solutions that manage two-way power flows and local balancing. DER management systems, smart inverters, and vehicle-to-grid functionality allow operators new flexibility to provide ancillary services and reduce peak stress. Furthermore, aggregators and utilities can monetize flexible capacity through demand response and market participation, creating recurring revenue opportunities for platform providers and accelerating integrated deployments across networks.

Threat:

Cybersecurity risks and data privacy concerns

As grids become more digitally interconnected, vulnerabilities in field devices, communications links, and third-party integrations pose real operational and reputational risks. Successful attacks can disrupt supply, manipulate measurements, or expose consumer data, prompting stricter regulatory scrutiny and higher insurance and compliance costs. Additionally, well-known security breaches raise public worry and slow down the buying process as utility companies ask for better security measures, leading suppliers to spend more on secure engineering, identity management, and handling incidents.

Covid-19 Impact:

The pandemic revealed resilience weaknesses and shifted priorities within utilities, accelerating investment in remote monitoring, automation, and predictive diagnostics to protect personnel and maintain service. Supply chain interruptions delayed some hardware rollouts and testing programs, yet the crisis validated remote operations and cloud platforms, prompting renewed funding for digital projects. Overall, Covid-19 strengthened the business case for smart grid digitalization by highlighting the value of remote situational awareness, fault-reduction technologies, and automated field workflows that limit dependence on in-person maintenance.

The hardware segment is expected to be the largest during the forecast period

The hardware segment is expected to account for the largest market share during the forecast period because smart meters, sensors, transformers, and protective relays provide essential visibility and control across distribution and transmission networks. Utilities prioritize these tangible upgrades to reduce losses, improve reliability, and enable demand management. Large procurement cycles for hardware create stable revenue for manufacturers and installers, often bundled with long-term maintenance agreements. Additionally, hardware rollouts catalyze complementary software and communications projects that increase total solution value and lock in multi-year service relationships.

The consumption segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the consumption segment is predicted to witness the highest growth rate, driven by improved customer engagement, policy support for demand flexibility, and widespread smart device penetration. Aggregators and utilities can now orchestrate large pools of flexible loads and EV chargers to provide grid services, unlocking value in ancillary markets. Furthermore, cloud-native platforms and modular APIs reduce deployment friction for new entrants, accelerating innovation and partnerships. As tariffs, incentives, and data access improve, utilities will increasingly deploy consumer-centric tools to balance networks and defer costly upgrades.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share because of mature grid modernization programs, widespread smart meter rollouts, and significant utility capital spending that supports large-scale deployments. Strong regulatory incentives, robust R&D, and close collaboration between technology firms and utilities accelerate adoption of advanced distribution automation and analytics. Moreover, high industrial and data center electricity demand drives urgency for reliability upgrades, while deep capital markets and vendor ecosystems enable rapid scaling of both hardware and software solutions.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR due to rapid electrification, urbanization, and major renewable integration efforts across China, India, and Southeast Asia. Growing EV adoption and falling costs for sensors and communications make automation and monitoring economically attractive. Additionally, competitive regional vendors, public-private partnerships, and multilateral financing lower deployment risks and hasten rollouts. These factors, combined with large addressable populations and aggressive government programs, underpin accelerated smart grid adoption across the region.

Key players in the market

Some of the key players in Smart Grid Solutions Market include Siemens AG, ABB Ltd, Schneider Electric SE, General Electric Company, Itron, Inc., Cisco Systems, Inc., Honeywell International Inc., International Business Machines Corporation, Landis+Gyr Ltd, Eaton Corporation plc, Hitachi Energy Ltd, Xylem Inc., Oracle Corporation, S&C Electric Company, Mitsubishi Electric Corporation, and Johnson Controls International plc.

Key Developments:

In March 2025, Honeywell announced a partnership with Verizon Business: Honeywell's smart meters will incorporate Verizon 5G connectivity, supporting remote grid/utility-data access, improved grid resilience and operational effectiveness.

In November 2024, Schneider Electric announced at Enlit Europe the launch of new smart-grid solutions including enhanced wildfire / storm mitigation capabilities, advanced deployment of its Distributed Energy Resource Management System (DERMS), and holistic LV-network monitoring strategies.

In August 2024, GE Vernova (through its Grid Solutions business) launched the GRiDEA portfolio: a suite of SF6-free (and other decarbonization-focused) grid-equipment solutions aimed at decarbonizing transmission/distribution infrastructure.

Components Covered:

• Hardware
• Software
• Services

Solution Types Covered:

• Advanced Metering Infrastructure (AMI)
• Smart Grid Distribution Management
• Substation Automation
• Smart Grid Network Management
• Smart Grid Communications
• Smart Grid Security
• Demand Response

Applications Covered:

• Generation
• Transmission
• Distribution
• Consumption

End Users Covered:

• Utility Sector
• Industrial Sector
• Commercial Sector
• Residential Sector

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface

• 2.1 Abstract
• 2.2 Stake Holders
• 2.3 Research Scope
• 2.4 Research Methodology
  • 2.4.1 Data Mining
  • 2.4.2 Data Analysis
  • 2.4.3 Data Validation
  • 2.4.4 Research Approach
• 2.5 Research Sources
  • 2.5.1 Primary Research Sources
  • 2.5.2 Secondary Research Sources
  • 2.5.3 Assumptions

3 Market Trend Analysis

• 3.1 Introduction
• 3.2 Drivers
• 3.3 Restraints
• 3.4 Opportunities
• 3.5 Threats
• 3.6 Application Analysis
• 3.7 End User Analysis
• 3.8 Emerging Markets
• 3.9 Impact of Covid-19

4 Porters Five Force Analysis

• 4.1 Bargaining power of suppliers
• 4.2 Bargaining power of buyers
• 4.3 Threat of substitutes
• 4.4 Threat of new entrants
• 4.5 Competitive rivalry

5 Global Smart Grid Solutions Market, By Component

• 5.1 Introduction
• 5.2 Hardware
  • 5.2.1 Smart Meters
  • 5.2.2 Sensors and Measurement Devices
  • 5.2.3 Distribution Automation Components
  • 5.2.4 Control Systems and Communication Equipment
  • 5.2.5 Energy Storage Systems (ESS) Components
• 5.3 Software
  • 5.3.1 Advanced Metering Infrastructure (AMI) Systems
  • 5.3.2 Smart Grid Distribution Management Systems (DMS)
  • 5.3.3 Supervisory Control and Data Acquisition (SCADA) Systems
  • 5.3.4 Outage Management Systems (OMS)
  • 5.3.5 Distributed Energy Resource Management Systems (DERMS)
  • 5.3.6 Smart Grid Security Software
  • 5.3.7 Billing and Customer Information Systems (CIS)
• 5.4 Services
  • 5.4.1 Consulting and Integration Services
  • 5.4.2 Deployment and Installation Services
  • 5.4.3 Maintenance and Support Services
  • 5.4.4 Managed Services

6 Global Smart Grid Solutions Market, By Solution Type

• 6.1 Introduction
• 6.2 Advanced Metering Infrastructure (AMI)
  • 6.2.1 Meter Data Management (MDM) Systems
  • 6.2.2 Smart Meter Deployment
• 6.3 Smart Grid Distribution Management
  • 6.3.1 Distribution Automation
  • 6.3.2 Fault Location, Isolation, and Service Restoration (FLISR)
• 6.4 Substation Automation
• 6.5 Smart Grid Network Management
• 6.6 Smart Grid Communications
  • 6.6.1 Wired Technologies
  • 6.6.2 Wireless Technologies
• 6.7 Smart Grid Security
• 6.8 Demand Response

7 Global Smart Grid Solutions Market, By Application

• 7.1 Introduction
• 7.2 Generation
• 7.3 Transmission
• 7.4 Distribution
• 7.5 Consumption

8 Global Smart Grid Solutions Market, By End User

• 8.1 Introduction
• 8.2 Utility Sector
• 8.3 Industrial Sector
• 8.4 Commercial Sector
• 8.5 Residential Sector

9 Global Smart Grid Solutions Market, By Geography

• 9.1 Introduction
• 9.2 North America
  • 9.2.1 US
  • 9.2.2 Canada
  • 9.2.3 Mexico
• 9.3 Europe
  • 9.3.1 Germany
  • 9.3.2 UK
  • 9.3.3 Italy
  • 9.3.4 France
  • 9.3.5 Spain
  • 9.3.6 Rest of Europe
• 9.4 Asia Pacific
  • 9.4.1 Japan
  • 9.4.2 China
  • 9.4.3 India
  • 9.4.4 Australia
  • 9.4.5 New Zealand
  • 9.4.6 South Korea
  • 9.4.7 Rest of Asia Pacific
• 9.5 South America
  • 9.5.1 Argentina
  • 9.5.2 Brazil
  • 9.5.3 Chile
  • 9.5.4 Rest of South America
• 9.6 Middle East & Africa
  • 9.6.1 Saudi Arabia
  • 9.6.2 UAE
  • 9.6.3 Qatar
  • 9.6.4 South Africa
  • 9.6.5 Rest of Middle East & Africa

10 Key Developments

• 10.1 Agreements, Partnerships, Collaborations and Joint Ventures
• 10.2 Acquisitions & Mergers
• 10.3 New Product Launch
• 10.4 Expansions
• 10.5 Other Key Strategies

11 Company Profiling

• 11.1 Siemens AG
• 11.2 ABB Ltd
• 11.3 Schneider Electric SE
• 11.4 General Electric Company
• 11.5 Itron, Inc.
• 11.6 Cisco Systems, Inc.
• 11.7 Honeywell International Inc.
• 11.8 International Business Machines Corporation
• 11.9 Landis+Gyr Ltd
• 11.10 Eaton Corporation plc
• 11.11 Hitachi Energy Ltd
• 11.12 Xylem Inc.
• 11.13 Oracle Corporation
• 11.14 S&C Electric Company
• 11.15 Mitsubishi Electric Corporation
• 11.16 Johnson Controls International plc