Smart Grid Market Overview:
- Smart grid is a self-sufficient electricity network system consisting of transmission lines, substations and transformers among others, used to deliver electricity from power plant to homes. The system operates on digital automation technology for control, monitoring and analysis within the supply chain.
- The technology is essential to providing easy integration and reliable services to the end consumers. It permits real-time monitoring of the electricity consumed along with enhanced communication to make sure greater transparency and increased efficiency throughout the power supply infrastructure.
- Global smart grid market is categorized based on components, application technology and end-user.
- The components category comprises hardware, software, and services.
- By hardware, the market is divided into AMI meter, sensors, networking hardware, programmable logic controller (PLC) and others (load tap changers and protective relay).
- By software, the market is segmented as advanced metering infrastructure (AMI), smart grid distribution management, smart grid communication, grid asset management, substation automation & billing, customer information system and supervisory control and data acquisition (SCADA).
- Under the group of service segment, the market consists of consulting, deployment and integration and support and maintenance.
- Application includes transmission, distribution, consumption/end-use, whereas the technology segment consists of wired and wireless technology.
- The end-user segment includes residential, corporate, and government.
- As per the research report of AGR, global smart grid market is likely to grow from USD 65 billion in 2019 to ~USD 140-150 billion by 2025, @ CAGR of ~12-15%
Smart Grid Market Outlook:
- The benefits associated with smart grid include efficient transmission of electricity, faster restoration of electricity after power disturbance, improved integration of large-scale renewable energy systems, and others
- Smart T&D equipment will likely witness growth on account of shifting focus towards advanced cloud computing technology owing to parallel processing and flexible resources & services
- Industrial Smart Grid market is expected to register strong growth by 2025. Smart grid shows extraordinary opportunity for the energy industry, leading it into a new era of reliability, availability and efficiency.
- Improved demand-side management, substations & distribution automation and advanced outage management will foster the product installation.
- In addition, ongoing R&D activities accompanied by introduction and commercialization of enhanced technologies is set to encourage the business growth.
- Existing solutions provided by leading manufacturers allow the utilities to integrate different smart grid systems and manage them from a centralised location. Liberalized policy of the electricity generation will support the incorporation of grid systems thereby encouraging the product penetration.
- Rising investments in digital grid infrastructure owing to restoration time reduction and influx of advanced technologies including IOT is projected to complement the industry outlook.
- Increasing implementation of smart grid technology to improve the efficiency in energy consumption and conservation drives the demand for global smart grid market.
- In 2019 Asia-Pacific dominated the global smart grid market and is expected to do so over the forecast period, 2020–2025.It is anticipated that increasing smart city projects and government initiatives will provide major growth opportunities for the market in the upcoming years.
Smart Grid Market Growth Drivers and Trends:
Most primary factors driving the global Smart Grid market are;
- Modernization of aging grid infrastructure and increasing awareness about carbon footprint management
- Government initiatives for smart meter rollouts, favorable government regulations and mandates
- Increasing demand for utilization of renewable energy sources and growing share of renewable energy in the energy mix
- Need for more stable electricity network and rapid advances in technology
- Increasing need to digitalize the power sector, Reliable and efficient energy consumption
Increasing supportive government regulations & policies to implement smart meters is among the key factors boosting the demand for smart grid solutions and services.
Additionally, rise in the number of electric vehicles on the road and forthcoming smart cities projects in developing regions are expected to provide productive opportunities for the market growth in the coming years.
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Challenges disrupting the market:
However smart grid is market growth potential is getting hampered due to some factors like;
- High initial investments for deploying technology solutions
- Smart grid cyber security
- Vulnerabilities in energy industry
Privacy & security concerns related to smart grid systems is the major factor hindering the smart grid market growth.
Smart Grid Market Players Perspective:
The global smart grid market has tough competition among the well-established players.
Some of the key players operating in the Smart Grid market are ABB Ltd. (Switzerland), Aclara Technologies LLC (US), Cisco Systems, Inc. (US), General Electric Company (US), IBM Corporation (US), Itron, Inc. (US), Landis+Gyr (Switzerland), Open Systems International, Inc. (US), Oracle Corporation (US), S&C Electric Company (US), Siemens AG (Germany), Schneider Electric SA (France), Wipro Ltd. (India) and others
New emerging players are creating a more competitive industrial atmosphere for these players. The market players target to gain a competitive advantage over the other players by participating in partnerships, mergers, and acquisitions and expanding their businesses.
- A new solution known as “Real Smart Solutions” that are reliable and optimize the end-to-end grid operational efficiency was introduce by GE.
- Schneider Electric opened a smart distribution centre in Brazil during September 2019, to reduce delivery time to customers and empowered to optimize supply chain operations by reducing equipment downtime and reducing overall power consumption.
- In July 2018 to strengthen its product portfolio in the electrification area and to expand in North America, ABB acquired GE Industrial Solutions
- In June 2018, GE Power’s Grid Solutions business launched a new Advanced Distribution Management Solution (ADMS) in collaboration with Tata Power Delhi Distribution (Tata Power – DDL) specially designed for India with advanced features, such as monitoring, security, analysis, and planning
Smart Grid Market Research Scope:
The base year of the study is 2019, with forecast done up to 2025.
The study presents a thorough analysis of the competitive landscape, considering the market shares of the leading companies. These provide the key market participants with the necessary business intelligence and help them understand the future of the Smart Grid Market.
The assessment includes the forecast, an overview of the competitive structure, market trends, market demands, market drivers, market challenges, and product analysis.
The market drivers and restraints have been evaluated to gauge their impact over the forecast period. The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
The key areas of focus include opportunities areas for Smart Grid Market.
Author – Mr. S. Ashok
Connect to the author of the report at reports@avalonglobalresearch.com or contact us at https://www.agrknowledge.com/contact-us