According to a report available on Alexa Reports, global smart grid industry is expected to grow at a CAGR in the forecast period i.e. from 2018-2025. A smart grid is defined as an electrical grid which comprises a range of operation and energy measures including smart appliances, smart meters, energy-efficient resources, and renewable energy resources.
Legislative mandates and government policies, modernization of aging grid infrastructure, and awareness of carbon footprints are likely to drive the market in the years to come. In addition, efficient outage response and grid reliability are propelling the smart grid solution. However, high initial investment and high installation cost are likely hampering the market in the forecast period. In addition, issues such as privacy and security among clients are anticipated to hinder the demand in the forthcoming period.
The emerging trend such as the integration of renewable energy sources with the power grid network is gaining recognition as its support to decrease the carbon footprint of the electric power system.
Smart grid industry is segmented by software and hardware, service, and geography. The market is explored by software and hardware type as (grid distribution, grid security, AMI, grid asset, billing and CIS, grid network, and substation automation (hardware (smart meter).
The market is segmented by service type as technical support, consulting, and integration. The consulting segment led the market in 2018 and is anticipated to maintain its dominance by 2025. The key factors that could be attributed to the market growth include growing investments in smart grid pilot schemes and associated R&D activities.
North America is one of the prominent regions and will continue to account for a large share in the market throughout the forecast period, due to development and innovation towards efficient electricity supply and acceptance of latest technological advancements, such as smart grid distribution management and advanced metering infrastructure (AMI).
Leading players operating in the smart grid industry include Siemens, General Electric, Schneider Electric, ABB, Itron, C3 Energy, Landis+Gyr, Aclara, IBM, OSI, Wipro, Honeywell, Cisco, Oracle, Kamstrup, Eaton, eSmart Systems, S&C Electric Company, Trilliant Holdings, Globema, Tanatalus, Enel X North America, EsyaSoft, Tech Mahindra, Grid4C, etc. The leading companies are taking up partnerships, mergers and acquisitions and joint ventures in order to boost the inorganic development of the industry.