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The smart energy market size is forecast to increase by USD 7.26 billion and is estimated to grow at a CAGR of 19.1% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is witnessing a growing demand for rising investment in smart cities and smart homes, a growing demand for wireless smart meters, and an increasing role of utility service providers in energy management
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Rising investment in smart cities and smart homes is an emerging trend shaping the market growth. The smart home concept is rapidly gaining ground as consumers seek to improve domestic convenience through electronic devices. This is an evolutionary development in the residential real estate sector with the primary aim of making life more comfortable, convenient, secure, entertaining, and sustainable. Smart home technologies using advanced sensors are becoming affordable. Additionally, several governments across the world are developing their urban infrastructure with the integration of multiple information and technology solutions.
However, with the increased focus on building smart cities with improved quality of life and efficiency of services, the demand for smart energy solutions is expected to grow during the forecast period. Such factors are expected to fuel the growth of the market during the forecast period.
The smart grid segment is estimated to witness significant growth during the forecast period. The smart grid segment of the smart energy market is predicted to grow significantly during the forecast period. The smart grid is a vital segment of the smart energy market. At present, the US is an international leader in smart grid technologies and services.
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The emergence of smart grid technology has also facilitated the growth of several other related technologies. Smart grid networking technologies help in the integration of renewable power generation technologies with the grid. Smart grid networking includes generation, transmission, distribution, and end usage of electricity. The gradual shift from conventional sources of energy generation to renewable sources has also fueled the development of smart grid technologies. There have been considerable developments in the smart grid sector across countries such as China, India, and Japan. The shift toward smart grids results in utility companies managing complex smart devices, thus reducing the risk of grid failures and outages. Digital infrastructure in electricity grids is growing, which is expected to drive the growth of the smart grid segment of the smart energy market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The strict governmental norms imposed by countries in the region and the evolution of smart cities in North America, followed by the rapid development of infrastructure, are critical factors responsible for market growth. The US, the leading country in this region in terms of investment in smart energy solutions, is expected to witness growth in the market shortly owing to extensive smart grid deployment. North America is expected to see large-scale smart grid deployments and present attractive smart grid data analytics projections during the forecast period. Many utility service providers have completed various pilot programs and are in the process of rolling out smart grid projects. These factors are expected to boost the growth of the smart energy market in North America during the forecast period.
The rising adoption of smart grid technologies is notably driving the market growth. The growing adoption of smart grids is one of the critical factors for an increase in demand for smart energy solutions. Globally, utility service providers are adopting smart grid technologies to improve the reliability of the grid and achieve energy efficiency. Technologies such as remote terminal units, intelligent electronic devices, and other supervisory control and data acquisition systems are being adopted in the transmission and distribution infrastructure. At the same time, smart meters are being installed in consumer homes. The governments in countries such as the US, the UK, and Canada, and countries in the EU such as the UK and Germany, are installing smart meters.
However, energy suppliers now have until mid-2025 to implement this change. Around 135,000 smart meters were fitted from April 2020 to June 2020 in the UK. As the installation of smart meters continues, consumers are expected to be encouraged to adopt HEMS to participate in demand response (DR) and improve energy efficiency at the household level. Such factors will drive the market growth during the forecast period.
Intermittency in solar energy is a significant challenge hindering market growth. Intermittency associated with solar energy is one of the prominent factors impacting the demand for renewable energy and, thereby, the demand for smart solar systems. Solar energy is the least reliable energy source, as it is largely dependent on weather and climatic conditions. The magnitude of power produced by the source is not constant. It produces a large amount of energy on sunny days and a low amount on cloudy or rainy days. This variability in power produced impacts the whole power system as well as the stability of the grid. To remove these variabilities and fluctuations in voltages, solar power plants require additional equipment.
However, another major factor that will challenge the adaptation of solar power is the duck curve phenomenon associated with intermittency. In this phenomenon, fluctuation in power generation during the peak generation hours and after sunset causes an operational risk to the power system. Thus, an additional battery system needs to be integrated with the source, leading to a decrease in demand for solar power, which will negatively affect market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Smart Energy Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers smart energy such as ABB Electrification.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The smart energy market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Smart Energy Market Scope |
|
Report Coverage |
Details |
Page number |
191 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.1% |
Market Growth 2024-2028 |
USD 7.26 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.19 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Germany, France, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Cisco Systems Inc., Delta Electronics Inc., Enphase Energy Inc., General Electric Co., Honeywell International Inc., International Business Machines Corp., Itron Inc., Kontron AG, Larsen and Toubro Ltd., Mitsubishi Electric Corp., Nextera Energy Inc., Robert Bosch GmbH, Rockwell Automation Inc., SAP SE, Schneider Electric SE, Siemens AG, SMART Energy Solutions, Toshiba Corp., and Xylem Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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