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The Internet of Things (IoT) In Energy Grid Management Market size is forecast to increase by USD 50.01 billion, at a CAGR of 19.27% between 2023 and 2028. The growth rate of the market depends on several factors, including the aim of the government toward the reduction of carbon emissions, the growing individualized customer preferences, and the increasing penetration of smart technologies
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 15 market companies, including Eaton Corp. Plc, Fujitsu Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., Itron Inc., Landis Gyr AG, Microsoft Corp., Mitsubishi Electric Corp., Oracle Corp., SAP SE, Schneider Electric SE, Siemens AG, Toshiba Corp., and Trilliant Holdings Inc. . Additionally, ABB Ltd. provides an IoT solution for energy grid management systems, known as OKTO GRID. This system digitalizes electric infrastructure, offering real-time monitoring and optimization capabilities. It enhances the safety and efficiency of older equipment, leading to more reliable and stable power supplies. Additionally, it contributes to reducing the total carbon emissions associated with the equipment.
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One of the key factors driving the market growth is the growing individualized customer preferences. Several large commercial customers prefer renewable energy to achieve their corporate sustainability goals. In addition, a few residential customers prefer solar energy to power their houses. Furthermore, cities and towns demand customized services in the form of microgrids, renewable energy services, and smart city services.
Moreover, the growing use of smart devices in offices and houses has increased the demand for electricity across all countries. In addition, the power consumption per house is increasing year-over-year, and this has led to increasing individualized customer preferences. Hence, such factors are positively impacting the IoT in energy grid management market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the increasing installation of smart energy meters. Power utilities across the globe have been investing in innovation to change the way data is transmitted and collected from consumers via different communication networks. In addition, advanced metering infrastructure (AMI)-enabled meters are being deployed to facilitate two-way communication between utilities and consumers. Therefore, with the increase in the deployment of smart energy meters, significant progress has been made in maintaining data at the grid level.
Moreover, a smart meter is a vital component of smart grids. In addition, the installation of smart meters is the primary step toward the full-scale deployment of smart grids. Furthermore, smart meters are capable of recording and reporting usage data. In addition, when equipped with proper user interfaces, they allow customers to make informed decisions based on real-time power consumption data. Therefore, it is positively impacting the internet of things in energy grid management market. Hence, such factors are driving the market growth during the forecast period.
The rise in concerns about cybersecurity is one of the key challenges hindering market growth. Power industries generally leverage outdated software and hardware, which makes the grid infrastructure prone to sophisticated hackers with knowledge of infiltrating old security protocols. In addition, IoT devices are available with inbuilt login credentials, which are rarely changed by the owners or operators. Furthermore, this compromises the security of the entire system.
Moreover, a huge amount of investment is made on the part of the power companies in enhancing the security of the energy grids to combat hackers. In addition, these security enhancements also include tamper-proofing, enhanced data management, and peer-to-peer communications. Furthermore, these enhancements not only improve the security features of the grid but also add to the investment of the power companies and the IoT technology players. Hence, such factors are hindering the market growth during the forecast period.
The hardware segment is estimated to witness significant growth during the forecast period. The hardware products in the energy grid management comprise Industrial personal computers (PCs), control panels, smart sensors, switches and push buttons, human-machine interfaces, the signaling devices. In addition, these devices, along with the software products, guide the human workforce while they carry out different processes and applications in an energy grid.
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The hardware segment was the largest segment and was valued at USD 10.28 billion in 2018. Moreover, these devices are designed to withstand extreme temperatures and high pressure in a working environment. In addition, the high percentage share of this segment is attributed to the high cost of these devices; making these devices sturdier than the ordinary versions adds to the cost. Therefore, the increasing growth of IoT in the power industry is expected to drive the demand for the hardware required in the global market, which in turn will drive the growth of the global market during the forecast period.
The various applications of IoT solutions in the generation segment will increase the market growth. IoT solutions for power generation facilitate the monitoring of dams, solar panels, generation sets, and wind power systems. In addition, these systems work via wireless sensor networks. Moreover, the data received from these systems can be collected and processed in real-time through the deployment of IoT. Therefore, real-time data analysis helps power generation systems to change electricity production according to the demand from consumers. In addition, the data is transferred from the equipment to the monitoring center and then to the prediction server. Furthermore, real-time analytics help in clubbing historical and real-time data to predict the production speed and need of the electricity generation systems. IoT helps in optimizing the production process and streamlining the workflow. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Factors such as the increasing use of renewable sources, the existing IoT use in the energy sector, and the increasing demand for electricity. In addition, the percentage share of renewable sources of energy for power generation in North America has increased constantly over the last two decades. Moreover, hydroelectric sources in the US are the second-largest supplier of power in the region. Furthermore, the need for renewable energy sources for power generation is expected to drive the growth of the power industry in North America. Smart grids, which were introduced initially in North America, are now being adopted by all power vendors across the region. Hence, such factors are driving the market growth in North America during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends strategies.
Global 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.
Cisco Systems Inc: The company offers IoT in energy grid management solutions that monitor and control the energy grid in real time to improve reliability and utilization, reduce blackouts, and postpone costly new upgrades to enable security, resilience, and operational efficiency.
Market analysis and report of 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 market research 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.
The Energy Market is undergoing a transformative phase with significant investments and development focused on meeting rising demands. The integration of IoT (Internet of Things) in Energy Grid Management is a pivotal aspect driving effective solutions for dynamic power requirements. As surging industrialization impacts both the residential and industrial sectors, there is an ambitious vision to achieve net carbon zero.
Existing power grids face challenges in energy efficiency, necessitating the adoption of innovative technologies. The industrial sector, in particular, is seeking to address irresponsible business operations and reduce dependence on non-renewable energy resources. This shift is driven by the urgent need to combat global warming, mitigate the Earth's rising temperature, and improve poor air quality. IoT in Energy Grid Management emerges as a strategic approach to enhance distribution infrastructure and meet the energy demands of end-consumers. By facilitating real-time monitoring and control, IoT contributes to more sustainable and environmentally friendly energy practices. As the world aims to transition towards a cleaner and more efficient energy ecosystem, the incorporation of IoT technologies in energy management is crucial for achieving a balance between economic growth and environmental preservation.
IoT Market In Energy Grid Management Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.27% |
Market Growth 2024-2028 |
USD 50.01 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
14.52 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Cisco Systems Inc., Eaton Corp. Plc, Fujitsu Ltd., General Electric Co., Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., Intel Corp., International Business Machines Corp., Itron Inc., Landis Gyr AG, Microsoft Corp., Mitsubishi Electric Corp., Oracle Corp., SAP SE, Schneider Electric SE, Siemens AG, Toshiba Corp., and Trilliant Holdings 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, and 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. |
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