Enjoy complimentary customisation on priority with our Enterprise License!
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. There is a notable uptick in market demand, primarily fueled by increasing investments in smart city and home infrastructure. This surge is accompanied by a growing need for wireless meters, reflecting a shift towards more efficient and connected energy management systems. Utility service providers are playing an increasingly vital role in driving this transition, leveraging advanced technologies to enhance energy efficiency and streamline operations. These trends underscore a broader paradigm shift towards sustainable, intelligent, and interconnected urban and residential environments, highlighting the pivotal role of technology and utility partnerships in shaping the energy landscape.
For More Highlights About this Report, Download Free Sample in a Minute
The smart grid segment is estimated to witness significant growth during the forecast period. The advanced metering devices segment of the market is projected to experience substantial growth during the forecast period. Smart energy, encompassing smart electricity, smart gas, and renewable power sources, is facilitated by the implementation of smart grid technologies. The smart grid is a crucial component of the energy sector, with significant investments being made in capital expenditures for network infrastructure, distribution automation systems, and intelligent electricity meters.
Get a glance at the market contribution of various segments Download the PDF Sample
The smart grid segment was the largest and was valued at USD 1.92 billion in 2018. The emergence of smart grid technology has also facilitated the growth of several other related technologies. Moreover, the US, as a global leader in smart grid technologies and services, accounted for the highest global grid investment in 2022, amounting to USD 84 billion. China followed closely with USD 75 billion in investments. The development and deployment of smart grids are essential for energy supply security, reducing carbon footprints, and integrating renewable energy sources into the power grid. Sub-sectors of the smart grid include electric grid equipment and services, such as hardware, instrumentation, and system integration services. Commercial and industrial sectors, including offices and industrial plants, are significant consumers of smart grid technologies. Digital infrastructure in electricity grids is growing, which is expected to drive the growth of the segment of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
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 advanced metering devices and distribution automation systems deployed in North America's smart grids are driving capital expenditures in the region's market. Strict regulatory standards aimed at reducing carbon footprints are also catalyzing market growth.
Moreover, in the commercial and industrial sectors, consulting services and system integration are essential for the implementation of Intelligent Remote Terminal Units (RTU), intelligent electricity meters, digital oilfields, and renewable energy development. The US, a major player in this market, is witnessing significant growth due to extensive smart grid deployments and the integration of renewable power sources such as solar energy and steam turbines. Network infrastructure and management software are crucial components of smart grid technology, enabling energy supply security and efficient work management systems. These factors are expected to boost the growth of the market in North America during the forecast period. Intelligent RTUs play a pivotal role in these advancements by facilitating real-time data acquisition, remote monitoring, and control across smart grid and industrial applications, enhancing operational efficiency and supporting sustainable energy initiatives.
The market encompasses the development and implementation of renewable energy sources, such as solar energy, and the integration of smart grid technology. This market includes work management systems, distribution automation systems, and the deployment of smart meters and advanced metering devices. Capital expenditures are significant in this sector as the implementation of these technologies requires substantial investment. Renewable energy sources, including solar energy, are becoming increasingly important as the world moves away from fossil fuels to reduce carbon footprints.
Regulatory standards play a crucial role in the adoption of these technologies. Consulting services are essential in optimizing the use of smart energy, smart electricity, smart gas, and smart thermal grids in homes, offices, and industrial plants. The hardware required for these systems is a key component of the market. In summary, the market is a dynamic and growing sector that focuses on the integration of renewable energy sources and smart grid technologies to optimize energy usage and reduce carbon footprints. It includes various components such as work management systems, distribution automation systems, smart meters, advanced metering devices, and hardware. Capital expenditures are significant in this market, and regulatory standards play a crucial role in its growth.
The rising adoption of smart grid technologies is notably driving the market growth. The market is experiencing significant growth as businesses and homes adopt advanced technologies to optimize energy consumption and reduce carbon footprints. This evolution in the energy sector encompasses the use of intelligent electricity meters, distribution automation systems, and network management software to enhance energy supply security.
Moreover, advanced metering devices enable real-time monitoring and analysis of energy usage, facilitating capital expenditures for energy efficiency improvements. Industrial plants and offices are integrating smart grid technologies, such as solar energy, smart solar, and smart thermal grids, to harness renewable power sources and minimize reliance on fossil fuels. Consulting services and system integration experts provide technical expertise to ensure regulatory standards are met during the implementation of these systems. Such factors will drive market growth during the forecast period.
Rising investment in smart cities and smart homes is an emerging trend shaping the market growth. The market is experiencing significant growth as businesses and homes adopt advanced technologies to optimize energy consumption and reduce carbon footprints. This evolution in the energy sector encompasses the use of intelligent electricity meters, distribution automation systems, and network management software to enhance energy supply security. Advanced metering devices enable real-time monitoring and analysis of energy usage, facilitating capital expenditures for energy efficiency improvements.
Moreover, industrial plants and offices are integrating smart grid technologies, such as solar energy, smart solar, and smart thermal grids, to harness renewable power sources and minimize reliance on fossil fuels. Consulting services and system integration experts provide technical expertise to ensure regulatory standards are met during the implementation of these systems. Hardware components, including instrumentation and network infrastructure, play a crucial role in the successful integration of smart energy solutions. Such factors are expected to fuel the growth of the market during the forecast period.
Intermittency in solar energy is a significant challenge hindering market growth. In the dynamic and evolving energy market, the demand for smart energy solutions is escalating due to the intermittency challenges associated with renewable energy sources, particularly solar energy. Solar energy, as a renewable power source, is subject to weather and climatic conditions, leading to inconsistent power production.
Moreover, advanced metering devices and distribution automation systems are essential components of smart energy systems, enabling accurate energy consumption measurement and efficient distribution. Capital expenditures for hardware, such as intelligent electricity meters and network infrastructure, are necessary for industrial plants and commercial establishments to ensure energy supply security. 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.
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 market research and growth 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. In market growth analysis, 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 provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
In the dynamic and evolving energy sector, it plays a pivotal role in driving the adoption of advanced technologies and sustainable practices. The integration of digital solutions, such as Artificial Intelligence (AI) and Machine Learning (ML), in energy management systems is a key trend shaping the market. These technologies enable predictive analysis, optimizing energy consumption, and reducing carbon footprints. The increasing awareness of energy efficiency and the need for cost savings are significant factors fueling the growth of the market. Moreover, governments worldwide are implementing policies and regulations to promote renewable energy sources and energy conservation. Smart Energy Solutions cater to various sectors, including residential, commercial, and industrial. These solutions offer customized energy management systems, real-time monitoring, and remote control features, ensuring optimal energy usage and cost savings.
Moreover, the market for smart energy, including innovations like swellable packers in the oil and gas sector, is expected to expand significantly due to the increasing demand for sustainable and cost-effective energy solutions. The adoption of IoT and advanced communication technologies further enhances the market's potential, enabling efficient monitoring and management of energy resources. In summary, the market is witnessing robust growth due to the increasing focus on energy efficiency, the integration of advanced technologies, and government initiatives supporting renewable energy adoption. The Smart Energy market offers significant opportunities for businesses and investors in the energy sector. Home energy management systems, which include components like swellable packers for efficient oil and gas production, require both hardware and software components for optimal functionality. Maintenance and support services, along with rebates and incentive programs, play crucial roles in encouraging consumers to invest in these energy-saving solutions.
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 and forecasting, Market forecasting, 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
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.