Smart Grid Communications Market by Solution and Geography - Forecast and Analysis 2020-2024

The smart grid communications market share is expected to increase by USD 1.65 billion from 2019 to 2024, and the market's growth momentum will accelerate at a CAGR of 11%. The smart grid communications market report also offers information on several market vendors, including ABB Ltd., Cisco Systems Inc., Eaton Corporation Plc, Fujitsu Ltd., General Electric Co., Honeywell International Inc., Siemens AG, S&C Electric Co., Schneider Electric SE, and Xylem Inc. among others. Furthermore, this smart grid communications market research report extensively covers smart grid communications market segmentation by geography (APAC, North America, Europe, South America, and MEA) and solution (WAN, FAN, and HAN).

What will the Smart Grid Communications Market Size be During the Forecast Period?

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Smart Grid Communications Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The rise in installation of smart energy meters is notably driving the smart grid communications market growth, although factors such as high installation costs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the smart grid communications industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Smart Grid Communications Market Driver

One of the key factors driving growth in the smart grid communications market is the benefits of smart grids over conventional power grids. Conventional power grids are limited to one-way interaction, where the power flow was from the power plant to the consumer. In contrast, smart grids are sophisticated electricity delivery systems as it is the integration of intelligent electronic devices (IEDs) to the current grid equipment. IEDs facilitate bi-directional data communication, wherein both electricity and information can be exchanged in both directions (between power utilities and consumers). Smart grids aid in real-time data collection during the transmission and distribution process, thereby making monitoring, generation, consumption, and maintenance more efficient. This helps in reducing unplanned outages.

Key Smart Grid Communications Market Trend

The advent of 5G communication technology is a smart grid communications market trend that is expected to have a positive impact in the coming years. Cellular communication technologies have grown since their inception and are being increasingly used for various applications, besides simple end-to-end voice/video communication and data transfer. The advent of 5G telecommunication technology is expected to play a significant role in the global smart grid communications market. 5G will enable low-latency, high-bandwidth communication between devices and the network. This is expected to address the mobile connectivity issues associated with the Internet of Things (IoT) devices. The fifth generation of wireless telecom standards will be made commercial by 2020. Several governments, telecom operators, communication hardware vendors, and smartphone and IoT device manufacturers are already investing in the development and upgrade of the existing telecommunication infrastructure.

Key Smart Grid Communications Market Challenge

The high installation costs will be a major challenge for the smart grid communications market during the forecast period. As the smart grid industry is in its nascent stage, most utilities are unaware of the costs they might incur while installing smart grid networking solutions. The eventual costs of a smart grid build-out may, therefore, be influenced by new technologies that have yet to be deployed or current technologies that may be modified. This will lead to an increase in the capital expenditure required for smart grid installation. Large public utilities can recover the money invested because they have a large consumer base. However, small utilities find it difficult to invest and recover their capital. Therefore, the high installation costs of smart grids pose a threat to the growth of the global smart grid communications market.

This smart grid communications market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Parent Market Analysis

Technavio categoirzes the global smart grid communications market as a part of the global communications equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the smart grid communications market during the forecast period.

Who are the Major Smart Grid Communications Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• ABB Ltd.
• Cisco Systems Inc.
• Eaton Corporation Plc
• Fujitsu Ltd.
• General Electric Co.
• Honeywell International Inc.
• Siemens AG
• S&C Electric Co.
• Schneider Electric SE
• Xylem Inc.

 

This statistical study of the smart grid communications market encompasses successful business strategies deployed by the key vendors. The smart grid communications market is fragmented and the vendors are deploying growth strategies such as focusing on quality, performance, price, and innovation to compete in the market.

Product Insights and News

• General Electric Co. - The company offers smart grid solutions which are designed to redefine energy realities around the world.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The smart grid communications market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Smart Grid Communications Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the smart grid communications market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Smart Grid Communications Market?

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42% of the market's growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for smart grid communications in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The increasing government initiatives and smart grid implementation projects in countries such as China, Australia, South Korea, India, and Japan will facilitate the smart grid communications market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Geography Segments in the Smart Grid Communications Market?

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The smart grid communications market share growth by the WAN segment will be significant during the forecast period. Some of the key factors driving the growth of the WAN segment are the growing number of smart grid projects across regions, WAN acts as a backhaul infrastructure for substation network applications, the growing demand for increased bandwidth and flexibility and reduced infrastructure complexity, ubiquitous coverage for all facilities with no voids, the guaranteed performance with the ability to set priorities without depending on any other entity, and the lowest possible total cost of ownership and the elimination of ongoing monthly fees for public network services.

This report provides an accurate prediction of the contribution of all the segments to the growth of the smart grid communications market size and actionable market insights on post COVID-19 impact on each segment.

 

Smart Grid Communications Market Scope
Report Coverage	Details
Page number	120
Base year	2019
Forecast period	2020-2024
Growth momentum & CAGR	Accelerate at a CAGR of 11%
Market growth 2020-2024	$ 1.65 billion
Market structure	Fragmented
YoY growth (%)	9.13
Regional analysis	APAC, North America, Europe, South America, and MEA
Performing market contribution	APAC at 42%
Key consumer countries	China, US, UK, Japan, India, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	ABB Ltd., Cisco Systems Inc., Eaton Corporation Plc, Fujitsu Ltd., General Electric Co., Honeywell International Inc., Siemens AG, S&C Electric Co., Schneider Electric SE, 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.

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What are the Key Data Covered in this Smart Grid Communications Market Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive smart grid communications market growth during the next five years
• Precise estimation of the smart grid communications market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the smart grid communications industry across APAC, North America, Europe, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of smart grid communications market vendors

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