The global smart grid market is set to nearly triple in value by 2030, according to Research & Markets.

The global smart grid market, valued at $55.54bn in 2024, is projected to soar to $145.42bn by 2030.

This rapid growth is fuelled by a converging array of trends, including the rising demand for efficient energy distribution systems driven by renewable energy adoption. Smart grids facilitate the integration of solar and wind technologies, balancing supply and demand effectively. The proliferation of electric vehicles necessitates intelligent infrastructure to streamline EV charging, further expanding market opportunities.

Technological advancements, notably IoT, big data analytics and AI, enhance the smart grid sector’s capabilities, allowing utilities to optimise energy usage and bolster grid reliability. Regulatory policies aimed at reducing carbon emissions and promoting energy sustainability are driving wider adoption of smart grids. The market is anticipated to see a CAGR of about 17% from 2025 to 2030.

The market is segmented into components, applications, technologies, end-users and regions. Among components, the smart grid software segment plays a pivotal role due to its necessity in analysing real-time data for optimising power flow and system reliability. Distribution applications dominate the application segment, crucial for optimising electricity delivery across various sectors. Technologies such as advanced metering infrastructure (AMI) enhance the market, with this segment leading due to its real-time energy data provision for utilities.

Utilities remain the largest end-user segment, capitalising on smart grid technologies to improve monitoring, grid management and integration of renewable sources. Regionally, North America, driven by robust government support and technological adoption, led the market in 2024. The USA is expected to maintain its leadership in North America until 2030, driven by investments in grid infrastructure and smart technologies.

Growth drivers include renewable energy source integration, smart infrastructure investment and increased EV charging infrastructure demand. The need for grid modernisation, driven by aging infrastructure and rising energy demands, propels this market forward. However, challenges such as high initial investments and cyber-security risks pose potential hindrances.

Emerging trends include heightened energy sector investments, the advent of virtual power plants and blockchain’s incorporation. Blockchain technology is particularly transformative, enhancing security, efficiency and transparency in grid management and peer-to-peer energy trading.

Leading players include ABB, Schneider Electric, Siemens, Cisco, GE Vernova, IBM, Itron, Eaton, Honeywell, Hitachi, Landis+Gyr and Oracle. These companies engage in initiatives to retain market dominance. Schneider Electric’s recent developments in smart grid applications and Siemens’ launch of Gridscale X exemplify the innovative approaches deployed to enhance grid management and digital transformation.

For more information about this report visit www.researchandmarkets.com/r/af6tt0.