Global smart grid deployments will lead to annual energy savings of 1060 terawatt-hours by 2026, from 316 terawatt-hours in 2021. This is the equivalent of powering over 42 million 90-minute football matches at Wembley stadium.

The study from Juniper Research identified increased sustainability and energy security as critical to the appeal of smart grids, with analytics and demand-responsive networks able to have a dramatic impact in a renewables-heavy future.

The report predicts vendors who can best combine analytics that deliver operational insights to energy companies, with low-cost sensors and connectivity, will achieve the greatest success.

The research found that smart grid software, which analyses energy usage in real time to enable responsive features for utility companies, will be critical to delivering energy and cost savings. The essential nature of these benefits will drive smart grid software spend to over $38bn a year by 2026, from $12bn in 2021.

“To meet ambitious climate targets and lower spiralling operating costs for utility companies, the grid must evolve rapidly into a smart grid,” said research co-author Damla Sat. “Leveraging connectivity and deploying analytics at scale will be vital in achieving the truly demand-responsive grid that is needed today.”

The research found that smart metering roll-outs are growing, with global smart meters in service set to reach over two billion in 2026, from 1.1 billion in 2021. While this represents growth of just under 95%, adoption is very uneven worldwide, with markets including Latin America, Africa and the Middle East lagging significantly behind the leaders in western Europe, the Far East and China.

The research recommends that vendors lobby governments urgently to support smart metering roll-outs, or they will rapidly fall further behind.