Smart Grid Market Size - By Technology, By Service, By Deployment, Analysis, Share, & Forecast, 2025 - 2034

Smart Grid Market Size

The global smart grid market size was valued at USD 66.1 billion in 2024 and is estimated to grow at a CAGR 10.6% from 2025 to 2034. There is an ever-growing market for smart grids because of the increasing need for energy-efficient systems, reliability of grids, and sustainability. Investment opportunities into grid modernization aid in renewable energy integration and improves energy security. Incorporating IoT, AI, and analytics improve the grid management.
 

The rise of the electric vehicles industry flips the need of decentralized energy production smart grids from a good idea to mandatory. Berg Insight reports that more than 570 million smart meter units will be deployed across Asia between 2021 and 2025, indicating smart grid systems will also be necessary in this region. Increase in use of energy management systems among customers also propels smart grid usage.

Smart Grid Market Trends

Advanced metering infrastructure and automation systems deployment increases while the smart grid business expands. More utilities are using IoT based devices that enable them to monitor and manage energy consumption in real time from the cloud. Use of big data and AI for analytics, maintenance and to optimize grid performance drive the market growth.
 

The growing use of renewable energy resources like solar and wind power is creating a need for more flexible and smart grids. In addition, there is a notable increase in decentralized energy systems, incorporation of electric vehicles, and demand management technologies that enable consumers to participate in the operation of the grid. These tendencies indicate the industry's movement towards energy systems which are more efficient, more resilient, and more sustainable.
 

Smart Grid Market Analysis

As smart grid technologies for distribution and automation of networks is expected to reach over USD 50 billion in 2034, due to the growing expectation for an effective and dependable energy system as the IoT and AI technologies have been integrated into the power system management along with the shift towards adoption of renewable energy sources. More spending in smart grid infrastructure, increased attention toward efficiency, grid resilience, and sustainability is also appealing to investors. Moreover, government policies and regulations, as well as the increasing need for effective global warming strategies and better population management, are speeding up the growth of the market.
 

The smart grid market for deployment and integration services is expected to grow significantly, at a CAGR exceeding 10% until 2034. Major factors fostering this growth include the broadening base of smart technologies in use, the growing need for system integration, and the increasing sophistication of the IT systems across the globe. While organizations strive to achieve exceptional business results, there is a growing demand for specialization in deployment techniques. Further, the development of cloud computing, IoT, and automation, as well as the growing need for digital transformation and the ability to scale enterprises will also increase the need for these services.
 

U.S. Smart grid market is likely to EXCEED USD 34 billion BY by 2034 following an increase in energy management and infrastructure modernization needs. Factors that may affect adoption are, but are not limited to, intensifying investment in renewable energy, interest in grid resilience, and attention to grid resilience. The U.S. Department of Energy announced in December 2023 an investment of USD 70 million into 20 research programs focused on the advanced smart grid industry. This illustrates the intention for energy infrastructure development.
 

 The integration of smart metering, electric vehicles, and energy storage systems into the sustainable energy practices is also accompanied by the expansion of the smart grid market which is now, in turn, changing the energy landscape in the US. This indicates the backing for modernization of energy infrastructure. Adoption of smart metering technologies, electric vehicles, and energy storage systems integrated with sustainable practices also aid the expansion of the market and thus, changing the US energy landscape.
 

Smart Grid Market Share

ABB holds commensurately important shares in this smart grid industry and can thus employ the premium technologies towards increasing the effectiveness, the sustainability, and the dependability of the grid. This covers, but are not restricted to, digital substations, grid automation, as well as other energy management technologies which supports utilities in enhancement of grid operations. This together with ABB’s role in the modernization of power infrastructure all over the world with smart grid technologies puts them among the leading competitors in the market.
 

Smart Grid Market Companies

Major players operating in the smart grid industry are:

• ABB
• Belden
• Cisco Systems
• Fujitsu
• General Electric
• Honeywell International
• Hubbell
• IBM
• Itron
• Landis+Gyr
• Oracle
• Schneider Electric
• Siemens
• Wipro
   

Smart Grid Industry News

• In October 2024, Schneider Electric at Enlit Europe 2024 presented new smart grid application developments that increase flexibility, net-zero demand management, and make the grid more resilient. These include Virtual Substations, the digitalization of the grid through EcoStruxure DERMS, and satellite AI for weather monitoring. Furthermore, the organization, through the new product launch, showcased the importance of the modernization of grids towards renewable energy, which further shows their commitment to sustainability and further strengthening of the energy system.
   
• In January 2023, ABB has consented to a memorandum of understanding with the Danish company OKTO GRID, specializing in the digitalization of electric assets. The aim is to make electric grids smarter and lengthen the life cycle of grid equipment. This joint effort is targeted towards equipment upgrades for the aging infrastructure to provide energy to their clients around the world without interruption.
   

This smart grid market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Technology

• Smart T&D equipment
• Distribution & network automation
• Advanced metering infrastructure
• Consumer interface
• Communication & wireless infrastructure

Market, By Service

• Consulting
• Deployment & integration
• Support & maintenance

Market, By Deployment

• Generation
• Transmission
• Distribution
• End use

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • France
  • Germany
  • Spain
  • Italy
• Asia Pacific
  • China
  • Australia
  • Japan
  • South Korea
  • India
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Chile