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

Smart Grid Market Size

The global smart grid market was valued at USD billion in 2024 and is estimated to reach the value of USD 180.3 billion by 2034, growing at a CAGR of 10.6% from 2025 to 2034. The growing energy demand across the globe owing to the rising population and urbanization will augment the smart grid industry statistics in the coming years. Rising deployment of renewable energy sources will further demand the usage of modern grid technologies, thereby augmenting the product adoption.
 

Moreover, integration of smarter technologies including smart meters to boost the efficient monitoring & control of power usage will further complement the growth of smart grid market. The growing energy need is attracting investments from the government and the utility companies for upgrading the existing grid systems to enhance efficiency and reliability. The US Department of Energy (D.O.E) commenced an investment of about USD 2 billion in 2024, catering it to nearly 38 projects which are supposed to enhance the capacity of the grid to meet the growth in load coming in from the manufacturing sector and other industries.
 

Smart Grid Market Trends

• The market is witnessing significant impacts due to digital transformation, the adoption of renewable energy, and the decentralization of energy grids. The International Energy Agency estimates that in 2023, the world’s renewable energy generation capacity reached over 500 gigawatts, which greatly increases the demand for advanced grid infrastructure needed to ensure grid stability.
   
• Favorable governmental policies and incentives including European Green Deal and U.S. Smart Grid Investment Grant (SGIG) support the adoption of smart technologies across the grid networks. As per the IEA, the U.S. government in 2022 launched GRIP program, which offered a funding opportunity of USD 10.5 billion towards the grid modernization and integration of smart technologies.
   
• Financial incentives, subsidies and grants aimed toward the acceptance of smart solutions will propel the business landscape. For instance, U.S. DOE has introduced smart grid grants, which will provide grants of over USD 600 million per year between 2022 and 2026. Such incentives will form a favorable growth scenario for the smart grid industry in the coming years.
   

Smart Grid Market Analysis

• The smart grid market was valued at USD 55.2 billion, USD 60.2 billion and USD 66.1 billion in 2022, 2023 and 2024 respectively. The industry is segmented in consumer interface, distribution & network automation, smart T&D equipment, advanced metering infrastructure, and communication & wireless infrastructure based on the technologies utilized.
   
• The smart grid sector from these distribution and network automation technologies is anticipated to to more than USD 50 billion by 2034. This increase is due to the rise in the use of renewable energy across the world. According to Eurostat, renewable sources of energy accounted for 43% of total energy produced in Europe in 2022, thus leading the continent in energy production.
   
• Advanced metering infrastructure technologies accounted for over 24.5% market share in 2024 and is projected to grow substantially in the forecasted year. Utilities across the globe are addressing the growing non-technical losses including billing errors and thefts in the electricity networks.
   
• Smart grid market from communication & wireless technologies was valued at over USD 13 billion in 2024. Advancements in data communication and wireless infrastructure, primarily 5G, LoRaWAN, and fiber optics, are improving the data transmission security and speed for grid operations. As a result, these new communication mechanisms are also aiding in the improvement of smart T&D infrastructure.
   

• Based on service, the deployment and integration services held the major market share of over 44% in 2024 and is further anticipated to grow in the coming years. Key factors fueling this growth include the expanding base of smart technologies in use, and the increasing sophistication of IT systems across the globe.
   
• The need for smart grid technology has increased simultaneously with the improvement of infrastructure of EV charging stations. Such growing demand drives the need for integration of these systems and the subsequent deployment of other services. As per the instance of the US, which boosted the number of charging stations from 29,000 in 2020 to 61,000 by February of 2024. That is a tenfold increase in the stations over a period of time.
   
• The smart grid industry from consultation services is anticipated to grow at a CAGR of over 9.5% through 2034. With the expansion of smart grid ecosystems, consulting companies are augmenting their service offerings to include risk assessment and predictive modeling using AI, ML, and advanced data analytics, which in turn boosts the need for these services across all regions.
   
• The support and maintenance services market was valued at over USD 19 billion in 2024 owing to the rising focus on these services as utilities promote security measures, predictive maintenance, and monitoring to improve grid reliability. Furthermore, 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.
   

• As of 2024, North America holds more than 25% in market share, which is expected to increase further by 2034. The U.S. smart grid market in 2022, 2023 and 2024 was valued at USD 11.8 billion, USD 12.7 billion and USD 13.7 billion respectively. The primary shift can be attributed to the increased demand for energy operational management and the modernization of infrastructure.
   
• Smart grid market in the Asia Pacific is likely set to cross USD 75 billion mark by 2034. Smart grids in Asia Pacific region are advancing due to rapid urbanization, which in turn fuels the energy demand from various sectors. Based on the data provided by the Indian government, the overall population of the country grew by over 0.8% between 2020 and 2023, thus boosting the electricity consumption at an average of 6% for the same period.
   
• The European energy market is evolving due to strict regulations along with decarbonization objectives and substantial government support for new grid technology. The Green Deal and other energy efficiency targets established by the Union serve as catalysts to smart transmission and distribution infrastructure investments as well-advanced metering and demand response technologies.
   
• Germany leads in Europe owing to its high share of renewables, obligatory smart meter installations, and increasing investment in digital grid technologies. In 2024, net electricity generation in Germany from renewable sources constituted more than 62%, which improves the conditions for the smart grid market growth.
   
• Saudi Arabia is at the forefront of the market with major investments in smart metering, grid automation, and demand-side management powered by an overarching Vision 2030 strategy which focuses on sustainability and energy efficiency.
   

Smart Grid Market Share

In smart grid industry, ABB holds a noteworthy share owing to its offering of advanced grid solutions, its strong global presence, and its investment in innovation. In the smart grid technologies category, the company provides smart transformers, grid automation systems, advanced metering infrastructure (AMI), and digital substations for both transmission and distribution networks.
 

Apart from ABB, the top 5 players operating in smart grid market include General Electric, Schneider Electric, Cisco Systems, Landis +Gyr and Siemens amongst others. These organizations offer a wide range of digital solutions which can be integrated across smart grids, thus giving them a competitive edge over various other players.
 

Smart Grid Market Companies

• ABB is among the top companies providing smart grid solutions. During Q3 of 2024, ABB reported revenue amounting to USD 24.26 billion. Furthermore, in 2023, during the CIRED event, the company presented its latest technological solutions, including smart grids that are advanced, efficient, and secure, with the introduction of the world’s smallest switchgear which is called ABB Ability Asset Manager.
   
• General Electric maintained a sizeable presence in the smart grid market with reported revenue of approximately USD 67.95 billion in 2023, spending USD 1.90 billion on research and development for products. Recently, it won a tender to supply 765 kV shunt reactors to the Indian conglomerate PGCIL, indicative of its shift toward enhancing the electrification infrastructure.
   
• Siemens Energy is focusing and investing strongly in the advanced and efficient electrical infrastructure in order to hold its position in the smart grid market. In 2024, it has unveiled a cutting-edge technology “SICAM Enhanced Grid Sensor (EGS)”, which will provide undisturbed, enhanced network transparency to the distributor operators.
   
• Schneider Electric also contributes significantly to the smart grid development through its new products and services. The company was able to generate a revenue of around USD 28.99 billion in Q3 last year. Furthermore, strategic alliance has been formed between Elektrilevi and Schneider Electric for the same purpose.
   
• Honeywell International remains a big market player in the North American smart grid market with the with revenue of USD 20.9 billion.in 2023. In 2024 it formed a partnership with the company called Enel to provide its service for regularizing and stabilizing the power grid in the region.
   
• Landis + Gyr is known for its energy management solutions in the global market. In 2023, it has formed a 5-year strategic alliance with the UK company called “Egg” which provides clean energy solutions, to work on smart grid solutions in the renewable energy sector. Besides, in the first half of 2024, the company recorded 812.1 orders along with the revenue of USD 925.6 million in total reflecting the demand of its innovative products globally.
   

Smart Grid Industry News

• In October 2024, during Enlit Europe 2024, Schneider Electric unveiled new smart grid application developments that enhance flexibility, net zero demand management, and increase the resilience of the grid’s infrastructure at Enlit Europe 2024. These include Virtual Substations, EcoStruxure DERMS, and the AI satellites for weather monitoring.
   
• In February 2024, Siemens announced the launch of its new offering Gridscale X, a modular software product intended for the autonomous management of utility grids and the digital transformation of a utility’s business processes. It allows for the rapid scaling of operators' capacity, better management of the increasing complexity of distributed energy resources (DERs) and increases the flexibility of the grid simultaneously.
   
• In October 2023, The Provincial Electricity Authority (PEA) associated with Oracle to upgrade operational effectiveness and reduce costs. The PEA is utilizing the Oracle Utilities Meter Data Management (MDM) and Oracle Utilities Load Analysis as a part of its continual digital utility transformation strategy.
   
• In October 2023, Landis+Gyr successfully achieved the acquisition of Thundergrid New Zealand, which is an EV infrastructure company based in Wellington. This acquisition is aimed at reinforcing Landis+Gyr smart infrastructure as well as advancing the EV projects in Australia and New Zealand where renewable resources are abundant.
   

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