Smart Grid Market Size - By Trade Size, By Classification, By Application, By End Use, Analysis, Share, & Forecast, 2025 - 2034

Smart Grid Market Size

The global smart grid market was valued at USD 66.1 billion in 2024 and is estimated to grow at a CAGR of 10.6% from 2025 to 2034, due to demands for energy efficiency, grid reliability, and sustainability. Government investments in grid modernization support renewable energy integration and enhance energy security. Advanced technologies like IoT, AI, and big data analytics improve grid management. The growing adoption of electric vehicles and decentralized energy generation necessitates smart grids for complex energy flow management.
 

In Asia, Berg Insight’s reported that over 570 million smart meter units will be deployed across Asia between 2021 and 2025, which complements the market growth across the region. Consumer interest in energy management tools further drives market growth.
 

Smart Grid Market Trends

The smart grid industry is witnessing several key trends, including the increasing deployment of advanced metering infrastructure (AMI) and grid automation solutions. Utilities are increasingly adopting Internet of Things (IoT)-based devices to enhance real-time monitoring and management of energy consumption, while leveraging big data analytics and artificial intelligence for predictive maintenance and optimizing grid performance. The integration of renewable energy sources, such as solar and wind, is driving the need for more flexible and intelligent grids.
 

Additionally, there is a rising trend towards decentralized energy systems, electric vehicle integration, and demand response technologies, allowing consumers to actively participate in grid management. These trends reflect the industry's shift toward more efficient, resilient, and sustainable energy systems.
 

Smart Grid Market Analysis

The distribution and network automation technologies is forecasted to surpass USD 50 billion by 2034. Key growth drivers include the rising demand for reliable and efficient energy systems, integration of renewable energy sources, and advancements in IoT and AI technologies for enhanced grid management. Increased investments in smart grid infrastructure and the growing focus on energy conservation, grid resilience, and sustainability are also contributing factors. Furthermore, government initiatives, favorable regulations, and the need for improved grid reliability in the face of climate change and population growth are accelerating the market's
 

The smart grid market for deployment and integration services is poised to witness more than 10% CAGR through 2034. Key drivers of this growth include the increasing adoption of smart technologies across industries, the rising demand for seamless system integration, and the growing complexity of IT infrastructures. As businesses seek to optimize operations and enhance efficiency, the need for specialized deployment services is intensifying. Additionally, advancements in cloud computing, IoT, and automation, coupled with the increasing focus on digital transformation and enterprise scalability, are further fueling the demand for these services.
 

The U.S. smart grid market is likely to exceed USD 34 billion by 2034, driven by increasing demand for efficient energy management and infrastructure modernization. Key growth factors include renewable energy adoption, digital technology advancements, and emphasis on grid resilience. Government support plays a crucial role; for example, in December 2023, the U.S. Department of Energy announced USD 70 million in funding for 20 research projects aimed at advancing smart grid technologies and enhancing grid reliability. This investment demonstrates the government's commitment to modernizing the nation's energy infrastructure. The market's expansion is further fueled by the integration of electric vehicles, energy storage systems, and smart metering technologies, aligning with sustainable energy practices and supporting the ongoing transformation of the U.S. energy landscape.
 

Smart Grid Market Share

ABB holds a significant share in the smart grid industry, leveraging its advanced technologies to enhance energy efficiency, grid reliability, and sustainability. The company's offerings include digital substations, grid automation, and energy management solutions, enabling utilities to optimize grid operations. ABB's innovative smart grid solutions are key drivers of modernizing power infrastructure globally, positioning the company as a market leader.
 

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, introduced innovative smart grid solutions aimed at enhancing grid resiliency, flexibility, and managing net-zero demands. These advancements include the integration of Virtual Substations, digital grid technologies like EcoStruxure DERMS, and real-time weather insights using satellite AI. The company emphasized the importance of modernizing grids to support renewable energy integration, showcasing its commitment to sustainability and a future-proof energy system.
   
• In January 2023, ABB partnered with Denmark's OKTO GRID, a digital solutions provider for electrical assets. Their collaboration aims to digitalize energy grids and extend the life of grid-related equipment. This joint effort focuses on upgrading aging grids to improve energy reliability for global customers.
   

The 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