The smart grid is an electricity grid that supplies energy to the consumers through two-way digital communication with digital technology. This program facilitates tracking, analysis, control and collaboration within the supply chain to help increase performance, reduce energy usage and cost and optimise the energy supply chain transparency and reliability. The smart grid was implemented to solve the weakness of the traditional electrical grid with the use of smart meters.
What is the global smart grid market size?
Smart grid market size
The global market size of the smart grid is expected to reach US$ 60 billion by the end of 2026 from the US$ 25 billion in 2019.
Analysis of the smart grid market
The global smart grid market is expected to be driven by increasing electricity demand in the face of rising environmental concerns in the coming years. The smart grid system is ideally suited to deal with the situation of tackling rising power requirements without damaging the environment.
The increasing government support for smart metering and increasing investments in digital power infrastructure in terms of finance and supporting policies are driving the growth of the smart grids market.
The modernisation of existing grid infrastructure, enhancing grid stability and efficient response and increasing demand to incorporate renewable sources of energy accelerate the market growth.
Furthermore, governments in many countries concentrate on smart city development. Smart grid technology and equipment allow it to meet the rapidly changing energy demands of customers digitally. Smart grid technology is expected to harness these capabilities to push the energy sector into the new age of availability, reliability and performance.
Besides this, the increase in the number of electric vehicles on the road and the emerging smart city initiatives in developing regions are expected to provide lucrative market growth opportunities in the coming years.
Being smart grids have been an integral component of their infrastructure. These factors are expected to support the demand in the coming years.
However, lack of standardisation and interoperability, high initial costs for deployment and cybersecurity and vulnerabilities associated with the smart grid technology solution may hamper the market growth.