Smart Grid Communications Market by Technology (Wired and Wireless) and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021–2028

The global smart grid communications market is estimated to register a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the increasing government investments in the energy industry. Moreover, high energy efficiency offered by smart grid communication technology is anticipated to propel the market growth.
 

Smart grid networking offers two-way communication between various components of a utility grid, which enables better network management and provides data from different phases such as generation, transmission, and distribution. Installation of communication networks on utility grids provide integrated communication that leads to substation automation, demand response, supervisory control & data acquisition, distribution automation, energy management, real-time control, information and data exchange, asset utilization and increased reliability.

The communication between different grid components helps in operating the network. These components interact with one another through routers, gateways, and bridges, which are further connected to each other to form a mesh network. Infrastructure information required to implement a smart grid includes acquiring and transmitting the data from the electrical appliances and sensors to smart meters. Further, it sends the acquired data to the utility centers through wired or wireless medium.

The smart grid communication technology ensures efficient scheduling, dispatching of power, and effective grid discipline. Additionally, a smart grid enables applications such as outage management, automated metering infrastructure (AMI), automatic load shedding, distribution automation, and the ability to manage alternative energy sources. Similarly, a wireless smart grid communication network support these applications remotely.

Rapid technological advancements have led to the increased usage of wireless technologies, mobile devices, and field-based sensors. These technologies are used for controlling supervisory control and data acquisition (SCADA) systems, eliminating the need of machine-to-machine technology. Such advanced features allow traditional power grid to offer high-security, improved information storage, robust reliability, and substantial efficiency.

Market Drivers, Restraints, Trends, and Opportunities

• Rising implementation of smart grids to address the electricity-based distribution infrastructure and transmission problems is expected to boost the smart grid communications market during the forecast period.
• Growing awareness about smart grid technology benefits is anticipated to spur the market growth.
• High cost of installation and lack of interoperability are some of the factors expected that can hamper the market growth during the forecast period.
• Smart grid helps in curtailing carbon emissions and reducing the operational errors, which is further anticipated to fuel the smart grid communications market growth during the forecast period.
• The slow response time offered by traditional switches and aging electrical infrastructure are projected to spur the market growth.
• Increasing energy consumption across the globe is estimated to fuel the smart grid communications market.
• Rapid technological advancements in the communication technologies along with high ROI is projected to create lucrative opportunities in the coming years.

Scope of the Report

The report on the smart grid communications market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Smart Grid Communications Market Segment Insights

Wireless segment projected to account a significant market share
On the basis of technology, the market is bifurcated into wired and wireless. Increasing demand for wireless communication systems owing to their high level of flexibility is driving the growth of the wireless segment. These systems have low infrastructural requirements and can reach remote areas effectively. However, these systems are subjected to fluctuations and attenuation while transmission, creating a significant noise. Moreover, these systems require additional interfacing hardware and power storages devices such as batteries.
 

North America expected to constitute a considerable market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a considerable market share during the forecast period. The availability of highly advanced technological infrastructure in this region is propelling the regional market growth. The market in Asia Pacific is anticipated to expand at an impressive CAGR during the forecast period. Increasing demand for smart grids in the emerging economies such as India and China is driving the market growth.