Smart Grid Communications Market

Smart Grid Communications Market by Technology (Wired and Wireless), Solution (WAN, HAN, and FAN), End-user (Residential, Commercial, and Industrial), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

  • Report ID: ICT-SE-503
  • Author: Growth Market Reports
  • Rating: 4.9
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  • No. Of Pages: 184
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The global smart grid communications market size was USD 10.2 Bn in 2022 and is likely to reach USD 22.8 Bn by 2031, expanding at a CAGR of 10.3% during 2023–2031. The market growth is attributed to the increasing government investments in the energy industry.

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.

Smart Grid Communications Market Outlook

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 mediums.

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 supports 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.

COVID-19 Impact on Smart Grid Communications Market

The market report finds that the COVID-19 pandemic affected the smart grid communications market. A sharp decline in the electricity demand from commercial and industrial sectors slowed down the revenue generation of the market. This reduction was caused due to the halting of various power-related projects and the temporary shutdown of numerous industries. Furthermore, the lack of timely supply of smart grid equipment owing to the traveling restrictions disrupted the overall supply chain of the market during the pandemic.

Smart Grid Communications Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global Smart Grid Communications market report has up-to-date insights about market scenarios that can shape the overall market performance and condition during the forecast period, 2023 to 2031.

Smart Grid Communications Market Dynamics

What are the Driving Factors of Smart Grid Communications Market?

Increasing Deployment of Smart Grids at a Rapid Pace

Increasing deployment of smart grids at a rapid pace is a major factor driving the growth of the market during the forecast period. Smart grid communication technology offers high energy efficiency. It has the ability to manage alternative energy sources. Thus, the growing implementation of smart grids to address the electricity-based distribution infrastructure and transmission problems boost the market. Furthermore, rising government initiatives toward digitization offer various schemes to implement smart grids, which further accelerates market growth.

Growing Awareness Regarding the Benefits of the Smart Grid

Growing awareness regarding energy conservation and the benefits of smart grid technology among consumers are other major factors driving market growth in the coming years. Smart grid helps in curtailing carbon emissions and reducing operational errors compared to the conventional power distribution system. However, rising awareness of the drawbacks of conventional power distribution systems is anticipated to fuel the smart grid communications market growth.

What Restraints Smart Grid Communications Market?

High Cost of Installation

High initial capital requires for deploying a smart grid system, which hampers the revenue growth of the market. New emerging technologies are quite expensive compared to the traditional method. A smart grid network is an advanced technology and advanced technologies require a huge amount of capital to adopt those technologies. Furthermore, the lack of standards and interoperability restrain the growth of the market at a certain limit during the projected period.

What are the Growth Opportunities for Smart Grid Communications Market?

Rapid Technological Advancements in the Communication Technologies

Rapid technological advancements in communication technologies along with high return on investment (ROI) is expected to create lucrative opportunities in the coming years. Key players competing in the market are focusing on new advanced technologies to reduce the costs of smart grids. Increasing energy consumption across the globe and the rising initiatives towards the electrification of rural areas fuels the growth of the market.

Scope of Smart Grid Communications Market Report

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

Attributes

Details

Report Title

Smart Grid Communications Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2022

Historic Data

2020–2021

Forecast Period

2023–2031

Segmentation

Technology (Wired and Wireless), Solution (WAN, HAN, and FAN), End-user (Residential, Commercial, and Industrial)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast

Key Players Covered in the Report

ABB; IBM; Verizon; INFRAX SYSTEMS INC.; Landis+Gyr; Sensus; Cooper Electric; Itron Inc.; TRILLIANT HOLDINGS INC.; Devex (Elster Group GmbH); and Current Communications

Smart Grid Communications Market Segment Insights

Why is the Wireless Segment More Prevalent than the Wired?

High Flexibility of Wireless Technology Fuels the Market Growth

On the basis of technology, the market is bifurcated into wired and wireless. The wireless segment is expected to expand at a significant growth rate during the projection period due to its cost-effectiveness. These systems have low infrastructural requirements and can reach remote areas easily and effectively. It offers integral support by offering high bandwidth and covers a large area. Increasing demand for wireless communication systems owing to their high level of flexibility is anticipated to fuel the growth of the market.

The wired segment is anticipated to hold a key share of the market in the coming years owing to the ability to faster data transmission and high connectivity compared to wireless technology. The segment growth is further attributed to the increasing demand from off-grid locations such as remote villages, where laying down a grid system is impossible.

Smart Grid Communications Market Technology

What are the Main Aspects of Boosting the Solution Segment?

Ability to Cover a Large Area Boost the WAN Segment

Based on solution, the smart grid communications market is segmented into WAN, HAN, and FAN. The WAN segment is projected to register a considerable CAGR during the forecast period as it covers a large area. It increases efficiency and boosts privacy. Rising demand for increased bandwidth and flexibility to reduce infrastructure complexity boosts the market growth.

The FAN segment is anticipated to account for a major market share in the coming years as it is widely used for high data transmission rates. It improves grid visibility and provides better integration of distributed energy resources. The segment growth is further attributed to the increasing demand for enhanced security.

How is the End-user Segment Generating More Revenue Share in Smart Grid Communications Market?

Rapid Expansion of Industrial Sector Accelerates the Market Growth

On the basis of end-user, the market is fragmented into residential, commercial, and industrial. The industrial segment is anticipated to generate a major revenue share of the market in the coming years due to the growing industrialization at a rapid pace. Industrial equipment and machinery require efficient power for better performance.

Thus, increasing demand for the deployment of advanced energy systems from the industrial sector is likely to boost the growth of the market. However, the commercial segment is expected to grow at a significant pace during the assessment period due to the increasing demand for reliable power from
small-to-medium scale businesses.

Why Is North America Dominating Smart Grid Communications Market?

High Availability of Advanced Technological Infrastructure in North America Boosting the Market Growth

In terms of region, the smart grid communications market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period due to the high availability of advanced technological infrastructure in the region. The rapid expansion of smart city projects is further propelling the regional market growth.

The market in Asia Pacific is anticipated to expand at a considerable CAGR during the projected period. Increasing government initiatives towards the implementation of smart grid projects in emerging economies driving the growth of the market. Moreover, growing industrialization in the region further boosts the demand for smart grids.

Smart Grid Communications Market Region

Segments

The global smart grid communications market has been segmented on the basis of

Technology

  • Wired
  • Wireless

Solution

  • WAN
  • HAN
  • FAN

End-user

  • Residential
  • Commercial
  • Industrial

Region

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • ABB
  • IBM
  • Verizon
  • INFRAX SYSTEMS INC.
  • Landis+Gyr
  • Sensus
  • Cooper Electric
  • Itron Inc.
  • TRILLIANT HOLDINGS INC.
  • Devex (Elster Group GmbH)
  • Current Communications

Competitive Landscape

The competitive landscape of the global smart grid communications market report provides key insights into the growth strategies and development initiatives implemented by the various players in the market.

Prominent players competing in the market are ABB; IBM; Verizon; INFRAX SYSTEMS INC.; Landis+Gyr; Sensus; Cooper Electric; Itron Inc.; TRILLIANT HOLDINGS INC.; Devex (Elster Group GmbH); and Current Communications.

Some of these major companies adopt various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share. For instance,

  • On October 25, 2022, Landis+Gyr (a leading global provider of integrated energy management solutions) entered into a business agreement with Arizona Public Service (APS) for advanced metering and gridstream connect network infrastructure. It offers a good opportunity for APS to update its critical infrastructure. This agreement includes the deployment of 500k advanced meters over the next seven years.
  • On May 26, 2022, Trilliant and SAMART entered into a strategic partnership to install advanced metering infrastructure (AMI) for the Provincial Electricity Authority of Thailand (PEA). It enables PEA to enhance real-time data collection efficiency for customers of the commercial and industrial sectors.

Smart Grid Communications Market Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Smart Grid Communications Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Smart Grid Communications Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Smart Grid Communications Market - Supply Chain
  4.5. Global Smart Grid Communications Market Forecast
     4.5.1. Smart Grid Communications Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Smart Grid Communications Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Smart Grid Communications Market Absolute $ Opportunity
5. Global Smart Grid Communications Market Analysis and Forecast by Region
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Region
     5.2.2. Y-o-Y Growth Projections by Region
  5.3. Smart Grid Communications Market Size and Volume Forecast by Region
     5.3.1. North America
     5.3.2. Latin America
     5.3.3. Europe
     5.3.4. Asia Pacific
     5.3.5. Middle East and Africa (MEA)
  5.4. Absolute $ Opportunity Assessment by Region
  5.5. Market Attractiveness/Growth Potential Analysis by Region
  5.6. Global Smart Grid Communications Demand Share Forecast, 2019-2026
6. North America Smart Grid Communications Market Analysis and Forecast
  6.1. Introduction
     6.1.1. Basis Point Share (BPS) Analysis by Country
     6.1.2. Y-o-Y Growth Projections by Country
  6.2. North America Smart Grid Communications Market Size and Volume Forecast by Country
     6.2.1. U.S.
     6.2.2. Canada
  6.3. Absolute $ Opportunity Assessment by Country
  6.4. Market Attractiveness/Growth Potential Analysis
     6.4.1. By Country
     6.4.2. By Product Type
     6.4.3. By Application
  6.5. North America Smart Grid Communications Demand Share Forecast, 2019-2026
7. Latin America Smart Grid Communications Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
     7.1.3. Latin America Average Pricing Analysis
  7.2. Latin America Smart Grid Communications Market Size and Volume Forecast by Country
      7.2.1. Brazil
      7.2.2. Mexico
      7.2.3. Rest of Latin America
   7.3. Absolute $ Opportunity Assessment by Country
  7.4. Market Attractiveness/Growth Potential Analysis
     7.4.1. By Country
     7.4.2. By Product Type
     7.4.3. By Application
  7.5. Latin America Smart Grid Communications Demand Share Forecast, 2019-2026
8. Europe Smart Grid Communications Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Europe Average Pricing Analysis
  8.2. Europe Smart Grid Communications Market Size and Volume Forecast by Country
     8.2.1. Germany
     8.2.2. France
     8.2.3. Italy
     8.2.4. U.K.
     8.2.5. Spain
     8.2.6. Russia
     8.2.7. Rest of Europe
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. Market Attractiveness/Growth Potential Analysis
     8.4.1. By Country
     8.4.2. By Product Type
     8.4.3. By Application
  8.5. Europe Smart Grid Communications Demand Share Forecast, 2019-2026
9. Asia Pacific Smart Grid Communications Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Asia Pacific Average Pricing Analysis
  9.2. Asia Pacific Smart Grid Communications Market Size and Volume Forecast by Country
     9.2.1. China
     9.2.2. Japan
     9.2.3. South Korea
     9.2.4. India
     9.2.5. Australia
     9.2.6. Rest of Asia Pacific (APAC)
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Market Attractiveness/Growth Potential Analysis
     9.4.1. By Country
     9.4.2. By Product Type
     9.4.3. By Application
  9.5. Asia Pacific Smart Grid Communications Demand Share Forecast, 2019-2026
10. Middle East & Africa Smart Grid Communications Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Middle East & Africa Average Pricing Analysis
  10.2. Middle East & Africa Smart Grid Communications Market Size and Volume Forecast by Country
     10.2.1. Saudi Arabia
     10.2.2. South Africa
     10.2.3. UAE
     10.2.4. Rest of Middle East & Africa (MEA)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Market Attractiveness/Growth Potential Analysis
     10.4.1. By Country
     10.4.2. By Product Type
     10.4.3. By Application
  10.5. Middle East & Africa Smart Grid Communications Demand Share Forecast, 2019-2026
11. Competition Landscape
  11.1. Global Smart Grid Communications Market: Market Share Analysis
  11.2. Smart Grid Communications Distributors and Customers
  11.3. Smart Grid Communications Market: Competitive Dashboard
  11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     11.4.1. ABB
     11.4.2. IBM
     11.4.3. Verizon
     11.4.4. INFRAX SYSTEMS INC.
     11.4.5. Landis+Gyr
     11.4.6. Sensus
     11.4.7. Cooper Electric
     11.4.8. Itron Inc.
     11.4.9. TRILLIANT HOLDINGS INC.
     11.4.10. Devex (Elster Group GmbH)
     11.4.11. Current Communications
     11.4.12.  

The global smart grid communications market has been segmented on the basis of

Technology

  • Wired
  • Wireless

Solution

  • WAN
  • HAN
  • FAN

End-user

  • Residential
  • Commercial
  • Industrial

Region

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • ABB
  • IBM
  • Verizon
  • INFRAX SYSTEMS INC.
  • Landis+Gyr
  • Sensus
  • Cooper Electric
  • Itron Inc.
  • TRILLIANT HOLDINGS INC.
  • Devex (Elster Group GmbH)
  • Current Communications

The competitive landscape of the global smart grid communications market report provides key insights into the growth strategies and development initiatives implemented by the various players in the market.

Prominent players competing in the market are ABB; IBM; Verizon; INFRAX SYSTEMS INC.; Landis+Gyr; Sensus; Cooper Electric; Itron Inc.; TRILLIANT HOLDINGS INC.; Devex (Elster Group GmbH); and Current Communications.

Some of these major companies adopt various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share. For instance,

  • On October 25, 2022, Landis+Gyr (a leading global provider of integrated energy management solutions) entered into a business agreement with Arizona Public Service (APS) for advanced metering and gridstream connect network infrastructure. It offers a good opportunity for APS to update its critical infrastructure. This agreement includes the deployment of 500k advanced meters over the next seven years.
  • On May 26, 2022, Trilliant and SAMART entered into a strategic partnership to install advanced metering infrastructure (AMI) for the Provincial Electricity Authority of Thailand (PEA). It enables PEA to enhance real-time data collection efficiency for customers of the commercial and industrial sectors.

Smart Grid Communications Market Key Players

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FAQ Section

Some frequently asked quetions about this report!

ABB; IBM; Verizon; INFRAX SYSTEMS INC.; Landis+Gyr; Sensus; Cooper Electric; Itron Inc.; TRILLIANT HOLDINGS INC.; Devex (Elster Group GmbH); and Current Communications are some major players competing in the global smart grid communications market.

North America is anticipated to dominate the global smart grid communications market during the forecast period.

The global smart grid communications market size was USD 10.2 Bn in 2022 and is likely to reach USD 22.8 Bn by 2031, expanding at a CAGR of 10.3% during 2023–2031.

Technology, solution, and end-user are the major segments provided in the global smart grid communications market report.

The global smart grid communications market is driven by the increasing deployment of smart grids at a rapid pace and the growing awareness regarding the benefits of the smart grid.