NEW
YORK, July 25, 2024 /PRNewswire/ -- The
global smart grid IT systems market size is estimated to
grow by USD 35.17 billion from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of 22.07% during the forecast period.
Growing demand for energy and cost-efficiency is driving
market growth, with a trend towards increasing role of
utility service providers in energy management. However, high
implementation costs poses a challenge. Key market players
include ABB Ltd., Cisco Systems Inc., Eaton Corp. Plc, ENEL X srl,
General Electric Co., Globema SP Z O O, Honeywell International
Inc., International Business Machines Corp., Itron Inc., Kamstrup
AS, Mitsubishi Electric Corp., Oracle Corp., SAP SE, Schneider
Electric SE, Siemens AG, TANTALUS SYSTEM HOLDING INC., Tech
Mahindra Ltd., Trilliant Holdings Inc., Wipro Ltd., and Xylem
Inc..
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report
Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (Energy
Management System, Distribution Management System, Outage
management system, and Data analytics), End-user (Residential,
Commercial, and Industrial), and Geography (Europe, APAC, North
America, South America, and Middle East and Africa)
|
Region
Covered
|
Europe, APAC, North
America, South America, and Middle East and Africa
|
Key companies
profiled
|
ABB Ltd., Cisco Systems
Inc., Eaton Corp. Plc, ENEL X srl, General Electric Co., Globema SP
Z O O, Honeywell International Inc., International Business
Machines Corp., Itron Inc., Kamstrup AS, Mitsubishi Electric Corp.,
Oracle Corp., SAP SE, Schneider Electric SE, Siemens AG, TANTALUS
SYSTEM HOLDING INC., Tech Mahindra Ltd., Trilliant Holdings Inc.,
Wipro Ltd., and Xylem Inc.
|
Key Market Trends Fueling Growth
The power industry is undergoing a transformation, driven by the
need to reduce harmful emissions and the implementation of smart
grids. Historically, utility operations focused on controlling
power generation, transmission, and distribution. However, smart
grids enable two-way communication and the transfer of excess power
back into the grid through smart meters. This empowers utility
service providers to engage with customers, encouraging energy
conservation through demand response programs and real-time energy
consumption information. The increasing adoption of energy
management devices and consumer engagement is helping utilities
reduce peak hour demand and defer infrastructure upgrades. For
instance, Fayetteville Public Works Commission (PWC) in the US
successfully implemented a home energy management program, saving
consumers 15%-20% on electricity usage. Industrial stakeholders,
including security system providers, device manufacturers, and
energy providers, bring unique strengths to the smart grid IT
systems market. While device manufacturers focus on product
development, utility service providers have the technical expertise
to manage energy systems. Consumers, who adopt smart home devices
for comfort and convenience, necessitate increased utility
involvement in energy management. These factors are expected to
fuel the growth of the global smart grid IT systems market during
the forecast period.
The Smart Grid industry is thriving, driven by trends in low
carbon transportation and the vehicle market. Utilities are
investing in digital communication technologies to modernize aging
grid infrastructure. Smart grid systems enable energy conservation
by integrating renewable sources like wind turbines and solar power
systems with intelligent appliances and smart power meters.
Transmission networks are becoming smarter with superconducting
cables and smart substations. Technology companies and consulting
service providers are developing analytical and big data solutions
for utility service providers to manage power consumption, energy
storage systems, and data centers. Wireless communication plays a
crucial role in ensuring power quality and protecting the
electrical network during emergency situations. The future of the
Smart Grid is about integrated communications, isolating
technologies, and ensuring reliable electrical power from
distributed sources.
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Market Challenges
- The implementation of smart grid IT systems comes with a
significant cost, which is a major challenge for the global market.
This high cost is due to the need for a high level of integration,
data accuracy, and various functionalities. The larger the
existing system of the end-user and the less accurate the current
GIS system, the higher the cost. Building a network model with full
connectivity also adds to the expense. Moreover, operation and
maintenance costs for new technologies post-implementation are
considerable. These additional costs can be a barrier for
companies, particularly small and medium-sized enterprises, with
limited IT budgets. As a result, the high implementation cost of
smart grid IT systems may hinder market growth during the forecast
period.
- The Smart Grid IT market is experiencing significant growth due
to the integration of electrical power from distributed sources
like wind turbines and solar power systems into the electrical
network. Intelligent appliances, smart power meters, and smart
substations are key components of this advanced electrical
infrastructure. Superconducting cables and integrated
communications enable real-time optimization and two-way
communication between the power provider and the customer. However,
challenges remain. Isolated technologies, protective management
systems, and security concerns must be addressed to ensure the
stability of the volatile network. Power quality issues and carbon
emissions are also critical solutions for the growing population.
Smart meters, emergency situation management, and optimization of
generation, transmission, and distribution are essential for energy
efficiency and electrical supply. Advanced Metering Infrastructure,
Smart Grid Communications, Substation Automation, and Smart Grid
Security are key areas of focus for residential, commercial, and
utility sectors. Hardware solutions for energy efficiency,
renewable energy sources, and electric vehicles are also important.
Overall, the Smart Grid IT market requires critical solutions to
address the needs of the electrical infrastructure, including power
outages, blackouts, and security concerns.
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challenges - Download a Sample Report
Segment Overview
This smart grid it systems market report extensively covers
market segmentation by
- Application
- 1.1 Energy Management System
- 1.2 Distribution Management System
- 1.3 Outage management system
- 1.4 Data analytics
- End-user
- 2.1 Residential
- 2.2 Commercial
- 2.3 Industrial
- Geography
- 3.1 Europe
- 3.2 APAC
- 3.3 North America
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Energy Management System- Energy Management
Systems (EMS) are devices installed in residential buildings to
provide electricity consumption data and perform pre-programmed
functions. These systems enable users to view their energy
consumption patterns, compare them with historical data, and
receive demand-response prompts from utility service providers. The
rising electricity prices and global push for energy efficiency are
driving the growth of the EMS market. New players are entering with
innovative product offerings, such as advanced lighting controls
and self-monitoring systems. This segment includes products like
programmable communicating thermostats, intelligent HVAC systems,
and advanced central controllers. Government initiatives and the
influx of new players are promoting energy efficiency and driving
market competition. Innovations like lightweight solar cells
mounted on vehicles and rooftops are also expected to reduce
reliance on utility companies, contributing to the growth of the
EMS segment in the smart grid IT systems market.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Smart Energy market is rapidly growing, driven by
increasing demand for efficient energy management and sustainable
solutions. Concurrently, the global Film Capacitor market is
expanding, with applications in various industries, particularly in
electronics and automotive sectors. Additionally, the global
Electric Vehicle Supply Equipment market is witnessing substantial
growth due to the rising adoption of electric vehicles and the need
for extensive charging infrastructure. These markets collectively
reflect the shift towards advanced technology and sustainability in
energy management and transportation.
Research Analysis
The Smart Grid IT systems market refers to the technological
solutions that enable the electrical power grid to become more
intelligent, efficient, and responsive. This includes the
integration of distributed sources such as wind turbines and solar
power systems, as well as the use of intelligent appliances and
smart power meters. Smart grids utilize superconducting cables,
integrated communications, and protective management systems to
ensure power quality and reliability. The aging grid
infrastructure, growing population, and increasing carbon emissions
necessitate critical solutions to address the challenges of an
electrical network that is becoming more complex. Smart grids also
offer benefits in terms of emergency situation management and
security concerns. Digital communication technologies, smart
meters, and transmission networks are key components of the Smart
Grid industry. Technology companies and utility service providers
are investing heavily in this space to meet the demands of smart
cities and the need for more sustainable energy solutions.
Market Research Overview
The Smart Grid IT systems market encompasses advanced
technologies and solutions that enable the electrical power system
to become more intelligent, flexible, and responsive. This includes
distributed sources such as wind turbines and solar power systems,
as well as intelligent appliances, smart power meters, and smart
substations. Superconducting cables and integrated communications
play a crucial role in optimizing the electrical network, ensuring
power quality, and reducing carbon emissions. As the growing
population demands more critical solutions for energy conservation
and low carbon transportation, smart grid systems have become
increasingly important. However, security concerns and the need for
protective management have emerged as significant challenges.
Two-way communication between the power provider and the customer
is essential for efficient switching functions in this volatile
network. Advanced Metering Infrastructure, Smart Grid
Communications, Substation Automation, and Smart Grid Security are
key areas of focus for the smart grid industry. The integration of
renewable energy sources, electric vehicles, and distributed energy
resources into the electrical supply system requires advanced
analytical solutions and data management capabilities. The aging
grid infrastructure of electric utilities is being replaced with
digital communication technologies and smart grid meters.
Transmission networks are being upgraded with advanced technologies
to ensure reliable power consumption and energy storage systems.
Smart cities and technology companies are collaborating to provide
utility service providers and consulting service providers with
innovative solutions for the smart grid system. Internet access and
data centers are also essential components of the smart grid
ecosystem, enabling real-time monitoring and control of power
consumption and energy storage systems. The integration of big data
solutions and wireless communication technologies is
revolutionizing the way electricity infrastructure is managed and
optimized.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Energy Management System
- Distribution Management System
- Outage Management System
- Data Analytics
- End-user
-
- Residential
- Commercial
- Industrial
- Geography
-
- Europe
- APAC
- North America
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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