DUBLIN, October 21, 2021--(BUSINESS WIRE)--The "Smart Grid Market by Component (Software, Hardware, Services), Application (Generation, Transmission, Distribution, Consumption/End Use), Communication Technology (Wireline, Wireless), and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The smart grid market is projected to reach USD 103.4 billion by 2026 from an estimated USD 43.1 billion in 2021, at a CAGR of 19.1% during the forecast period.
Governments worldwide are undertaking many initiatives to meet the future electricity demands and focusing on reducing carbon footprint by promoting the use of renewable energy sources to produce energy. The increasing need for efficiency and stability of the electric grid is expected to offer lucrative opportunities for the smart grid market during the forecast period. However, the high installation costs of the smart grid act as a restraint for installing the smart grid systems.
The software segment by component is expected to grow at the highest CAGR from 2021 to 2026.
Based on the component of smart grid systems, the software component is estimated to be the fastest-growing market from 2019 to 2026. The smart grid software helps ensure effective management of smart grid operations, improves process efficiency, and reduces energy production costs; hence, the segment captures the major market share.
Distribution segment by application is expected to emerge as the largest segment for smart grid implementation
The distribution segment, by application, is projected to hold the highest market share during the forecast period. Distribution substations isolate the faults in transmission systems. Distribution feeders transport power from the distribution substations to end users, serving many premises. Efficient distribution application helps in quicker restoration of electricity after power disturbances, reduces operations and management costs for utilities, and ultimately lowers the power costs for consumers.
North America: The largest smart grid market
North America is currently the largest smart grid market, followed by Europe and the APAC. The US accounted for the maximum share of the North American market in 2020. It is also projected to grow at the highest CAGR from 2021 to 2026. One of the key reasons for the large market size is the early adoption of smart grid projects. The strong financial position of the US and Canada enables them to invest heavily in smart infrastructure platforms of the smart grid market.
Supportive Regulatory Framework of Governments Worldwide to Promote Deployment of Smart Grids
Improved Grid Reliability and Efficient Outage Response
Increased Awareness About Carbon Footprint Management
Strong Focus on Modernization of Aging Grid Infrastructure
High Installation Cost of Smart Grids
Low Awareness of Protocols and Interoperability Standards
Creating Opportunities for Existing Utility Vendors and Emerging Players
Ongoing Smart City Projects in Developing Countries
Increasing Inclination of Automobile Companies to Manufacture Electric Vehicles Based on V2G Technology
Anticipated Shift from On-Premises to Cloud-Based Systems
Proper Storage and Management of Complex Data Generated by Smart Grid Infrastructure
Cybersecurity and Vulnerability Issues Faced by Smart Grid Networks
Longer Duration of Return on Investment for Utility Service Providers
NES (Networked Energy Services)
For more information about this report visit https://www.researchandmarkets.com/r/6h122a
View source version on businesswire.com: https://www.businesswire.com/news/home/20211021005715/en/
Laura Wood, Senior Press Manager
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