The requirement of the hour is the rising need for power. The electricity system may be effectively modernised by using a smart grid, which can handle the aforementioned problems. The consequent improvement in efficiency and optimization that can be attained with the usage of this technology is one of the key reasons fueling the growth of the smart grid market.
Another factor contributing to the growth of this industry is favourable government rules and policies. Smart grid technologies significantly contribute to reducing greenhouse gas emissions and strengthening vital infrastructure so that it can better resist the effects of climate change.
According to data from Data Bridge Market Research, the smart grid market was valued at USD 43.1 billion in 2021 and is projected to increase to USD 174.02 billion by 2029, with a CAGR of 19.06% predicted for the projection period of 2022 to 2029. The Data Bridge Market Research team’s in-depth expert analysis, import/export analysis, price analysis, production consumption analysis, and pestle analysis are all included in the market research.
Smart Grid market
The integration of a smart grid market, a huge, intricate network made up of millions of connected units and gadgets, empowers electrical utility businesses as well as customers.
A smart grid is an energy system that uses digital communications technology to detect, respond to, and take appropriate action in response to changes in demand and a variety of other problems. Electricity users can take an active role in the self-healing capacities of smart grids.
For instance, they like to talk about modernizing the electricity system since that is what it truly entails, with much more components than smart meters, delivering data in two directions and supplying power to the grid in the other. Although many nations, regions, states, and other entities began implementing such smart metering efforts a decade ago, there are still several where this is still in the early stages.
- DC In 2020, smart grids will account for 66% of the worldwide smart grid market. Improved distributed energy resource (DER) technologies such as micro turbines, combustion turbines, hydrogen electrolyzers, synchronous generators, hybrid systems, wind systems, and other distributed generation technologies are driving the demand for smart grids.
- In the market, the industrial sector is expanding significantly and is anticipated to expand at a CAGR of 19.06% from 2022 to 2029.
- The U.S. oil and gas industry is expanding because of rising interest in unconventional assets and technical developments that have increased well production rates. The expansion of the oil and gas sector has stimulated demand for water and heat meters.
Market Drivers and Challenges: Smart Grid market
- A workable solution for rural electricity is emerging: smart grid. In comparison to traditional grids, smart grids not only ensure speedier installation of the electrical infrastructure but also cheaper energy prices.
- Energy-efficient items are being produced more often by smart grid producers in order to lower carbon footprint and provide customer energy savings. Technology advancements and strict government controls on electric household appliances are to blame for the increase of energy-efficient appliances.
- The automation process includes implementing Smart Grid technologies in industries. Adoption of automation equipment can be one of the most expensive processes and demands a significant investment of resources.
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COVID-19 Impact on Smart Grid Market
The industry for smart grids has been significantly impacted by the COVID-19 epidemic. The smart grid business has stopped as a result of governments being forced to implement lockdowns during the first half of 2020 as a result of COVID-19. Governments and local governments imposed stringent regulations and stopped any non-essential activities. End-user activities were suspended, which had a detrimental effect on the market for smart grids. The smart grid industry, however, is anticipated to be considerably damaged in the post-COVID situation.
The water, energy, ecology, and food industries are all being significantly impacted by the COVID-19 pandemic. Drip irrigation businesses have persisted worldwide despite the challenging conditions. Contrarily, a lack of labour, a tight budget, and issues with the supply chain have all impeded the provision of services. As a result, it is difficult to predict how the COVID-19 epidemic may affect the world market for drip irrigation.
Global markets for Smart Grid Data at the regional and national levels were significantly impacted by the COVID-19 pandemic. The analysis provides three prediction scenarios for the global Smart Grid market for the years 2021 and 2022.
- Due to the numerous applications in the utilities and healthcare industries, the smart grid industry is anticipated to expand quickly.
- ABB Ltd., Eaton Corporation PLC, General Electric, Siemens AG, Exelon Corporation. The others are some of the leading competitors in the market for smart grids.
- In the APAC area, smart grid technologies have been widely used, particularly for rural electrification, which is further fueled by governmental initiatives.