The market for smart energy communities will top $73bn by 2032, according to Guidehouse Insights.

Market drivers include reducing costs and improving energy stability, particularly for isolated or otherwise vulnerable communities.

While still a developing market, smart energy communities (SECs) are emerging at a time when there is growing demand and a growing pool of resources for their deployment. According to the report, the smart energy for smart cities technology market is anticipated to grow from $36.7bn in annual revenue in 2023 to $73.3bn by 2032, at a CAGR of 8.0%.

“SECs offer a more modular, more resilient and cleaner approach to how residents interact with the energy infrastructure around them,” said Grant Samms, research analyst with Guidehouse Insights. “Active SECs have proven their success at improving the quality of energy for vulnerable communities. While SECs today are generally considered a novel approach to meeting energy challenges, growing emphasis on the need to improve energy performance will drive considerable adoption in the coming decade.”

Reducing costs and improving energy stability, especially for isolated or otherwise vulnerable communities, continue to be the largest drivers of SEC adoption. Governments and communities are also using opportunities presented by EV adoption, such as vehicle-to-grid services, to improve SEC performance and sustainability.

Financially supporting these drivers are large infrastructure and climate investment packages that have been passed by numerous governments. However, SECs also face barriers related to regulatory structures, complexity, lack of standardisation and public engagement, according to the report.

The report, “Smart Energy Communities”, analyses the global market for SECs, exploring market issues, emerging trends, drivers and barriers for SEC deployments. Smart energy for smart cities market analyses are included for all world regions until 2032 and are broken out by advanced energy and smart grid technology segments.