The global smart grid market is set to see a CAGR of 20.73% from 2024 to 2031, according to a report from Verified Market Research.

The market was valued at $23.23bn in 2024 and is expected to reach $104.43bn by the end of the forecast period.

The market for smart grid technologies is driven by the increasing demand for energy efficiency. Throughout the world, governments are pushing smart grid technologies as a way to increase energy efficiency and reduce carbon emissions. This driver promotes market expansion and innovation by increasing demand for demand response systems, smart meters and grid automation. Businesses that provide smart grid options will profit from this development and seize chances in the increasingly sustainable energy market.

One of the main factors propelling the smart grid market is the use of renewable energy sources such as solar and wind, making smart grid technologies necessary for the effective distribution and management of variable power supplies. Demand for energy storage devices, monitoring systems and grid modernisation is generated by this factor.

Innovations in the smart grid market are being driven by advances in artificial intelligence (AI) and the IoT. Grid monitoring and optimisation are improved by the use of machine-learning techniques, predictive analytics and smart sensor placement. This propels the creation of smart grid services and infrastructure, giving suppliers the chance to offer products that facilitate real-time data analysis and decision-making.

The large initial outlay needed for infrastructure development is one of the main barriers to the smart grid market. Widespread use may be hampered by the high cost of smart meters, grid automation and communication network infrastructure. This limitation lowers the entrance hurdles for small and medium-sized businesses, which affects market growth. But creative funding schemes and government grants can lessen this difficulty and open doors for affordable smart grid technologies.

Cyber security and worries about data privacy present serious obstacles for the smart grid market. Smart grid systems are vulnerable to cyber assaults due to their interconnectedness, which could jeopardise grid operations and user data. This restraint damages consumer confidence and heightens regulatory scrutiny, which has an effect on market adoption. To tackle this, industry participants need to give priority to strong cyber-security defences and clear data privacy guidelines to protect smart grid systems and consumer data.

The market is hampered by compliance requirements and regulatory barriers. Regional differences in legislation can make it difficult for smart grid technology to become standardised and interoperable. This limitation makes it more difficult to expand and accept new markets, which has an impact on cross-border operations and corporate scalability. To facilitate market expansion and international collaboration, stakeholders must interact with policymakers to streamline regulatory frameworks and encourage harmonisation.

Energy regulations, government initiatives and technology infrastructure all have an impact on geographic dominance. Because of their grid modernisation initiatives and encouraging laws, regions such as North America and Europe are in the forefront. Asia-Pacific, meanwhile, is becoming a significant market due to rising energy consumption and fast urbanisation.

Major players include GE, Schneider Electric, ABB, Siemens, Itron, Cisco, Aclara, Landis+Gyr, OSI, Oracle and Wipro.

More on the report can be found at www.verifiedmarketresearch.com/download-sample/?rid=6686.