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Smart grid market to hit $170bn by 2025
- February 12, 2020
The smart grid market is expected to reach nearly $170bn globally by 2025, up from $67bn in 2017 growing at a CAGR of 12.4%, according to market watcher Valuates Reports
A smart grid provides technologies that improve fault detection and enables self-healing of the network automatically after power disturbances. It allows real-time monitoring and regulation of the power system as well as helps to reduce AT&C losses. Smart grids are expected to serve as backbone networks to allow new business models such as smart cities, electric vehicles and smart communities to be implemented.
Trends that are expected to increase the smart grid market size include the need to improve energy conservation, reliability and consumption efficiency by reducing energy losses. There are rising environmental concerns along with government policies and regulations to use smart meters. Increasing investments in digital electrical infrastructure is also expected to drive the market growth.
There will also be an increase in the number of electric vehicles and emerging smart city initiatives in the developing regions that are expected to offer lucrative market growth opportunities in the coming years.
The market for the smart grid industry is further motivated by a rise in reliance on electronic devices and a growing need for electricity in both households and the commercial sector. Smart grids deliver electricity to consumers as and when they need it, making it a reliable power source that reduces the frequency and duration of blackouts.
The commercial segment is generating the highest revenue for the smart grid market. Increasing security and data privacy issues are also driving development.
North America dominated the overall market share of smart grids in 2017 and is expected to remain dominant over the forecast period. This dominance of North America is due to the advent of electric vehicles and major investments pouring in from private and public companies.
Asia-Pacific is expected to show the highest growth rate during the forecast period. This growth can be attributed to the increasing demand for connecting remote and rural communities to the national grid and to resolve power outages.
Key market players include Cisco, General Electric, Honeywell, IBM, Itron, Oracle, Schneider Electric, Siemens, Tech Mahindra and Wipro.