The global smart grid market will be worth $208bn by 2031, seeing a CAGR of 19.9% from 2024 to 2031, according to market watcher SkyQuest .

The demand for smart grids increases yearly with constant technological updates that expand electric power demand in nearly all aspects of human lives. Electric vehicles alone will increase the demand for smart grids by 25%, propelling speedy change in the electric energy grid.

Hence, the electric energy market is increasingly inclining towards offering dependable energy from economical and clean renewable means.

By component, the software segment held a major market share in the past years and is expected to lead over the forecast period. The reason for the segment growth is attributed to the rising efforts to improve the power grid and decrease prices. Also, supportive government initiatives for improved metering infrastructure will fuel the market.

The services segment is projected to be the fastest-growing owing to the multiple services offered compared with the software segment. These services include deployment and integration of numerous utility modules for smart grid functioning.

By end user, the utility segment registered the major market share owing to the growing installation of grid technologies worldwide. In the past years, most developing nations considered this technology as the most strategic investment to control and lessen carbon emissions. Moreover, the industrial segment will also gain market share in the future since governments are launching fiscal incentives and supportive policies for most industrial domains. The residential segment is expected to grow considerably due to rising awareness of technological improvements such as money-saving in different end-use sectors and decreased energy consumption.

North America is expected to lead the market in the coming years due to the presence of key industry players. Moreover, governments in the region are interested in making suitable and favourable regulatory policies that will boost the adoption of smart grids.

Asia Pacific will grow progressively in the coming years due to the rising adoption of smart grid technology for better industrialisation and infrastructure in key economies such as Japan and China.

The main drivers are a growing awareness for the advantages of smart grid, a growing number of smart cities across the globe, and supportive governments regulations and policies. Restraints include significant deployment cost of smart grid technology, unexplored underdeveloped nations and regions, and inconsistent power supply in underdeveloped and developing nations.

Prominent players in the smart grid market include General Electric, ABB, Siemens, Schneider Electric, Landis+Gyr, Itron, Honeywell, Cisco, Oracle and IBM.

A sample of the report can be found at www.skyquestt.com/sample-request/smart-grid-market.