The global smart grid technology market has generated revenue of more than $85 billion in 2015 and is expected to grow at the CAGR of 23.5% for the forecasted period 2016-2022. A smart grid is a type of advanced electrical grid system which aims to manage the demand for electricity in an economic, sustainable and reliable manner. The global smart grid technology market is segmented on the basis of software & hardware, sensors and communication network. On the basis of software and hardware, smart meter segment and SCADA segment have the largest market share in the global smart grid technology market. Due to increased use of voltage sensors to monitor transmission and distribution losses, the market of voltage monitoring sensors will grow at a significant CAGR. On the basis of communication network, in 2014, wide area network dominates the market with a market share of more than 65%. The major factors driving the global smart grid technology market are emergence of cloud platform, rising Internet of Things adoption and rising focus on energy efficiency to conserve energy and reduce cost. As per the current trend, there has been rising adoption of intelligent assets such as smart meters, grids and appliances to conserve energy and water resources, increase energy efficiency, and reduce carbon emission. In addition, various advantages of implementing smart grids such as increased capacity due to less loss and theft, lower maintenance cost, reduced capital expenditure, managing demand more effectively through predictive analytics, easy compliance with regulations and enhanced customer engagement etc. will foster the demand for smart grid technology during the forecast period. Furthermore, adoption of new technology have led to development of new innovative products and services and the supportive regulations and policies within the region of North America and Asia Pacific which will significantly contribute towards the growth of the market.
Globally, in 2014, North America dominates the global smart grid technology market and is expected to retain its dominance during the forecast period. The major reason for this high market share is the growing adoption of big data and IoT and presence of large market players in the region. However, it has been anticipated that during the forecast period of 2016-2022, majority of the growth lies in the APAC region owing to increasing adoption of smart grid architecture, increasing regulatory mandates, technological advancements in the region and increasing investments by countries such as China, South Korea, Japan, Singapore etc. The leading players in the global business intelligence market adopt mergers & acquisition and collaborations for new product development, and patent filling, as the preferred strategies to expand their respective market presence. In June 2016, China Electric Power Research Institute and Osissoft have entered into a collaborative agreement on smart grid project. This project will leverage Osissoft’s PI Systemfor analytics, reporting and real-time data monitoring and will help China to develop new standards for future smart grid operations. In February 2016, Silver Springs Networks Ltd and Philips have signed a collaborative agreement to work on research and development of innovative networked led street lights built for smart cities.