Smart Energy Market Size, Share & Trends Analysis Report By Product (Smart Grid, Digital Oilfield, Smart Solar, Home Energy Management System), By Component, By End-user (Industrial, Commercial, Residential), By Region, And Segment Forecasts, 2023 - 2030

Smart Energy Market Size & Trends

The global smart energy market size was valued at USD 153.80 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2023 to 2030. Smart energy is a sustainable, economically viable, and secure energy infrastructure that emphasizes the advancement of renewable energy sources while keeping production costs to a minimum. This intelligent energy system encompasses smart electricity, gas, and heat grids. Additionally, the adoption of intelligent energy systems has the potential to reduce the reliance on traditional fossil fuels. Substantial investments in smart grid technology significantly propels the growth of the market. The installation of smart energy requires various hardware and software components, such as instrumentation, network infrastructure, and network management software.

The global market is expected to experience significant growth owing to a notable increase in demand for dependable power solutions that can effectively support large-scale manufacturing processes. This surge in demand is driven by the commercial and industrial sectors, which are actively investing in new and advanced power sources. Notably, these investments are intended to address the energy needs of substantial data centers and telecommunications firms. By adopting new and efficient power solutions, these sectors aim to enhance the reliability and sustainability of their energy infrastructure.

Furthermore, the rising global concern among governments regarding the challenges posed by growing global warming is expected to drive an increased demand for solar energy. Governments in various countries are tackling this concern by introducing new rebates and incentive programs specifically designed to encourage the adoption of smart energy technologies, with a focus on smart solar solutions. These initiatives by governments are aimed at encouraging both residential and industrial sectors to invest in and install smart energy technologies.

End-user Insights

The industrial segment held the largest revenue share of over 66% in 2022, owing to a substantial demand for smart energy solutions within energy-intensive industrial sectors due to intensive manufacturing processes and operations. As a result, there is a significant demand for these solutions to optimize energy usage, reduce costs, and enhance overall operational efficiency. Smart energy technologies enhance overall operational efficiency by delivering insights into energy consumption patterns and enabling predictive maintenance.

The commercial segment is predicted to foresee significant growth in the forecast period. The commercial sector comprises all enterprises other than those involved in manufacturing and transportation. Smart energy technologies find extensive applications in commercial buildings, including offices, schools, hospitals, warehouses, police stations, shopping malls, hotels, information technology enterprises, and banks. The versatility of these solutions in addressing diverse energy needs within the commercial sector contributes significantly to their widespread adoption.

Regional Insights

North America dominated the market in 2022, accounting for over 38% share of the global revenue owing to a substantial increase in government incentives and support for smart energy initiatives. The rapid growth of smart grids in North America has contributed substantially to its market growth. These intelligent grid systems, coupled with a broader trend towards energy transition, have enhanced the efficiency and sustainability of energy distribution networks. Additionally, the region's focus on ensuring higher energy quality aligns with the growing anticipations for reliable and advanced energy services. This emphasis on quality further strengthens North America's position in the global market.

Asia Pacific is anticipated to register the fastest CAGR over the forecast period. The Asia Pacific region is marked by rapid economic growth and industrial development. The increasing energy demands associated with economic expansion have propelled the adoption of smart energy solutions to ensure efficient and sustainable energy use. Furthermore, ongoing urbanization and infrastructure development in many countries in the region have spurred the demand for smart energy solutions. For instance, in June 2021, the Electricity Generating Authority of Thailand (EGAT) announced the undertaking of initiatives related to optimizing the demand and supply balance on the Thai power grid. The project is expected to be delivered by Hitachi, Ltd, as the system vendor, and build a demand response system design for Chulalongkorn University, including efforts to build a smart grid system that can strengthen increased penetration of renewables.

Product Insights

The smart grid segment led the market in 2022, accounting for over 41% share of the global revenue. The smart grid functions as a digital technology facilitating bidirectional communication between utility providers and consumers while also assisting in transmission line sensing. The intelligent grid is a comprehensive system comprising controllers, computers, automation, state-of-the-art instrumentation operations, and innovative technologies. It enhances problem detection and enables network self-healing through the application of technologies such as state estimation. Additionally, the smart grid incorporates the next-generation transmission and distribution infrastructure designed to handle bidirectional energy flows seamlessly.

The smart solar segment is estimated to grow significantly over the forecast period. The increasing awareness and concern for environmental sustainability have prompted a surge in demand for renewable energy sources, with solar power being a prominent and accessible alternative. Furthermore, advancements in smart solar technologies, including improved efficiency, grid integration, and monitoring capabilities, have contributed to its widespread adoption. Moreover, governments worldwide have been introducing supportive policies and incentives to encourage the installation of smart solar systems, further boosting the market share.

Component Insights

The solution segment led the market in 2022, accounting for over 74% share of the global revenue. The increasing complexity of energy management and the need for integrated and comprehensive solutions have driven the demand for smart energy solutions. These solutions often encompass a range of technologies, software platforms, and analytics that collectively optimize energy usage, enhance efficiency, and enable effective monitoring and control. Furthermore, the rising focus on sustainability and regulatory standards to reduce carbon footprints has driven the adoption of smart energy solutions as an effective option for achieving energy efficiency and environmental goals.

The services segment is estimated to grow considerably over the forecast period. Companies and utilities need expert assistance in integrating smart energy solutions into their existing infrastructure. The services in the market study include consulting, system integration, maintenance, and support services. These services play a crucial role in ensuring the seamless operation and continuous improvement of smart energy solutions. Consulting services help clients strategize and plan their smart energy initiatives, while system integration services ensure the smooth incorporation of new technologies into existing systems.

Key Companies & Market Share Insights

Prominent firms have used product launches and developments, followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations as their primary business strategy to increase their market share. The companies have used various techniques to enhance market penetration and boost their position in the competitive industry. For instance, in February 2023, Itron Inc. partnered with SEW, a prominent provider of cloud-based software solutions for the water and energy industries. The partnership intends to develop new solutions that use Itron's OpenWay Riva IoT solution, comprising smart electricity meters and other smart grid technologies. Additionally, it would provide utilities with useful insights into their clients' energy usage and help them manage their energy consumption.

Smart Energy Market Report Scope

Global Smart Energy Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global smart energy market report based on product, component, end-user, and region.

• Product Outlook (Revenue, USD Billion, 2017 - 2030)

  • Smart Grid

  • Digital Oilfield

  • Smart Solar

  • Home Energy Management System

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Solution

    • Smart Meters

    • Data And Device Management

    • PV Monitoring

    • Smart Energy Storage

    • Others

  • Services

• End-user Outlook (Revenue, USD Billion, 2017 - 2030)

  • Industrial

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa