Smart Energy Market will grow at the highest pace owing to high demand of renewable energy

Smart Energy Market will grow at the highest pace owing to high demand of renewable energy

The smart energy market includes various components and technologies such as smart grid, smart meters, home energy management system (HEMS), building energy management system (BEMS) and components used to increase the efficiency and optimization of energy. Smart energy reduces the load on conventional power grids by efficient distribution and consumption of energy. It supports demand response programs by allowing dynamic pricing of energy based on consumption patterns.

The smart energy market is estimated to be valued at USD 177.71 Bn in 2024 and is expected to reach USD 357.50 Bn by 2031, growing at a compound annual growth rate (CAGR) of 10.5% from 2024 to 2031.

Key Takeaways

Key players operating in the smart energy market are GE, ABB, Itron, Siemens, Schneider Electric, Landis+GYR and Eaton Corporation. These players are focusing on product development and deploying efficient smart grid infrastructure to meet the rising demand for smart energy solutions.

The Smart Energy Market Demand for smart energy is growing exponentially owing to the focus on renewable energy resources and focus on improving energy consumption efficiency. Government programs promoting electric vehicles and smart cities is also fueling the adoption of smart energy technologies.

Technological advancements including grid modernization projects, smart meters, energy management systems and energy storage technologies is supporting optimization of energy production and distribution. Introduction of IoT, cloud, big data and artificial intelligence is enabling more efficient monitoring and control of energy infrastructure.

Market Trends
One of the key trends in the smart energy market is the rising adoption of smart grids. Smart grids provide two-way communication between utilities and customers which allows better demand response management. Utilities are actively investing in upgrading aging infrastructure to smart grids.

Energy storage solutions is another major trend in the market. With increasing integration of renewable energy, efficient energy storage such as batteries is crucial to balance energy demand and supply. Both utility scale and behind the meter storage solutions are gaining traction.

Market Opportunities
Supportive government policies and initiatives focused on energy efficiency and conservation provides major growth opportunities. Nationwide smart metering programs, subsidies for rooftop solar and provisions for virtual power plants creates new revenue streams.

Adoption of microgrids is expected to rise in the coming years. Microgrids provide reliable, affordable and sustainable energy supply especially for remote regions not connected to main grids. They also serve as backup during outages.

The COVID-19 impact on the smart energy market
The COVID-19 pandemic has significantly impacted the growth of the smart energy market worldwide. With lockdowns enforced across various countries, the demand from the commercial and industrial segments decreased substantially as business activities reduced drastically. However, the residential sector saw increased demand as people were forced to work from home.

The reduced demand from the commercial segment impacted revenues of smart grid and smart meter companies in the initial months of the pandemic. With businesses and offices shut, the need for advanced energy management reduced. However, as restrictions eased in later months of 2020 and 2021, demand started reviving gradually as businesses reopened and commercial activities resumed partially. Moving forward, the growth is expected to regain pace as vaccination drives progress and economic activities return to pre-pandemic levels.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.

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