The Global Smart Power Distribution Systems Market was valued at US$ 35.29 billion in 2023 and is anticipated to reach US$ 78.44 billion by 2029 from US$ 40.31 billion in 2024 witnessing a CAGR of 14.24% during the forecast period 2024-2029.
The demand for intelligent power distribution systems is gaining momentum with the growing trend of automation around the world. Government initiatives for smart cities have resulted in the transformation of traditional distributed systems into smart electricity distribution systems. The deployment of remotely controlled switches and smart meters further fuels demand, driving market growth. The adoption of smart devices and smart grids is expected to offer growth prospects for manufacturers in the near future. The market is driven by the evolving infrastructure network and the inclination of governments toward renewable energy sources. Government mandates and policies supporting the measure may bode well for the market from 2024-2029.
Growing consumer demand for uninterrupted power supply and high internet connectivity can drive demand for smart power distribution systems. Integrating automation in industrial sectors to combat power outages and optimize machine control via remotely controlled switches may bode well for the global market. Smart city development can help the smart power distribution systems market grow at a CAGR of close to 14% during the forecast period.
Growing consumer demand for high-speed data networks for reliable mobility and connectivity has driven the demand for smart power distribution system solutions. Many advancements in the grid industry and the various benefits provided by automation technologies are expected to drive the demand for smart power distribution system solutions. Growing consumer demand for uninterrupted power supply and high internet connectivity can drive demand for smart power distribution systems. Integrating automation in industrial sectors to combat power outages and optimize machine control via remotely controlled switches may bode well for the global market. Smart city development can help the smart power distribution systems market grow at a CAGR of close to 14% during the forecast period. The adoption of a smart power distribution solution by utilities is increasing due to the growing need for savings in capital expenditures (CapEx) and operating expenses (OpEx).
However, high installation costs can act as a market restraint, affecting the expansion in the following years.
The smart power distribution systems market is expected to see massive growth during the forecast period due to drivers such as fossil fuel depletion and growing consumer awareness of carbon footprint reduction. Also, developments in the network infrastructure are expected to drive market growth. On the other hand, smart city initiatives in developing countries would present significant opportunities for the main active players in the smart power distribution systems market during the forecast period. Increasing consumer demand for high-speed data networks for reliable connectivity and mobility has driven the demand for smart power distribution system solutions. Many advancements in the grid industry and the various benefits provided by automation technologies are expected to drive the demand for smart power distribution system solutions.
India's electricity distribution sector is going through a period of turbulence due to large accumulated contributions payable to generators, liquidity problems due to restricted cash flow, uncertain revenues due to the closure of industrial and commercial operations, and low demand for energy in the area after the current blockade due to the coronavirus outbreak. However, the ongoing lockdown has had an impact on the financial health of the problems. India's daily electricity demand has decreased between 25% and 28% since the start of the national shutdown, mainly due to the closure of plants and offices in the commercial and industrial sectors. The uncovered price on the exchange during the foreclosure period has averaged around Rs 2.40 per unit, and the bargains on the exchange far exceed the demand.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 – 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 - 2029 |
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CAGR |
14.24% |
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Segments Covered |
By Component, Application, and Region. |
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Various Analyses Covered |
Global, Regional, and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
General Electric Company (U.S.), ABB Ltd. (Switzerland), Siemens AG (Germany), Schneider Electric SE (France), Aclara Technologies LLC (U.S.), Honeywell International Inc. (U.S.), Tech Mahindra (India), Oracle Corporation (U.S.), Eaton Corporation (Ireland), Itron, Inc. (U.S.) and Others. |
The software segment dominates due to the ease with which it provides utilities to manage and distribute power. The grid upgrade strategies of various economies to meet growing consumer energy demand are likely to facilitate segment growth through 2023. However, the services segment is expected to experience the fastest growth due to resource integration Distributed Energy Systems (DER) to combat sudden blackouts. In addition, rapid industrialization and automation of systems are factors that can drive growth in this segment until the end of the forecast period. This can be attributed to software capable of detecting system failures and alerting management to upcoming maintenance checks.
The industry currently dominates the smart power distribution systems market in 2023. Meanwhile, commerce is expected to grow faster due to the proliferation of shopping centers and restaurants that consume electricity on a large scale.
The Smart Power Distribution Systems Market Report includes the segmentation of Regions:
Geographically, North America had a large share of the global market in 2021 due to many technological advances and the presence of a large number of network automation solution providers in some regions. Power grid service and solution providers in North America collaborate with each other and aim to provide various advanced technology solutions to consumers due to the increase in energy use in these regions. In North America, a large number of utilities are increasingly investing in smart grid technologies to improve customer service and operational efficiency. North America is expected to dominate the market between regions until the end of the forecast period. With network automation technologies and the presence of multiple vendors, North America currently leads the market. This can be attributed to countries adopting the latest technology to deal with power outages. Furthermore, the environmental challenges facing the countries of the region are expected to drive market demand during the forecast period. Investments in renewable energy sources like water and wind are likely to bode well during the smart electricity distribution systems market assessment period.
On the other hand, Europe is promised rapid growth due to sustainability goals to reduce its carbon footprint on a large scale. Policies detailing the replacement of existing power grids and the need for smart systems to track electricity consumption are expected to be competitive in the regional market for smart power supply systems. North America currently dominates the market with network automation solutions and the presence of several vendors. In addition, the environmental challenges faced by the countries of the region are expected to support market demand during the forecast period. Investments in renewable energy sources such as water and wind are expected to bode well for the smart power distribution system market during the evaluation period.
Some of the key players operating in the global Smart Power Distribution System Market are
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