Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| Growth Rate | 6.00% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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North America Smart Grid Network Market Analysis by Mordor Intelligence
The North America Smart Grid Network Market is expected to register a CAGR of greater than 6% during the forecast period.
In 2020, COVID-19 had a detrimental effect on the market. Presently, the market has reached pre-pandemic levels.
- Over the medium period, with increasing power demand, growing steps for reducing transmission and distribution losses, and up-gradation of existing grid networks with developing renewable power sources, the smart grid market is expected to grow significantly during the forecast period. Also, to improve the collection of revenue for electricity and mitigate electricity theft in low-income areas, demand for a smart grid network is expected to grow in the region.
- On the other hand, considerable investment is required for setting up and modernizing power generation, transmission, and distribution networks, which can be a restraining factor in the smart grid market's growth.
- Nevertheless, countries like Mexico are expected to invest USD 6.3 billion in smart grid infrastructure and a further USD 2.1 billion in LED and smart street lighting by 2027, which may create vast opportunities for the concerned market players.
- The United States will likely dominate the North American smart grid market during the forecast period. Government initiatives and policies are expected to drive the smart grid market in the country.
North America Smart Grid Network Market Trends and Insights
Advanced Metering Infrastructure to Witness Significant Growth
- Advanced metering infrastructure (AMI), or smart metering, integrates smart meters, communication networks, and data management systems that enable two-way communication between utilities and customers.
- As per the Energy Information Administration, in 2021, the US electric utilities had about 111 million advanced (smart) metering infrastructure (AMI) installations, which account for about 69% of total electric meter installations. Residential customers accounted for about 88% of total AMI installations, and about 69% of total residential electric meters were AMI meters.
- AMI (Advanced Metering Infrastructure) devices are expected to witness a significant growth rate due to the grid modernization efforts taken up by the state and federal governments across the region.
- In 2021, the Government of Canada, under its Smart Renewables and Electrification Pathways Program (SERPs), announced the provision of up to USD 964 million over four years for smart renewable energy and grid modernization projects.
- The installation of smart meters in the United States reached 111 million by the end of 2021, driven by the successful implementation of government policies and support for grid development.
- With increasing efforts to modernize the electricity grid and reduce transmission and distribution losses, governments across North America are investing in advanced metering infrastructure, which may drive the smart grid market during the forecast period.
The United States to Dominate the Market for Smart Grid
- The United States is expected to dominate the North American smart grid market during the forecast period. The smart grid market growth in the United States is expected to be significant over the forecast period, with smart meter installation share expected to reach 80% among electricity customers by the end of 2024.
- The United States witnessed significant growth in electricity production until 2021. However, with growing demand from end-user industries, electricity production is expected to grow during the forecast period. From 4284.8 TWh in 2020 to 4406.4 TWh in 2021, electricity demand may drive the market's growth for smart grids.
- With the development of variable renewable energy sources like wind and solar, with a renewable energy capacity of more than 196 GW in 2015 and 351 GW by 2022, the demand for smart grids increased. With further renewable growth during the forecast period, the market is expected to grow significantly.
- Furthermore, in November 2022, the US Department of Energy (DOE) announced USD 13 billion in funding to help modernize and expand the country's electric infrastructure. The funds were to be made available through President Joe Biden's Bipartisan Infrastructure Act, as well as the Grid Resilience Innovative Partnership (GRIP) Program and the Transmission Facilitation Program.
- Thus, due to the factors mentioned above, the United States is expected to dominate the North American smart grid market during the forecast period.
Competitive Landscape
The North American smart grid network market is moderately fragmented. Some of the major players in the market (in no particular order) include General Electric Company, ABB Ltd., Itron Inc., Honeywell International Inc., and Siemens AG.
North America Smart Grid Network Industry Leaders
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General Electric Company
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ABB Ltd
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Siemens AG
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Itron Inc.
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Honeywell International Inc.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- February 2023: Trilliant, a major international provider of advanced metering infrastructure (AMI), smart grid, smart cities, and IoT solutions, established a long-term strategic agreement with Grupo Saesa. Grupo Saesa would use Trilliant's software and RF communication platforms for AMI, smart grid, and IIoT applications, which is expected help the company improve its customer experience while also delivering secure and dependable electricity.
- September 2022: The US Department of Energy (DOE) seeked to invest USD 10.5 billion to strengthen the country's energy grid through smart grids and other upgrades. The financing was consolidated into the Grid Resilience and Innovation Partnership program, which was divided into three parts: USD 2.5 billion for grid resilience, USD 3 billion for smart grids, and USD 5 billion for grid innovation.
North America Smart Grid Network Market Report Scope
A smart grid is an electricity network built on digital technology that uses two-way digital communication to supply electricity to consumers. This system enables supply chain monitoring, analysis, control, and communication to increase efficiency, minimize energy consumption and costs, and maximize the transparency and reliability of the energy supply chain.
The North America smart grid network market is segmented by technology application area and geography (the United States, Canada, and the rest of North America). By technology application area, the market is segmented into transmission, demand response, advanced metering infrastructure (AMI), and other technology application areas. The report also covers the market size and forecasts for the North America smart grid market across major countries. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
Technology Application Area
| Transmission |
| Demand Response |
| Advanced Metering Infrastructure (AMI) |
| Other Technology Application Areas |
Geography
| United States |
| Canada |
| Rest of North America |
| Technology Application Area | Transmission |
| Demand Response | |
| Advanced Metering Infrastructure (AMI) | |
| Other Technology Application Areas | |
| Geography | United States |
| Canada | |
| Rest of North America |
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Key Questions Answered in the Report
What is the current North America Smart Grid Market size?
The North America Smart Grid Market is projected to register a CAGR of greater than 6% during the forecast period (2025-2030)
Who are the key players in North America Smart Grid Market?
General Electric Company, ABB Ltd, Siemens AG, Itron Inc. and Honeywell International Inc. are the major companies operating in the North America Smart Grid Market.
What years does this North America Smart Grid Market cover?
The report covers the North America Smart Grid Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the North America Smart Grid Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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