5G Smart grid Market - Forecasts from 2023 to 2028

The 5G smart grid market is expected to grow at a CAGR of 63.55% during the forecast period.

GROWTH DRIVERS

The demand for energy and the need to improve the efficiency and reliability of the power grid are driving the 5G smart grid market. 5G smart grid uses 5G network slicing technology to enable customized and differentiated 5G services for various power grid needs, such as high-speed, low-latency, and massive connectivity. It also employs 5G chipsets, routers, and platforms to support faster and more reliable data transmission and processing for various smart grid devices and applications.

For instance, according to the “Tracking report” for September 2022, published by International Energy Association, the investments for smart grids were USD 18.1 billion, USD 18.8 billion, and USD 21.4 billion for the years 2019, 2020, and 2021 respectively, representing a positive impact for 5G sector. The increasing investments in smart grids from the digital infrastructure sector provide a solid foundation for the growth of the 5G smart grid market. These investments have enabled the deployment of advanced infrastructure, accelerated the adoption of 5G technology, and enhanced the efficiency and resilience of energy distribution systems.

EMERGING OPPORTUNITIES FOR THE 5G SMART GRID MARKET

POWER DISTRIBUTION AUTOMATION AND MONITORING & INSPECTION

The 5G smart grid market is driven by the growing demand for energy and the need to enhance the performance and security of the power grid.

By application, the 5G smart grid market is segmented into power distribution automation and monitoring & inspection. The developments and initiatives in the power distribution automation and monitoring & inspection segments are crucial in driving advancements and improving the 5G smart grid market.

For instance,

• In July 2020, China Telecom announced in a press release, in collaboration with Huawei Technologies and the State Grid Corporation of China (SGCC), the company has initiated the initial stage of a 5G-powered "smart" power grid system in Qingdao, a coastal city. This pilot program is designed to enhance the management of core operations within the grid by leveraging the capabilities of 5G technology.
• In August 2020, the 3GPP R18 announced that it had launched 5G Smart Grid research, which unifies global standards and directs industry growth. The initiative, accepted in 3GPP R18, will establish the initial standard E2E architecture for 5G smart grids, setting the groundwork for the technology's quick advancement.

GEOGRAPHICAL PRESENCE

The global 5G smart grid market comprises some major countries undertaking measures to secure their 5G infrastructure. China is expected to witness a higher CAGR during the forecasted period. Some notable developments by major players are listed below:

• In May 2021, in China, ZTE Corporation introduced its 5G+ smart grid solution in collaboration with operators and power grid partners, leveraging the capabilities of the 5G public network. ZTE's 5G+ smart grid solution builds upon a standard 5G soft slice virtual network. It incorporates advanced features such as physical resource block (PRB), intelligent scheduling, adaptive modulation and coding (AMC), local traffic offloading, redundancy and reliability enhancement, and EdgeQoS functions.
• In March 2021, in China, at MWC Shanghai 2021, Huawei and its industry partners released the 5GDN Smart Grid White Paper II. The 5GDN Smart Grid White Paper II release by Huawei and industry partners is a significant development for the 5G smart grid market. It provides knowledge, promotes collaboration, drives market development, and influences policy decisions, contributing to the growth and advancement of 5G-enabled smart grid solutions.

SEGMENTATION

The 5G smart grid market has been analyzed through the following segments:

By Application

• Power Distribution Automation
• Monitoring & Inspection

By Deployment

• Transmission Lines
• Energy Storage Systems

By Geography

• Americas
• USA
• Others
• EMEA
• Germany
• UK
• Others
• APAC
• China
• Japan
• South Korea
• Others