Smart Energy Market Overview, 2024-29

The global market for smart energy has grown quickly in recent years and is expected to do so at a substantial rate going forward. The global smart energy market stands at the forefront of a transformative shift in the energy landscape, ushering in an era of unprecedented innovation, efficiency, and sustainability. At its core, the global smart energy market encompasses a diverse array of solutions and initiatives aimed at optimising energy usage, enhancing grid reliability, and reducing carbon emissions.

From smart grids and renewable energy integration to energy storage systems and demand-side management, the market embodies a holistic approach to energy management that leverages digitalization, connectivity, and data-driven insights to drive efficiency and resilience. The rapid pace of technological advancement serves as a catalyst for the expansion of the global smart energy market. Breakthroughs in areas such as IoT (Internet of Things), artificial intelligence, and advanced analytics empower utilities, businesses, and consumers to make smarter decisions about energy usage, enabling greater control, flexibility, and cost savings. Moreover, innovations in renewable energy technologies, energy storage solutions, and grid infrastructure pave the way for a cleaner, more sustainable energy future. Against the backdrop of mounting environmental concerns and the urgent need to combat climate change, the global smart energy market assumes heightened significance. Furthermore, the global smart energy market is driven by shifting consumer preferences and evolving business models. Consumers are seeking greater transparency, control, and affordability in their energy consumption, driving demand for smart home technologies, energy management systems, and grid-connected appliances. Businesses, meanwhile, are exploring new revenue opportunities and operational efficiencies through smart energy solutions, leading to increased investment and adoption across various sectors.

According to the report “Global Smart Energy Market Outlook, 2029”, the market is anticipated to cross USD 300 Billion by 2029, increasing from USD 167.22 Billion in 2023. The market is expected to grow with 10.54% CAGR by 2024-29. The need for reliable and secure energy supply is a primary driver of the demand for smart energy solutions. Smart grids, renewable energy integration, and energy storage systems enhance grid reliability, reduce the risk of power outages, and ensure uninterrupted energy supply, particularly in regions prone to extreme weather events or grid instability.

Growing awareness of climate change and environmental degradation is driving the transition to cleaner and more sustainable energy sources. Smart energy solutions, such as renewable energy technologies and energy-efficient systems, help reduce greenhouse gas emissions, mitigate climate change impacts, and promote environmental sustainability. Furthermore, rapid urbanisation and population growth increase energy demand in cities and urban areas, driving the need for smart energy solutions. Smart city initiatives leverage smart energy technologies to enhance energy efficiency, optimise resource allocation, and improve the quality of life for urban residents. As well as the electrification of transportation, including electric vehicles (EVs) and charging infrastructure, this is driving demand for smart energy solutions. Smart grids and vehicle-to-grid (V2G) technologies enable the integration of EVs into the electricity grid, supporting grid stability, managing peak demand, and maximising renewable energy utilization. Smart energy solutions offer opportunities for energy efficiency improvements and cost savings. Energy management systems, smart appliances, and demand response programmes enable consumers and businesses to optimise energy use, reduce utility bills, and achieve long-term cost savings.

Major Drivers

• Electrification of Transportation: EVs produce fewer greenhouse gas emissions compared to traditional gasoline or diesel vehicles, especially when powered by renewable energy sources. The adoption of EVs contributes to decarbonising the transportation sector, which is a major source of global emissions. As EV adoption increases, there is a growing need for infrastructure to support charging stations. Smart energy solutions, such as smart grids and vehicle-to-grid (V2G) technology, enable efficient integration of EV charging into the electricity grid. V2G technology allows EV batteries to store and discharge energy, providing grid services and balancing supply and demand. EV charging can contribute to peak demand on the electricity grid, particularly during evening hours when many people return home from work and plug in their vehicles.
• Energy Access and Rural Electrification :Access to electricity is essential for socioeconomic development, enabling access to education, healthcare, communication, and productive activities. Rural electrification initiatives improve the quality of life for underserved communities, lifting people out of poverty and promoting economic growth. In remote and rural areas where grid infrastructure is absent or unreliable, off-grid smart energy solutions, such as solar home systems, mini-grids, and decentralised energy systems, provide a reliable and sustainable source of electricity. These solutions often leverage smart technologies to optimise energy use, monitor system performance, and enhance energy efficiency.

Major Challenges

• Infrastructure Limitations: Many regions, especially in developing countries or rural areas, have out-dated or insufficient grid infrastructure. This can impede the integration of smart grid technologies, renewable energy sources, and energy storage systems. Smart energy systems rely on robust communication networks to transmit data between devices, sensors, and control systems. In areas with poor or unreliable communication infrastructure, such as remote locations or underserved communities, connectivity issues arise, limiting the functionality of smart energy solutions. The deployment of energy storage systems, such as batteries or pumped hydroelectric storage, faces challenges related to land availability, environmental considerations, and permitting processes. Limited access to suitable sites for energy storage infrastructure can hinder grid stability and renewable energy integration.
• Cybersecurity Risks: Unauthorised access to sensitive data, such as energy consumption patterns, customer information, or grid operations data, can compromise privacy and security. Malicious software, such as malware or ransomware, can infect smart energy systems, disrupt operations, and cause financial losses or service disruptions. Attackers launch DoS attacks to overwhelm smart energy systems with traffic, leading to system downtime or degraded performance.

Based on product types, they are segmented into smart grid, digital oilfield, smart solar, and energy management systems. Among them, the smart solar segment is expected to grow at the highest rate.

The cost of solar photovoltaic (PV) technology has dropped dramatically over the last ten years, boosting the competitiveness of solar energy over traditional energy sources. Solar energy has become a more appealing alternative for utility-scale and distributed generating projects due to its cost decrease, which has been fueled by technology improvements, economies of scale, and simplified production processes. Growing awareness of climate change and environmental sustainability has spurred interest in renewable energy sources, including solar power. Solar energy is clean, abundant, and emits no greenhouse gases during operation, making it a key component of efforts to reduce carbon emissions and mitigate climate change on a global scale.

Furthermore, solar energy offers a decentralised energy generation model that promotes energy independence and resilience. By generating electricity locally, solar PV systems reduce dependence on centralised power plants and vulnerable transmission infrastructure, enhancing energy security and reliability, especially in regions prone to natural disasters or geopolitical instability. Smart solar technologies facilitate the seamless integration of solar PV systems into the electricity grid, enabling greater flexibility, stability, and efficiency. Grid-connected solar installations, combined with smart inverters, energy storage systems, and demand response capabilities, support grid balancing, voltage regulation, and peak load management, enhancing grid reliability and resilience.

Based on end-user segmentation, the market is majorly categorised into residential, industrial, and commercial. The residential sector is a growing market for smart energy.

Energy-efficient appliances, smart thermostats, and home energy management systems are examples of smart energy technology that enable homeowners to maximise energy use and save on utility costs. Smart energy solutions help homes save a lot of money over time by offering insights into patterns of energy usage and allowing automatic energy-saving activities. Increasing environmental consciousness among homeowners is driving demand for sustainable energy solutions. Smart energy technologies, such as rooftop solar panels, energy storage systems, and electric vehicle (EV) chargers, enable homeowners to reduce their carbon footprint and contribute to environmental conservation efforts.

As concerns about climate change and air pollution grow, more households are turning to smart energy solutions to minimise their environmental impact. Smart energy technologies enhance the comfort and convenience of residential living. Smart thermostats allow homeowners to control indoor temperatures remotely and customise heating and cooling schedules based on preferences and occupancy patterns. Automated lighting, smart appliances, and home automation systems further streamline household tasks and improve the overall quality of life. Furthermore, utilities and grid operators are increasingly implementing demand response programmes and time-of-use pricing schemes to manage peak electricity demand and balance supply and demand on the grid. Smart energy solutions, such as smart metres and home energy management systems, enable residential consumers to participate in demand response initiatives by adjusting energy usage during peak periods, earning incentives, and contributing to grid stability.

Based on the report, the major five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

Asia Pacific is the fastest-growing market; some of the economies and metropolitan centres with the highest rates of growth in the world are found in the Asia Pacific area. The swift progress of urbanisation and industrialization has resulted in a surge in energy demand, prompting the use of intelligent energy solutions to enhance efficiency, dependability, and sustainability in the generation, distribution, and utilisation of energy. Many countries in the Asia-Pacific region have implemented ambitious energy policies and initiatives to promote renewable energy adoption, energy efficiency, and grid modernization.

Governments offer incentives, subsidies, and feed-in tariffs to encourage investment in smart energy technologies, such as solar power, wind energy, and smart grid infrastructure. Many countries in the Asia-Pacific region face challenges related to energy security, supply reliability, and grid stability. Smart energy solutions, such as microgrids, distributed energy resources, and energy storage systems, enhance energy resilience by decentralising power generation, improving grid flexibility, and mitigating the impact of power outages and disruptions. With a rapidly growing population, especially in rural and remote areas, ensuring universal access to reliable and affordable energy is a priority for many countries in the Asia-Pacific region. Off-grid and mini-grid smart energy solutions, such as solar home systems and community microgrids, provide clean, reliable electricity to underserved communities, driving energy access and socioeconomic development.

Product launches and developments, followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations, have been the key business strategies utilized by leading companies to grow their market share. The companies used a variety of tactics to increase market penetration and strengthen their position in the competitive industry. For example, in February 2023, Itron Inc. collaborated with SEW, a well-known provider of cloud-based software solutions for the water and energy industries. The alliance hopes to create new solutions based on Itron's OpenWay Riva IoT system, which includes smart power meters and other smart grid technologies. Furthermore, it would offer utilities with vital information about their customers' energy usage and assist them control their energy consumption.

• In 2022, GE Digital has unveiled a Distributed Energy Resource Management System (DERMS) solution, contributing to a safer, secure, and resilient electric grid. The software integrates intelligence, operations, economics, and markets in a unified platform, empowering grid operators to efficiently manage and optimize Distributed Energy Resources (DERs) for clean, reliable, and affordable energy delivery.
• In 2022, GE Renewable Energy has secured orders from Continuum Green Energy Limited for 81 units of its 2.7-132 onshore wind turbines. The turbines, totaling 218.70 MW, will be installed across wind power projects in Tamil Nadu and Madhya Pradesh, India.
• In 2022, Itron is expanding its collaboration with Microsoft to accelerate the energy transition. The partnership merges Itron's energy management solutions with Microsoft's cloud offerings, revolutionizing how users perceive and manage energy. Together, they aim to provide utilities with innovative solutions, promoting grid resilience, consumer engagement, operational efficiency, and decarbonization.
• In May 2021, New carbon footprint reduction goals were set by the German government. According to the new targets, Germany will strive for a 65%, 88%, and nearly 0% net carbon emission by 2030, 2040, and 2045, respectively. Additionally, Governments are putting a number of policy measures into place in order to decarbonize their economies and electricity sectors in line with both medium- and long-term climate ambitions.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Smart Energy market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product

• Smart Grid
• Digital Oilfield
• Smart Solar
• Energy Management System

By End User

• Residential
• Industrial
• Commercial

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Smart Energy industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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