The global smart grid market is expected to reach $70 billion by 2024, according to a study released by Global Market Insights.
Growing inclinations toward grid digitalisation owing to energy efficiency benefits will drive smart grid market growth. Most of the economies have been experiencing the prevalent issues of power losses and deteriorating resilience from the older transmission and distribution infrastructure. So, these countries have been planning to deploy smart grid infrastructure as a part of the ongoing grid modernisation activities.
Deployment of smart grid infrastructure offers key benefits of integrating the renewable energy grid in the existing power grid. Thus, it facilitates the formation of hybrid grid further supporting the rising demand for energy security. Favorable government initiatives toward sustainable energy generation which necessitate reliable power infrastructure will stimulate smart grid market trends through 2024.
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The increasing proliferation of household appliances along with the HVAC systems owing to rapid urbanisation has been escalating the domestic electricity demand. In addition, the industrial revolution and expansion of the manufacturing sector too have been generating intense energy demand. To cope with the growing energy requirements, the governments across the major economies have started funding the digitalisation of power grids, further augmenting the smart grid industry growth.
What will influence the growth of communication & wireless infrastructure technology segment in smart grid market during 2018-2024?
Growing penetration of intelligent communication technologies such as IoT and cloud computing for improving grid efficiency, demand management, and customer services across power utilities will propel growth the communication & wireless infrastructure segment.
Digitalisation of grid incorporates several sensors and smart technologies which constantly monitor the energy consumption patterns. The implementation of wireless communication infrastructure allows these sensors to provide real-time data on electricity usage which promotes on-time resolution of the arising power distribution issues.
Increasing shift toward substation automation to manage variations in energy demand will enhance the product penetration, hence propelling the segmental growth.
The smart grid market from communication & wireless infrastructure is anticipated to surpass a CAGR of over 20% through 2024.
Will China smart grid market share substantially increase over 2018-2024?
China is one of the fastest-growing economies worldwide, on account of robust industrialisation and rapid urbanisation trends. In consequence, the country has been experiencing escalating demand for electricity. This has resulted in extensive adoption of sustainable energy mix to allow coping up with the intense energy requirements in the region. For instance, the Chinese government has proposed to obtain over 20% of energy from renewable energy sources by 2030, fostering the sustainable energy mix initiative.
Furthermore, the favoring regulatory framework toward energy sustainability and smart distribution network has been fostering the industry growth. Rising abundance of electric vehicles in the region is anticipated to complement the expansion of smart grid industry landscape. China smart grid market size is pegged to be over USD 40 billion by 2024.
Learn more about the smart grid market.