Smart Power Distribution Systems Market to be worth US$ 63,500 Million by 2026
Posted by surendra choudhary on March 17th, 2020
The global smart power distribution systems market was valued around US$ 18,417 Mn in 2017 and is anticipated to expand at a stable CAGR of more than 14% during forecast period, according to a new report published by Transparency Market Research (TMR) titled “Smart Power Distribution Systems Market” – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026”. Increasing developments in grid infrastructure, rising demand for integration of renewable energy sources, improved grid reliability and efficient outage response have increased the penetration of smart power distribution systems globally. Adoption of smart power distribution solution by utilities is increasing due to the rising need for savings in capital expenditure (CapEx) and operational expenditure (OpEx). The smart power distribution systems market in North America is expanding at a significant CAGR of more than 15% owing to numerous technological advancements, the presence of a large number of grid automation solution providers, and increasing investments in grid automation for reliable and efficient power supply.
Growing modernization of power distribution system to drive market
Growing grid modernization for reliable and efficient power supply has increased the demand for smart power distribution solutions worldwide. Rising electricity consumption, reduction in production cost, and the potential to lower carbon emissions are some of the key factors driving massive global investment in the modernization of electricity infrastructure and the development of smart grid technologies.
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Consistent rise in the consumption of power is the primary factor responsible for modernization of electric systems. Several countries across the globe are focusing on developing and refining grid architectures, including advanced metering, distribute on automation, substation automation, ubiquitous communications networks, micro grids, and DER integration, which is expected to boost the smart power distribution systems market. The U.S. is focusing on upgrading its power network infrastructure significantly. The office of Electricity Delivery and Energy Reliability (OE), in the U.S., is working with private partners to improve and strengthen the power infrastructure. Numerous market players are launching various smart power distribution solutions to amplify the efficiency of the generation and distribution of the power supply. The key trends prevalent in the smart power distribution systems market are increasing installation of smart meters, investments in smart grid technology, strategic partnerships, and implementation of AI.
Software segment to dominate the global smart power distribution systems market
The component segment is segmented into software, hardware, and service. The software segment of global smart power distribution systems market is further divided into advanced metering infrastructure, smart grid communication, smart grid distribution and management, substation automation, billing information system, and others. The smart metering infrastructure segment is anticipated to dominate the market owing to the rising deployment of smart meters around the globe. The advanced metering infrastructure segment is anticipated to expand at a significant CAGR of more than 15% during forecast period. The smart grid distribution and management segment is expected to expand at a high CAGR during the forecast period. Various utilities are installing smart power distribution software in order to offer customers with enhanced quality of service and improved operational efficiencies. The billing information system segment is projected to expand at a considerable CAGR during the forecast period owing to the increasing need to generate automated and more accurate energy estimation bills.
Benefits provided by AMI meters to boost hardware segment
The hardware segment is further sub-segmented into sensors, AMI meters, programmable logic controller (PLC), protection and control relays, and others. The AMI meters segment is expected to continue to be the leading segment globally during the forecast period due to rising installation of smart meters in order to increase their operational efficiencies and customer service. Furthermore, a large number of utilities are rapidly installing AMI meters to generate more accurate bills and automatically and wirelessly send actual energy usage to the consumer.
Rise in the adoption of smart power distribution solutions by various enterprises to fuel the commercial segment
In terms of application, the global smart power distribution systems market is divided into industrial, commercial, and residential. The commercial segment dominated the smart power distribution systems market in 2017. The trend is expected to continue during the forecast period. Expansion of the segment is attributed to the presence of a large number of enterprises.
Increasing adoption of smart power distribution systems due to rise in power theft and power outages in countries such as China, India, South Africa, Brazil, and Taiwan to create more opportunities in the market
In terms of geography, the global smart power distribution systems market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In terms of revenue, North America led the global smart power distribution market in 2017, followed by Europe. Developed regions such as North America and Western Europe are expected to witness increasing implementation of smart meters, thereby increasing the adoption of smart power distribution solutions. Various manufacturers from North America are rapidly moving ahead to offer various technological advanced automated power distribution solutions due to the rise in usage of smart power distribution systems. The U.S. held a major share of the market in North America in 2017. The market in North America is estimated to expand at a prominent CAGR during the forecast period. Utilities in the U.S. are primarily focusing on balancing the industry and residential power supply and demand. In February 2017, the U.S. proposed grid infrastructure investment up to US$ 1 trillion in order to improve the power distribution infrastructure and customer interaction such as home energy management systems and regular online interaction with their energy data. The market in Europe is anticipated to expand at a significant CAGR during the forecast period, as several utilities in Europe are collaborating with smart grid providers in order to deliver efficient, reliable, and affordable energy to consumers. The smart power distribution systems market in Asia Pacific is further expected to expand at a high CAGR of 15.6% during the forecast period. Factors such as rising technological innovations and increasing adoption of smart grid solutions in order to reduce power outages and power theft are expected to drive the Asia Pacific smart power distribution systems market. The market in Middle East & Africa and South America is expected to expand at a significant pace owing to the increasing investments in the grid infrastructure development in these regions.
Key players such as General Electric Company, ABB Ltd. and Siemens AG are likely to continue to lead the global smart power distribution systems market
The company profiling of key players profiled in the global smart power distribution systems market includes company overview, major business strategies adopted, SWOT analysis, and market revenues for the years 2016 to 2018. The key players profiled in the global smart power distribution systems market include Cisco Systems Inc., General Electric Company, ABB Ltd., Siemens AG, Schneider Electric SE, Landis+Gyr AG, Itron Inc., Oracle Corporation, Eaton Corporation, and Aclara Technologies LLC. Various players are establishing partnerships to provide various smart grid solutions on a large scale in order to reduce power outages across the world.
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About the Authorsurendra choudhary
Joined: February 12th, 2019
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