Global Connected Grid Market Size By Type (Type I, Type II), By Application (Application I, Application II), By Region, And Segment Forecasts, 2023 to 2032

The Global Connected Grid Market was valued at approximately USD 9.2 billion in 2023 and is projected to exceed USD 18.5 billion by 2031, growing at a CAGR of 9.1% from 2023 to 2031. This growth is primarily driven by the increasing integration of digital technologies in utility infrastructure, the need for real-time monitoring, and grid reliability improvements. Connected grids, enabled by smart devices and IoT technologies, are transforming traditional utility models, enhancing operational efficiency, and supporting the transition to renewable energy.

Drivers:

Demand for Energy Efficiency: Growing demand for efficient energy utilization and management is driving the adoption of connected grids, allowing utilities to optimize energy distribution and reduce losses.

Integration of Renewable Energy Sources: The rise in renewable energy integration into grids requires advanced systems for balancing loads and maintaining stability.

Technological Advancements in IoT and AI: Enhanced IoT and AI applications in the utility sector offer predictive maintenance, improved data analysis, and operational insights, fostering market growth.

Restraints:

High Initial Costs: The cost of upgrading traditional grids with advanced technology remains high, especially for emerging economies.

Cybersecurity Concerns: The digitalization of grids increases the risk of cyberattacks, posing security challenges and potentially hampering market adoption.

Opportunity:

Expansion in Emerging Markets: With ongoing infrastructure development in Asia-Pacific and Latin America, these regions present significant opportunities for the deployment of connected grid technologies.

Government Initiatives and Policies: Government support for smart grid and renewable energy projects globally offers promising growth avenues for the connected grid market.

Market by System Type Insights:

The Advanced Metering Infrastructure (AMI) segment leads in 2023, accounting for the largest revenue share. AMI solutions provide utilities with detailed consumption data, enabling better demand-side management and energy efficiency.

Market by End-use Insights:

The Utility segment held the largest market share in 2023, driven by the demand for real-time monitoring, fault detection, and automated responses. Utilities are increasingly investing in connected grid technologies to improve service reliability and customer satisfaction.

Market by Regional Insights:

North America dominated the market in 2023 due to early adoption of smart grid technologies, favorable government policies, and investments in grid modernization. The Asia-Pacific region is expected to experience the fastest growth due to rapid urbanization, industrialization, and expansion of renewable energy projects.

Competitive Scenario:

Key players in the Global Connected Grid Market include Siemens AG, General Electric, Schneider Electric, ABB Ltd., Honeywell International Inc., Cisco Systems Inc., and IBM Corporation. These companies are focusing on technological innovations, mergers, partnerships, and expanding their global footprint. Recent advancements include the introduction of predictive analytics solutions, smart sensors, and AI-enabled grid management tools.

Scope of Work – Global Connected Grid Market

Key Market Developments:

2023: Cisco Systems Inc. launched a new suite of IoT solutions specifically designed for connected grids, enhancing network security and data analytics capabilities.

2024: Schneider Electric announced a collaboration with a major utility provider to implement its next-generation Distribution Management System across North America.

2025: ABB Ltd. introduced a predictive maintenance solution using AI-driven data analytics for grid equipment, reducing downtime and operational costs.

FAQs

What is the current market size of the Global Connected Grid Market?

The Global Connected Grid Market was valued at USD 9.2 billion in 2023.

What is the major growth driver of the Global Connected Grid Market?

The primary growth driver is the demand for energy efficiency and the integration of renewable energy sources into the grid.

Which is the largest region during the forecast period in the Global Connected Grid Market?

North America holds the largest market share due to the early adoption of connected grid technologies and government support.

Which segment accounted for the largest market share in the Global Connected Grid Market?

The Advanced Metering Infrastructure (AMI) segment accounted for the largest market share in 2023.

Who are the key market players in the Global Connected Grid Market?

Key players include Siemens AG, General Electric, Schneider Electric, ABB Ltd., Honeywell International Inc., Cisco Systems Inc., and IBM Corporation.