Smart Energy Market, by Product (Smart grid, Digital Oilfield, Smart Solar, and Home energy management system), End-User (Residential, Industrial, and Commercial), Component (Hardware and Equipment, Solution and Service) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The Smart Energy market size was estimated at USD 169.76 billion in 2023 and is projected to reach USD 308.35 billion in 2030 at a CAGR of 8.90% during the forecast period 2023-2030.
Smart energy refers to a sustainable energy management solution that utilizes energy-efficient, renewable and the Internet of Things (IoT)-integrated systems and devices. It involves smart electricity, gas, solar and thermal grids and home energy management systems that use distributed generation systems, meters and modules for one-way or two-way communications. These solutions are used for collecting and storing data that are further transmitted to computers, laptops, smartphones and power line carriers.
Smart energy systems enable the consumers to monitor and vary their energy demands and reduce emission rates. They also aid in reducing aggregate transmission and commercial energy losses while preventing disconnection, eliminating inefficiencies in billing and minimizing re-connection costs. As a result, smart energy is widely used for residential, industrial and commercial applications. Smart Energy are used in dyestuff and act as pigment or optical brighteners. Smart Energy are utilized in the manufacturing of rubber chemicals, coating and agricultural chemicals. The chemical industry uses Smart Energy in water treatment as well. Hence the wide range of applications in the various field is creating the demand for Smart Energy market on a large scale.
Based on product, the market is segmented into smart grid, digital oilfield, smart solar, and home energy management system. On the basis of end user, the market is segmented into residential, industrial, and commercial. Based on component, smart energy market can be bifurcated into hardware and equipment and solution and service. Lastly, based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa and South America.
The smart energy market is growing rapidly due to a number of reasons including the increasing demand for energy efficiency, the increasing demand for renewable energy, the increasing investment in smart grid technologies and the increasing government regulations. However, there are also some challenges that might hinder the growth of the market during the forecast period. For instance, the upfront costs of smart energy technologies can be high, which can be a barrier to adoption. Moreover, security and privacy concerns as well as interoperability challenges may pose as a challenge to the growth of the market during the forecast period.
The smart energy market was significantly impacted by the COVID-19 pandemic. The market observed a massive fall in the demand for manufacturing and production centres, owing to the large number of shut downs in the industrial sector. As the demand from end users decreased, the wholesale electricity price also saw a decline.
The smart energy market is currently being driven by factors such as increasing demand for energy efficiency as the smart energy technologies can help reduce energy consumption and improve energy efficiency. Moreover, the increasing demand for renewable energy is also driving the growth of the market as smart energy technologies can help integrate renewable energy sources into the grid. In addition to this, utilities are investing in smart grid technologies to improve the efficiency and reliability of the grid which is expected to drive the growth of the market further during the forecast period.
North America to Dominate the Market