2021-26 Global Smart Grid Market Compound Annual Growth Rate of 19.1%

Markets and Markets, an international market research institution, recently released a report that the global smart grid market is expected to increase from $43.
1 billion in 2021 to $103.
4 billion in 2026, with a compound annual growth rate of 19.
1%
during the period.

COVID-19 has slowed the growth of
the smart grid market as countries began to be forced to implement lockdowns in the first half of 2020.
The government and local authorities issued strict guidelines and all non-essential operations were
halted.
This is adversely
affecting the smart grid market due to the suspension of end-user activities.
In addition, production and supply chain delays were also observed in the second quarter as smart grid systems were still not operating at full capacity, which posed challenges
to the smart grid market.

However, with the introduction of vaccines in 2021, the gradual easing of lockdowns and more effective responses by governments around the world, and the continued rise in investment in renewable energy, governments around the world have implemented a number of supportive policies and mandates, focusing on implementing smart grids and spreading awareness
of energy efficiency.
These regulations are driving the adoption
of smart grid technology in industrial, commercial, and residential applications.

On the other hand, since the initial phase of smart grid deployment is capital-intensive
.
This is likely to restrain the growth of
the global smart grid market.
The role of local and national governments in the transformation of energy infrastructure is critical
.
Smart grid technology requires a huge initial investment to build transport networks
that allow two-way communication between utilities and their customers.

In addition, effective deployment of smart grids requires strong coordination across traditional organizational boundaries, a high degree of flexibility to significant process changes, and strict governance
.
High investments for successful smart grid deployments can increase the financial burden
on governments.
Similarly, high operating and maintenance costs following the deployment of smart grid technology is another big issue
for utility providers.
Developing countries with weak infrastructure, such as China, Brazil and India, also need huge financial support to build and upgrade infrastructure
.

Although billions of dollars are being invested in smart city projects, the challenge of ensuring a significant and favorable return on investment (ROI) remains
.
Public and private organizations will play an important role
by providing low-interest loans or providing grants and funding for smart grid projects.

The North American region, including countries such as the United States, Canada, and Mexico, is contributing significantly to
the growth of the regional market.
This region is estimated to account for the largest share of the global smart grid market, and similar trends are expected to continue through 2023
.
One of the main reasons for the large size of the market is the early adoption
of smart grid projects.
The strong financial position in the U.
S.
and Canada has allowed them to invest
heavily on smart infrastructure platforms in the smart grid market.

The US market is expected to be the most mature market
in terms of smart grid deployment, advanced IT infrastructure, presence of multiple businesses, and availability of technological expertise in the country.
With the application of digital technologies to distributed energy resources, smart grid technology in the United States is undergoing a major transformation
.
All these factors are expected to drive the growth of
the smart grid market in North America.