Smart Energy Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 182.59 Billion
CAGR (2026-2031)	8.81%
Fastest Growing Segment	Smart Solar
Largest Market	North America
Market Size (2031)	USD 303.03 Billion

Market Overview

The Global Smart Energy Market will grow from USD 182.59 Billion in 2025 to USD 303.03 Billion by 2031 at a 8.81% CAGR. The Global Smart Energy Market is defined by the integration of digital technologies, such as advanced metering infrastructure and grid automation systems, into power networks to monitor, control, and optimize energy generation and consumption. The market is primarily propelled by the critical necessity to modernize aging grid infrastructure to accommodate decentralized renewable resources and stringent government mandates aimed at achieving decarbonization targets. These structural drivers are distinct from technological trends, representing a fundamental shift toward resilient and efficient power management systems required for the energy transition.

However, the sector faces a significant challenge regarding supply chain constraints for essential infrastructure components, which threatens to impede deployment timelines. The rapid surge in global demand for grid upgrades has outpaced manufacturing capabilities, creating severe bottlenecks. According to the International Energy Agency, in 2025, the procurement lead time for large power transformers extended to up to four years, illustrating the logistical hurdles currently restricting rapid market expansion.

Key Market Drivers

The increasing integration of renewable energy sources and distributed energy resources is fundamentally reshaping the sector, necessitating advanced control systems to manage grid stability. As intermittent sources like solar and wind become dominant, utility operators are compelled to deploy smart energy technologies to balance variable supply with demand in real-time. This shift is evidenced by the sheer scale of deployment; according to the International Energy Agency, January 2024, in the 'Renewables 2023' report, global annual renewable capacity additions increased by nearly 50% to 507 gigawatts in 2023. Such rapid expansion creates an urgent requirement for digital solutions that can predict generation patterns and integrate decentralized assets without compromising network reliability.

Modernization of aging power grid infrastructure is the second critical driver, as legacy systems are ill-equipped to handle bi-directional energy flows and the electrification of new sectors. Governments and utilities are channeling massive capital into upgrading transmission and distribution networks with sensors, automation, and analytics to enhance resilience and efficiency. According to the International Energy Agency, June 2024, in the 'World Energy Investment 2024' report, global investment in electricity grids was projected to reach USD 400 billion in 2024. This financial commitment underpins the adoption of smart technologies, further driven by rising usage; according to the Energy Institute, in 2024, global primary energy consumption rose by 2% in 2023, intensifying the need for the optimized resource management that smart energy systems provide.

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Key Market Challenges

The Global Smart Energy Market faces a substantial hurdle due to persistent supply chain constraints regarding essential infrastructure components. This logistical bottleneck is directly hampering market growth by creating severe delays in the deployment of modernization projects necessary for grid digitization. As utilities and developers struggle to procure foundational hardware such as transformers and control systems, the physical build-out required to support advanced metering and automation is stalled. Consequently, the inability to source these critical assets on a predictable schedule forces energy providers to postpone capital investments, effectively placing a hard cap on the rate at which the market can expand and integrate decentralized renewable resources.

These delays are quantifiable and severe within the industry. According to the 'American Public Power Association', in '2025', procurement lead times for certain distribution transformers reached between 115 and 130 weeks. This specific shortage at the distribution level is particularly damaging as it blocks the "last mile" connectivity essential for smart grid functionality. When basic hardware cannot be deployed for over two years, the sophisticated digital layers intended to run on top of them cannot be implemented, thereby freezing the adoption of smart energy technologies across significant portions of the grid.

Key Market Trends

The Integration of Artificial Intelligence and Machine Learning for Predictive Grid Analytics is revolutionizing grid management by enabling operators to transition from reactive maintenance to proactive, data-driven strategies. As power networks become increasingly complex with the influx of decentralized assets, AI algorithms are essential for processing vast amounts of sensor data to forecast equipment failures and optimize load distribution in real-time. This technological shift significantly enhances network reliability and operational efficiency, directly addressing the challenges of variability in modern energy systems. According to the International Energy Agency, April 2025, in the 'Energy and AI' report, AI-based fault detection can help rapidly identify and precisely pinpoint grid faults, reducing outage durations by 30% to 50%.

The Commercialization of Virtual Power Plants for Distributed Energy Resource Aggregation is emerging as a vital mechanism to monetize decentralized energy assets and ensure grid stability. By aggregating disparate sources such as rooftop solar, batteries, and smart thermostats into a unified flexible resource, Virtual Power Plants allow utilities to defer expensive infrastructure upgrades while providing critical grid services like peak shaving. This trend is gaining substantial traction as regulatory frameworks evolve to recognize the value of flexibility services provided by behind-the-meter assets. According to the U.S. Department of Energy, January 2025, in the 'Pathways to Commercial Liftoff: Virtual Power Plants Update', the current scale of virtual power plant capacity has grown to 33 gigawatts across North America, underscoring the rapid adoption of this model to support resource adequacy.

Segmental Insights

The Smart Solar segment constitutes the fastest-growing category in the Global Smart Energy Market, fueled by the accelerating global transition toward renewable power generation. Insights from the International Energy Agency highlight that solar photovoltaic capacity is expanding more rapidly than any other energy source, supported by favorable government policies and declining technology costs. This widespread adoption necessitates intelligent systems to manage distributed energy resources effectively. Consequently, the demand for smart solar solutions, which integrate digital monitoring and real-time analytics to ensure grid stability and optimize performance, is surging, thereby driving the segment’s rapid market expansion.

Regional Insights

North America maintains a dominant position in the global smart energy market, primarily due to rigorous government initiatives aimed at modernizing aging utility infrastructure. The United States Department of Energy actively funds grid resilience programs, which accelerates the deployment of smart metering and automated distribution systems across the region. Additionally, the market benefits from a robust regulatory framework that mandates energy efficiency and supports the integration of renewable power sources. These factors, combined with the presence of key technology providers, ensure the region remains the primary contributor to market expansion.

Recent Developments

In November 2025, Siemens launched the Gridscale X Flexibility Manager, a new software offering designed to assist distribution system operators in maximizing grid capacity. This innovative solution enabled operators to forecast grid congestion and proactively manage flexible resources, such as distributed energy generation and data centers, without requiring immediate physical infrastructure upgrades. Developed in collaboration with several major European utilities, the software promised to increase grid capacity utilization by up to 20 percent. This launch underscored the company's commitment to advancing autonomous grid management and supporting the rapid connection of renewable energy sources.
In October 2025, Itron announced its support for a virtual power plant project in Australia known as Project Jupiter, aiming to manage distributed energy resources more effectively. The initiative involved the deployment of the company's distributed intelligence capability to remotely manage approximately 100 megawatt-hours of capacity from residential battery storage systems. This collaboration focused on stabilizing the grid and enabling households to participate in energy markets by optimizing their energy usage. The project highlighted the growing importance of consumer-owned assets in the broader energy ecosystem and demonstrated the potential for scalable grid-edge management solutions.
In November 2024, Hitachi Energy introduced Nostradamus AI, an artificial intelligence-driven energy forecasting solution designed to improve the predictability of energy investments. This new product leveraged the company’s extensive industry expertise and market data to provide highly accurate forecasts for load, generation, and market pricing. The solution was developed to assist utilities, power system operators, and energy traders in managing their portfolios more effectively amidst the volatility caused by renewable energy integration. By utilizing advanced analytics, the tool aimed to deliver forecasts that were estimated to be significantly more accurate than conventional industry targets.
In October 2024, Schneider Electric launched comprehensive smart grid solutions during the Enlit Europe event to enhance grid resilience and flexibility. The company introduced advancements in virtual substations and announced a strategic partnership with AiDash to implement satellite and AI-powered vegetation management for wildfire and storm mitigation. These innovations were designed to support utilities in managing the increasing complexity of the energy transition, particularly the integration of renewable resources and the demands of net-zero targets. The new offerings aimed to optimize low-voltage network monitoring and improve overall grid reliability for distribution system operators.

Key Market Players

Siemens AG
General Electric
Schneider Electric SE
ABB Group
Honeywell International Inc.
IBM Corporation
Cisco Systems, Inc.
Eaton Corporation
Itron, Inc.
Landis+Gyr AG
Sensus
Oracle Corporation
Trilliant Holdings, Inc.

By Energy Source	By Product	By End User	By Region
Renewable Non-Renewable	Smart grid Digital Oilfield Smart Solar Home energy management system	Utility Providers Residential Industrial Commercial	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Smart Energy Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Smart Energy Market, By Energy Source:

Renewable
Non-Renewable

Smart Energy Market, By Product:

Smart grid
Digital Oilfield
Smart Solar
Home energy management system

Smart Energy Market, By End User:

Utility Providers
Residential
Industrial
Commercial

Smart Energy Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smart Energy Market.

Available Customizations:

Global Smart Energy Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Smart Energy Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Smart Energy Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Energy Source (Renewable, Non-Renewable)

5.2.2. By Product (Smart grid, Digital Oilfield, Smart Solar, Home energy management system)

5.2.3. By End User (Utility Providers, Residential, Industrial, Commercial)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Smart Energy Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Energy Source

6.2.2. By Product

6.2.3. By End User

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Smart Energy Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Energy Source

6.3.1.2.2. By Product

6.3.1.2.3. By End User

6.3.2. Canada Smart Energy Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Energy Source

6.3.2.2.2. By Product

6.3.2.2.3. By End User

6.3.3. Mexico Smart Energy Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Energy Source

6.3.3.2.2. By Product

6.3.3.2.3. By End User

7. Europe Smart Energy Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Energy Source

7.2.2. By Product

7.2.3. By End User

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Smart Energy Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Energy Source

7.3.1.2.2. By Product

7.3.1.2.3. By End User

7.3.2. France Smart Energy Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Energy Source

7.3.2.2.2. By Product

7.3.2.2.3. By End User

7.3.3. United Kingdom Smart Energy Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Energy Source

7.3.3.2.2. By Product

7.3.3.2.3. By End User

7.3.4. Italy Smart Energy Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Energy Source

7.3.4.2.2. By Product

7.3.4.2.3. By End User

7.3.5. Spain Smart Energy Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Energy Source

7.3.5.2.2. By Product

7.3.5.2.3. By End User

8. Asia Pacific Smart Energy Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Energy Source

8.2.2. By Product

8.2.3. By End User

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Smart Energy Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Energy Source

8.3.1.2.2. By Product

8.3.1.2.3. By End User

8.3.2. India Smart Energy Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Energy Source

8.3.2.2.2. By Product

8.3.2.2.3. By End User

8.3.3. Japan Smart Energy Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Energy Source

8.3.3.2.2. By Product

8.3.3.2.3. By End User

8.3.4. South Korea Smart Energy Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Energy Source

8.3.4.2.2. By Product

8.3.4.2.3. By End User

8.3.5. Australia Smart Energy Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Energy Source

8.3.5.2.2. By Product

8.3.5.2.3. By End User

9. Middle East & Africa Smart Energy Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Energy Source

9.2.2. By Product

9.2.3. By End User

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Smart Energy Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Energy Source

9.3.1.2.2. By Product

9.3.1.2.3. By End User

9.3.2. UAE Smart Energy Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Energy Source

9.3.2.2.2. By Product

9.3.2.2.3. By End User

9.3.3. South Africa Smart Energy Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Energy Source

9.3.3.2.2. By Product

9.3.3.2.3. By End User

10. South America Smart Energy Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Energy Source

10.2.2. By Product

10.2.3. By End User

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Smart Energy Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Energy Source

10.3.1.2.2. By Product

10.3.1.2.3. By End User

10.3.2. Colombia Smart Energy Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Energy Source

10.3.2.2.2. By Product

10.3.2.2.3. By End User

10.3.3. Argentina Smart Energy Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Energy Source

10.3.3.2.2. By Product

10.3.3.2.3. By End User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Smart Energy Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Siemens AG

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. General Electric

15.3. Schneider Electric SE

15.4. ABB Group

15.5. Honeywell International Inc.

15.6. IBM Corporation

15.7. Cisco Systems, Inc.

15.8. Eaton Corporation

15.9. Itron, Inc.

15.10. Landis+Gyr AG

15.11. Sensus

15.12. Oracle Corporation

15.13. Trilliant Holdings, Inc.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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