Smart Grid Networking Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Hardware (Cables, Controllers, Routers, Smart Meter, Switches), By Software (Network Performance Monitoring Management, IP Address Management, Network Traffic Management, Network Device Management, Network Configuration Management, Network Security Management), By Services (Consulting, Network Planning, Design & Integration, Network Risk & Security Assessment, Network Maintenance & Support), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.87 Billion
CAGR (2026-2031)	10.41%
Fastest Growing Segment	Cables
Largest Market	North America
Market Size (2031)	USD 34.18 Billion

Market Overview

The Global Smart Grid Networking Market will grow from USD 18.87 Billion in 2025 to USD 34.18 Billion by 2031 at a 10.41% CAGR. Smart grid networking defines the integrated digital communication infrastructure and software systems that enable the bidirectional exchange of data and electricity between utility control centers and grid components. The primary drivers propelling market expansion include the critical necessity to integrate distributed renewable energy sources and the rising demand for improved grid reliability to minimize power outages. Furthermore, regulatory mandates aimed at modernizing aging electrical infrastructure to support electrification and ensure energy efficiency act as fundamental catalysts for growth distinct from technological trends.

A significant challenge impeding broader market progression is the heightened risk of cybersecurity threats as increased connectivity expands the attack surface for critical infrastructure. The complexity of securing vast networks against data breaches often delays deployment and increases implementation costs. Highlighting the scale of capital allocation in major markets, according to the Edison Electric Institute, in 2024, United States electric companies invested a record $178.2 billion to make energy grids smarter, stronger, and more secure.

Key Market Drivers

The mandatory deployment of Advanced Metering Infrastructure (AMI) serves as a primary accelerator for the adoption of smart grid networking technologies. Governments and utility providers are enforcing these deployments to replace mechanical meters with digital systems that allow for bidirectional communication, thereby improving billing accuracy and reducing operational inefficiencies. This transition necessitates a robust, scalable network layer capable of transmitting high-frequency data from millions of endpoints to central utility management systems. The sheer volume of data generated by these devices requires substantial upgrades to bandwidth and data handling capabilities within the grid's digital architecture. Highlighting the speed of these government-backed rollouts, according to the Press Information Bureau of India, March 2024, in the 'Year End Review of the Ministry of Power', the country successfully installed over 10 million smart meters under its national distribution sector scheme to enhance operational viability.

Simultaneously, the expansion of electric vehicle charging infrastructure creates a critical dependency on intelligent networking to manage increased load volatility. As the density of charging stations grows, utilities must employ real-time monitoring and demand response mechanisms to prevent distribution transformers from overloading during peak charging times. This integration drives demand for low-latency communication networks that can coordinate energy flow between the grid and EV supply equipment effectively. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', the number of public charging points worldwide increased by more than 40% in 2023, creating urgent pressure for grid digitalization. To support these modernization efforts, according to the International Energy Agency, in 2024, global investment in electricity grids is projected to reach USD 400 billion, largely targeting the integration of digital technologies and renewable assets.

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Key Market Challenges

The heightened risk of cybersecurity threats presents a substantial barrier to the rapid advancement of the Global Smart Grid Networking Market. As utilities transition from closed, analog systems to interconnected, IP-based digital networks, they inadvertently expose critical infrastructure to sophisticated malicious actors. This expanded attack surface necessitates rigorous and expensive defensive measures, which significantly inflates the total cost of ownership for smart grid deployments. Consequently, utility operators are often forced to divert substantial capital originally allocated for network expansion and modernization toward hardening existing systems and regulatory compliance, thereby slowing the overall pace of market growth.

The severity of this operational bottleneck is evidenced by recent industry data highlighting the escalating threat landscape. According to the International Energy Agency, in 2024, it was reported that the frequency of cyberattacks targeting energy utilities had tripled over the preceding four years. This exponential rise in threat activity creates a climate of caution, causing decision-makers to delay the integration of advanced bidirectional communication technologies until security assurances can be guaranteed. Thus, the imperative to secure vast, complex networks acts as a direct brake on the scalable deployment of smart grid solutions.

Key Market Trends

Widespread Adoption of Private 5G Networks is fundamentally reshaping utility communications by enabling operators to deploy dedicated, high-speed infrastructure that bypasses the congestion and security risks of public cellular grids. This trend allows utilities to secure ultra-low-latency connectivity for mission-critical applications such as real-time distribution automation and remote infrastructure inspection, which were previously constrained by legacy systems. The scale of this transition towards private cellular ecosystems is evidenced by significant capital commitments from major utility providers securing proprietary spectrum. According to Anterix Inc., June 2025, in the 'Full Fiscal Year 2025 Results', the company executed new spectrum sale agreements totaling $116 million, including a landmark $102.5 million contract with Oncor Electric Delivery to deploy a private wireless broadband network across its massive service territory.

Utilization of AI-Driven Network Analytics is simultaneously transforming grid management by embedding machine learning algorithms directly into operational software to facilitate predictive maintenance and dynamic fault isolation. Rather than relying on reactive repairs, utilities are increasingly leveraging these analytics to process vast amounts of sensor data, allowing them to anticipate equipment failures and optimize load balancing across distributed energy resources. Highlighting the industry's financial dedication to these intelligent technologies, according to National Grid Partners, March 2025, in the press release 'National Grid Partners commits $100 million to invest in AI startups advancing the future of energy', the venture arm of the multinational utility allocated $100 million specifically to fund artificial intelligence innovations designed to enhance grid efficiency and resilience.

Segmental Insights

Based on recent industry analysis, the Cables segment is emerging as the fastest-growing category within the Global Smart Grid Networking Market. This rapid expansion is propelled by the escalating demand for grid interconnections to integrate renewable energy sources, such as wind and solar farms, into main power networks. Utilities are aggressively investing in replacing aging overhead lines with advanced underground and submarine cabling solutions to enhance transmission reliability and resilience against severe weather. Furthermore, the adoption of specialized cables embedded with monitoring sensors is increasing, enabling the real-time data transmission and fault detection necessary for efficient grid automation.

Regional Insights

North America leads the Global Smart Grid Networking Market due to substantial government investments and strict mandates for modernizing energy infrastructure. The United States Department of Energy actively supports this expansion through significant funding for grid reliability and resilience projects. Furthermore, established regulatory frameworks facilitate the widespread integration of renewable energy sources and advanced metering infrastructure across the region. This consistent institutional support, coupled with the early adoption of automation technologies by major utility providers, secures North America’s position as the dominant region in the global landscape.

Recent Developments

• In September 2025, Landis+Gyr announced a strategic partnership with PLUS ES, an Australian energy infrastructure and metering services provider, to deploy grid edge intelligence solutions. This collaboration focuses on advancing the clean energy transition in Australia by leveraging advanced metering infrastructure to improve real-time data visibility and network management. The partnership involves the utilization of Landis+Gyr’s technology to support the integration of distributed energy resources and enhance the reliability of the power distribution network. The initiative aims to provide utilities with better tools to monitor and control energy flows at the consumer level.
• In March 2025, Schneider Electric released the One Digital Grid Platform, an artificial intelligence-enabled solution aimed at improving grid resiliency and operational efficiency. The platform was engineered to integrate independent software applications into a unified ecosystem, providing utilities with a technical foundation to modernize their infrastructure. By consolidating data and operations, the system supports functions such as planning, asset management, and customer engagement. The company stated that the platform helps reduce outages and shorten timelines for connecting distributed energy resources, thereby lowering the total cost of ownership for grid operators.
• In August 2024, Hitachi Energy introduced Grid-enSure, a portfolio of integrated solutions intended to enhance the flexibility, resilience, and stability of power systems. This launch addressed the need for grid modernization to support the integration of renewable energy sources, with reports indicating a significant backlog of renewable projects awaiting connection. The solution combines power electronics with control and energy management systems to manage frequency variations, voltage fluctuations, and inertia challenges. The portfolio was designed to help utility customers and grid operators improve the predictability and capability of their transmission and distribution networks.
• In February 2024, Siemens launched Gridscale X, a software portfolio designed to support autonomous grid management and accelerate digital transformation for utility operators. This solution was developed to address challenges related to the energy transition by enabling utilities to scale grid capacity and improve the visibility of distributed energy resources. The software facilitates the handling of increasing grid complexity and enhances flexibility, allowing for easier deployment and integration into existing information and operational technology landscapes. Gridscale X aims to assist grid operators in planning, operating, and maintaining their networks more efficiently.

Key Market Players

• Trilliant Holdings, Inc.
• Mitsubishi Electric Corporation
• ABB Ltd.
• Schneider Electric SE
• Fujitsu Limited
• Huawei Technologies Co. Ltd.
• Siemens AG
• Itron, Inc.
• Cisco Systems, Inc.
• General Electric Company

By Hardware	By Software	By Services	By Region
Cables Controllers Routers Smart Meter Switches	Network Performance Monitoring Management IP Address Management Network Traffic Management Network Device Management Network Configuration Management Network Security Management	Consulting Network Planning Design & Integration Network Risk & Security Assessment Network Maintenance & Support	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Smart Grid Networking Market, By Hardware:

• Cables
• Controllers
• Routers
• Smart Meter
• Switches

• Smart Grid Networking Market, By Software:

• Network Performance Monitoring Management
• IP Address Management
• Network Traffic Management
• Network Device Management
• Network Configuration Management
• Network Security Management

• Smart Grid Networking Market, By Services:

• Consulting
• Network Planning
• Design & Integration
• Network Risk & Security Assessment
• Network Maintenance & Support

• Smart Grid Networking 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