Smart Energy Market Size, Share, By Product (Smart Meters, PV Monitoring System, Smart Grid, Digital Oilfield, Smart Solar, Home Energy Management System, and Others), End-User (Industrial, Commercial, Residential, and Utilities), and Region - Trends, Analysis, and Forecast till 2035

• Ahead of 2035, the market is predicted to extend at USD 484.7 Billion.
• In 2024, the smart energy market size was valued at USD 178 Billion
• Target market is developing at a CAGR of 10.6%.

Smart energy is the process of using devices for energy-efficiency. It focuses on powerful, sustainable renewable energy sources that promote greater eco-friendliness while driving down costs. The market is flourishing attributable to the factors including rising demand for dependable power solutions, expanding commercial and industrial sectors, rising adoption of new and effective power solutions, incentive programs by government, increasing rate of energy consumption, and others.

Impact of AI in Smart Energy Sector:

Artificial intelligence (AI) is reshaping the smart energy sector, revolutionizing how power is generated, distributed, and consumed. From smart grid management to renewable energy forecasting, and even nuclear power plant safety, AI is fundamentally changing the way energy industry operates, moving it toward a more efficient, sustainable, and secure future.

Key Drivers of Target Market:

Market is Enlarging due to Sustainability of Smart Energy

The benefits of smart energy come from optimizing energy usage and reducing environmental impact. This is due to its ability to integrate renewable energy sources effectively, lowering carbon emissions, and promoting cleaner energy generation. Additionally, smart energy support the adoption of EVs and decentralized energy generation, which is a huge part of further reducing reliance on fossil fuels.

• For instance, in January 2025, CHINT, a global leader in smart energy, unveiled its 2030 sustainable development strategy, making a milestone in its commitment to a greener future. The launch was witnessed by thousands of supply chain partners and led by five Chief Sustainability Officers (CSOs) from CHINT's key subsidiaries.

Restraints:

Integration Complexity can Restrain Market Enlargement

Integration is an issue, which needs addressing in its own right. The intricacies of the integration of a smart system are technically challenging due to the differing technologies involved when compared to existing technology and other non-renewables.

• Counterbalance Statements: For the best solution, effective integration is tantamount to creating a robust network, which will mitigate outages, load shifting, and peak shaving, and aid microgrid automation.

Opportunities:

Integration of Advanced Technologies can Introduce Opportunities in Looming Years

The future of smart energy market will bring more efficiency by using AI and big data. These technologies allow grids to analyze patterns, enabling real-time energy adjustments. Therefore, energy flows more efficiently, further reducing strain and minimizing outages.

• For instance, in May 2024, Iberdrola is leading the AI Innovation Data Space (i-DS) project to improve value extraction from data to optimize power grids.  Specifically, the aim is to apply AI to speed up and enhance the extraction of value from the data to improve the service of distribution networks.

The market is scattered into product, end-user, and region.

Product

Corresponding to product, the market is grouped into smart meters, PV monitoring system, smart grid, digital oilfield, smart solar, home energy management system, and others. The smart grid segment grabbed the enormous smart energy market share due to the increasing demand for smart energy and the need to modernize aging infrastructure.

• For instance, in November 2024, JTC Corporation has selected Univers and PacificLight Power as Thailand’s first district-level smart grid in the Punggol Digital District. The project, aimed at boosting energy efficiency and integrating renewable sources, will involve the installation of a smart grid powered by a battery energy storage system and solar panels.
• For instance, in May 2024, Oakter, a leading provider of innovative consumer electronics has announced the launch of OAKMETER, a state-of-the-art Smart Energy Meter designed to revolutionize energy consumption management. Unlike traditional meters, Oakter’s Smart Meter employs advanced technologies, such as Advanced Metering Infrastructure, real-time data analytics, and Internet of Things (IoT) capabilities.

End-User

Industrial, Commercial, residential, and utilities are end-users of the market. The residential segment is the major contributor to the smart energy market growth by grasping largest share due to the increasing demand for energy efficiency and conservation, as well as government initiatives.

• For instance, in June 2024, advancing its commitment to bringing smart, sustainable technologies to homes in the U.S. and Canada, ABB launched the new ReliaHome Smart Panel, its first residential energy management software platform in the market. In collaboration with its partner Lumin, a pioneer in responsive load management, the new cutting-edge offering provides enhanced customer experience and exceptional convenience to save energy through an accessible and user-friendly product.

Regional

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region is expected to have the largest market share due to the government support for renewable energy projects, rising investment in smart grid technologies and IoT applications, growing demand for constant power solutions, increasing concern about carbon emissions, and others.

• For instance, in October 2024, the U.S. Department of Energy (DOE) Grid Deployment Office announced it has awarded Arizona Public Service Company (APS) two grants, totaling USD 70 million, for projects to strengthen smart grid resilience, expand wildfire prevention and mitigation measures and help meet customers’ growing energy needs.

Asia Pacific: Asia Pacific is expected to be the fastest growing region in smart energy market growth due to the growing economy, urbanization and infrastructure development, government initiatives, rising adoption of renewable energy sources, and others.

• For instance, in December 2022, Banpu NEXT, a leading smart energy solutions provider in Asia-Pacific, launched its big promotion especially for enterprises in the Net-Zero era featuring three energy solutions namely Energy Generation, Energy Monitoring and EV Charging to support businesses in their comprehensive clean energy consumption.

Smart Energy Market Report Scope:

Segmentation:

By Product:

• Smart Meters
• PV Monitoring System
• Smart Grid
• Digital Oilfield
• Smart Solar
• Home Energy Management System
• Others

By End User:

• Industrial
• Commercial
• Residential
• Utilities

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The companies operating in the market are Siemens, CISCO SYSTEMS, INC., HONEYWELL INTERNATIONAL INC, Oracle, ABB, and others which are integrating plan of action including new product launch, partnership & collaborations, integration with advanced technologies, and others, contributing to market expansion.  

List of Key Players in the Market:

• Siemens
• CISCO SYSTEMS, INC.
• HONEYWELL INTERNATIONAL INC
• Oracle
• ABB
• General Electric Company
• Schneider Electric
• ITRON INC.
• IBM
• Hitachi Energy Ltd.
• Delta Electronics, Inc.
• AmpereHour Energy
• SPARKMETER
• SYNDEM LLC

• In November 2024, Tata Power signed a Memorandum of Understanding (MoU) with Noida International Airport (NIA) to develop a smart energy infrastructure. This partnership aims to make NIA one of India's most eco-friendly airports by integrating renewable energy into its operations.
• In February 2024, ST Engineering announced that its Urban Solutions business has launched AGIL Smart Energy Building, a next-generation suite of smart energy solutions that enable building owners to take a whole-of-building approach in energy optimization to achieve total energy savings of up to 25%, accelerating building decarbonization.

Analyst View:      

The smart energy market is receiving remarkable hike caused by the rising demand for dependable power solutions, expanding commercial and industrial sectors, rising adoption of new and effective power solutions, and others. Market is also expected to expand on large scale in forthcoming years due to the integration of advanced technologies, such as AI, machine learning, and others.

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