Smart Grid Networking Market
Report ID: SQMIG45H2122
Report ID: SQMIG45H2122
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Report ID:
SQMIG45H2122 |
Region:
Global |
Published Date: December, 2025
Pages:
177
|Tables:
97
|Figures:
69
Global Smart Grid Networking Market size was valued at USD 18.95 Billion in 2024 and is poised to grow from USD 20.99 Billion in 2025 to USD 47.69 Billion by 2033, growing at a CAGR of 10.8% during the forecast period (2026–2033).
The global smart grid networking market growth is expanding at a compound annual growth rate driven by the expanding use of grid technology. These grids offer technologies that facilitate self-healing networks and enhance problem identification. By continuously looking for problems and providing energy management systems with real-time support, state-of-the-art technology improves situational awareness for smart grid distribution management. As of 2024, automated restoration was applicable to nearly half of its customers. This increased coverage continued into 2025, further enhancing the resilience and timeliness of grid management, a strong example of the benefits provided through enhanced situational awareness and improved timeliness.
The global smart grid networking sector is anticipated to expand as a result of specific laws and regulations. Since it is expected that these technologies will promote long-term economic growth and assist governments in meeting their carbon emission reduction targets, they are increasingly being funded by the government. Additionally, some nations have net energy metering equipment and protocols in place, while others are still researching the technology and its workings.
What Role Does AI Play in Real-Time Grid Monitoring and Control?
Artificial intelligence is changing the smart grid networking market outlook with automated resilience, demand forecasting, and predictive maintenance. In 2024, Pacific Gas & Electric (PG&E) had over 600 AI-enabled HD cameras installed (with additional AI cameras) in wildfire-prone areas to monitor ignition sources and reduce the risk of wildfires. By 2025, the system is expected to be fully operational. Additionally, Duke Energy used AI-driven hybrid models, which leverage the combination of expert diagnosis with machine learning, to monitor transformer condition and prioritize maintenance. Where intelligent field assistants are implemented, AI-enabled features have been developed for outage avoidance, and increasingly, utilities are relying upon AI to improve awareness of situational reliability risk, as the introduction of AI is becoming critical to the industry's necessary transition to a digital grid.
Market snapshot - 2026-2033
Global Market Size
USD 16.2 billion
Largest Segment
Smart Meter
Fastest Growth
Routers
Growth Rate
10.8% CAGR
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Global Smart Grid Networking Market is segmented by Hardware, Software, Services and region. Based on Hardware, the market is segmented into Cables, Controllers, Routers, Smart Meter and Switches. Based on Software, the market is segmented into Network Performance Monitoring Management, IP Address Management, Network Traffic Management, Network Device Management, Network Configuration Management and Network Security Management. Based on Services, the market is segmented into Consulting, Network Planning, Design & Integration, Network Risk & Security Assessment and Network Maintenance & Support. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
As per the 2024 smart grid networking market analysis, the smart meter segment dominated the market with 35% of market revenue. The demand for smart devices is due to the rapid advancements in electronics, analytics, and cloud computing. There has been an increase in government investments in smart cities driving growth towards the smart-meter market. The smart grid market increased with growth of remote power grid monitoring and control which has created demand for meters.
The routers segment is forecasted to have a smart grid networking market share. They provide secure, speedy, and scalable communication for distributed smart grid networks. Utilities are facing a growing number of IoT devices, renewable energy assets, and an advanced metering infrastructure so they will need reliable routing options to adjust to growing data loads. Since the utilities are mandated by grid modernization and cybersecurity mandates, and in North America and Europe, utilities began deploying AI-enabled and software-defined routers starting in 2024 with a ramp-up period.
As per the 2024 smart grid networking market forecast, the network risk & security assessment segment remains the most lucrative field, fueled by construction and smart building demands, especially in emerging economies like China and India. The acceleration of use of cloud-based analytics and Internet of things devices, along with expanding government investments in smart city projects, continues to fuel these sectors. In July 2025, India issued a mandatory policy outlining that all solar inverters must communicate securely via federal platforms, using specialty M2M SIM cards, to reduce cyber threats from imported devices. This shows how security policies and consumer-facing digitization activities are now actively influencing the sector. Therefore, understanding the changing technology landscape and regulatory environment will help in strategic thinking.
The consulting sector is expected to take advantage of this. Utilities and governments are continually seeking advice services to help with large-scale smart grid deployment and for compliance with regulatory mandates, and to provide advisory services concerning technology adoption, including artificial intelligence and Internet of things. For example, in February 2025, the U.S. Department of Energy introduced a national grid modernization consultative program to assist states in establishing secure, reliable networks. These actions highlight the value of consulting services for driving adoption and establishing a longer-term plan.
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As per the smart grid networking market regional analysis, Asia-Pacific is currently the region with the fastest rate of growth in smart grid networking due to significant investments in energy transformation and smart cities. In April 2025, the Asian Development Bank committed USD 500 million. This is for smart grid digitalization projects across Southeast Asia for greater regional connectivity. Countries such as China and India are implementing smart meters, smart distribution systems and artificial intelligence-based systems for grid management to advance energy efficiency and reduce peak load impacts.
China has made huge investments into grid modernization as well as making investments into IoT connectivity. China is currently the leader in smart grid networking through initiatives such as an artificial intelligence enabled distribution management system deployed by State Grid Corporation of China to more than 20 million homes in March 2025. This coordination ensures a continued steady supply of energy while reducing blackouts; it aligns with China’s dual-carbon goals. To remain competitive, local enterprises are quickly developing intelligent monitoring, and cybersecurity solutions for the grid with support from the government.
The smart grid networking industry in India is experiencing rapid growth due to digitization involvement from the government and the adoption of renewable product integration. This shift in the industry aims to create new sophistication in grid flexibility, service and monitoring. The Ministry of Power added over 250 million smart meters were approved in January 2025 for installation by 2026 as part of the RDSS project roll out in anticipation of new smart interventions. Working with organizations like Tech Mahindra and Tata Power will guarantee communication standards will improve, as well as support better, more efficient distribution and less transmission losses.
In North America, the smart grid networking market is witnessing significant growth due to modernization initiatives as well as related cybersecurity regulations. Under the Grid Resilience and Innovation Partnership (GRIP) program, the U.S. Department of Energy committed USD 3.5 billion in February 2025 to modernize transmission and improve resilience. Utilities, particularly in the US and Canada, are deploying smart meter rollouts and AI-enabled risk assessment tools to enhance situational awareness, reduce energy costs, and fortify grid security.
Utility innovation and significant federal funding support the U.S. smart grid networking industry. In May 2025, Duke Energy announced that it would implement more than one million smart meters and real-time monitoring devices to strengthen its digital grid platform during growth across North Carolina. The US is currently the most advanced market for risk assessment and advisory services largely due to federal and state grants for grid infrastructure cyber-security, which continue to lead to greater adoption.
The Canadian smart grid networking sector is poised to experience growth through investments in the development of smart infrastructure and renewable energy sources. In April 2025, Hydro-Québec installed a smart grid monitoring system throughout the province. This will enable Hydro-Québec to take on board renewable energy sources such as wind energy and hydropower. This initiative will allow them to mitigate the outage risk in remote areas while also improving the overall stability of the grid. Other Canadian utilities are quickly adopting smart meters and enabling advanced communication technologies with the aid of federal green energy programs to make their efficiencies and reliability better.
European smart grids' networking market growth is being driven by the EU's Green Deal and the promotion of renewable energies. The European Commission has reserved Euro 1.2 billion in February 2025 for cross-border smart grid projects that will improve grid interoperability. The member nations are in the process of establishing advanced networking systems for decentralized electricity generation, especially from wind and solar energy. Europe's consideration of the cyber-secure grid framework adds a feather to its cap.
The UK government-sponsored digitization efforts enhance smart grid networking. In March 2025, the National Grid ESO created a real-time energy balancing system that uses AI, which will provide the same service to battery storage, nuclear and gas generators. This will ensure a consistent energy supply when renewables have fluctuating energy inputs. By taking this service, it reduces the reliance on fossil fuels, as well as contributing to the government objective to have reached net-zero by 2035. Private partnerships enable demand-response schemes and the installation of smart meters, and this action improves reliability and efficiency for grid operations.
Germany's energy transition, powerful enough to give rise to what is known as "smart grid" networking in the country, marks another important milestone in the development of this market. E.ON used the latest artificial intelligence innovations in April 2025 to roll out the distribution grid platform in Bavaria. This deployment supports increasing levels of solar and wind power. Advanced networks are being developed by leveraging federal programs that support smart infrastructure and cybersecurity preparedness. Distributed generation and integrated energy storage are factors that contributed to Germany being a European leader in the early adoption of smart grid technologies.
EDF's modernization initiatives and government backing for the incorporation of renewable energy sources have a significant effect on the French smart grid networking market. In January 2025, Enedis released the announcement of adding another 5 million Linky smart meters for household energy efficiency. Currently, the focus is on improving grid cybersecurity and monitoring solutions in real-time with government support for the decarbonization of the grid. Since the country being a leader in nuclear and renewables, the need has never been greater for strong networking solutions for smart grids.
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Growing Use of Smart Meters
Including Renewable Energy
Expensive Deployment Charges
Challenges with Cybersecurity
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Due to the competitive market, firms are focusing on mergers and acquisitions, strategic partnerships, and new product developments. Companies like Siemens, Cisco, ABB, and others have continued to spend big money on cybersecurity and AI-enabled technologies to add to their portfolio. Thus, Cisco (2024) collaborated with U.S. utilities for secure grid resilience networking. Siemens launched edge-based grid management systems in Europe, which will be available by 2025. New innovations also showcase the competitiveness spurred by innovation.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global smart grid networking market growth is being propelled by deployment of smart meters, integration of new renewable energy sources, and the emergence of new technologies such as edge computing and artificial intelligence as they converge. This expansion is occurring despite persistent issues with spending levels and cybersecurity concerns, while government-supportive programs and private sector investments both increase access that will accelerate adoption worldwide. In addition, in the past few years, new businesses established are positively impacting the configuration of the overall market with cloud-based, AI-enabled and flexible solutions. With robust engagement from major companies in the energy sector, combined with continual innovation, market expansion will help usher in a new era of resilience for energy users and players, as well as for the creation of sustainable energy futures.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 18.95 Billion |
| Market size value in 2033 | USD 47.69 Billion |
| Growth Rate | 10.8% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Smart Grid Networking Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Smart Grid Networking Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Smart Grid Networking Market:
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