Smart Grid Market size in China to grow by USD 13.96 billion from 2022 to 2027|Transition to smart grids drives the market - Technavio
Tuesday, November 21, 2023
NEW YORK, Nov. 13, 2023 /PRNewswire/ -- The smart grid market in China is estimated to grow by USD 13.96 billion from 2022 to 2027, growing at a CAGR of 14.34%. Transition to smart grids is a major factor notably driving the market growth. A smart grid is generally an integrated network that combines all the power network assets, namely generation, transmission, distribution, and consumption. A major component of a smart grid possesses its ability to generate considerable volumes of data. Also, in China, the power utility sector is experiencing a significant change from a stringent structure to a more flexible system, which is propelled by climate change policies, urbanization, and technological breakthroughs. Such a paradigm transition in the power sector is accomplished by the deployment of cutting-edge metering infrastructure (AMI) and supervisory control and data acquisition (SCADA) systems. This ensures the integration of smart technologies into the grid, thereby allowing utilities to have greater control over the functioning of the grid. Therefore, due to the advantages of smart grids, it is expected that the Smart Grid Market in China is anticipated to grow during the forecast period. For Comprehensive details on the market size of the historic period(2017 to 2021) and forecast period (2023-2027) - View the Sample report
-- Rapid advances in technology, intense competition, and changing dynamics in the market are the key factors for the intense competition among vendors.
-- With the rising competition, the market will see consolidation. However, manufacturing complexities and high production costs pose significant risk factors for vendors in the market.
Major Drivers & Challenges
High implementation costs are a major factor challenging the market growth. The high cost directly affects the companies and restricts them from focusing to adopt and execute new technologies to enhance distribution operations and productivity. A high level of integration is required to make the smart grid more seamless, which is expected to increase the cost further, which in turn, adversely affects the market. Further, the operation and maintenance costs associated with new technologies after implementation are also important. Several companies with a restricted financial budget for IT spending face a significant challenge due to the rising costs of the smart grid. Therefore, the high implementation cost of the smart grid is anticipated to hinder the growth of the market in focus during the forecast period.
The growing demand for energy and cost-efficiency is an emerging trend influencing market growth. The increased population in China and the consequent upsurge in demand for energy leads to a rise in pressure on utility companies. Moreover, utility companies such as China Yangtze Power Co., Ltd. are constantly seeking to strike a balance between demand and supply without the cost being impacted. In order to maintain this balance, utility companies are deploying smart grids to advance operational and overall cost efficiency. Also, the need for technologies and solutions that assist in proper asset monitoring and control, and optimal energy consumption is growing. Energy management and outage management are some of the areas that need adequate systems to support operational efficiency. Therefore, such trends drive the growth of the smart grid market in China during the forecast period.
Technavio has identified key trends, drivers, and challenges in the market, which will help clients improve their strategies to stay ahead of their competitors. - View Sample Report
The smart grid market in China is concentrated; the vendors are competing with competitors and are trying to get a greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major vendors have well-established economies of scale and market presence and generally rely on positioning technological advances, and the price of the products -The report provides a full list of key vendors, their strategies, and the latest developments. Buy Now
The smart grid market report in China includes information on the product launches, sustainability, and prospects of leading vendors including ABB Ltd., Cisco Systems Inc., General Electric Co., Huawei Technologies Co. Ltd., International Business Machines Corp., KPMG International Ltd., McKinsey and Co., Shenzhen Clou Electronics Co., Siemens AG, Silicon Laboratories Inc., and ZTE Corp.
The report includes competitive analysis, a proprietary tool to analyze and evaluate the position of companies based on their industry position score and market performance score. The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies over the past few years, growth strategies, product innovations, new product launches, investments, and growth in market share, among others.
This report extensively covers market segmentation by application (smart T&D equipment, communication and wireless infrastructure, software and hardware, sensors, and others), and end-user (utility, industrial, commercial, and residential).
-- The market share growth by the smart T&D equipment segment is
significant during the forecast period. With the introduction of digital
technologies into the grid, smart transmission and distribution (T&D)
equipment is experiencing a shift. The segment is majorly driven by the
requirement for efficiency and enhanced reliability, and the integration
of diverse power generation sources. The conventional grid was developed
to operate continuous power from sources like coal, however, nations
such as China emphasize more recent or alternative sources of power
generation, which are also intermittent. This, in turn, improve the full
potential of renewable power, and delivering a constant power supply
requires utilities to have a flexible power supply system. Therefore,
these factors are anticipated to fuel the segment and, in turn, the
market during the forecast period.
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The Global Smart Grid IT Systems Market size is estimated to grow by USD 19,384.4 million between 2022 and 2027 accelerating at a CAGR of 15.78%.
The energy storage market for microgrids is estimated to grow at a CAGR of 18.9% between 2022 and 2027. The size of the market is forecast to increase by USD 1,361.05 million.
Table of contents
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-User
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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