Smart Energy Management Market by Energy Source (Renewable, Non-Renewable), Offering, Function (Operation, Energy Management, Distribution, Storage, Grid Security), End User (Utility Providers, Consumers) and Geography - Global Forecasts to 2029

The Smart Energy Management Market is expected to reach $47.64 billion by 2029, at a CAGR of 15% during the forecast period of 2022–2029. Rising energy consumption across different end-use industries, increasing awareness about carbon footprint management, and increasing investment in smart energy infrastructure are the major factors driving the growth of this market. In addition, upcoming smart cities projects in developing economies and integration of energy management systems with smart devices are expected to offer significant growth opportunities for the growth of this market. However, the high initial cost of deployment and lack of financial resources restrain the market growth to a certain extent.

Impact of COVID-19 on the Smart Energy Management Market

In the first quarter of 2020, the world was hit by the COVID-19 pandemic. The outbreak was declared a global pandemic by WHO, as it has spread in many countries across the globe and raised many cases within a few weeks. The COVID-19 pandemic has adversely hit many economies around the globe. The combat measures like complete lockdowns and quarantine have adversely impacted many businesses across the globe, including smart energy management.

The global pandemic imposed unprecedented constraints on social and economic activities – particularly mobility – severely impacting energy use. Global energy demand contracted by 6% in 2020, the largest drop in more than 70 years. (Source: International Energy Agency). Countries such as France, India, Italy, Spain, the U.K., and the north-western region of the U.S. saw consumption fall by at least 15% during lockdowns. Although in Italy, electricity demand was down by 75%.

Potential new practices and social forms being facilitated by the pandemic impact energy demand and consumption. The residential sector experienced a significant increase in energy consumption (estimated at around 15%) since a large part of the population stayed at home and therefore needed more heating, lighting, use of electrical appliances, etc. (Source: INSEE)

After declining in 2020, constrained by the Covid-19 pandemic, investments in smart energy infrastructure are expected to grow as governments across several countries are investing heavily in the modernization of aging energy infrastructure. For instance, In Europe, grid expansion plans for 2021-2030 provide the foundation for increased investment, supported by economic recovery schemes. While the European Commission’s 2030 climate ambition plan released in September 2020 foresees annual grid investments of ~USD 70 billion during 2021-2030.

Thus, rising investment in modernizing the existing energy infrastructure is expected to drive the growth of smart energy management systems over the forecast period. Since the energy industry was among the most vulnerable and affected industries during the pandemic, it is anticipated to recover with a considerable growth rate over the forecast period.

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Increasing Investment in Smart Energy Infrastructure Offers Significant Growth Opportunities for the Smart Energy Management Market

Despite declining in 2020 due to the Covid-19 pandemic, investments in electricity grids grew by 10% in 2021, with rising infrastructure spending in Europe, China, and the U.S. (Source: IEA). Governments across countries are investing heavily in the modernization of existing energy infrastructures. As part of the drive to achieve carbon-free electricity generation, ambitious expansion and recovery plans are included in policies to achieve more resilient and digital grids. For instance, in 2021, the Government of Canada Invested over $960 million in renewable energy and grid modernization projects. Another instance, in 2020, the State Grid Corporation of China also announced plans to invest ~CNY 25 billion (USD 3.5 billion) in digital infrastructure to support tech-based projects as part of efforts to revitalize the economy. Smart energy systems, including smart meters and grids, are increasingly being installed and are showing robust growth. Thus, increasing investment in smart energy infrastructure such as smart grids and smart meters creates massive demand for smart energy management systems.

Increasing Awareness About Carbon Footprint Management

The world’s electricity markets are experiencing the growing impacts of climate change. Extreme weather events such as heat waves, cold snaps, droughts and floods have become more frequent and intense, threatening the stability and reliability of electricity supply. Despite the impressive growth of renewable power, electricity generation from coal and gas hit record levels. As a result, in 2021, carbon dioxide (CO2) emissions from power generation rose by 7%, also reaching a record high, after having declined the two previous years.

Governments are increasingly focused on tackling the threat of climate change, making climate policies. In October 2020, the Japanese government announced its plans to achieve net zero carbon emissions by 2050. In May 2021, the German government set new targets to reduce its carbon footprint. Under the new targets, Germany will aim for a 65%, 88%, and nearly 0% net carbon emission by 2030, 2040, and 2045 respectively. In addition, governments are deploying a suite of policy measures to decarbonize their economies and electricity sectors in line with both medium- and long-term climate ambitions. For instance, in June 2019, EPA (U.S.) had issued greenhouse gas (GHG) emission regulations for existing fossil fuel fired power plants in the Affordable Clean Energy (ACE) Rule.

As a result, organizations have been instructed by governments to follow the norms and regulations. At present, many organizations are implementing a strict approach for calculating and managing their carbon emissions and are making considerable investments for the purpose. For instance, in November 2019, ENGIE (France) partnered with Accenture, Salesforce, and Vlocity for providing low-carbon energy and services to help ENGIE’s customers around the world achieve a zero carbon future. The growing requirements for reducing carbon footprint would result in a growth in the demand for smart energy management systems as it assists organizations in identifying possibilities for reducing their carbon footprint.

Key Findings in the Global Smart Energy Management Market Study:

Grid Operation Segment to Witness the Largest Share Through 2029

Based on function, the market is segmented into grid operation, renewable energy management, distributed energy management, energy storage, and grid security/cybersecurity. In 2022, the grid operation segment is expected to account for the largest share of the overall smart energy management market and is expected to grow at the highest CAGR during the forecast period.  The growth of the segment is attributed to the supportive regulatory framework of governments worldwide to promote the deployment of smart grids and a strong focus on the modernization of aging grid infrastructure and an increasingly complex distribution environment.

Industrial Segment Dominated the Smart Energy Management Market

Based on end user, the market is segmented into utilities providers and consumers. The consumer segment is further sub-segmented into residential, commercial, and industrial. In 2022, the industrial segment is expected to account for the largest share of the overall smart energy management market. The growing investment in advanced technologies, increasing energy consumption across different industrial sectors, and rising inclination towards making manufacturing processes clean and efficient is driving the market growth.

Based on geography, the market is broadly segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa region. In 2022, North America is expected to account for the largest share of the global smart energy management market is expected to grow at the highest CAGR during the forecast period. Due to government regulations for cost savings and optimizing their energy consumption, homes, industries, and enterprises have been increasingly adopting energy management solutions. In addition, increasing government investment in smart energy infrastructures is expected to create growth opportunities for the smart energy management system. In 2021, The U.S. Department of Energy (DOE) announced $61 million for ten pilot projects that will deploy new technology to transform thousands of homes and workplaces into state-of-the-art, energy-efficient buildings.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the smart energy management market over the last three years. The key players profiled in the global smart energy management market are Asea Brown Boveri (ABB) Ltd. (Switzerland), General Electric Company (U.S.), Honeywell International, Inc. (U.S.), Schneider Electric SE (France), Emerson Electric Co. (U.S.), Johnson Controls International Plc (Ireland), Cisco Systems, Inc. (U.S.), Siemens AG (Germany), Driivz Ltd. (Israel), Telit (U.K.), Tata Consultancy Services (TCS) (India), Robert Bosch GmbH (Germany), Panasonic Corporation (Japan), LG Electronics Inc. (South Korea), NEC Corporation (Japan), SAGE Automation (Australia), Vivint, Inc. (U.S.), Alarm.com (U.S.), Ecobee (Canada), EnergyHub, Inc. (U.S.), Comcast Cable (U.S.) and EcoFactor, Inc. (U.S.).

Scope of the Report:

Smart Energy Management Market, by Energy Source                              

• Renewable
  • Solar
  • Wind
  • Others
• Non-Renewable/Conventional

Smart Energy Management Market, by Offering                         

• Solution
  • Smart Meters
  • Data and Device Management
  • PV Monitoring
  • Smart Grid
  • Power Electronics Devices
  • Smart Energy Storage
  • Communication Network Devices
  • Other Solutions (Automatic Transfer Switch)
• Software
• Consulting & Services

Smart Energy Management Market,  by Function

• Grid Operation
  • Meter Data Management
  • Grid Control, Management, & Monitoring
  • Distribution Automation
  • Microgrid Management
  • Others (Smart Communication & Wide Area Monitoring)
• Renewable Energy Management
• Distributed Energy Management
• Energy Storage
• Grid Security / Cybersecurity

Smart Energy Management Market, by End User

• Energy Utilities Providers
• Consumers
  • Residential
  • Commercial
  • Industrial
    • Manufacturing
    • Construction
    • Telecom and IT
    • Government & Public Sector
    • Healthcare
    • Other Industrial End-Users

Smart Energy Management Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Australia & New Zealand
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• The Middle East and Africa
  • UAE
  • Israel
  • Rest of MEA

Key questions answered in the report: