Smart Grid Market size in China to grow by USD 13,966.33 million from 2022 to 2027|Transition to smart grids drives the market - Technavio

NEW YORK, Aug. 2, 2023 /PRNewswire/ -- The smart grid market in China is estimated to grow by USD 13,966.33 million from 2022 to 2027, growing at a CAGR of 14.34%. For Comprehensive details on the market size of the historic period (2017 to 2021) and forecast period (2023-2027) - View the Sample report

Key Developments:

• 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. 

Market Dynamics

Major Drivers & Challenges

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.

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.

Key Trends

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

Vendor Landscape

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

Company Profiles

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.

Competitive Analysis

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.

Market Segmentation

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%. This report extensively covers market segmentation by application (EMS, DMS, OMS, and data analytics), end-user (residential, commercial, and industrial), and geography (Europe, APAC, North America, South America, and Middle East and Africa). The growing demand for energy and cost-efficiency is notably driving the smart grid IT systems market growth. 

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Table of contents

1 Executive Summary

• 1.1 Market overview 
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Country Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market Segmentation by Application
• Exhibit 05: Executive Summary – Chart on Market Segmentation by End-user
• Exhibit 06: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem 
• Exhibit 07: Parent market
• Exhibit 08: Market Characteristics

3 Market Sizing

• 3.1 Market definition 
• Exhibit 09: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 10: Market segments

• 3.3 Market size 2022 

• 3.4 Market outlook: Forecast for 2022-2027
• Exhibit 11: Chart on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 12: Data Table on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 13: Chart on China: Year-over-year growth 2022-2027 (%)
• Exhibit 14: Data Table on China: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Smart grid market in China 2017 - 2021
• Exhibit 15: Historic Market Size – Data Table on smart grid market in China 2017 - 2021 ($ million)

• 4.2 Application Segment Analysis 2017 - 2021
• Exhibit 16: Historic Market Size – Application Segment 2017 - 2021 ($ million)

• 4.3 End-user Segment Analysis 2017 - 2021
• Exhibit 17: Historic Market Size – End-user Segment 2017 - 2021 ($ million)

5 Five Forces Analysis

• 5.1 Five forces summary 
• Exhibit 18: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 21: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 22: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry 
• Exhibit 23: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition 
• Exhibit 24: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Application

• 6.1 Market segments 
• Exhibit 25: Chart on Application - Market share 2022-2027 (%)
• Exhibit 26: Data Table on Application - Market share 2022-2027 (%)

• 6.2 Comparison by Application 
• Exhibit 27: Chart on Comparison by Application
• Exhibit 28: Data Table on Comparison by Application

• 6.3 Smart T and D equipment - Market size and forecast 2022-2027 
• Exhibit 29: Chart on Smart T and D equipment - Market size and forecast 2022-2027 ($ million)
• Exhibit 30: Data Table on Smart T and D equipment - Market size and forecast 2022-2027 ($ million)
• Exhibit 31: Chart on Smart T and D equipment - Year-over-year growth 2022-2027 (%)
• Exhibit 32: Data Table on Smart T and D equipment - Year-over-year growth 2022-2027 (%)

• 6.4 Communication and wireless infrastructure - Market size and forecast 2022-2027 
• Exhibit 33: Chart on Communication and wireless infrastructure - Market size and forecast 2022-2027 ($ million)
• Exhibit 34: Data Table on Communication and wireless infrastructure - Market size and forecast 2022-2027 ($ million)
• Exhibit 35: Chart on Communication and wireless infrastructure - Year-over-year growth 2022-2027 (%)
• Exhibit 36: Data Table on Communication and wireless infrastructure - Year-over-year growth 2022-2027 (%)

• 6.5 Software and hardware - Market size and forecast 2022-2027 
• Exhibit 37: Chart on Software and hardware - Market size and forecast 2022-2027 ($ million)
• Exhibit 38: Data Table on Software and hardware - Market size and forecast 2022-2027 ($ million)
• Exhibit 39: Chart on Software and hardware - Year-over-year growth 2022-2027 (%)
• Exhibit 40: Data Table on Software and hardware - Year-over-year growth 2022-2027 (%)

• 6.6 Sensors - Market size and forecast 2022-2027
• Exhibit 41: Chart on Sensors - Market size and forecast 2022-2027 ($ million)
• Exhibit 42: Data Table on Sensors - Market size and forecast 2022-2027 ($ million)
• Exhibit 43: Chart on Sensors - Year-over-year growth 2022-2027 (%)
• Exhibit 44: Data Table on Sensors - Year-over-year growth 2022-2027 (%)

• 6.7 Others - Market size and forecast 2022-2027
• Exhibit 45: Chart on Others - Market size and forecast 2022-2027 ($ million)
• Exhibit 46: Data Table on Others - Market size and forecast 2022-2027 ($ million)
• Exhibit 47: Chart on Others - Year-over-year growth 2022-2027 (%)
• Exhibit 48: Data Table on Others - Year-over-year growth 2022-2027 (%)

• 6.8 Market opportunity by Application 
• Exhibit 49: Market opportunity by Application ($ million)
• Exhibit 50: Data Table on Market opportunity by Application ($ million)

7 Market Segmentation by End-user

• 7.1 Market segments 
• Exhibit 51: Chart on End-user - Market share 2022-2027 (%)
• Exhibit 52: Data Table on End-user - Market share 2022-2027 (%)

• 7.2 Comparison by End-user 
• Exhibit 53: Chart on Comparison by End-user
• Exhibit 54: Data Table on Comparison by End-user

• 7.3 Utility - Market size and forecast 2022-2027
• Exhibit 55: Chart on Utility - Market size and forecast 2022-2027 ($ million)
• Exhibit 56: Data Table on Utility - Market size and forecast 2022-2027 ($ million)
• Exhibit 57: Chart on Utility - Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on Utility - Year-over-year growth 2022-2027 (%)

• 7.4 Industrial - Market size and forecast 2022-2027
• Exhibit 59: Chart on Industrial - Market size and forecast 2022-2027 ($ million)
• Exhibit 60: Data Table on Industrial - Market size and forecast 2022-2027 ($ million)
• Exhibit 61: Chart on Industrial - Year-over-year growth 2022-2027 (%)
• Exhibit 62: Data Table on Industrial - Year-over-year growth 2022-2027 (%)

• 7.5 Commercial - Market size and forecast 2022-2027
• Exhibit 63: Chart on Commercial - Market size and forecast 2022-2027 ($ million)
• Exhibit 64: Data Table on Commercial - Market size and forecast 2022-2027 ($ million)
• Exhibit 65: Chart on Commercial - Year-over-year growth 2022-2027 (%)
• Exhibit 66: Data Table on Commercial - Year-over-year growth 2022-2027 (%)

• 7.6 Residential - Market size and forecast 2022-2027
• Exhibit 67: Chart on Residential - Market size and forecast 2022-2027 ($ million)
• Exhibit 68: Data Table on Residential - Market size and forecast 2022-2027 ($ million)
• Exhibit 69: Chart on Residential - Year-over-year growth 2022-2027 (%)
• Exhibit 70: Data Table on Residential - Year-over-year growth 2022-2027 (%)

• 7.7 Market opportunity by End-user 
• Exhibit 71: Market opportunity by End-user ($ million)
• Exhibit 72: Data Table on Market opportunity by End-user ($ million)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 73: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Drivers, Challenges, and Trends

• 9.1 Market drivers 

• 9.2 Market challenges 

• 9.3 Impact of drivers and challenges 
• Exhibit 74: Impact of drivers and challenges in 2022 and 2027

• 9.4 Market trends 

10 Vendor Landscape

• 10.1 Overview 

• 10.2 Vendor landscape 
• Exhibit 75: Overview on Criticality of inputs and Factors of differentiation

• 10.3 Landscape disruption 
• Exhibit 76: Overview on factors of disruption

• 10.4 Industry risks 
• Exhibit 77: Impact of key risks on business

11 Vendor Analysis

• 11.1 Vendors covered 
• Exhibit 78: Vendors covered

• 11.2 Market positioning of vendors 
• Exhibit 79: Matrix on vendor position and classification

• 11.3 ABB Ltd. 
• Exhibit 80: ABB Ltd. - Overview
• Exhibit 81: ABB Ltd. - Business segments
• Exhibit 82: ABB Ltd. - Key news
• Exhibit 83: ABB Ltd. - Key offerings
• Exhibit 84: ABB Ltd. - Segment focus

• 11.4 Cisco Systems Inc. 
• Exhibit 85: Cisco Systems Inc. - Overview
• Exhibit 86: Cisco Systems Inc. - Business segments
• Exhibit 87: Cisco Systems Inc. - Key news
• Exhibit 88: Cisco Systems Inc. - Key offerings
• Exhibit 89: Cisco Systems Inc. - Segment focus

• 11.5 General Electric Co. 
• Exhibit 90: General Electric Co. - Overview
• Exhibit 91: General Electric Co. - Business segments
• Exhibit 92: General Electric Co. - Key news
• Exhibit 93: General Electric Co. - Key offerings
• Exhibit 94: General Electric Co. - Segment focus

• 11.6 Huawei Technologies Co. Ltd. 
• Exhibit 95: Huawei Technologies Co. Ltd. - Overview
• Exhibit 96: Huawei Technologies Co. Ltd. - Business segments
• Exhibit 97: Huawei Technologies Co. Ltd. - Key news
• Exhibit 98: Huawei Technologies Co. Ltd. - Key offerings
• Exhibit 99: Huawei Technologies Co. Ltd. - Segment focus

• 11.7 International Business Machines Corp.
• Exhibit 100: International Business Machines Corp. - Overview
• Exhibit 101: International Business Machines Corp. - Business segments
• Exhibit 102: International Business Machines Corp. - Key news
• Exhibit 103: International Business Machines Corp. - Key offerings
• Exhibit 104: International Business Machines Corp. - Segment focus

• 11.8 KPMG International Ltd. 
• Exhibit 105: KPMG International Ltd. - Overview
• Exhibit 106: KPMG International Ltd. - Business segments
• Exhibit 107: KPMG International Ltd. - Key news
• Exhibit 108: KPMG International Ltd. - Key offerings
• Exhibit 109: KPMG International Ltd. - Segment focus

• 11.9 McKinsey and Co. 
• Exhibit 110: McKinsey and Co. - Overview
• Exhibit 111: McKinsey and Co. - Product / Service
• Exhibit 112: McKinsey and Co. - Key offerings

• 11.10 Shenzhen Clou Electronics Co. 
• Exhibit 113: Shenzhen Clou Electronics Co. - Overview
• Exhibit 114: Shenzhen Clou Electronics Co. - Product / Service
• Exhibit 115: Shenzhen Clou Electronics Co. - Key offerings

• 11.11 Siemens AG 
• Exhibit 116: Siemens AG - Overview
• Exhibit 117: Siemens AG - Business segments
• Exhibit 118: Siemens AG - Key news
• Exhibit 119: Siemens AG - Key offerings
• Exhibit 120: Siemens AG - Segment focus

• 11.12 Silicon Laboratories Inc. 
• Exhibit 121: Silicon Laboratories Inc. - Overview
• Exhibit 122: Silicon Laboratories Inc. - Product / Service
• Exhibit 123: Silicon Laboratories Inc. - Key news
• Exhibit 124: Silicon Laboratories Inc. - Key offerings

• 11.13 ZTE Corp. 
• Exhibit 125: ZTE Corp. - Overview
• Exhibit 126: ZTE Corp. - Business segments
• Exhibit 127: ZTE Corp. - Key news
• Exhibit 128: ZTE Corp. - Key offerings
• Exhibit 129: ZTE Corp. - Segment focus

12 Appendix

• 12.1 Scope of the report 

• 12.2 Inclusions and exclusions checklist
• Exhibit 130: Inclusions checklist
• Exhibit 131: Exclusions checklist

• 12.3 Currency conversion rates for US$ 
• Exhibit 132: Currency conversion rates for US$

• 12.4 Research methodology 
• Exhibit 133: Research methodology
• Exhibit 134: Validation techniques employed for market sizing
• Exhibit 135: Information sources

• 12.5 List of abbreviations 
• Exhibit 136: List of abbreviations

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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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