Smart Grid Sensors Market Growth Opportunities and Forecast by 2031

The smart grid sensors market size is projected to reach US$ 2489.3 million by 2031 from US$ 631.3 million in 2023. The market is expected to register a CAGR of 18.7% in 2023–2031. Advancements in the energy and power sector and government investment in smart grid technologies are likely to remain key smart grid sensors market trends.

Smart Grid Sensors Market Analysis

The smart grid sensors market has gained traction due to the growing smart cities projects which leads to installation of smart grids. Additionally, the rise in replacement of traditional grids with smart grids fuels the demand for smart grid sensors. There is a need for efficient energy generation, distribution, and transmission of electricity across the world, which leads to the adoption of smarter solutions. This will lead to the adoption of smart grid technology, which creates the opportunity for smart grid sensors market growth.

Smart Grid Sensors Market Overview

Smart grids are electrical power grids that use information, advanced networking, and real-time monitoring and control technologies to reduce costs, conserve energy, and improve security, interoperability, and reliability. The sensors used in these smart grids provide grid data and status in real-time, allowing for real-time monitoring, protection, and control. These sensors are used to measure a broad range of parameters, which include temperature, voltage, current, and power consumption. These sensors use advanced analytics and machine learning (ML) algorithms to detect the patterns and anomalies in the data, which can help utility companies identify and prevent issues such as equipment failures and power outages.

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Smart Grid Sensors Market: Strategic Insights

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Smart Grid Sensors Market Drivers and Opportunities

Rise in energy demand to Favor Market

Urbanization, rising living standards, disposable income, and the adoption of advanced technologies are fueling the energy demand. Power grids are becoming more complex as demand for electricity from residential and business sectors increases globally. As power grids become more complex, sustainable, reliable, efficient, and secure power distribution and production become increasingly important. With rising electricity consumption and demand, production and distribution are becoming increasingly difficult. As power grids become smarter and more widely used, there is a growing demand for smart grid sensors.

Increasing investments in the smart grid technology– An Opportunity in the Smart Grid Sensors Market

The global initiative to use smart grid technology is increasing to address environmental concerns such as CO2 emission. According to the IEA in September 2022, the investment in smart grids should double by 2030 for the Net Zero Emissions by 2050 Scenario, mainly in emerging markets and developing economies. Thus, the growth in the installations of smart grid technologies develops the demand for smart grid sensors for their efficient working environment.

Smart Grid Sensors Market Report Segmentation Analysis

Key segments that contributed to the derivation of smart grid sensors market analysis are sensor type, voltage range, and application.

• Based on sensor type, the market is segmented into voltage and current sensor, temperature sensor, and others. The voltage and current sensor segment held a larger market share in 2023.
• By voltage range, the market is segmented into low to medium voltage and high voltage. The low to medium voltage segment held the largest share of the market in 2023.
• By application, the market is segmented into substation automation, advanced metering infrastructure, smart grid distribution network, and others. The substation automation segment held the largest share of the market in 2023.

Smart Grid Sensors Market Share Analysis by Geography

The geographic scope of the smart grid sensors market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

In terms of revenue, North America accounted for the largest smart grid sensors market share in 2023. The region is technologically advanced compared to the other regions which is one of the prominent factors that fuels the smart grid sensors market share of North America.

As American homes and companies incorporate a growing number of electronic gadgets and technical capabilities, the need for utilities to learn about changing electricity demand in real time is increasing. In this case, integrating smart grids can assist in giving all grid customers more dependable electricity. To cater to this, the governments of various countries in North America are making various investments in smart grids. For instance, in September 2022, the US Department of Energy (DoE) was working on seeking input on a US$ 10.5 billion program for smart grids and other upgrades to strengthen the electricity grid of the country. This funding is allocated in three parts, under which US$ 2.5 billion will be used for grid resilience, US$ 3 billion for smart grids, and US$ 5 billion for grid innovation. Thus, the rising investment in the smart grid infrastructure leads to the growth of the North America smart grid sensors market.

Smart Grid Sensors Market Regional Insights

The regional trends and factors influencing the Smart Grid Sensors Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Smart Grid Sensors Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Smart Grid Sensors Market Report Scope

Smart Grid Sensors Market Players Density: Understanding Its Impact on Business Dynamics

The Smart Grid Sensors Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Smart Grid Sensors Market are:

1. ABB Ltd
2. LEM
3. Eaton Corporation plc
4. ltron Inc.
5. Kamstrup
6. LANDIS+GYR

Disclaimer: The companies listed above are not ranked in any particular order.

Smart Grid Sensors Market News and Recent Developments

The Smart Grid Sensors Market

• In February 2021, TE Connectivity enabled smart grid applications with Raychem RSTI-VS separable connector with voltage sensor, compatible with Kries’ grid monitoring device IKI-50. TE Connectivity, a world leader in connectivity and sensors, launched its Raychem smart RSTI-VS separable connector with voltage sensor. It can be used for grid monitoring and advanced earth fault and short circuit detection in IEC markets. (Source: TE Connectivity, Inc, Press Release, 2021)
• In March 2023, NIST researchers Eugene Song and Kang Lee participated in the IEEE P2681 working group, which led to the development of a technical report, PES-TR102, MV Smart Grid Sensor and Sensor Systems: Measurement Accuracy and Uncertainty Considerations. The report was sponsored by the IEEE PES PSIM Sensors Task Force (TF) and posted in January 2023. The report supports the development of the proposed IEEE P2681 standard “Guide for Testing Medium Voltage (MV) Smart Grid Sensors and Intelligent Electronic Device (IED) Systems.” (Source: National Institute of Standard and Technology (NIST), Press Release, 2023)

Smart Grid Sensors Market Report Coverage and Deliverables

The “Smart Grid Sensors Market Size and Forecast (2023–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles