COVID-19 Impact on Smart Grid Market by Component (Hardware, Software and Services) and Region - Global Forecast to 2021
[57 Pages Report] Post COVID-19, the global smart grid market size is estimated to be USD 26.9 billion in 2020 and projected to reach USD 28.8 billion by 2021 at a CAGR of 7.1% from 2020 to 2021. The major factors driving the growth of the smart grid industry include equipment monitoring, data analysis, and preventive maintenance.
“Hardware segment is expected to witness the highest setback during the forecast period, owing to the shutdown due to COVID-19 within the global smart grid market.”
Hardware is the core component of a smart grid infrastructure as it increases the flexibility of the electrical power grid. It includes various power products such as smart meters, controllers, routers, switches, wireless access points, bridges, gateways, hubs, repeaters, load tap changers, protective relays, and sensors. These hardware devices capture numerous data from both consumers and energy utilities to derive useful information and insights. The growth of the hardware segment until recently was driven by the transformation in the electric power sector, which focused on replacing aging assets with smart grid systems as this would enable power utilities to monitor and control the supply chain efficiently.
However, the scenario is not the same after the outbreak of COVID-19. Manufacturers of smart grid hardware components are facing several issues related to order closures on time due to global lockdown. Also, there are delays in receiving raw materials from suppliers, primarily located in China and other Southeast Asian countries. These issues are taking a toll on manufacturers situated around the globe.
Key Market Players
Some of the major players in the smart grid market are GE (US), ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Itron (US), Landis+Gyr (Switzerland), Aclara (US), Cisco (US), OSI (US), IBM (US), Wipro (India), Oracle (US), Honeywell (US), S&C Electric Company (US), Eaton (Ireland), Kamstrup (Denmark), and Trilliant Holdings (US), among others.
GE is a globally diversified technology and financial services company. It operates through five business segments, namely, power, renewable energy, aviation, healthcare, and financial services segment, Capital. The company offers grid solutions equipment and services through its renewable energy business segment, which accounted for 17.6% of the total net sales in 2019. The company provides smart grid technologies and operations management systems for water, gas, electric utilities, and renewable energy. The company is the largest and most profitable smart grid infrastructure company in the world. GE offers all types of products and services for the energy, utility, and power industries. In the field of smart grids, GE provides solutions that are reliable and optimize the end-to-end grid operational efficiency. Its “Real Smart Solutions” re-energize the need to improve grid performance. The technology anticipates and prevents errors to minimize outages by analyzing the operations and damages in the past.
Further, due to the impact of COVID-19, GE, for the first quarter of 2020, anticipates a negative impact on GE Industrial free cash flow of approximately USD 300–500 million, as well as a negative impact on operating profit of approximately USD 200–300 million.
Report Scope
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Report Metric |
Details |
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Market size available for years |
2019–2021 |
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Base year considered |
2019 |
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Forecast period |
2020–2021 |
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Forecast units (for the market in terms of value) |
USD million |
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Segments covered |
Component, and Region |
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Regions covered |
North America, South America, Europe, Asia Pacific, and Middle East & Africa |
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Companies covered |
GE (US), ABB (Switzerland), Siemens (Germany), Schneider Electric (France), Itron (US), Landis+Gyr (Switzerland), Aclara (US), Cisco (US), OSI (US), IBM (US), Wipro (India), Oracle (US), Honeywell (US), S&C Electric Company (US), Eaton (Ireland), Kamstrup (Denmark), and Trilliant Holdings (US) |
Smart Grid Market Segmentation
By Component
- Hardware
- Software
- Services
By Region
- North America
- South America
- Europe
- Asia Pacific
- Middle East & Africa
Key Questions Addressed by the Report:
- What is the impact of COVID-19 on the smart grid market and its segments?
- How much growth is expected from hardware, software, and services in the market?
- What is the impact of COVID-19 on the smart grid market across North America, South America, Europe, Asia Pacific, and Middle East & Africa?
- Who are the major players in the smart grid market?
- What initiatives are market players undertaking to sustain through the pandemic?
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TABLE OF CONTENTS
1 INTRODUCTION (Page No. - 10)
1.1 COVID-19 HEALTH ASSESSMENT
1.2 COVID-19 ECONOMIC ASSESSMENT
1.2.1 COVID-19 IMPACT ON THE ECONOMY: SCENARIO ASSESSMENT
2 IMPACT OF COVID-19 ON THE SMART GRID ECOSYSTEM (Page No. - 16)
2.1 VALUE CHAIN OF THE SMART GRID INDUSTRY
2.2 IMPACT ON THE VALUE CHAIN
2.2.1 GENERATION
2.2.2 TRANSMISSION
2.2.3 DISTRIBUTION
2.2.4 EPC
2.2.5 MANUFACTURERS/OEMS
2.2.6 SERVICE PROVIDERS
2.3 MACROECONOMIC INDICATORS
2.3.1 DRIVERS
2.3.1.1 Modernization of aging grid infrastructure
2.3.1.2 Improved grid reliability and efficient outage response
2.3.2 RESTRAINTS
2.3.2.1 High initial cost for the deployment of smart grid technology solutions
2.3.2.2 Lack of standards and interoperability
3 CUSTOMER ANALYSIS (Page No. - 21)
3.1 SHIFT IN TRANSMISSION & DISTRIBUTION
3.1.1 DISRUPTION IN THE INDUSTRY
3.1.2 IMPACT IN CUSTOMERS’ OUTPUT & STRATEGIES TO RESUME/IMPROVE PRODUCTION
3.1.3 IMPACT ON SUPPLY CHAIN
3.1.4 NEW MARKET OPPORTUNITIES AND KEY INITIATIVES TO REDUCE THE IMPACT
3.2 SHIFT IN GENERATION
3.2.1 DISRUPTION IN THE INDUSTRY
3.2.2 IMPACT IN CUSTOMERS’ OUTPUT AND STRATEGIES TO RESUME/IMPROVE PRODUCTION
3.2.3 IMPACT ON SUPPLY CHAIN
3.2.4 NEW MARKET OPPORTUNITIES AND KEY INITIATIVES TO REDUCE THE IMPACT
4 SHORT-TERM STRATEGIES OF SMART GRID COMPANIES DUE TO THE COVID-19 OUTBREAK (Page No. - 25)
4.1 IMPACT ON SOFTWARE COMPANIES’ PORTFOLIO
4.2 IMPACT ON HARDWARE COMPANIES’ PORTFOLIO
4.3 IMPACT ON SERVICES COMPANIES’ PORTFOLIO
4.4 WINNING STRATEGIES TO GAIN MARKET SHARE
4.4.1 SHORT-TERM STRATEGIES
4.4.2 MID-TERM STRATEGIES
4.4.3 LONG-TERM STRATEGIES
4.5 KEY COMPANIES AND THEIR BUSINESS PLANS
5 IMPACT OF COVID-19 ON THE SMART GRID MARKET (Page No. - 30)
5.1 SMART GRID MARKET, BY SOFTWARE
5.1.1 ADVANCED METER INFRASTRUCTURE
5.1.2 SMART GRID DISTRIBUTION MANAGEMENT
5.1.3 SMART GRID NETWORK MANAGEMENT
5.1.4 GRID ASSET MANAGEMENT
5.1.5 SUBSTATION AUTOMATION
5.1.6 SMART GRID SECURITY
5.1.7 BILLING AND CUSTOMER INFORMATION SYSTEM
5.2 SMART GRID MARKET, BY HARDWARE
5.2.1 SMART METER
5.3 SMART GRID MARKET, BY SERVICE
5.3.1 CONSULTING
5.3.2 DEPLOYMENT AND INTEGRATION
5.3.3 SUPPORT AND MAINTENANCE
6 IMPACT OF COVID-19 ON THE SMART GRID MARKET, BY REGION (Page No. - 41)
6.1 INTRODUCTION
6.1.1 OPTIMISTIC SCENARIO
6.1.2 REALISTIC SCENARIO
6.1.3 PESSIMISTIC SCENARIO
6.2 NORTH AMERICA
6.2.1 BY COMPONENT
6.2.2 BY COUNTRY
6.3 EUROPE
6.3.1 BY COMPONENT
6.3.2 BY COUNTRY
6.4 ASIA PACIFIC
6.4.1 BY COMPONENT
6.4.2 BY COUNTRY
6.5 SOUTH AMERICA
6.5.1 BY COMPONENT
6.5.2 BY COUNTRY
6.6 MIDDLE EAST & AFRICA
6.6.1 BY COMPONENT
6.6.2 BY COUNTRY
7 APPENDIX (Page No. - 55)
7.1 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
7.2 AUTHOR DETAILS
LIST OF TABLES (32 TABLES)
TABLE 1 EXPECTED EFFECT OF COVID-19 ON ADVANCED METER INFRASTRUCTURE PROMINENT PLAYERS
TABLE 2 EXPECTED EFFECT OF COVID-19 ON SMART GRID DISTRIBUTION MANAGEMENT PROMINENT PLAYERS
TABLE 3 EXPECTED EFFECT OF COVID-19 ON SMART GRID NETWORK MANAGEMENT PROMINENT PLAYERS
TABLE 4 EXPECTED EFFECT OF COVID-19 ON GRID ASSET MANAGEMENTPROMINENT PLAYERS
TABLE 5 EXPECTED EFFECT OF COVID-19 ON SUBSTATION AUTOMATION PROMINENT PLAYERS
TABLE 6 EXPECTED EFFECT OF COVID-19 ON SMART GRID SECURITY PROMINENT PLAYERS
TABLE 7 EXPECTED EFFECT OF COVID-19 ON BILLING AND CUSTOMER INFORMATION SYSTEM PROMINENT PLAYERS
TABLE 8 SOFTWARE: SMART GRID MARKET SIZE, BY REGION, 2019–2021 (USD MILLION)
TABLE 9 EXPECTED EFFECT OF COVID-19 ON PROMINENT PLAYERS, BY HARDWARE
TABLE 10 HARDWARE: SMART GRID MARKET SIZE, BY REGION, 2019–2021 (USD MILLION)
TABLE 11 EXPECTED EFFECT OF COVID-19 ON CONSULTING PROMINENT PLAYERS
TABLE 12 EXPECTED EFFECT OF COVID-19 ON DEPLOYMENT AND INTEGRATION PROMINENT PLAYERS
TABLE 13 EXPECTED EFFECT OF COVID-19 ON SUPPORT AND MAINTENANCE PROMINENT PLAYERS
TABLE 14 SERVICES: SMART GRID MARKET SIZE, BY REGION, 2019–2021 (USD MILLION)
TABLE 15 OPTIMISTIC SCENARIO: SMART GRID MARKET SIZE, BY REGION, 2019–2021 (USD MILLION)
TABLE 16 REALISTIC SCENARIO: SMART GRID MARKET SIZE, BY REGION, 2019–2021 (USD MILLION)
TABLE 17 PESSIMISTIC SCENARIO: SMART GRID MARKET SIZE, BY REGION, 2019–2021 (USD MILLION)
TABLE 18 NORTH AMERICA: COVID-19 IMPACT ON KEY SECTORS AND GDP DEVIATIONS
TABLE 19 NORTH AMERICA: SMART GRID MARKET SIZE, BY COMPONENT, 2019–2021 (USD MILLION)
TABLE 20 NORTH AMERICA: SMART GRID MARKET SIZE, BY COUNTRY, 2019–2021 (USD MILLION)
TABLE 21 EUROPE: COVID-19 IMPACT ON KEY SECTORS AND GDP DEVIATIONS
TABLE 22 EUROPE: SMART GRID MARKET SIZE, BY COMPONENT, 2019–2021 (USD MILLION)
TABLE 23 EUROPE: SMART GRID MARKET SIZE, BY COUNTRY, 2019–2021 (USD MILLION)
TABLE 24 ASIA PACIFIC: COVID-19 IMPACT ON KEY SECTORS AND GDP DEVIATIONS
TABLE 25 ASIA PACIFIC: SMART GRID MARKET SIZE, BY COMPONENT, 2019–2021 (USD MILLION)
TABLE 26 ASIA PACIFIC: SMART GRID MARKET SIZE, BY COUNTRY, 2019–2021 (USD MILLION)
TABLE 27 SOUTH AMERICA: COVID-19 IMPACT ON KEY SECTORS AND GDP DEVIATIONS
TABLE 28 SOUTH AMERICA: SMART GRID MARKET SIZE, BY COMPONENT, 2019–2021 (USD MILLION)
TABLE 29 SOUTH AMERICA: SMART GRID MARKET SIZE, BY COUNTRY, 2019–2021 (USD MILLION)
TABLE 30 MIDDLE EAST & AFRICA: COVID-19 IMPACT ON KEY SECTORS AND GDP DEVIATIONS
TABLE 31 MIDDLE EAST & AFRICA: SMART GRID MARKET SIZE, BY COMPONENT, 2019–2021 (USD MILLION)
TABLE 32 MIDDLE EAST & AFRICA: SMART GRID MARKET SIZE, BY COUNTRY, 2019–2021 (USD MILLION)
LIST OF FIGURES (13 FIGURES)
FIGURE 1 COVID-19: THE GLOBAL PROPAGATION
FIGURE 2 COVID-19 PROPAGATION: SELECTED COUNTRIES
FIGURE 3 COUNTRIES BEGIN WITH SIMILAR TRAJECTORIES, BUT CURVES DEVIATE BASED ON MEASURES TAKEN
FIGURE 4 REVISED GDP FORECASTS FOR SELECT G20 COUNTRIES IN 2020
FIGURE 5 CRITERIA IMPACTING THE GLOBAL ECONOMY
FIGURE 6 SCENARIOS IN TERMS OF RECOVERY OF THE GLOBAL ECONOMY
FIGURE 7 SMART GRID VALUE CHAIN
FIGURE 8 IMPACT OF COVID-19 ON THE UK POWER SECTOR
FIGURE 9 REGIONAL IMPACT OF COVID-19 ON SOFTWARE COMPANIES
FIGURE 10 REGIONAL IMPACT OF COVID-19 ON HARDWARE COMPANIES
FIGURE 11 REGIONAL IMPACT OF COVID-19 ON SERVICES COMPANIES
FIGURE 12 PROJECTED MARKET SHARE, SMART GRID MARKET, BY SOFTWARE, 2023: BEFORE COVID-19
FIGURE 13 PROJECTED MARKET SHARE, SMART GRID MARKET, BY SERVICE, 2023: BEFORE COVID-19
The study involved both secondary and primary research processes in estimating the current size of the global smart grid market. Exhaustive secondary research was done to collect information on the market, the peer markets, the parent market, and the impact of COVID-19. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and sub-segments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information important for this study. Secondary sources include corporate filings (such as annual reports, press releases, investor presentations, and financial statements); trade, business, and professional associations; white papers, certified publications, and articles from recognized authors; directories; and databases. Secondary data has been collected and analyzed to arrive at the overall market size, which has further been validated through primary research. The secondary data has been gathered and analyzed to arrive at the global smart grid market size, which has further been validated by primary research.
Primary Research
In the primary research process, various primary sources from the supply and demand sides have been interviewed to obtain the qualitative and quantitative information relevant to this report. Primary sources from the supply side include key industry participants, subject matter experts (SMEs), C-level executives of key companies, and consultants from various key companies and organizations operating in the smart grid market.
Primary research has also been conducted to identify segmentation types and key players, as well as to analyze the competitive landscape and key market dynamics (drivers and restraints). During market engineering, both top-down and bottom-up approaches have been extensively used, along with several data triangulation methods, to estimate and forecast the market, including the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analyses have been performed during the complete market engineering process to list the key information/insights throughout the report. Primary data has been collected through questionnaires, e-mails, and telephonic interviews.
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Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches, along with several data triangulation methods, have been used to estimate and validate the size of the overall smart grid market and other dependent submarkets listed in this report. Extensive qualitative and quantitative analyses have been performed during market engineering to list key information/insights.
Major players in the smart grid market have been identified through secondary research, and their market ranking has been determined through primary and secondary research. This involved studying the annual and financial reports of top market players and interviews with industry experts (such as CEOs, vice presidents, directors, and marketing executives) for key insights—both quantitative and qualitative.
All percentage shares, splits, breakdowns, and COVID-19 impact estimation have been determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in the smart grid market report.
Data Triangulation
After arriving at the overall market size through the process explained above, the total smart grid market has been split into several segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments, the market breakdown and data triangulation procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Study Objectives
- To define, describe, forecast, and analyze the smart grid market by component (hardware, software, and services), and region
- To assess the impact of COVID-19 on each of the above segments and regions
- To provide detailed information regarding the major factors influencing the growth of the smart grid market (drivers, and restraints)
- To analyze the shift in the generation, transmission, and distribution due to COVID-19
- To examine the short term strategies of smart grid companies due to impact of COVID-19 on software, hardware, and services
- To forecast the revenue of the smart grid market segments with respect to five main regions (along with countries), namely, North America, South America, Europe, Asia Pacific, and Middle East & Africa
Growth opportunities and latent adjacency in COVID-19 Impact on Smart Grid Market