Smart Grid Transmission Infrastructure Market Report: Trends, Forecast and Competitive Analysis to 2031

The future of the global smart grid transmission infrastructure market looks promising with opportunities in the overhead power transmission and underground power transmission markets. The global smart grid transmission infrastructure market is expected to grow with a CAGR of 10.1% from 2025 to 2031. The major drivers for this market are the increasing adoption of advanced sensors and the rising pressure to reduce carbon emissions.

• Lucintel forecasts that, within the type category, transformers including power & distribution transformers are expected to witness higher growth over the forecast period due to rising demand for grid stability and energy efficiency across transmission networks.
• Within the application category, overhead power transmission is expected to witness higher growth due to growing demand for the integration of renewable energy over wide geographic areas.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.

Emerging Trends in the Smart Grid Transmission Infrastructure Market

Other emerging trends such as the emergence of smart grid technologies and regulatory and market-based changes impact the overall structure of transmission and distribution in electric grids worldwide, affecting infrastructure worldwide.

• Integration of Renewable Energy Sources: Among such emerging trends and market trends lies integration with renewable energy sources and grid infrastructures that add wind, solar power, and hydropower as viable and promising areas in these electricity grid networks globally. Smart grids are very important in managing this integration because they provide the flexibility needed to balance the intermittent nature of renewable energy generation with the demand for reliable power. These grids help facilitate the efficient transmission of energy from remote renewable sources to urban areas while ensuring grid stability. The push for greater adoption of renewable energy by countries means that smart grids are increasingly essential for modernizing infrastructure and attaining energy sustainability.
• Improvements in Energy Storage Solutions: Energy storage is another key trend in the smart grid transmission infrastructure market. The development of lithium-ion and solid-state batteries and other technologies will allow for efficient storage and distribution of energy. Smart grids allow management of energy storage systems to be able to store energy and deploy it when there is a high demand or in periods of minimal renewable energy supply. With continued cost reductions and scalability, this will increase integration with smart grids, which increases the resilience of the grid as well as makes the transition toward a cleaner and more sustainable energy system.
• Increased Use of Artificial Intelligence and Machine Learning: The use of artificial intelligence and machine learning in grid management is growing rapidly. These technologies help utilities optimize the performance of their grids, predict energy demand, and detect faults or inefficiencies in the transmission network. AI and ML algorithms can analyze large volumes of real-time data from smart meters and sensors, providing actionable insights for grid operators. AI and ML predict energy usage patterns and automate decision-making processes, making smart grids more efficient, reliable, and secure. This has been driving advancements in transmission infrastructure and enhancing grid responsiveness.
• Decentralized Energy Generation and Microgrids: There is a growing trend toward decentralized energy generation and the development of microgrids. Microgrids are localized energy systems that can operate independently or in coordination with the main grid, allowing for greater flexibility and resilience. These systems often rely on renewable energy sources, such as solar panels or wind turbines, and are particularly useful in remote areas or regions vulnerable to natural disasters. Microgrids integrated with smart grids increase grid stability and support more efficient distribution of energy for the purpose of meeting local demand while minimizing the loss in the transmission line as well as the carbon footprint.
• Cybersecurity Improvements in Smart Grid: As smart grids become increasingly networked and are heavily reliant on digital technologies, cybersecurity becomes very important. Smart grids involve communication in real-time between energy producers, grid operators, and consumers. They thus become vulnerable to cyberattacks which may disrupt operations of the grid or compromise sensitive data. Hence, the system requires enhanced security measures, for example, encryption, multi-factor authentication, and threat detection systems, to preserve the integrity of the grid. As the numbers of connected devices and digital systems increase, securing smart grid infrastructure will become one of the vital trends in developing transmission networks.

These emerging trends are reshaping the smart grid transmission infrastructure market by driving innovation, improving efficiency, and facilitating the integration of renewable energy sources. The greater use of energy storage, artificial intelligence, machine learning, decentralized generation, and enhanced cybersecurity will transform how energy is transmitted and managed. As these trends evolve, they will help to make more resilient, efficient, and sustainable grid systems that support the global transition toward cleaner energy.

Recent Developments in the Smart Grid Transmission Infrastructure Market

Recent innovations in the smart grid transmission infrastructure market represent the convergence of technical innovations, government support, and market demand. These innovations set the stage for a more interconnected, efficient, and sustainable energy grid.

• Development of Large-scale Smart Grid Projects: The United States is hosting many large-scale smart grid projects, which include the proliferation of smart meters, advanced sensors, and communication networks. Many efforts by the federal government through the Smart Grid Investment Grant Program have encouraged utilities to begin investing in the modernization of the grids. Improvements in the reliability of the grid are also possible as it further allows for renewable integration and better management of energy distribution across the nation. The growth of electric vehicles and DERs is creating a further thrust for smarter and more flexible grid systems.
• Nationwide Smart Grid Deployment: China is actively expanding its smart grid infrastructure in order to rapidly grow renewable energy and to cope with its fast urbanization process. The country made enormous investments into smart grid technology: ultra-high voltage transmission lines, smart meters, and several others. In China, UHV transmission and smart metering were developed primarily for energy-efficient loss reduction to achieve integration from renewable sources sourced in remote regions. China continues to be ahead in the list of countries who drive innovation due to their ambition towards a low-carbon and green energy future.
• The expansion and Advancement of a Smart Grid: Germany is a leader in the smart grid market. Its ambitious policy called Energiewende is set to transform its economy towards renewable energy. The country is using smart grids to integrate wind and solar power into its electricity system. Smart grids have made it possible to perform real-time energy management, reduce losses of transmission, and provide opportunities for demand response initiatives. Germany's investment in cross-border electricity connections with neighboring countries also plays a crucial role in optimizing energy sharing and enhancing grid stability across Europe.
• National Smart Grid Mission: India is in the process of modernizing its electricity grid under the National Smart Grid Mission, a key initiative aimed at improving grid reliability and efficiency. The country would use smart meters, improve its grid automation with solar and wind-based renewable power into the main grid, look for reducing enormous losses in a transnational area of the network, and push the improvement in access to more remote rural electrification. Through integration with new technologies of a smart grid system, the country's energy safety and support system to sustainable developments could be raised to the full.
• Smart Grid Innovation for Disaster Resilience: In an effort to make its energy supply more resilient and secure after natural disasters like the 2011 earthquake and tsunami, Japan is investing in a smarter, more resilient smart grid infrastructure. It is pushing the boundaries through investments in smart technologies, like real-time monitoring, smart meters, and advanced energy storage systems, to optimize energy delivery and ensure power availability. Japan is also concentrating on microgrids for enhancing energy independence and improving disaster recovery capabilities. These developments are helping Japan to shift towards a more sustainable and resilient energy system.

These key developments in the smart grid transmission infrastructure market are changing its face by allowing the integration of renewable energy sources, improving the reliability of grids, and further enabling efficient distribution of energy. As countries continue to make investments in smart grid technologies, these developments are going to shape the future energy systems as a sustainable, flexible, and resilient one that is capable of satisfying future demands.

Strategic Growth Opportunities in the Smart Grid Transmission Infrastructure Market

The smart grid transmission infrastructure market presents various strategic opportunities in the field of applications, and it mainly signifies the requirement for more efficient, reliable, and sustainable energy systems.

• Application areas: The increasing demand for electric vehicles calls for smart grids to integrate into EVs, and the scope is quite great. EVs require smart charging infrastructure that can interact with the grid to optimize energy consumption, reduce costs, and support grid stability. Smart grids can enable vehicle-to-grid (V2G) systems, where EVs can supply power back to the grid during peak demand periods. This integration will help balance supply and demand, improve grid resilience, and contribute to the decarbonization of the transportation sector.
• Renewable Energy Integration and Storage Solutions: The continued growth in renewable energy sources, including solar and wind, offers an avenue for smart grid infrastructure for managing variability in renewable generation. Energy storage solutions, such as batteries, are critical to smoothing out the supply of renewable energy. Smart grids will play key roles managing storage and dispatch of renewable energy for the transition to a cleaner energy mix. The increasing growth opportunity drives investments in grid modernization, especially in regions with sizeable renewable resources.
• Demand Response Programs and Grid Automation: Demand response is becoming one of the most popular applications for smart grids, and it allows consumers to reduce energy usage during real-time signals from the grid. Smart grid automation makes possible the implementation of these programs; utilities can now manage peak demand and optimize distribution. DR programs can help reduce on-peak demand and therefore reduce the need for additional generation capacity, helping lower electricity costs for consumers. As utilities increase these programs, the demand for smart grid technologies to enable real-time communication and automation will also be on the rise.
• Microgrids for Remote and Resilient Energy Systems: Microgrids are a type of localized energy system that can operate either in isolation or in combination with the utility grid. These are the systems that are really economical in remote areas where a natural disaster might occur. Microgrids have the propensity to integrate renewable energy sources, storage of energy, and demand-side management technologies that can provide a resilient and self-sustaining energy system. Microgrids thus require smart grids to manage the acquisition and ensure efficient performance. Future growth in the smart grid market is expected to primarily come from microgrids that are gaining prominence due to increasing energy resilience demands.
• Cross-Border Energy Sharing and International Grid Integration: The areas of cross-border electricity networks, international grid integration growth need smart grids. These enable nations to utilize excess renewable energy, optimize energy distribution, and improve grid stability. Real-time communication and coordination among the intercountry flow of smart grid technologies make it possible to manage energy flows between countries efficiently. This growth opportunity is particularly relevant in regions with high renewable energy potential, such as Europe and Asia, where cross-border energy sharing can help stabilize the grid and integrate more renewable energy.

These strategic growth opportunities illustrate the potential for smart grids to transform the energy landscape by being more efficient, resilient, and supportive of the transition to a low-carbon energy system. As these opportunities are realized, the smart grid transmission infrastructure market will continue to grow, drive innovation, and enable the development of more sustainable energy systems worldwide.

Smart Grid Transmission Infrastructure Market Driver and Challenges

The smart grid transmission infrastructure market is shaped by various drivers and challenges, which impact its growth and development. These factors include technological, economic, and regulatory influences that shape the direction of the market.

The factors responsible for driving the smart grid transmission infrastructure market include:

1. Technological Advancements in Grid Management: Technological advancements in grid management systems, such as real-time monitoring, automation, and energy storage solutions, are key drivers of the smart grid market. These technologies enable grid operators to improve efficiency, reduce transmission losses, and enhance grid reliability. As the demand for cleaner energy increases, these technologies are essential for integrating renewable energy sources and optimizing energy distribution.

2. Government Support and Policy Initiatives: Government policies and initiatives, such as incentives for renewable energy and grid modernization, are major drivers of the smart grid market. In many regions, governments are investing in smart grid infrastructure to reduce emissions, improve energy security, and enhance grid resilience. These initiatives encourage private sector investments and foster the development of innovative technologies that contribute to grid modernization.

3. Integration of Distributed Energy Resources: With increasing deployment of distributed energy resources (DERs) such as solar panels and wind turbines plus the use of battery storage, smart grid infrastructures are growing. Smart grids can integrate the use of these DERs along with efficient DER management, creating better grid stability and reliability at the same time, reducing transmission loss. Growth in the implementation of DER is anticipated to support future investments into smart grid technology.

4. The growth in Energy Demand and Inefficiency: The increasing demand for energy, driven by population growth and urbanization, is pushing the need for more efficient and resilient energy infrastructure. Smart grids can help optimize energy distribution, reduce transmission losses, and improve grid efficiency, making them essential for meeting future energy demands. The push for energy efficiency is a key driver of smart grid adoption across the globe.

5. Climate Change and Environmental Goals: Climate change concerns and the reduction in greenhouse gas emissions create the need for cleaner energy systems. A smart grid would promote renewable energy and ensure a better energy efficiency level while reducing carbon emissions from the electricity generation sector. These factors make the development of smart grids an integral part of climate-targeted strategies with countries.

Challenges in the smart grid transmission infrastructure market are:

1. High capital costs and investment at the initial stages: One of the biggest challenges that the smart grid market faces is the high upfront investment required to build and implement smart grid technologies. The cost of upgrading existing infrastructure, installing smart meters, and integrating renewable energy sources can be quite significant. Even though there are long-term benefits, the upfront costs can be a barrier for some utilities, especially in developing regions.

2. Cybersecurity Risks: As smart grids become more integrated and rely on digital technologies, they become increasingly vulnerable to cybersecurity threats. Protecting sensitive data and ensuring the integrity of grid operations are significant concerns for utilities and governments. The need for enhanced cybersecurity measures, such as encryption and secure communication protocols, presents a significant challenge for the smart grid market.

3. Regulatory and Policy Barriers: Regulatory and policy issues delay smart grid technologies: the presence of out-of-date regulations in various areas and/or the absence of well-defined and integrated policy could deter smart grids. It also needs proper support through constant policy and incentives at the governmental levels for investing into smart grids while facilitating the growth of new incoming technologies.

Drivers and challenges in the smart grid market indicate an evolving landscape of energy. Technological advancements, government support, and increased need for energy efficiency are driving the growth of this market, but such a market requires overcoming high initial costs and cybersecurity risks to implement the new landscape efficiently. With such challenges overcome, smart grid infrastructure is likely to be the next crucial step towards a global transition in energy systems in order to ensure sustainable, efficient, and resilient supply.

List of Smart Grid Transmission Infrastructure Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. With these strategies, smart grid transmission infrastructure companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the smart grid transmission infrastructure companies profiled in this report include:

• ABB
• Alstom
• Mitsubishi Electric
• Eaton
• General Electric
• Hitachi
• Siemens

Smart Grid Transmission Infrastructure Market by Segment

The study includes a forecast for the global smart grid transmission infrastructure market by type, application, and region.

Smart Grid Transmission Infrastructure Market by Type [Value from 2019 to 2031]:

• Switchgear & Switchboard Apparatus
• Transformers Include Power & Distribution Transformers
• Others

Smart Grid Transmission Infrastructure Market by Application [Value from 2019 to 2031]:

• Overhead Power Transmission
• Underground Power Transmission

Smart Grid Transmission Infrastructure Market by Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Smart Grid Transmission Infrastructure Market

Smart grid transmission infrastructure around the world is changing fast with new developments in technology for efficiency in energy, reliability, and sustainability. Smart grids transmission allow the integration of renewable energy sources into the system. Efficient storage of energy along with real-time communication between utilities and consumers is made possible in smart grids. Government policies, technological innovations, and the need to modernize aging infrastructure are shaping the market. The United States, China, Germany, India, and Japan are at the forefront, implementing various tactics that have developed this change in terms of making grid improvements through an update.

• United States: The country of the United States heavily invests in electrical grid updates; and their strategy goes straight into transmission expansion with respect to smart grid infrastructure. Federal initiatives, such as the Energy Independence and Security Act, have pushed the adoption of smart meters, real-time monitoring, and automated grid systems. Expansion in renewable energy sources such as solar and wind power also necessitated developing smart grids to enhance energy management and integration. The growth of smart grids is supported by private sector investments and government incentives, which facilitate more flexible and efficient transmission networks that can respond better to fluctuations in demand and integrate distributed energy resources.
• China: China is rapidly advancing its smart grid infrastructure as part of its broader effort to modernize its energy system and address its environmental goals. The country has made heavy investments in smart grid technologies, especially large-scale projects for improving the transmission of renewable energy from remote areas to urban centers. In addition to smart meters and automated systems, China is focusing on the creation of a two-way communication network between the grid and end users. This change will hopefully make the nation's grids stronger, less lossy, and will better facilitate managing renewable sources such as wind and solar energy throughout the country.
• Germany: In Germany, because of the motivation to transform an economy that can rely solely on renewable sources for power, a strong drive toward smart grid infrastructure development prevails. This country's policy on "Energiewende," an energy transition, focuses on maintaining a stable and efficient power grid while integrating large-scale renewable energy sources. Smart grids are, therefore, at the center of the strategy through projects on real-time monitoring systems, demand-response systems, and energy storage solutions. Germany is also investing in cross-border connections to enhance energy sharing with neighboring countries. This is vital for the integration of different sources of renewable energy into the grid without losing stability and security.
• India: India is upgrading its electricity grid to support growing energy demand and the integration of renewable energy sources. The government is promoting the development of smart grid infrastructure through initiatives like the National Smart Grid Mission. India is focusing on improving grid reliability, reducing transmission losses, and enabling better integration of renewable energy sources, such as solar and wind. With a large population and increasing urbanization, smart grids in India are likely to help balance supply and demand, reduce carbon emissions, and improve the overall efficiency of the power sector.
• Japan: Japan is rapidly expanding its smart grid infrastructure in an effort to increase energy efficiency and strengthen the integration of renewable energy into the grid. The country's efforts to minimize reliance on nuclear energy have led it to invest in renewable energy and grid modernization. Japan's smart grids are designed to maximize the flow of energy, ensure reliability, and monitor in real-time. There are incentives for microgrids. Microgrids are local smart grids capable of operation as isolated entities or integrated with the grid. The advantages are a high degree of resilience against disasters and emergencies.

Features of the Global Smart Grid Transmission Infrastructure Market

• Market Size Estimates: Smart grid transmission infrastructure market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
• Segmentation Analysis: Smart grid transmission infrastructure market size by type, application, and region in terms of value ($B).
• Regional Analysis: Smart grid transmission infrastructure market breakdown by North America, Europe, Asia Pacific, and the Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the smart grid transmission infrastructure market.
• Strategic Analysis: This includes M&A, new product development, and the competitive landscape of the smart grid transmission infrastructure market.

Analysis of the competitive intensity of the industry based on Porter's Five Forces model.

This report answers the following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the smart grid transmission infrastructure market by type (switchgear & switchboard apparatus, transformers including power & distribution transformers, and others), application (overhead power transmission and underground power transmission), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?