NEW YORK, Nov. 21, 2023 /PRNewswire/ — The smart grid market in China is estimated to grow by USD 13.96 billion from 2022 to 2027, growing at a CAGR of 14.34%. 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. 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
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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Table of contents
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-User
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix
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