The 5G smart grid market is expected to grow at a CAGR of 63.07% between 2025 and 2030.
5G technology is making its way into various industry verticals such as healthcare, telecommunication, BFSI, and government. Likewise, in the energy sector, the technology is finding applicability in providing smart energy services, inclusive of plug-and-play smart metering and virtual network function-based energy monitoring. Hence, in comparison to traditional fiber-based networks, 5G technology’s high throughput, network coverage, and low latency have made it easy for operators to implement device-to-device communication.
The growing demand for sufficient energy to power various industrial and residential applications has provided a major scope for smart grids, thereby simultaneously driving the usage of 5G technology. According to the International Energy Agency, in 2022, digital infrastructure investments for the electric grid stood at US$64 billion, which signified a 7% growth over 2021. Furthermore, the same source that aims to achieve “Net Zero Emissions” by 2050, the investment in smart grids needs to be doubled by 2030.
Additionally, 5G network slicing assists in identifying fault isolation and location through intelligent feeder distribution automation, thereby improving the energy pricing and energy-efficient management strategy. 5G equipment, such as fronthaul & backhaul, antennas, and routers, all of which support standalone configuration, are expected to witness positive growth in their demand in the coming years.
In comparison to its predecessors, 5G networks offer quick response rates and high throughput which making them the ideal option for achieving high-speed data transmission, which is a crucial aspect in smart grids as it enables the operators to maintain demand response services. The governments of countries are investing in digitizing their grid infrastructure, which is expected to positively impact the demand and usage of 5G technology.
For instance, in October 2022, the European Union initiated the “Digitalization of Energy System” plan, which aimed to invest nearly US$633 billion in the EU’s electric grid by 2030, inclusive of US$184 billion being invested in smart meters and automated grid management. Likewise, according to the June 2023 IEA press release, digital technologies could extend the lifetime of grids and could also save global investments up to US$1.8 trillion by 2050.
Based on application, the 5G smart grid market is divided into power distribution automation and monitoring & inspection, where the former is expected to hold a substantial market share, fueled by the growing efforts to enhance the grid performance. Hence, various initiatives, collaborations, and grid-associated 5G product launches are taking place, which are further driving the segment growth.
For instance,
The global 5G smart grid market comprises some major countries undertaking measures to secure their 5G infrastructure. China is expected to witness a higher CAGR during the forecasted period. Some notable developments by major players are listed below:
Some of the leading players in the market include Huawei, Honeywell, and Enel Green Power S.p., among others. The product offerings of the major companies include the following:
|
COMPANY NAME |
PRODUCT NAME |
DESCRIPTION |
|
Enel Green Power S.p.A |
Quantum Edge device |
Enel’s “QEd-Quantum Edge Device” leverages edge computing to virtualize and digitize physical components of secondary substations by creating a “Digital Twin” that can be remotely managed and upgraded. |
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR of 63.07% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the 5G Smart Grid Market | |
| Customization Scope | Free report customization with purchase |