Smart Grid Communications Market Report 2026

The smart grid communications market size has grown rapidly in recent years. It will grow from $14.65 billion in 2025 to $16.33 billion in 2026 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to expansion of power transmission and distribution networks, early adoption of AMI communication systems, rising investments in grid modernization projects, increasing penetration of distributed energy resources, deployment of legacy grid communication upgrades.

The smart grid communications market size is expected to see strong growth in the next few years. It will grow to $23.88 billion in 2030 at a compound annual growth rate (CAGR) of 10%. The growth in the forecast period can be attributed to increasing investments in smart grid infrastructure, rising integration of renewable energy sources, growing adoption of advanced grid analytics, expansion of electric vehicle charging networks, increasing focus on real-time grid optimization. Major trends in the forecast period include increasing deployment of two-way grid communication networks, rising adoption of wireless smart grid communication technologies, growing integration of real-time grid monitoring systems, expansion of secure data transmission frameworks, enhanced focus on grid resilience and reliability.

The increasing demand for renewable energy is expected to drive the growth of the smart grid communications market. Renewable energy, sourced from naturally replenishing resources such as sunlight, wind, water, and geothermal heat, offers a sustainable alternative to traditional fossil fuels. The demand for renewable energy is rising due to factors like growing public support, environmental concerns, energy security, and corporate sustainability goals. Renewable energy systems depend on smart grid communications to seamlessly integrate into the existing electricity grid, optimize operations, enhance grid resilience, and facilitate the transition to a more sustainable and reliable energy future. For example, in December 2023, the Department of Energy Security and Net Zero, a UK-based government department, reported that renewable electricity generation reached 30.1 TWh in the third quarter of 2023, reflecting a 6.8% increase compared to the same period in 2022. As a result, the increasing demand for renewable energy is fueling the growth of the smart grid communications market.

Leading companies in the smart grid communications sector are focusing on developing AI-enabled IoT edge computing solutions to improve real-time communication, data processing, and automation in distributed networks. AI-enabled edge compute gateways are devices that integrate artificial intelligence with IoT connectivity at the network edge, enabling fast, secure, and intelligent data exchange among sensors, meters, and control systems. For example, in October 2024, Lantronix Inc., a US-based technology company, introduced SmartLV, an AI-enabled IoT edge compute cellular gateway powered by Qualcomm, designed to support reliable, low-latency communication for distributed energy devices, enhance grid monitoring and control, and facilitate data-driven operational decisions in modern energy networks.

In January 2024, TE Connectivity Ltd., a Switzerland-based manufacturing company, acquired Kries Energietechnik GmbH & Co. KG for an undisclosed amount. Through this acquisition, TE Connectivity aimed to reinforce its presence in the smart grid market by expanding its medium-voltage grid automation, monitoring, and protection capabilities, enabling utilities to enhance grid reliability, efficiency, and digitalization. Kries Energietechnik GmbH & Co. KG is a Germany-based provider of smart grid systems, specializing in medium-voltage switchgear automation, grid protection technology, and digital monitoring solutions for electricity distribution networks.

Major companies operating in the smart grid communications market are Verizon Communications Inc, Siemens AG, General Electric Company, Cisco Systems Inc, Tantalus Systems Corp, Mitsubishi Electric Corporation, Schneider Electric SE, ABB Ltd, Eaton Corporation PLC, Emerson Electric Co, Honeywell International Inc, Itron Inc, Landis+Gyr, S&C Electric Co, Trilliant Holdings Inc, Tropos Networks, Silver Spring Networks, OSIsoft LLC, Yokogawa Electric Corporation, Azbil Corporation.

North America was the largest region in the smart grid communications market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart grid communications market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart grid communications market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart grid communications market includes revenues earned by entities by providing services such as data management and analytics, cybersecurity solutions, consulting, interoperability solutions and maintenance, and training. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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