GlobalData’s latest report, ‘Smart Grid‘, is among the latest strategic intelligence reports from the industry analysis specialist. The report provides an industry analysis on the smart grid market, its growing demand and how it is disrupting power utilities and the power sector. The report focuses on the trends related to smart grid as a theme in technology, macroeconomic and regulatory trends. The report briefs on detailed analysis of the smart grid value chain.
The report is built as a single theme offering in-depth research using data and information sourced from industry associations, company websites, government websites, and statutory bodies. The information is also sourced through other secondary research sources such as industry and trade magazines. AI-enabled smart grids are revolutionising energy production and distribution through real-time predictive analytics and machine learning, dynamically aligning supply with demand.
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AI is profoundly transforming grid ecosystems, optimising operations, bolstering reliability and strengthening resilience. By integrating IoT-embedded infrastructure with advanced forecasting and optimisation systems, utilities gain unprecedented efficiency, adaptability, and robustness. As AI-powered models project demand at micro-scales, empowering utilities to fine-tune load balancing, smart grids are set to reshape the power sector by facilitating the transition to cleaner energy and enhancing reliability.
AI serves as the intelligent backbone of smart grids, driving optimisation, stability, and security across energy networks. Companies such as Solcast and RisingStack use AI and satellite imagery to now-cast solar irradiance and forecast PV output, helping grid operators curtail less and schedule reserves more effectively. Likewise, Hornsdale Wind Farm’s AI systems, using atmospheric and performance data, are significantly improving forecasting accuracy, enabling better anticipation of variability and avoiding wasted capacity. Meanwhile, utilities such as National Grid harness sensor data to monitor critical systems and predict failures, significantly cutting downtime.
Government initiatives, renewable integration, the demand for a more resilient and efficient grid, and technologies such as smart meters, AI, and IoT are driving investment in the power transmission market. Global transmission investment in 2025 stood at $378.3bn, increasing by 10.1% over 2024. The investment was primarily in substations at $274.3bn, followed by transmission lines at $104bn. The transmission investment is estimated to grow from $378.3bn in 2025 to $586bn in 2030 at a compound annual growth rate (CAGR) of 9.2%.
Total investment in transmission network ($bn), Global, 2025-2030f
Technological trends in the smart grid, particularly digital twins, microgrid development, and electric vehicle (EV) integration, are evolving rapidly to improve grid resilience, efficiency, and sustainability. These technologies are converging to create a more dynamic, decentralised, and intelligent power system that can handle the complexities of renewable energy and bidirectional energy flow.
Companies such as ABB Electrification are enhancing grid efficiency, resilience, and accelerating the energy transition through Enline’s Digital Twin modelling and Dynamic Line Rating (DLR) to improve transmission and distribution networks. Hitachi Energy and GE Vernova are supporting microgrid growth through distribution automation, grid control software, and integration of DERs and storage.
EV integration is increasingly recognised as one of the pivotal drivers in smart grid evolution, enabling a more flexible, resilient, and clean energy system. For instance, GNA Energy (India) launched “GNAi,” an AI-powered platform for grid optimisation and smart meter integration in 2026.
Smart grid technologies are transforming the power sector by making electricity systems more adaptive, efficient, and sustainable. Smart meters and sensors enable real-time monitoring of power flows, helping utilities better balance supply and demand and reducing energy waste.
Utilities such as EDF are using Distributed Energy Resource Management Systems (DERMS) to integrate solar panels, wind farms, and battery storage more smoothly into the grid, mitigating issues such as voltage spikes and frequency fluctuations. Another example is virtual power plants (VPPs), which aggregate resources that include residential solar panels, EV batteries, and flexible industrial loads to act as a single controllable asset for grid operators. Xcel Energy’s advanced VPP, in collaboration with Itron and Tesla, integrates residential battery systems, rooftop solar, EV chargers, and smart thermostats into Itron’s IntelliFLEX DERMS platform, enabling the aggregation and dispatch of DERs during peak load to stabilise the grid.
As renewable energy grows and electrification spreads through EVs, heat pumps, and more, the grid must evolve. Smart grid tools drive this evolution through automation, digital intelligence, and two-way communication. In essence, these solutions bolster energy security, cost efficiency, and ecological integrity, fostering a truly sustainable energy ecosystem.
