Dublin, Jan. 23, 2026 (GLOBE NEWSWIRE) — The “Smart Power Distribution System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031” has been added to ResearchAndMarkets.com’s offering.
The rising integration of renewable energy sources compels the adoption of smart power distribution systems to effectively manage intermittency and bidirectional flows. As utility operators transition from centralized generation models to distributed assets such as solar and wind, they require sophisticated automation and real-time monitoring to preserve frequency stability and balance supply with demand. This operational evolution drives the implementation of intelligent network management tools capable of dynamically adjusting to fluctuating power inputs. According to the International Renewable Energy Agency’s ‘Renewable Capacity Statistics 2024’, released in March 2024, global renewable generation capacity surged by 473 GW in 2023, a massive addition that forces grid operators to invest in digital substations and voltage management technologies to avoid system overloads and ensure seamless integration.
Concurrently, the modernization of aging power grid infrastructure necessitates that utilities replace outdated hardware with intelligent, data-driven components designed to handle modern electrification pressures. Legacy networks are becoming increasingly susceptible to failures under the strain of new loads, requiring significant structural and digital upgrades to improve resilience. For instance, Eurelectric’s ‘Grids for Speed’ study from May 2024 indicates that European distribution grids alone require annual investments of EUR 67 billion from 2025 to 2050 to meet decarbonization goals. Furthermore, substantial capital is being mobilized globally for these projects; according to Xinhua News Agency, the State Grid Corporation of China announced a projected investment of CNY 600 billion in 2024 to bolster grid reliability and digital capabilities.
Market Challenges
The substantial initial capital expenditure necessary for deploying advanced metering and automation technologies acts as a significant barrier to the growth of the smart power distribution system market. Utility operators, especially in regions with strict budget limitations, often find the upfront costs of these digital upgrades difficult to justify. This financial burden encompasses the procurement of hardware as well as the integration of complex software systems, which discourages providers from launching modernization projects. Consequently, the rate of adoption for intelligent grid solutions is decelerated as organizations prioritize the maintenance of existing legacy infrastructure over investing in capital-intensive new systems.
This issue is further exacerbated by the economic conditions surrounding infrastructure financing. High financing costs render the return on investment for these large-scale projects less appealing, particularly in developing markets where capital is limited. According to the International Energy Agency, in 2024, the cost of capital for energy projects in emerging market and developing economies was more than double that in advanced economies. This disparity creates a difficult environment where securing funds for grid modernization is expensive, directly restricting the growth of the market.
Market Trends
The Integration of Artificial Intelligence for Predictive Maintenance is significantly transforming asset management strategies within the smart power distribution sector. Utilities are shifting from reactive repairs to employing algorithm-driven platforms that examine vast datasets from sensors to forecast equipment failures before they happen. This trend is motivated by the need to optimize operational expenditures and improve grid reliability in the face of extreme weather events, separate from the capital-intensive hardware upgrades needed for capacity expansion. Demonstrating this strategic focus on software-defined resilience, National Grid Partners announced in March 2025 a USD 100 million commitment to artificial intelligence startups specifically to advance the future of energy and construct a more robust, intelligent grid.
Simultaneously, the Adoption of Grid-Edge Computing and Intelligence marks a structural evolution where processing power is decentralized to the network’s periphery. By embedding intelligence directly into distribution nodes, utilities can manage bidirectional energy flows and local flexibility with reduced latency, progressing from simple remote monitoring to active local control. This technological advancement is supported by substantial infrastructure commitments; for example, according to E.ON’s ‘Nine-month Report 2025’ from November 2025, the company invested EUR 5.1 billion in energy transformation, explicitly driving the standardization and digitalization of distribution grids and commissioning its 10,000th digital secondary substation.
Key Players Profiled in the Smart Power Distribution System Market
- General Electric Company
- ABB Ltd.
- Siemens AG
- Schneider Electric SE
- Aclara Technologies LLC
- Honeywell International Inc.
- Tech Mahindra
- Oracle Corporation
- Eaton Corporation
- Itron Inc.
Report Scope
In this report, the Global Smart Power Distribution System Market has been segmented into the following categories:
Smart Power Distribution System Market, by Component:
Smart Power Distribution System Market, by Application:
- Industrial
- Residential
- Commercial
Smart Power Distribution System Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 185 |
| Forecast Period | 2025 – 2031 |
| Estimated Market Value (USD) in 2025 | $94.9 Billion |
| Forecasted Market Value (USD) by 2031 | $144.35 Billion |
| Compound Annual Growth Rate | 7.2% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/578pfy
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- Smart Power Distribution System Market
