Smart Solar Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[222+ Pages Report] According to Facts & Factors, the global smart solar market size was valued at USD 782.55 million in 2023 and is predicted to surpass USD 1,113.81 million by the end of 2032. The smart solar industry is expected to grow by a CAGR of 4.00% between 2024 and 2032.

Market Overview

Smart solar is the integration of advanced technologies with solar energy systems to improve performance, management, and efficiency. It integrates advanced technologies like artificial intelligence, the Internet of Things (IoT), and the smart grid into the energy distribution system to create a more responsive and intelligent grid system.

Different components of smart solar include smart grids that help in communication technology to manage the transfer of electricity. The energy storage system is a crucial element of smart solar as it helps users store energy for later use, which helps ensure a more secure and reliable energy supply.

Key Insights

• As per the analysis shared by our research analyst, the global smart solar market size is estimated to grow annually at a CAGR of around 4.00% over the forecast period (2024-2032).
• In terms of revenue, the global smart solar market size was valued at around USD 782.55 million in 2023 and is projected to reach USD 1,113.81 million by 2032.
• Government incentives are driving the growth of the global smart solar market.
• Based on the applications, the utility segment is growing at a high rate and is projected to dominate the global market.
• Based on the devices, the intelligent segment is projected to swipe the largest market share.
• Based on services, the asset management segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Government incentives are driving the growth of the global market.

Governments all across the globe are coming up with more favorable policies to drive the growth of the global smart solar market. Also, there are some set targets for renewable energy, which is further expected to support the growth of the industry. Financial benefits like rebates, tax credits, and subsidies are also expected to help in the growth of smart solar systems.

Advancements in grid technology are also expected to help in better management of solar energy distribution. The emergence of new energy storage options will help strengthen the stability of solar power systems and gain confidence among consumers.

However, the emergence of technologies like artificial intelligence, machine learning, and the Internet of Things (IoT) is expected to revolutionize the industry by forming predictive maintenance, real-time monitoring, and optimization of the entire system operations.

For instance, Three powers, namely, the Financial Services Group, Macquarie's Green Investment Group, and Siemens Smart Infrastructure, collaborated to form Calibrant Energy in 2020. The formed group offers comprehensive onsite energy solutions.

Restraints

• Technological complexity is expected to hamper the growth of the global market.

Integrating smart solar technologies with existing grid infrastructure is a big task and requires expert knowledge. Moreover, there is a need for skilled personnel to monitor regular maintenance requirements. Therefore, such a landscape creates technological complexity in the market, which is expected to hamper the growth of the smart solar industry. However, variation in government regulations and policies in different regions is also expected to hinder the adoption of smart solar technologies on a large scale.

Opportunities

• Declining cost is expected to foster growth opportunities in the global market.

The reduction in the cost of solar panels in the market has significantly made them more economically viable. The rising deployment and production of solar grid technology is further resulting in reduced costs. Therefore, it is helping more people get smart solar solutions. Rising urbanization and industrialization all across the globe are further fostering the energy demand in the market, which drives the requirement for sustainable energy solutions like smart solar. Also, the rising energy security concerns are leading to increasing investments in smart solar technologies.

All these factors are expected to foster growth opportunities in the global smart solar market. For instance, Statkraft successfully entered into an agreement to acquire Solarcentury in 2020. This acquisition is expected to speed up solar and wind project development. The acquired company is a leading renewable energy company globally.

Challenges

• Limited consumer awareness is a big challenge in the global market.

The lack of awareness among people regarding the benefits of smart solar technologies is expected to be a big challenge in the smart solar industry. Many people are still reluctant to adopt smart solar technologies because of their assumed uncertainties. Additionally, the grid modernization requirements are also a big limitation in the industry. Many regions have outdated grid infrastructures that do not support the integration of smart solar technologies.

Segmentation Analysis

The global smart solar market can be segmented into applications, devices, services, and regions.         

On the basis of applications, the market can be segmented into utility, commercial & industrial, and residential. The utility segment accounts for the largest share of the global market during the forecast period. Growing investments in large-scale solar projects by utilities are driving the growth of the global market. Rising energy demand is driving these investments.

Also, governments all across the globe are coming up with rules and regulations to promote the adoption of renewable energy sources. Utility companies are also emphasizing integrating smart solar power into their existing infrastructure to balance supply and demand and lower transmission losses. It also helps in achieving economies of scale on utility-scale installations as they are more cost-effective in nature. Different technologies used by the utility providers include advanced inverters, energy storage systems, and advanced monitoring & communication systems.

On the basis of devices, the market can be segmented into radio frequency identification, intelligent, and smart solar meters. IntelliGrid is the fastest-growing segment in the global market. Intelligent is the integration of advanced technologies like machine learning, artificial intelligence, and the Internet of Things into the solar grid.

However, the advancements in IoT, AI, and ML-enabled technologies are the major factors driving the growth of the segment. The growing energy demand is driving the development of more efficient energy distribution networks. Also, there is a continuous demand from the residential and utility sectors. The government is offering many incentives to encourage the adoption of renewable energy sources like solar and wind. Many government programs promote smart technologies, which include intelligent devices to operate the entire system.

However, the rising environmental concerns about lowering carbon emissions by adopting sustainable energy resources are also likely to foster development in the segment. Intelligrid system enhances the efficiency and reliability of the energy distribution system by optimizing resource utilization. Intelligrid helps in getting real-time data on consumption, distribution, and energy production. Also, it is highly useful in productive maintenance, thereby lowering downtime and maintenance costs. It is a good demand response system that balances the energy supply and demand by altering peak load pressure.

On the basis of services, the market can be segmented into remote metering, meter data management, network monitoring, asset management, and others. The asset management segment is likely to swipe the largest share of the global smart solar market during the forecast period. Asset management solutions help optimize operations, maximize energy production, and maintain solar power assets.

However, it also facilitates proper data analytics, performance monitoring, and predictive maintenance. Asset management helps in eliminating high operational costs by addressing the potential bottlenecks before any downtime or major loss. However, regular checkups help extend the lifespan of solar assets.

Moreover, it also helps integrate artificial intelligence and the Internet of Things into asset management systems, which further helps analyze and monitor assets in real time. Asset management solutions help end users comply with regulatory requirements. It is important to align with the regulatory mandates provided by the government to secure incentives and maintain healthy relationships with stakeholders. The major components of asset management include energy management software, predictive maintenance tools, monitoring systems, data analytics, reporting, and others.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America will account for the largest share of the global smart solar market during the forecast period. The US is the largest market in North America because of the ongoing large-scale solar installations in the region. Moreover, states like New York, Texas, and California are leading in terms of solar capacity and smart integration. The United States is at the forefront of advanced technology adoption, which is another crucial reason expected to propel the growth of the regional market. Canada is also expected to see significant growth in the coming years because of the growing investments in energy projects in the region.

Alberta and Ontario are expected to be the leading markets in the region because of government policies. North American government is speeding up the integration of solar power with the energy grids to offer more reliable and efficient energy sources.

Asia Pacific is also expected to see significant growth in the smart solar industry in the coming years. China is the largest market in the region and also the largest manufacturer of solar panels. The Chinese government supports the growth of the market by increasing funding for solar infrastructure.

The deployment of large-scale solar projects with smart solar technologies in China is also expected to propel the growth of the regional market. India is also expected to see some major developments in the coming years. Many government initiatives like National Solar Missions aim to improve the solar energy distribution system in the country.

Also, the government is growing its focus on smart technologies to foster developments in the market. Japan is an advanced market that is expected to revolutionize the industry in the coming years. Technological innovations are the major factor expected to accentuate the growth of the market manifolds in the coming years. Governments in the region are focusing on expanding solar energy access to both the rural and remote areas with off-grid systems.

Therefore, all these factors are likely to contribute immensely to the growth of the regional market during the forecast period. For instance, Renogy launched REGO in 2022 for DIYers, first-time users, and even experienced solar users. The company is a leading provider of solar energy products.

Competitive Analysis

The key players in the global smart solar market include:

• Smart Solar Ltd.
• Schneider Electric SE
• Echelon Corporation
• GE Renewable Energy
• Landis+Gyr Ag
• Vivint Solar
• Itron Inc.
• Solarcity
• ABB Ltd.
• Siemens AG

For instance, Lonestar Cell Mobile Telecommunications Network successfully came up with a plan to deploy an intelligent solar hybrid generator in 2023. It will be deployed at strategic locations to align with Project Zero's goals and lower the environmental impact.

The global smart solar market is segmented as follows:

By Applications Segment Analysis

• Utility
• Commercial & Industrial
• Residential

By Devices Segment Analysis

• Radio Frequency Identification
• Intelligent
• Smart Solar Meters

By Services Segment Analysis

• Remote Metering
• Meter Data Management
• Network Monitoring
• Asset Management
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America