The U.S. smart energy market size was valued at USD 47.20 billion in 2023 and is expected to reach USD 114.04 billion by 2032, growing at a CAGR of 10.30% from 2023 to 2032.

According to Precedence Research, the smart energy market size was exhibited at USD 160.82 billion in 2023 and is projected to hit around USD 394.99 billion by 2032, growing at a CAGR of  10.50% during the forecast period 2023 to 2032.

Smart energy represents a forward-thinking, sustainable, and economically viable approach to energy infrastructure. It prioritizes the development and integration of renewable energy sources while maintaining a focus on minimizing production costs. This intelligent energy system extends beyond just electricity, incorporating smart grids for gas and heat as well. By adopting such systems, there is significant potential to reduce dependence on traditional fossil fuels, marking a crucial step toward a more sustainable energy future.

The growth of the smart energy market is heavily driven by substantial investments in smart grid technology. These investments are crucial because the deployment of smart energy systems requires a variety of hardware and software components, including advanced instrumentation, robust network infrastructure, and sophisticated network management software. These components work together to create a resilient and efficient energy distribution network that can adapt to the evolving demands of modern energy consumption.

Globally, the smart energy market is poised for significant expansion, largely due to the rising demand for reliable and efficient power solutions. This demand is particularly strong in the commercial and industrial sectors, which are increasingly investing in advanced power sources to support their large-scale operations. For example, substantial data centers and telecommunications companies are key drivers of this demand. These sectors require dependable and sustainable energy solutions to ensure the continuous operation of their critical infrastructure, and they are turning to smart energy systems to meet these needs.

Moreover, the growing global concern about the impacts of climate change, particularly the challenges posed by global warming, is prompting governments to take action. As part of their response, many governments are increasing their focus on solar energy as a key component of their renewable energy strategies. To encourage the adoption of smart energy technologies, particularly smart solar solutions, governments are introducing a range of rebates and incentive programs. These programs are designed to make it more attractive for both residential and industrial sectors to invest in and install smart energy systems.

For example, in the residential sector, these incentives might include tax credits or rebates for homeowners who install solar panels or other smart energy devices. In the industrial sector, incentives might be aimed at encouraging companies to upgrade their energy infrastructure to incorporate smart grid technology and renewable energy sources. These initiatives are not only aimed at reducing carbon emissions but also at creating a more resilient and sustainable energy infrastructure that can support the long-term energy needs of both individuals and businesses.

The combination of these factors—rising demand for reliable power solutions, significant investments in smart grid technology, and strong governmental support—suggests that the smart energy market will continue to grow rapidly in the coming years. As the world shifts toward more sustainable energy practices, smart energy systems will play a critical role in ensuring that energy is not only sustainable but also economically viable and secure.

U.S. Smart Energy Market Size and Growth 2023 to 2032

The U.S. smart energy market size was valued at USD 47.20 billion in 2023 and is expected to reach USD 114.04 billion by 2032, growing at a CAGR of 10.30% from 2023 to 2032.

In 2023, North America emerged as the leader in the global market, capturing over 38% of the total revenue. This dominance can be attributed to the region's strong government support and incentives for smart energy initiatives. A significant driver of this growth has been the rapid development of smart grids across North America. These advanced grid systems, which facilitate more efficient and sustainable energy distribution, are a key component of the region's broader shift toward energy transition. North America's focus on enhancing energy quality—ensuring reliable, advanced energy services—is further reinforcing its leading position in the global market.

Meanwhile, the Asia Pacific region is projected to experience the fastest compound annual growth rate (CAGR) in the coming years. This region is undergoing rapid economic growth and industrialization, leading to increased energy demands. To meet these demands sustainably, there is a growing adoption of smart energy solutions across the region. Additionally, widespread urbanization and extensive infrastructure development are fueling the need for more efficient energy management systems.

A notable example of this trend is the initiative launched by the Electricity Generating Authority of Thailand (EGAT) in June 2021. This project, aimed at optimizing the demand and supply balance on the Thai power grid, highlights the region's commitment to integrating smart energy solutions. The project, undertaken by Hitachi, Ltd. as the system vendor, includes the design of a demand response system for Chulalongkorn University. It also involves efforts to develop a smart grid system that will enhance the integration of renewable energy sources into the grid.

These developments in both North America and Asia Pacific underscore the global shift towards smart energy solutions as regions adapt to the evolving energy landscape. While North America leads with its established infrastructure and focus on energy quality, Asia Pacific's rapid growth reflects the region's dynamic response to its expanding energy needs. This global movement towards smarter, more sustainable energy systems is set to reshape the energy market in the coming years.

Smart Energy Market Players

• General Electric Company


• Siemens AG


• ABB Ltd.


• Cisco Systems, Inc.


• IBM Corporation


• Honeywell International Inc.


• Schneider Electric SE


• Siemens Gamesa Renewable Energy


• Itron, Inc.


• Trilliant Holdings, Inc.


• Landis+Gyr Group AG


• Eaton Corporation


• Schweitzer Engineering Laboratories, Inc.


• C3.ai, Inc.


• Enphase Energy, Inc.

Segments Covered in the Report

By Product

• Smart grid


• Digital Oilfield


• Smart Solar


• Home Energy Management System


• Others

By End-User Industry

• Residential


• Industrial


• Commercial

By Geography

• North America


• Europe


• Asia-Pacific


• Latin America


• Middle East and Africa

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Source:  https://www.precedenceresearch.com/smart-energy-market

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