The ASEAN smart grid market is projected to grow from $1,248.8 million in 2019 to $2,949.6 million by 2024, at a CAGR 18.76% from 2019 to 2024.
The increasing demand for energy efficiency and the need for transparent energy consumption mechanism has propelled the need for smart grid in the ASEAN market. Moreover, there is an increased concern to reduce transmission and distribution losses across the supply chain to reduce power outages.
Furthermore, the rising share of renewable energy in the energy mix can lead to congestion and complexity within the grid. Therefore, smart grid using transmission and distribution automation software, demand response technology, and advance metering infrastructure will mitigate the abovementioned issues, which is currently existing in the traditional grid. Therefore, the growth of the market is likely to be encouraged by the abovementioned factors, along with the growing digitalization in the ASEAN countries.
Consumer energy management is emerging as one of the prominent technologies in the ASEAN smart grid market. Consumers at residential households, commercial end user, and at the manufacturing industries are using this technology to monitor and control their energy demand. Catering to the residential households, the consumer energy management software, known as smart home controller, communicates with all the household components.
The batteries in smart homes get charged through the rooftop solar panel throughout the day. The electricity stored in the batteries are also used to charge the electric vehicles. The surplus electricity generated is fed to the electrical grid. The consumer energy management technology in smart grid works on demand response programs. With demand response programs, electricity consumption can be altered depending on the supply of electricity during peak demand.
The ASEAN smart grid market by end user has been segmented into generation, transmission, distribution, and consumption.
In 2019, the distribution segment accounted for the largest share in the market as a result of the increasing necessity for advance metering infrastructure. However, during the forecast period, consumption segment is expected to display the highest growth owing to the increasing demand for transparent billing mechanism depending upon the time of use across consumers during the peak load hours.
The trends in the ASEAN smart grid market vary across different countries. Singapore and Malaysia currently hold a prominent market share in the ASEAN smart grid market, owing to constant product innovation, expansion of automated technologies in small-scale holdings, and favorable government support in terms of initiatives and regulations to promote renewable energy. In 2019, Singapore was witnessed to be the frontrunner in the market.
During the forecast period, Thailand and Vietnam are expected to flourish as one of the most lucrative markets for smart grid technology providers, owing to a governmental initiative to make these two countries as a smart nation. Also, these countries in this ASEAN region present immense scope for market development, owing to the increasing urban population size and growing market penetration of advance technologies such as electric vehicles charging infrastructure and vehicle to grid.
