Smart Grid Sensors Market size to exceed $6.6 Billion by 2035 | General Electric Company, Itron Inc., Cisco Systems Inc., Honeywell International Inc., ABB Ltd.

Market Outlook and Forecast

The smart grid sensors market is emerging as a critical enabler of next-generation power infrastructure, supporting utilities and grid operators in transitioning from conventional, centralized electricity networks to intelligent, data-driven energy systems. Smart grid sensors provide real-time visibility into grid performance, enabling advanced monitoring, predictive maintenance, fault detection, and efficient energy distribution across transmission and distribution networks.

In 2025, the global smart grid sensors market is valued at USD 1.7 billion. Driven by accelerating grid modernization initiatives, rising integration of renewable energy sources, and increasing focus on grid reliability and resilience, the market is projected to reach USD 6.6 billion by 2035, growing at a CAGR of 16.3% during 2026-2035. The strong growth trajectory reflects the essential role of sensors in enabling automation, decentralization, and digital intelligence across power systems.

Utilities worldwide are under pressure to reduce outages, manage bidirectional power flows, and optimize asset performance. Smart grid sensors-ranging from voltage and current sensors to fault passage indicators and temperature sensors-are becoming indispensable tools in addressing these challenges. As energy systems become more complex, sensor-driven insights are increasingly forming the backbone of smart grid analytics and decision-making platforms.

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Regional Performance Highlights

North America represents a mature yet continuously evolving market for smart grid sensors. The region benefits from early adoption of smart grid technologies, strong regulatory support for grid reliability, and large-scale investments in transmission and distribution upgrades. Utilities in the United States and Canada are deploying advanced sensor networks to improve outage management, integrate distributed energy resources (DERs), and strengthen grid cybersecurity. Federal and state-level funding programs continue to accelerate sensor adoption across aging grid infrastructure.

Europe remains a key innovation hub, driven by ambitious decarbonization targets, renewable energy integration, and cross-border grid interconnections. Countries such as Germany, the U.K., France, and the Nordic nations are actively investing in smart substations, digital transformers, and sensor-based grid automation. The European focus on energy efficiency and sustainability is pushing utilities to adopt high-precision sensors that support demand response, load balancing, and predictive maintenance.

Asia Pacific is expected to emerge as the dominant regional market, accounting for 36.8% share by 2035. Rapid urbanization, large-scale renewable energy projects, and expanding electricity demand are driving massive investments in grid infrastructure across China, India, Japan, South Korea, and Southeast Asia. Governments in the region are prioritizing smart grid deployments to reduce transmission losses, enhance power quality, and support electrification initiatives, making Asia Pacific a focal point for sensor manufacturers and solution providers.

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Market Segmentation

By component, the sensor hardware segment is projected to hold 58.7% share by 2035, reflecting strong demand for physical sensing devices embedded across grid assets. These include current and voltage sensors, line monitoring sensors, temperature sensors, and fault detection units installed in substations, feeders, transformers, and distribution lines. Hardware demand is further supported by the need for ruggedized, high-accuracy sensors capable of operating in harsh environmental conditions.

From an end-use perspective, the utility segment remains the primary demand driver for smart grid sensors. Electric utilities are deploying sensor networks to enhance real-time grid visibility, improve outage response times, and enable condition-based maintenance strategies. Use cases include fault location isolation and service restoration (FLISR), dynamic line rating, asset health monitoring, and integration of renewable and distributed energy resources. As utilities transition toward digital substations and self-healing grids, sensor deployment is becoming increasingly strategic rather than optional.

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Top Market Trends

1. Accelerated Grid Digitalization and Automation

Digital transformation is reshaping power networks, with smart grid sensors forming the foundation of grid automation. Utilities are deploying sensors in combination with advanced analytics, SCADA systems, and AI platforms to gain real-time situational awareness. Recent deployments of digital substations and automated distribution networks highlight how sensor data is enabling faster fault detection, reduced downtime, and improved operational efficiency.

2. Integration of Renewable Energy and Distributed Energy Resources

The growing penetration of solar, wind, and energy storage systems is significantly increasing grid complexity. Smart grid sensors are essential for monitoring variable power flows, voltage fluctuations, and frequency stability associated with renewables. Utilities are increasingly relying on high-resolution sensors to manage bidirectional energy flows and ensure grid stability as DER adoption accelerates.

3. Predictive Maintenance and Asset Management

Predictive maintenance is emerging as a key application area for smart grid sensors. By continuously monitoring parameters such as temperature, load, and vibration, sensors enable utilities to identify early signs of equipment degradation. This trend is reducing unplanned outages, extending asset lifecycles, and lowering maintenance costs. Several utilities have recently reported improved reliability metrics following large-scale sensor-driven asset monitoring initiatives.

4. Cyber-Physical Security and Grid Resilience

As grids become more connected, cybersecurity and resilience are top priorities. Smart grid sensors are increasingly integrated with secure communication protocols and edge intelligence to detect anomalies and cyber-physical threats. Governments and utilities are investing in sensor-based resilience strategies to protect critical infrastructure against extreme weather events, cyberattacks, and system failures.

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Recent Company Developments

The competitive landscape of the smart grid sensors market is characterized by continuous innovation, strategic partnerships, and infrastructure-focused investments.

Key developments from the past 12 months include:

1. ABB Ltd. - Expanded its smart grid sensor portfolio with advanced line monitoring and substation sensing solutions designed for digital grid applications.

2. Siemens Energy - Introduced next-generation grid sensors integrated with AI-driven analytics for predictive maintenance and grid optimization.

3. Schneider Electric - Launched enhanced sensor-enabled digital substation solutions to support utility-scale grid modernization projects.

4. General Electric (GE Vernova) - Strengthened its grid sensor offerings through investments in grid resilience and renewable integration technologies.

5. Honeywell International - Expanded its smart sensing and grid automation solutions targeting utility-scale energy management.

6. Landis+Gyr - Focused on advanced sensing and monitoring solutions for distribution networks and smart grid deployments.

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