China Smart Grid Market Report: Industry Size, CAGR of 16.95% and Future Outlook 2025-2033

Market Overview

The China Smart Grid Market reached USD 12.09 Billion in 2024 and is projected to reach USD 57.89 Billion by 2033, growing at a CAGR of 16.95% during the forecast period 2025-2033. This growth is driven by rapid urbanization, rising electricity demand, and strong governmental support aimed at energy efficiency and integrating renewable sources. Technological advancements such as IoT, AI, and big data analytics are further enhancing grid automation and digitalization to provide a secure, efficient, and resilient energy system.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

China Smart Grid Market Key Takeaways

• The China smart grid market size was USD 12.09 Billion in 2024, with a CAGR of 16.95% forecasted for 2025-2033.
• The market is expected to rise to USD 57.89 Billion by 2033.
• Government investments topped $166 billion in 2024 focused on transmission grid modernization.
• Integration of advanced technologies like AMI, distribution automation, and energy storage drives market growth.
• China's urbanization rate achieved 67% by the end of 2024, increasing electricity demand and grid stress.
• Commitment to carbon neutrality and supportive policies like the "China Smart Grid Development Plan" incentivize technology adoption.

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Market Growth Factors

Government support is important. For the first time, China invested US$166 billion in 2024 into its electricity transmission grid, more than all other countries combined. Investment can reduce transmission and distribution losses, increase reliability and stability, and ease renewable energy generation integration with the electricity grid. Supporting policies such as the "China Smart Grid Development Plan", renewable energy targets, financial incentives and subsidies, and regulations would encourage the deployment of advanced metering infrastructure (AMI) with distribution automation and energy storage technology by utilities and private investors. To contribute to carbon neutral and energy security strategies, China is now the worldwide leader in smart grid technology with urban and industrial electricity demand management at the core of the technology.

Technology-based companies have driven China's smart grid development to enable new ways to generate, transmit, and consume electricity, as well as provide real-time monitoring, prediction, and optimization of grid fault conditions. These technologies include the Internet of Things, artificial intelligence, big data and cloud computing. The arrival of AMI (see above) and digital substations means predictive and efficient measurement, monitoring and analysis of electric energy, leading to increased energy efficiency and reduced energy losses. Energy storage, demand response, and additional investment in automated technologies, smart sensors, and communications equipment help utilities expand and diversify the power grid, to better serve future generation and energy needs by adding more renewable energy generation.

China's accelerated urbanization and industrialization have contributed to a rapid increase in power demand and the existing power grid has been put under tremendous strain. The urbanization rate in the cities of China increased from 66.16% in 2023 to 67% in late 2024, which contributed to increased power consumption. The electricity grids that have met that demand have historically been inefficient and prone to energy loss and outage. Smart grids have a greater capacity to reduce grid losses. Technologies such as automated distribution, predictive maintenance and real-time monitoring, among others, allow development of the grid without heavy capital investment in infrastructure. Electric vehicles and distributed generation from renewable energy require a fully integrated and interoperable network with a structure, which only the 20th-century grid design is incapable of providing. China has begun a new generation of urbanization with a smart grid to reduce wastage, increase resilience and maintain supply.

Market Segmentation

Component Insights:

• Software: The market includes advanced metering infrastructure, smart grid distribution management, smart grid network management, substation automation, and other software solutions essential for efficient grid operation and monitoring.
• Hardware: Consists of sensors, programmable logic controllers, AMI meters, networking hardware, and other equipment supporting smart grid infrastructure and real-time data acquisition.
• Services: Encompasses consulting, support and maintenance, and deployment and integration services, facilitating smart grid system implementation and ongoing operational effectiveness.

End User Insights:

• Residential: Covers smart grid applications in households enabling efficient energy use and integration.
• Commercial: Addresses smart grid solutions in commercial establishments improving energy management and operational efficiencies.
• Industrial: Entails deployment of smart grid technologies in industrial sectors aimed at optimizing large-scale energy consumption and reducing losses.

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Regional Insights

The report details major regional markets including North China, East China, South Central China, Southwest China, Northwest China, and Northeast China. While the document does not explicitly declare a dominant region or specific market shares, the significant investment figures and government initiatives indicate a strong emphasis on national modernization efforts covering all regions.

Recent Developments & News

In June 2025, China is set to launch a unified national power trading market aimed at modernizing the electricity system by increasing transparency, competition, and integration of green energy. This reform addresses inefficiencies caused by fragmented regional grids and aims to boost electricity trading volumes and optimize supply operations. In the same month, China launched the world's first grid-forming sodium-ion battery storage plant at the Baochi Storage Station in Yunnan, integrating lithium and sodium-ion technologies to enhance renewable energy supply stability and cost reduction. In April 2025, pilot projects in nine cities were initiated to use electric vehicles as grid-connected batteries, stabilizing power supply during peak demand under government guidance and 2024 NDRC regulations.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.
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