building-to-grid technology market Size, Share, Growth & Industry Analysis, By Platform (Smart Sensing, Smart Metering, Control Technology, Energy Storage, Others), By End User (Commercial, Industrial, Residential) and Regional Analysis, 2023-2030

Market Perspective

The global Building-to-Grid Technology Market was valued at USD 54.08 billion in 2022 and is projected to reach USD 120.32 billion by 2030, growing at a CAGR of 10.63% from 2023 to 2030.

The global building-to-grid (BtG) technology market is expected to grow significantly due to the increasing demand for sustainable energy solutions and the need for energy-efficient buildings. The market consists of companies offering BtG technologies, as well as installation, maintenance, and consulting services.

Technological advancements in smart sensing, metering, and control technologies can improve the energy efficiency and grid responsiveness of commercial and residential buildings.

The adoption of regulations and policies focused on reducing carbon emissions globally and incentivizing the use of green energy solutions is expected to promote building-to-grid technology market growth. Infrastructure development, research & development activities, and energy consumption patterns are also expected to offer additional growth opportunities for the market.

 Analyst’s Review on Building-To-Grid Technology

The building-to-grid (BtG) technology market is expected to witness significant growth in the next few years. Several initiatives by organizations such as the International Commission on the Futures of Education and the United Nations Commission on Science and Technology for Development has shown a growing interest in futuristic sustainable buildings with sophisticated energy management systems. These factors are expected to contribute positively to the growth of the BtG technology market.

Market Definition

Building-to-grid technology is a concept that involves the integration of buildings with the electrical power grid to enable two-way communication and optimize energy usage. Smart sensing, metering, and control technology are transforming the modern power system in its entirety. The rapid deployment of information technology allows major decision-makers, such as utilities and building owners, to attain exceptional levels of insight and comprehend their systems' operations. Technological progressions, including the creation of Phasor Measurement Units and smart thermostats, enable superior situational awareness for grid operators, unlocking prospects to boost the efficiency and grid responsiveness of commercial and residential buildings. The utilization of these innovations pledges substantial enhancements in the power system's reliability and effectiveness.

Market Dynamics

The integration of building-to-grid (B2G) technology is becoming increasingly popular due to multiple market conditions. One major driver is the global goals of modernizing the grids to smart grids and decarbonization, which has resulted in the push for innovative energy solutions. In addition, there has been a rise in energy prosumers, who are both consumers and producers of energy and who are seeking to maximize their energy efficiency and cost savings. Furthermore, the availability of enabling hardware and software has significantly improved due to technological advancements in the field of energy storage and management.

Supportive regulatory policies and government regulations have augmented the growth of the building-to-grid technology market. For instance, in 2021, the Department of Energy (U.S.) granted USD 6 million to the PGE (Portland General Electric) Smart Grid Project. The aim of this grant is to develop and integrate 500 buildings to smart grids with building-to-grid technology.

One of the most significant challenges is uniting behind common interoperability solutions. In order to function properly as a single system, all the different grid technologies must be able to communicate with one another. This means that all elements of the grid, from appliances to power plants, need to be able to exchange data and communicate in a standard, interoperable format.

Another factor that may impact the building-to-grid technology market growth is maintaining cybersecurity in the system. The interconnectedness of different grid technologies and the sensitive nature of the data that is exchanged on the grid makes it vulnerable to cyber threats. Cybersecurity needs to be a top priority for grid operators to ensure that the system is secure and reliable.

Segmentation Analysis

The global building-to-grid technology market is segmented based on technology, end-user, and geography.

Based on technology, the market is further categorized into smart sensing, smart metering, control technology, energy storage, and others. The smart metering category dominated the segment in 2022, accounting for USD 14.77 billion, and is estimated to grow at a CAGR of 12.31% during 2023 – 2030. The revenue growth is majorly supported by the increasing adoption of smart grid integration in residential and commercial buildings. Smart meters are being widely installed in new as well as existing buildings with the purpose of energy analytics and conservation for efficient usage. Along with smart metering, smart sensing is anticipated to attribute a significant share with USD 33.80 billion by 2030 in terms of revenue. Additionally, smart sensing technologies and components are likely to experience the fastest growth rate of 12.93% over the forecast period.

Based on end-user, the building-to-grid technology market is divided into residential, commercial, and industrial. The residential category held the largest revenue and accounted for USD 33.61 billion in 2022 and is anticipated to experience the fastest growth rate of 11.65% throughout the forecast period. Increasing consumer awareness regarding renewable energy and energy demand responses are among the major factors driving the revenue of the residential sector. Additionally, government initiatives such as incentive programs and the importance of energy conservation are setting the trend for implementation of b2g technologies.

Geography Analysis

Based on regional analysis, the global building-to-grid technology market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe held the largest and most significant share in terms of revenue in 2022, accounting for a valuation of USD 22.83 billion. This attributed to 42.22% of the global revenue. Furthermore, the region is estimated to dominate the market with a projected CAGR of 11.09% during 2023-2030. Active participation of European Commission in the energy market is among the primary factors providing grounds of growth for the market in the region. The energy transition and integration of renewable energy sources drive the need for efficient grid interaction. Additionally, energy efficiency and sustainability initiatives push for the adoption of building-to-grid technologies. Moreover, the supportive policy and regulatory framework incentivizes the adoption of these technologies, advancements and cost reductions make building-to-grid solutions more accessible. Collectively, these factors are contributing to the revenue growth of the building-to-grid market in Europe.

Asia Pacific is estimated to experience the fastest growth among all regions throughout the forecast period. The region accounted for 18.32% of the global revenue in 2022 and is likely to attribute 20.34% by 2030, progressing at a CAGR of 12.29% through the review period. The growth in revenue of the building-to-grid market in the Asia-Pacific region is bolstered by several factors such as the increasing adoption of renewable energy sources, driven by the need for sustainable and low-carbon energy solutions, which contributes to the demand for building-to-grid technologies. Additionally, the rising focus on grid flexibility and resilience, especially with the integration of intermittent renewable energy, drives the demand for building-to-grid solutions.

Competitive Landscape

The global building-to-grid technology industry study report will provide valuable insight with an emphasis on the global overview and is highly fragmented. Major players are focusing on a few of the strategies such as partnership, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives. Industry players are investing in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the building-to-grid technology market are

• GridPoint
• ABB
• Landis+Gyr
• Siemens
• Parker Solar, LLC.
• Enphase Energy
• Itron Inc.
• EnBW Energie Baden-Württemberg AG
• S&C Electric Company
• ON SE

Key Developments

• April 2021 (Acquisition) - Landis+Gyr acquired all the shares and voting interests of True Energy A/S ("True Energy"), a Danish company. The total amount paid for the acquisition, after deducting the cash received, was USD 5.9 million. True Energy specializes in providing advanced software and services for electric vehicle charging infrastructure, home appliances, and solar solutions. This acquisition enhanced the Company's existing portfolio by broadening its smart infrastructure offerings.

The global Building-to-Grid Technology Market is segmented as:

By Technology

• Smart Sensing
• Smart Metering
• Control Technology
• Energy Storage
• Others

By End-User

• Commercial
• Industrial
• Residential

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America