“Global Active Network Management Market to reach a market value of USD 3.18 Billion by 2031 growing at a CAGR of 14.5%”
The Global Active Network Management Market size is expected to reach $3.18 billion by 2031, rising at a market growth of 14.5% CAGR during the forecast period.
The North America region witnessed 36% revenue share in the market in 2023. The region’s leadership can be attributed to the rapid adoption of smart grid technologies, increasing investment in renewable energy integration, and the presence of major technology providers. The U.S. and Canada have been at the forefront of digital transformation in the energy sector, leveraging advanced ANM solutions to optimize grid efficiency, reduce operational costs, and enhance power reliability.
Smart grid technology transforms energy systems by allowing for real-time monitoring, advanced analytics, and automated decision-making. These capabilities make the grid more efficient, reliable, and capable of integrating renewable energy sources. For utilities, transitioning to a smart grid enables better demand-side management and more efficient energy distribution. Active network management systems work with smart grids to offer enhanced load balancing, fault detection, and improved outage management, driving the adoption of ANM systems. Therefore, the increasing adoption of smart grid technology drives the market's growth.
Additionally, The growing shift towards renewable energy sources like solar, wind, and hydropower is reshaping the global energy landscape. These energy sources are intermittent, meaning their output varies depending on weather conditions, which can cause grid instability. Active network management systems help address this challenge by enabling real-time adjustments to energy flows, balancing supply and demand, and incorporating storage systems that can store excess energy for later use. In conclusion, the rising integration of renewable energy sources drives the market's growth.
However, One of the major barriers to the widespread adoption of ANM systems is the high initial investment required. Utilities must upgrade their existing infrastructure to accommodate ANM systems, which often involves significant capital expenditure. This includes the costs of installing new sensors, smart meters, communication networks, and advanced software platforms. For many utilities, especially those in developing regions or with limited budgets, these upfront costs can be prohibitive. Hence, high initial investment costs and infrastructure upgrade expenses impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on component, the market is divided into software and service. The service segment held 42% revenue share in the market in 2023. As enterprises and utility providers embrace digital transformation, the demand for consulting, implementation, and maintenance services has increased. These services are essential for successfully deploying and operating active network management systems, ensuring optimal performance and compliance with evolving energy regulations.
By application, the market is divided into grid asset monitoring, real-time monitoring, and automation. In 2023, the grid asset monitoring segment registered 24% revenue share in the market. The increasing complexity of power grids and the integration of renewable energy sources have heightened the need for efficient asset monitoring solutions. Grid asset monitoring enables utilities to track the performance of transformers, substations, and power lines in real-time, helping to minimize downtime and optimize maintenance schedules.
On the basis of enterprise size, the market is segmented into SMEs and large enterprises. In 2023, the SMEs segment attained 30% revenue share in the market. With increasing digitization and adopting cloud-based solutions, SMEs are gradually integrating active network management to enhance their operational efficiency and reduce energy costs. The growing availability of cost-effective, scalable network management solutions tailored for SMEs has contributed to the segment’s growth.
Based on industries, the market is categorized into transportation, energy & utilities, government, and others. The transportation segment witnessed 28% revenue share in the market in 2023. The need for improved traffic management, real-time monitoring, and optimized energy consumption in smart transportation systems drives the adoption of active network management solutions in transportation.
Free Valuable Insights: Global Active Network Management Market size to reach USD 3.18 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 27% revenue share in the market in 2023. The region’s growth is fueled by increasing urbanization, rising electricity demand, and government initiatives to modernize power infrastructure. Countries like China, Japan, and India heavily invest in smart grid projects, renewable energy integration, and real-time grid monitoring solutions.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 1.09 Billion |
| Market size forecast in 2031 | USD 3.18 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 14.5% from 2024 to 2031 |
| Number of Pages | 270 |
| Tables | 440 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Application, Enterprise Size, Industries, Region |
| Country scope |
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| Companies Included | ABB Ltd., Cisco Systems, Inc., General Electric Company, IBM Corporation, Oracle Corporation, Schneider Electric SE, Siemens AG, Hitachi, Ltd. (Hitachi Energy Ltd.), Itron, Inc., and KELVATEK LTD. |
By Component
By Application
By Enterprise Size
By Industries
By Geography
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