United Kingdom Grid Modernization Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Application (Residential, Commercial, and Industrial), and United Kingdom Grid Modernization Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Grid Modernization Market Insights Forecasts to 2035

• The United Kingdom Grid Modernization Market Size Was Estimated at USD 1,761.84 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 18.03% from 2025 to 2035
• The United Kingdom Grid Modernization Market Size is Expected to Reach USD 10,912.76 Million by 2035

According to a research report published by Spherical Insights and Consulting, The United Kingdom Grid Modernization Market Size is anticipated to reach USD 10,912.76 Million by 2035, growing at a CAGR of 18.03% from 2025 to 2035. The nation's power transmission and distribution networks have grown more reliable, efficient, and sustainable due to a number of factors, including growing energy consumption, the incorporation of renewable energy, updates to outdated grid infrastructure, government assistance, and technology breakthroughs.

Market Overview

The United Kingdom grid modernization market refers to the industry focused on improving the nation's electrical grid infrastructure in order to increase sustainability, efficiency, and dependability.  Automation systems, enhanced metering, renewable energy sources, and smart grid technologies are all part of this. The goal of the modernization is to create a more responsive and robust energy network by reducing outages, supporting decarbonization objectives, meeting rising energy demands, and enabling real-time power distribution monitoring and control. The integration of renewable energy sources, including wind and solar, into the national grid. Improvements in energy storage systems, real-time data analytics, and smart grid technologies provide increased grid efficiency and dependability. Furthermore, government funding and programs facilitate the shift to a low-carbon economy, offering up growth prospects for utility firms, infrastructure developers, and technology providers in the modernization ecosystem. The advanced energy storage technologies, automated demand response systems, AI-driven grid management, and smart meter implementation.  By facilitating real-time energy monitoring, improving grid resilience, and facilitating the effortless integration of renewable energy sources, these technologies promote sustainability and efficiency throughout the power network.

Report Coverage

This research report categorizes the market for the United Kingdom grid modernization market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom grid modernization market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom grid modernization market.

Driving Factors

The increasing availability of renewable energy sources, including solar and wind, demands a more adaptable and sophisticated grid architecture.  In order satisfy growing energy demand, improve dependability, and decrease outages, aging grid systems need to be upgraded. Decarbonization objectives and net-zero ambitions are among the government policies and regulatory assistance that are speeding up investment in smart grid technologies. Proactive grid management has also grown accessible due to developments in digitalization, automation, and real-time data analytics. Electric vehicle popularity and rising consumer demand for sustainable energy represent further factors increasing the need for grid enhancing.

Restraining Factors

The uncertainty regarding regulation, expensive initial investment costs, and the difficult integration of modern technologies with current infrastructure.  Rapid adoption is further hampered by a lack of technical expertise and cybersecurity issues, which slow down grid upgrades and make broad modernization initiatives more difficult.

Market Segmentation

The United Kingdom Grid Modernization Market share is classified into component and application.

• The hardware segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom grid modernization market is segmented by component into hardware, software, and services. Among these, the hardware segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth can be attributed to increasing expenditures on energy storage, smart meters, and sensors due to the need to modernize outdated infrastructure, facilitate the integration of renewable energy sources, and improve grid efficiency, security, and real-time operational capabilities.

• The residential segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom grid modernization market is segmented by application into residential, commercial, and industrial. Among these, the residential segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth is driven by increasing consumer demand for energy efficiency, a rise in the usage of smart meters, and home energy management systems that facilitate the integration, control, and real-time monitoring of renewable energy sources, all of which contribute to the transition to economical and sustainable household energy consumption.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom grid modernization market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• ABB Ltd.
• Siemens AG
• Schneider Electric SE
• Hitachi Energy
• General Electric UK
• Alstom SA
• Toshiba UK
• Landis+Gyr AG
• Siemens Gamesa
• Eaton UK
• Others.

Recent Developments:

• In September 2024, SolarEdge introduced its CSS-OD and CSS-ID battery and inverter cabinets to the UK market. Designed for scalability, these systems offer capacities up to 1 MWh per site and integrate with SolarEdge's cloud-based energy optimization platform, SolarEdge ONE for C&I.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at UK, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom grid modernization market based on the below-mentioned segments:

United Kingdom Grid Modernization Market, By Component

• Hardware
• Software
• Services

United Kingdom Grid Modernization Market, By Application

• Residential
• Commercial
• Industrial