• Market Insights

Smart Grid: Independent Service Providers Sector Snapshot

We are pleased to share our latest research, a Sector Snapshot Report on Smart Grids.

This report is the fifth in a series of five, each focusing on a key sub-segment within the Smart Grid sector: (1) Architecture, Engineering and Construction, (2) Hardware and Components, (3) Software and IT, (4) Grid Operators and Energy Suppliers, and (5) Independent Service Providers.

With a focus on the Independent Service Providers (ISP) sub-segment, the report covers the following topics and key points:

Smart Grid Definition (across all sub-segments):

  • Digital, self-monitoring grid with automation, real-time control, and two-way energy and data flow

  • Connects renewables, storage, and smart devices to improve efficiency, reliability, and sustainability

Market Size and Overall Growth (across all sub-segments):

  • Market size of USD 60 bn (2024), expected to grow to USD 289 bn by 2034 (CAGR 16.9%)

  • Main Growth Areas: Renewable energy integration, grid automation & digitalization, EV infrastructure, and energy storage

Purpose (ISP):

  • Specialized services to ensure grid reliability, safety, and compliance

Key Customers & Applications (ISP):

  • Utilities, grid operators, energy suppliers, and industrial clients requiring ongoing grid operations support and compliance

Market Structure (ISP):

  • Fragmented mix of engineering firms, software providers, and consultancies offering specialized services like commissioning, testing, and predictive maintenance

  • Typically support utilities, OEMs, and EPCs as subcontractors or tech partners, focusing on real-time monitoring, analytics, and component interoperability

Selected Key Players (ISP):

  • Key players include global consultancies like Accenture and Capgemini, engineering firms such as Fichtner, IT providers like Secure Switzerland AG, virtual power plant operators like Next Kraftwerke, and specialized energy consultants such as enervis and BET Consulting

Transaction Market Dynamics (ISP):

  • M&A activity in the ISP sector driven by rising demand for compliance, security, and maintenance services, with acquisitions focused on scaling and enhancing capabilities

  • Key drivers include stricter compliance, outsourcing by utilities, and advancements in AI, IoT, and automation. Outlook highlights opportunities for roll-ups, buy-and-build platforms, and expansion into DER management and digital grid security

Please reach out to us if you would like to discuss the sector in more detail or would like to talk about specific transaction opportunities in the space!

Link zum Sector Snapshot (EN)