Sector Spotlight: Grid Management

Electricity demand is on the rise around the globe as temperatures rise, more vehicles and buildings transition away from fossil fuels, and adoption of new technologies like AI grows.

Global electricity consumption is projected to continue increasing by about 4% each year through 2027, equating to an unprecedent 3,500 TWh, according to an IEA report.

To keep up with demand, power grid infrastructure has to adapt — and fast. Grid management companies are poised to play a crucial role in that process.  

Here’s what private market dealmakers need to know about the sector.

Grid Management: A Small Sector with Big Potential

Source: Grata

Grid management companies account for just 1.5% of the clean power infrastructure industry, but that doesn’t mean dealmakers should overlook the space.

The overwhelming majority of companies in the grid management sector are privately owned and ripe for acquisition.  

Why Grid Management Is Set to Surge

Source: Grata

The grid management sector has the highest average growth rate and the lowest amount of capital raised of the clean power infrastructure segments that we analyzed in our recent PE Playbook. The market’s low capital could signal less competition for dealmakers, and more opportunity to establish themselves as leaders in the space.

Stress on aging power grid infrastructure is piling up as electric vehicle adoption grows, extreme weather events become more frequent, and new technologies like AI drive energy consumption higher. Demand for electricity shows no signs of slowing, so management systems will almost certainly continue to grow in tandem.

Grid management technology also offers a natural bridge to the adjacent microgrids sector, which is also a high-growth (22.4% mean annual rate), low-capital ($7.8M mean capital raised) space.

Who's Winning in Grid Management

The Grata team has curated a list of top private companies in the grid management sector. These companies have been selected based on their revenue and employee headcount compared to the industry averages.

Source: Grata

Grata users can see and save the full list here.

Take Action with Grata

If you’re a private market dealmaker looking to make moves in the grid management space, Grata can help you put the insights in this article into action.

From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.

Schedule a demo today to get started.