Global Active Network Management (ANM) Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2032

Global Active Network Management (ANM) Market Segmentation, By Component (Software and Services), Organization Size (Small and Medium-Sized Enterprises (SMEs) and Large Enterprises), Application Area (Power, Energy and Utilities, Transportation, Government and Others)- Industry Trends and Forecast to 2032

Active Network Management (ANM) Market Size

• The global active network management (ANM) market size was valued at USD 1.61 billion in 2024 and is expected to reach USD 4.80 billion by 2032, at a CAGR of 14.6% during the forecast period
• The market growth is largely fuelled by the rising integration of renewable energy sources, increasing grid complexity, and the need for real-time monitoring and control of electrical distribution networks
• Growing adoption of smart grids, energy storage systems, and advanced analytics is further accelerating the demand for ANM solutions to enhance grid reliability and optimize power flow

Active Network Management (ANM) Market Analysis

• Rising demand for smart grid infrastructure and digitalization of electrical networks is driving the deployment of ANM systems
• Increasing penetration of distributed energy resources (DERs), such as solar PV and wind power, requires sophisticated network management to maintain grid stability
• North America dominated the ANM market with the largest revenue share of 36.5% in 2024, driven by rising investments in smart grid projects, renewable energy integration, and advanced digital infrastructure
• Asia-Pacific region is expected to witness the highest growth rate in the global active network management (ANM) market, driven by increasing adoption of renewable energy, digitalized grid infrastructure, and the need for real-time network optimization in countries such as China, Japan, and India
• The Software segment held the largest market revenue share in 2024, driven by the increasing adoption of advanced network management platforms that enable real-time monitoring, predictive analytics, and optimization of electricity distribution. ANM software allows utilities to enhance grid reliability, integrate distributed energy resources, and manage energy demand efficiently

Report Scope and Active Network Management (ANM) Market Segmentation

Active Network Management (ANM) Market Trends

Rise of Smart Grid and Real-Time Network Management Solutions

• The growing adoption of smart grid technologies is transforming the ANM market by enabling real-time monitoring, control, and optimization of electrical distribution networks. These systems allow utilities to respond quickly to fluctuations in demand and supply, improving grid reliability and efficiency
• The increasing integration of distributed energy resources (DERs), including solar PV, wind, and energy storage systems, is accelerating the deployment of ANM solutions. These systems are critical for balancing variable generation and preventing overloads or outages across the grid
• The affordability and scalability of modern ANM solutions are making them attractive for utilities of all sizes, allowing for predictive maintenance, load management, and improved operational efficiency without excessive infrastructure costs

  • For instance, in 2023, several European utility providers implemented advanced ANM systems across multiple regions, enabling real-time voltage regulation and automated load balancing, which reduced outages and improved energy delivery efficiency

• While ANM technologies enhance grid stability and operational efficiency, their impact depends on continued innovation, integration with legacy infrastructure, and adequate operator training. Manufacturers and utilities must focus on localized solutions and seamless deployment strategies to fully capitalize on the growing demand

Active Network Management (ANM) Market Dynamics

Driver

Increasing Penetration of Distributed Energy Resources and Smart Grid Initiatives

• The rising deployment of DERs is driving utilities to adopt ANM solutions to manage fluctuating energy inputs while maintaining grid stability. These systems help prevent overloading, optimize voltage levels, and improve energy distribution efficiency
• Growing investments in smart grid infrastructure and government incentives supporting energy digitalization are accelerating the adoption of ANM technologies globally
• Utilities are increasingly recognizing the financial and operational risks associated with unoptimized grids, such as energy losses, outages, and equipment stress. This awareness is driving demand for advanced ANM systems to enhance grid reliability

  • For instance, in 2022, several U.S. utility companies integrated ANM platforms with existing smart grid systems to manage rooftop solar integration, demonstrating significant reductions in energy curtailment and grid instability

• While regulatory support and technological adoption are driving the market, there remains a need for seamless integration with existing infrastructure, skilled personnel, and standardized protocols to ensure sustained growth

Restraint/Challenge

High Deployment Costs and Complexity of Integration With Existing Grids

• The high initial investment required for advanced ANM systems, including sensors, communication networks, and software platforms, limits adoption among smaller utilities and underfunded regions. This cost barrier often delays modernization efforts and prevents widespread deployment in developing markets. As a result, many utilities continue to rely on traditional grid management methods, missing out on operational efficiencies
• Many distribution networks have legacy infrastructure that is difficult to integrate with modern ANM solutions, creating technical challenges and increasing project timelines. Compatibility issues with old transformers, substations, and control systems often require costly upgrades or retrofitting, adding complexity to deployment. These integration challenges can slow adoption rates and increase resistance among grid operators
• Limited availability of trained personnel for system operation and maintenance reduces operational efficiency and delays deployment in some regions. Skilled workforce shortages hinder the effective use of advanced monitoring tools and predictive analytics, leading to underutilization of ANM capabilities. This creates additional training and resource requirements for utilities aiming to optimize grid performance

  • For instance, in 2023, several developing nations in Asia faced delays in rolling out ANM systems due to challenges in integrating smart grid solutions with older electrical networks. These delays impacted grid reliability, operational efficiency, and renewable energy integration. Utilities had to invest additional time and resources to overcome infrastructure limitations and train technical staff

• Although ANM technologies are evolving rapidly, addressing cost, integration, and skill gaps is critical. Without scalable, modular solutions and workforce readiness, utilities may struggle to fully realize the benefits of real-time network management. Long-term adoption depends on both technological advancement and strategic capacity-building initiatives

Active Network Management (ANM) Market Scope

The market is segmented on the basis of component, organization size, and application area.

• By Component

On the basis of component, the ANM market is segmented into Software and Services. The Software segment held the largest market revenue share in 2024, driven by the increasing adoption of advanced network management platforms that enable real-time monitoring, predictive analytics, and optimization of electricity distribution. ANM software allows utilities to enhance grid reliability, integrate distributed energy resources, and manage energy demand efficiently.

The Services segment is expected to witness the fastest growth rate from 2025 to 2032, driven by the rising demand for consulting, system integration, maintenance, and support services. Service offerings help utilities implement ANM solutions effectively, ensure smooth operations, and optimize grid performance, particularly in regions adopting smart grid technologies for the first time.

• By Organization Size

On the basis of organization size, the market is segmented into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment held the largest market revenue share in 2024, owing to their extensive grid infrastructure and higher investment capacity for implementing ANM systems. Large utilities benefit from improved operational efficiency, predictive maintenance, and integration of renewable energy sources through advanced network management.

The SMEs segment is expected to witness the fastest growth rate from 2025 to 2032, supported by increasing awareness of grid optimization benefits and the availability of scalable, cost-effective ANM solutions. SMEs are gradually adopting ANM technologies to improve reliability, reduce downtime, and optimize energy consumption without incurring excessive infrastructure costs.

• By Application Area

On the basis of application area, the market is segmented into Power, Energy and Utilities, Transportation, Government, and Others. The Power, Energy and Utilities segment held the largest market share in 2024 due to the growing complexity of electrical grids, rising renewable energy integration, and the need for real-time monitoring and control. ANM solutions are essential for maintaining grid stability, optimizing energy distribution, and preventing overloads.

The Transportation segment is expected to witness the fastest growth rate from 2025 to 2032, driven by the adoption of ANM solutions for electrified transport networks, metro systems, and connected infrastructure. These applications help manage energy demand efficiently and support the integration of electric vehicle (EV) charging networks, contributing to smarter, more reliable transport systems.

Active Network Management (ANM) Market Regional Analysis

• North America dominated the ANM market with the largest revenue share of 36.5% in 2024, driven by rising investments in smart grid projects, renewable energy integration, and advanced digital infrastructure
• Utilities in the region are focusing on real-time monitoring, predictive maintenance, and optimization of power distribution, which has accelerated the adoption of ANM systems
• This widespread adoption is further supported by government initiatives, high urbanization rates, and a strong emphasis on grid reliability, establishing ANM solutions as critical for both urban and industrial power networks

U.S. Active Network Management Market Insight

The U.S. ANM market captured the largest revenue share in North America in 2024, fueled by significant investments in smart grid modernization and distributed energy resource (DER) integration. Utilities are increasingly implementing advanced network management platforms to optimize power flow, reduce outages, and enhance grid stability. The growing adoption of IoT-enabled monitoring, cloud-based analytics, and AI-driven decision-making further propels market growth.

Europe Active Network Management Market Insight

The Europe ANM market is expected to witness the fastest growth rate from 2025 to 2032, driven by stringent energy regulations, rising renewable energy adoption, and smart grid initiatives. Countries such as Germany, France, and the U.K. are increasingly deploying ANM systems to manage energy distribution, reduce operational costs, and ensure grid reliability. The region is witnessing strong growth across power utilities and industrial applications, with ANM solutions supporting sustainable energy management.

U.K. Active Network Management Market Insight

The U.K. ANM market is expected to witness the fastest growth rate from 2025 to 2032, driven by the increasing focus on smart grid deployment and energy efficiency. Utilities are leveraging ANM solutions to integrate renewable energy sources, manage peak load demand, and prevent network overloads. The government’s support for digitalized energy infrastructure and the adoption of AI-enabled grid monitoring tools are expected to sustain market growth.

Germany Active Network Management Market Insight

The Germany ANM market is expected to witness the fastest growth rate from 2025 to 2032, fueled by the country’s push for renewable energy integration, grid modernization, and energy efficiency initiatives. German utilities are adopting ANM systems to manage distributed energy resources and optimize real-time power flow. The focus on innovation, sustainability, and smart city projects is driving widespread implementation of ANM platforms across industrial and urban networks.

Asia-Pacific Active Network Management Market Insight

The Asia-Pacific ANM market is expected to witness the fastest growth rate from 2025 to 2032, driven by rapid urbanization, increasing power demand, and government initiatives promoting smart grid and renewable energy integration. Countries such as China, Japan, and India are deploying ANM solutions to optimize grid operations, integrate distributed energy resources, and improve network reliability. The region’s focus on digitalized power infrastructure and affordable energy management solutions is further accelerating market growth.

Japan Active Network Management Market Insight

The Japan ANM market is expected to witness the fastest growth rate from 2025 to 2032 due to high urban population density, advanced technological adoption, and the need for energy-efficient grid operations. Utilities are implementing ANM solutions to integrate solar, wind, and battery storage systems while ensuring real-time network control. Government-backed smart grid projects and increasing renewable energy penetration are key factors driving the market in Japan.

China Active Network Management Market Insight

The China ANM market accounted for the largest revenue share in Asia-Pacific in 2024, attributed to rapid urbanization, high energy demand, and significant investments in smart grid infrastructure. Utilities are leveraging ANM platforms to optimize distribution networks, reduce energy losses, and manage large-scale integration of renewable energy sources. Strong government support, local manufacturing capabilities, and rising digitalization initiatives are propelling market growth in China.

Active Network Management (ANM) Market Share

The Active Network Management (ANM) industry is primarily led by well-established companies, including:

• ABB Ltd. (Switzerland)
• Oracle Corporation (U.S.)
• General Electric Company (GE) (U.S.)
• Schneider Electric SE (France)
• Siemens AG (Germany)
• Itron Inc. (U.S.)
• Landis+Gyr AG (Switzerland)
• INDRA SISTEMAS S.A. (Spain)
• Chemtrols Industries Pvt. Ltd. (India)
• UK Power Networks (U.K.)
• Camlin Ltd. (U.K.)
• Smarter Grid Solutions (U.K.)
• ZIV (Spain)
• Argand Solutions (U.K.)
• Kelvatek Ltd. (U.K.)
• Cisco Systems, Inc. (U.S.)
• IBM (U.S.)
• Western Power Distribution (U.K.)

Latest Developments in Global Active Network Management (ANM) Market

• In December 2021, Schneider Electric launched its Grids of the Future lifecycle management solution, aimed at supporting the global energy transition. The platform provides advanced capabilities for grid operators to reduce the risk of outages, enhance demand flexibility, optimize supply management, and improve overall operational and energy efficiency. This development strengthens the company’s position in the ANM market and drives adoption of next-generation smart grid solutions worldwide
• In March 2021, ZIV Automation introduced Mongolia’s first Active Network Management (ANM) system for Desert Solar Power, implementing a smart grid solution to address transmission capacity constraints. The system enabled efficient management of renewable energy resources and unlocked an additional 30 MVA of electric capacity. This initiative highlights the growing role of ANM technologies in emerging markets, supporting renewable integration and advancing grid modernization efforts

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