Building-to-Grid Technology Market to Reach $147.8 billion, Globally, by 2034 at 10.5% CAGR: Allied Market Research

Governments around the world are increasingly recognizing the importance of integrating buildings into the broader energy grid to improve efficiency, enhance grid reliability, and accelerate the transition to clean energy. Building-to-Grid (B2G) technologies play a crucial role in enabling demand-side management (DSM) demand response strategies by allowing buildings to automatically adjust energy consumption in response to signals from the grid.

WILMINGTON, Del., Oct. 13, 2025 /PRNewswire/ -- Allied Market Research published a report, titled, 'Building-to-Grid Technology Market by Platform (Smart Sensing, Smart Metering, Control Technology, Energy Storage, Others), by Component (Hardware, Software, Service), by End-Use (Commercial, Industrial, Residential): Global Opportunity Analysis and Industry Forecast, 2025-2034'. According to the report, the 'building-to-grid technology market' was valued at $54.9 billion in 2024, and is estimated to reach $147.8 billion by 2034, growing at a CAGR of 10.5% from 2025 to 2034.

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Rising Electricity Demand & Peak Load Management

Building-to-grid technology systems enable demand response (DR) capabilities, allowing buildings to adjust or shift their electricity consumption in real time based on signals from grid operators. For instance, during peak demand periods, a smart building equipped with B2G technology can temporarily reduce HVAC usage, dim lighting, or draw from on-site energy storage systems instead of the grid. This coordinated response reduces stress on the grid and minimizes the need for additional power generation, resulting in both enhanced grid stability and lower operational costs for utilities. According to the IEA, global electricity consumption increased by nearly 1,100 TWh in 2024 alone, surpassing Japan's annual usage. This marks a significant acceleration compared to the average annual increase over the past decade. Moreover, in India, the government directed power distribution companies to prepare for a record-breaking electricity demand of 9,000 MW in the summer of 2025. Measures include demand estimation, supply arrangements, fault handling, and the use of redundancy systems. B2G integration helps utilities avoid costly infrastructure upgrades by leveraging flexible loads and distributed resources already present in the built environment.

Government Incentives & Regulatory Push

Government policies and regulatory frameworks are playing a crucial role in accelerating the adoption of Building-to-Grid (B2G) technologies. As countries strive to meet climate goals, reduce carbon emissions, and modernize their energy infrastructure, policymakers are introducing a range of incentives and mandates aimed at promoting smarter and more flexible energy systems.

India has demonstrated a robust regulatory and financial push for B2G and smart grid technologies. The Union Budget allocations for the solar power (grid) segment have increased dramatically, from $285.4 million (₹2,369 crore) in 2021-22 to over $963.86 million (₹8,000 crore) in 2024, with $180.7 million (₹1,500 crore) allocated in 2025. This funding supports the manufacturing of solar PV cells, electrolysers, and grid-scale batteries, key components for Building-to-Grid (B2G) technologies. The 2025-26 budget also allocated $19.30 million (₹160.21 crore) to the Revamped Distribution Sector Scheme (RDSS) and $24.1 million (₹200 crore) to the Pradhan Mantri Surya Ghar Muft Bijli Yojana, aiming to solarize 10 million households and achieve 30 GW of rooftop solar by 2027. All these factors drive the growth of the building-to-grid (B2G) technology market.

Report coverage & details:

Rising Investments in Green Building Materials

Advanced Metering Infrastructure (AMI) and smart sensors are foundational technologies that enable buildings to become active and flexible participants in the modern energy grid. AMI refers to a system of smart meters, communication networks, and data management tools that provide detailed, real-time information about electricity consumption. Smart sensors complement AMI by capturing additional data on environmental conditions, equipment status, and energy usage within buildings. These sensors monitor parameters such as temperature, occupancy, lighting levels, and appliance performance, providing a comprehensive picture of building operations. In February 2024, the Indian government launched the Revamped Distribution Sector Scheme (RDSS), aiming to install 250 million smart meters by 2025. However, less than 3% of this goal had been achieved.

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Increasing Demand for Building-to-Grid (B2G) Technology in Asia-Pacific Countries

The Asia-Pacific region is experiencing a significant surge in demand for Building-to-Grid (B2G) technology, driven by rapid urbanization, growing energy consumption, and a strong push toward sustainable development. As cities expand and industrial activities intensify, electricity demand in the region is rising sharply, placing considerable stress on existing power grids. In 2024, Singapore's Energy Market Authority launched a VPP pilot to aggregate distributed energy resources, including EVs and solar panels, to provide grid services. Moreover, in May 2024, Tata Power Delhi Distribution Limited partnered with the India Smart Grid Forum to deploy a V2G technology demonstration project in North Delhi, aiming to enhance grid stability and EV utility.

Increase in Smart Cities and Digital Twins

Building-to-grid technology is increasingly becoming a cornerstone of smart city development, fundamentally transforming how urban energy systems operate. Smart cities aim to integrate information and communication technologies to improve the quality of life, sustainability, and efficiency of urban environments. Within this context, B2G enables buildings to become interactive energy nodes that communicate with the wider grid, allowing cities to better manage energy demand, reduce waste, and incorporate renewable energy sources more effectively. In March 2025, Evanston's Healthy Buildings Ordinance implemented a building performance standard mandating zero on-site emissions and 100% renewable electricity procurement for large buildings by 2050. This ordinance emphasizes equity and community accountability in its implementation.

Trump's Tariff Impact on Building-to-Grid Technology

The tariff hike has negatively impacted the commercial and municipal projects. According to data from the U.S. Department of Energy (DOE), the number of B2G projects initiated in Q1 2025 dropped by 12% compared to the same period in 2024. Notably, this contraction comes despite rising demand for building electrification and distributed energy resources (DERs), which are central to net-zero building strategies. Large-scale developments in states like California, New York, and Illinois have slowed or downsized their smart infrastructure plans due to cost overruns tied to imported control systems and battery storage modules.

Moreover, U.S.-based B2G firms are experiencing a competitiveness squeeze. Many rely on lithium-ion batteries, inverters, and advanced control systems from China or Southeast Asia, where technological capabilities and economies of scale offer lower costs. With these tariffs in place, domestic alternatives are still ramping up production and lack the price parity and proven scalability. As a result, a survey conducted by the Building Grid Alliance in April 2025 found that 64% of U.S. B2G companies expect to delay expansion plans or restructure their product offerings if the tariffs remain through 2026.

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Key Players: -

• Siemens AG
• Schneider
• Electric
• ABB Ltd.
• General Electric
• Honeywell International Inc.
• Landis+Gyr Group AG
• Enphase Energy
• S&C Electric Company
• Itron Inc
• Oracle

The report provides a detailed analysis of these key players in the global building-to-grid technology industry. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, and agreements to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to highlight the competitive scenario.

Recent Key Developments

• In May 2023, Siemens acquired the EV division of Mass-Tech Controls to enhance its capabilities in India's growing EV charging infrastructure market. This move supports Siemens' efforts to integrate EVs into the grid, promoting efficient energy distribution construction buildings.
• In March 2024, Schneider Electric partnered with Mainspring Energy to deliver a hybrid energy technology combining microgrid solutions with linear generators, enhancing energy resilience for commercial and industrial customers.

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