At present, the energy transition is leading to the replacement of large thermal power plants by distributed renewable generation and the introduction of different assets. Consequently, a massive deployment of power electronics is expected. A particular case will be the devices destined for urban environments and smart grids. Indeed, such applications have some features that make wide bandgap (WBG) materials particularly relevant. This paper analyzes the most important features expected by future smart applications from which the characteristics that their power semiconductors must perform can be deduced. Following, not only the characteristics and theoretical limits of wide bandgap materials already available on the market (SiC and GaN) have been analyzed, but also those currently being researched as promising future alternatives (Ga2O3, AlN, etc.). Finally, wide bandgap materials are compared under the needs determined by the smart applications, determining the best suited to them. We conclude that, although SiC and GaN are currently the only WBG materials available on the semiconductor portfolio, they may be displaced by others such as Ga2O3 in the near future.