In a new report released on Tuesday by researching firm Market Research (Rockville, Md., U.S.A.), it was predicted the M2M market in the utilities sector will see major growth in terms of numbers of connections, from 100 million in 2010 to 1.5 billion in 2020. According to Market Research, this opportunity is dominated by one application: smart metering.
Smart metering represented 97% of connections in 2010, predicted to rise to 99% by 2020. It also accounts for more than 95% of revenue throughout the forecast period, according to Marker Research.
The other two applications examined in this report -- transport & distribution management (T&DM) and electric vehicle (EV) charging -- are modest opportunities in comparison to smart metering, according to Market Research. Although, on a per unit basis they will both generate more traffic and revenue in 2020.
In a second report released by another research firm, Research and Markets (Dublin, Ireland), it was reported that major changes are coming in the transmission sector of smart grid technology, which will create new opportunities for system firms, as well as firms that manufacturer electronic components, develop IT systems and carry out systems integration.
According to Research and Markets, much of the opportunity for selling equipment into the smart grid is currently perceived as occurring in the distribution segment. This reflects the emphasis by both power companies and regulators on advanced metering infrastructure (AMI) and demand response (DR). But, according to the firm, it also reflects the fact that there is a strong perception that the distribution segment of the grid has failed to keep pace with developments in digital communications and control technology.
For equipment makers the new revenue potential will range from new generations of small transformers to distribution automation and communications systems. And in a market where the impact of information technology has to date been fairly minimal, the distribution segment is expected to see revolutionary developments in communications, security and monitoring, according to the firm.