The global market for smart-grid technologies will generate revenues of $73 billion in 2020, up from $33 billion in 2012, according to a new report from Pike Research.
The market-research company says smart-grid technologies will have generated $494 billion in cumulative revenues by the end of 2020, but warns the industry that “the creation of the smart grid remains a colossal undertaking”.
It lists transmission upgrades, automation of subsystems and distribution, smart grid IT and smart meters among the challenges ahead, but says these should translate into strong growth for vendors of smart-grid technologies.
“The overlay of modern smart-grid technologies on to existing grids promises numerous benefits to utilities, including increased reliability and capacity, reduced energy losses, and deferring or eliminating the need for new generation resources,” said Bob Lockhart, a senior research analyst with Pike Research.
According to the report, there is no single “smart grid solution” that will work for all utilities.
Pike Research reckons utilities will take individual approaches to smart grids: while some start with smart metering, others will begin with transmission upgrades.
Many utilities have yet to embark on an advanced metering infrastructure course, judging by the number of smart meter deployments (which Pike Research puts at a total of 832 million smart meters over the 2011–20 timeframe), but the report authors expect these companies to do so over the next seven years.