High Cost of Installation – Restrains the Market Growth
Smart grid installation is an expensive exercise. The value of the US electric grid comprising of power plants, transformers, wires, and poles is more than USD 1 trillion. The total cost of replacing it with the smart grid is expected to be more than USD 4 trillion. The high installation cost is expected to be a critical factor in the deployment of smart grids, particularly in the developing nations. Further, the deployment of new generation sources, such as wind, rooftop solar as well as a new end-user base, such as electric vehicles, are expected to propel the need for infrastructural requirements further, thereby, increasing capital expenditure required for smart grid installation.
Asia-Pacific is the Fastest-growing Market
Smart grid has become the first solution for utilities operating in the Asia-Pacific region, to deal with the escalating demand for electricity. Japan and South Korea are estimated to be one of the favorite hotspots for smart grid investment. Japan’s leading power utility, plans for a complete rollout of the residential smart meter by 2020. As of May 2017, 10 million smart meters were deployed in Japan, and the country’s largest utility company, Tokyo Electric Power Co (TEPCO), expects to deploy 27 million residential smart meters within its service territory by 2020. India has also launched similar initiatives, which support smart grid deployment in the country to meet the increasing demand for electricity, and to deal with the high transmission and distribution loss. Large-scale deployment of smart meters is expected to drive the market in the region during the forecast period, 2018 - 2023.
United States is one of the Largest Market
The focus of the United States has not been on generation of electricity, as consumption patterns have not altered much. Instead, it emphasizes on the deployment of smart grid solution. Electric companies installed 65 million smart meters, covering more than 50% of the total US households, by 2015. Deployment reached approximately 70 million smart meters by the end of 2016, and is projected to reach 90 million by 2020. If smart grids are deployed fully across the United States, the country expects to save USD 130 billion annually, by 2019. Further, Canada with 100% electrification rate has installed smart meters in 70% of the country.
Key Developments in the Market
• January 2018: Northern Powergrid to carry out EUR 83 million smart grid upgrade projects to become low carbon leader.
• January 2018: Audi launched Smart Energy Network pilot project in the Ingolstadt area and in the Zurich region.
• June 2017: Rotterdam was set to become Europe’s largest smart grid network, by connecting 20,000 households and companies to a smart grid network.
MAJOR PLAYERS: ABB Ltd, Cisco Systems Inc., Eaton Corporation PLC, General Electric Co., Oracle Corporation, Schneider Electric SE, Siemens AG, Hitachi Ltd, amongst others.
Reasons to Purchase this Report
• Identify the effect of evolving technology, growing energy demand, and government policies and regulation in the global smart grid network market
• Analyze various business perspectives of the market with the help of Porter’s five forces analysis
• Identify regions witnessing fastest and significant growth during the forecast period
• Identify the latest developments, market shares, and strategies employed by the major market players
• 3 months analyst support, along with the Market Estimate sheet (in excel).
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