The global smart grid technology market has witnessed significant growth over the past few years, due to increasing adoption of smart meters, regional government initiatives for funding smart grid projects, electric vehicles and increasing number of advanced infrastructure projects across the globe. Additionally, the efficient way of managing distributed energy resources and growing concern about reduction in carbon footprints are the factors driving the growth of the market for smart grid. Key drivers shaping global utility demand include evolving regulatory requirements and historical IT and infrastructure investments. These factors are leading to huge investment in transmission optimization and distribution automation for grid modernization.
There is growing requirement for utilities to upgrade and modernize their transmission, and for distribution grids owing to the emergence of new utility-scale and distributed renewable capacity. Laying of transmission lines to comply with the clean power plan is increasing rapidly due to the increased emphasis on renewable resources. Utilities suppliers are focusing on building transmission lines to serve the industries such as oil and gas and drilling operations. Modernizing the grid includes installation of new lines with the handling of two-way power flows, whereas in the past, all the power in the system flowed one-way - only from the bulk power level down to customer, which leads to broader scope for the smart grid technology market, globally.
In 2015, the International Energy Agency estimated the U.S. to spend $2.1 trillion by 2035 on grid technologies and infrastructure to prepare for higher penetrations of renewables and utilities. The nation’s power companies have been steadily increasing their investments in smart grid technologies in recent years, which is creating opportunities for the growth of the smart grid technology market; however, smart grid roadmap is becoming increasingly multidimensional as smart grid implementations and applications begin to develop further in various geographies. There are common architectural, hardware and process components that will be deployed regionally; however, the deployment and maturity of applications are likely to evolve differently depending on local drivers, requirements and technological aspects.
North America is expected to contribute the largest revenue to the global market, during the forecast period (2016-2022). Additionally, smaller co-operative utilities are expected to inject funds for smart grid deployments in the U.S. Asia-Pacific is expected to offer potential growth opportunities to the global smart grid technology market, due to the upcoming smart grid projects, new economic and political reforms in the regions, increasing energy prices and growing employment opportunities.
The major vendors in the global smart grid technology market covered for this study include ABB Group (Switzerland), General Electric Company (The U.S.), International Business Machine (The U.S.), Itron Inc. (The U.S.), Landis+Gyr AG (Switzerland), Oracle Corporation (The U.S.), Schneider Electric SE (France), Siemens AG (Germany), Cisco Systems, Inc. (The U.S.) and Open Systems International, Inc. (The U.S.).