The growing demand for power is the need of the hour. There is an increasing demand for reliable and continuous power supply, and this is especially an area of concern in developing and emerging economies of the world. The need to reduce transmission and distribution losses is also a point that needs to be addressed urgently. A smart grid
is capable of addressing the aforementioned issues and essentially has the ability to modernize the power grid. One of the major factors driving the growth of the smart grid market is the resulting increase in efficiency and optimization that can be achieved with the use of this technology. Favorable government regulations and policies is another factor attributing to the growth of this market. Smart grid technologies play a major role in helping with greenhouse gas emission control and also increase the strength of critical infrastructure to be able to better withstand the effects of climatic change. Recent technological advancements that are fuelling the concept of Internet-of-Things and Smart Cities, to name a few, are also impacting the smart grid technology market as smart energy is one of the main components of a smart city.
The high initial investments required coupled with the lack of standards, especially to enable interoperability are some of the factors inhibiting the growth of the market. The Smart Grid Technology market can be segmented as
- on the basis of technology
- Advanced Metering Infrastructure (AMI), Distributed Automation, Software, Hardware, Communication Technologies, Cyber security, Transmission Upgrades, Services and Consulting, and Others
From 2009 onwards, the U.S. has made very large investments on modernization of its electricity grid and is currently the leading country in the smart grid market.
This has given North America the number one position in the global smart grid market. However, by the end of the forecast period, APAC, on account of China, will occupy the largest share of the overall smart grid technology market.
- By Geography
- North America, South America, APAC, Europe, Middle East and Africa
The smart grid market is highly fragmented with several players in this market and none of which account for a very large share. Following are just a few of the companies that are operating in the Smart Grid Technology market
- Itron, Inc.,
- ABB Ltd.,
- Eaton Corporation
- Schneider Electric Corporation.