Smart grid on pace to hit $2 trillion cumulative investment, but pitfalls loom

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By Jesse Berst

The smart grid is on pace to hit a $2 trillion cumulative investment between 2010 and 2030, according to a new study from UK research firm Memoori. The firm estimates the sector will need to grow by a compound annual growth rate of 23% to hit that mark, peaking at $155 billion in 2022.

Every research firm defines and sizes the market differently. Memoori takes a conservative view, valuing the 2010 market at just $16 billion. (Many market researchers say the total market is at least twice that size globally.)

Other highlights:

• AMI is leading the way, but other sub-sectors such as distribution automation will be harder and "we will wish that we had spent more time and effort on balancing out time and budget across the full spectrum of smart grid requirements."
• The smart grid is "inevitable" because it is necessary for a low-carbon economy, but could suffer some delay
• The biggest blockers are political and business models, not technology
• China will be the biggest market, followed by the U.S., India, Japan and Brazil

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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