Smart grid market good to go for the rest of the decade

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By: SGN Staff

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The smart grid market is still immature, says a new Navigant Research white paper -- and that's a good thing for those who've gotten used to what Navigant calls "high risk and high reward." Although we're not going to see the stimulus-fueled hypergrowth from a few years back, "worldwide smart grid spending will remain robust through the balance of the decade" with a compound annual growth rate of 10%.

 

Well.. robust in most subsectors. But not in smart meters, where the continuing decline in North American shipments is pulling down worldwide growth.

 

Navigant's white paper is titled “Smart Grid: 10 Trends to Watch in 2013 and Beyond.” I'll let you review the 10 trends in the press release below. Or you can jump to the Navigant site and read the report for free if you don't mind registering with your full contact details. One warning: Navigant is too optimistic about home energy management in my view. Use the Talk Back form below to tell us which predictions you think are accurate. - Jesse Berst

 

Well into its second decade of existence, the smart grid market strongly demonstrates the correlation between high risk and high reward.  Although several segments are well-established, little of this market can be characterized as mature.  According to a new white paper from Navigant Research, worldwide smart grid spending will remain robust through the balance of the decade, totaling $494 billion during the period from 2012 to 2020, while smart meter shipments in North America will continue to decline for the next two years.

 

The paper, which identifies ten trends that will shape the smart grid market in 2013 and beyond, is available for free download on Navigant Research’s website.

 

“Smart grid markets are taking their own time to mature,” says Bob Lockhart, senior research analyst with Navigant Research. “There is considerable revenue potential for smart grid vendors, but it is not always clear – even to industry insiders – to whom the majority of that revenue will go.”

 

The key trends covered by Navigant Research in the white paper are as follows:

 

·         Smart grid spending remains robust

·         Smart meter shipments in North America continue to decline

·         Home energy management gains momentum

·         Demand response shifts to a flexibility market

·         Adoption of automated demand response picks up

·         Utilities rely more upon real-time grid analytics

·         Disaster recovery and service restoration become more efficient

·         Distributed energy generation poses more issues

·         Meter data management struggles but survives

·         Cyber security market offers limited promise

 

The white paper, “Smart Grid: 10 Trends to Watch in 2013 and Beyond”, provides insights into key issues that will shape the smart grid market in the months and years ahead, with summary forecasts of smart grid, smart metering, and automated demand response markets.  Each of the topics in this white paper is examined more deeply in Navigant Research market overview reports.  The white paper also compares the development of these markets across different world regions. 

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