Double digit growth rates for global smart grid market
January 10, 2012
The global smart grid market has experienced double-digit growth rates over the last five years and is expected to continue its growth momentum, reaching approximately US $57 billion by 2016 with a CAGR of 13% over the next five years.
Lucintel’s research indicates that growth in renewable energy generation sources and their integration into a common grid is one of the major drivers in the smart grid market. The high cost of installing smart grid components such as smart meters and sensors, and the maintenance and monitoring expenses of smart grid technology are challenging factors. Rising costs of electricity generation, government incentives to promote green energy, distribution of smart meters, and development in transmission facilities to provide energy to remote areas, however, are boosting the smart grid market.
During 2011-2016, the communication solutions segment is expected to grow at a higher rate as compared to other segments while the test and monitoring solutions segment is expected to grow at a slower pace. The smart grid infrastructure segment is likely to have the highest market size.
As per the study, the growth rate is expected to be the highest in Asia Pacific because of higher cumulative investments in the countries of that region. North America is expected to grow more than Europe because of higher potential in NA to install renewable energy sources with low customer penetration at present. Growth rate in ROW region is expected to be the lowest because of comparatively low energy demand and customer penetration.
