The global smart grid technology market is expected to experience brisk growth over the forecast period due to increasing energy demand across the world. The rise in government support for smart grid technologies is estimated to contribute towards the smart grid technology industry growth over the next eight years.
Smart grids are useful in the power grid modernization process as they result in reduced transmission and distribution losses. MDMS, SCADA, DRM, DMS, and several other such software support smart grid technologies. This technology manages the demand and supply for electricity along with continuous data exchange through networking, data storage, information analytics, and data & information management. This system opens wide-ranging opportunities for energy conservation and efficient operations.
This technology includes distribution automation, smart metering & transmission upgrades, substation automation, and smart grid IT/OT. Such advanced smart technologies are majorly used for electrical transmission that stabilizes the grid along with accurate power control and delivers maximum power. SCADA that is Supervisory control and data acquisition systems provides data in real-time situations for electric power alteration. High-voltage direct current (HVDC) technology has the ability to deliver power in a long-distance range with minimum loss of land as well as underwater
Due to an increase in government support and substantial investment by organizations towards smart grid technology implementation, the industry is estimated to witness positive growth over the forecast period. This system enhances usage, distribution, and reduces transmission losses during power delivery to the customers. Such positive characteristics are expected to increase demand for such systems across the world over the eight-year period. Moreover, the aging power distribution infrastructure is further projected to propel industry growth over the forecast period. Improved communication network due to error-free and efficient data transfer is another factor that is anticipated to have a positive impact on the industry in the next few years. Growing energy concerns and standards mandating manufacturers to adopt efficient energy management procedures are projected to assist the global power grid technology market from 2019 to 2025.
High installation costs and massive initial investment are presumed to hinder the industry growth over the forecast period. Issues such as data security and privacy among customers are estimated to hamper the industry demand. Lack of common implementation standards and interoperability across different regions are expected to decrease the smart grid technology market growth over the forecast period. Massive investments towards superior product development are expected to open up new opportunities for industry vendors.
The smart grid technology market can be classified into outage management systems (OMS), energy management systems (EMS), SCADA, demand management systems (DMS), and geographic management systems (GMS) based on network operations software. Sensor segments for this industry include, which include flexible AC transmission systems (FACTS), transformer monitoring sensors, voltage sensors, and SCADA related sensors, direct current transmission & wide-area monitoring sensors, dynamic line rating sensors, and home area network sensors.
Several applications for this smart grid technology include meter hardware, communications & networking and power quality equipment and technologies such as tap changers, capacitor switches, banks, voltage regulators, static compensators, and controls. The market can be classified into Wide Area Network (WAN) and Home Area Network (HAN) based on communication networks.
Key regional markets include North America, Europe, Central & South America, Middle East & Africa, and Asia Pacific. Regions such as Asia Pacific have dominated the global market owing to high demand in the recent past followed by the European region. These regional markets are expected to show a similar trend over the forecast period due to rising need for secure and reliable power supply.
Developing regions such as Asia Pacific has accounted for the maximum revenue share in the global industry due factors such as rapid urbanization and industrialization. Europe and North America are estimated to experience positive growth in the sector owing to massive investment in the power supply sector. Emerging economies such as India and China are predicted to witness positive growth over the next eight years. Innovation and development towards efficient electricity supply are anticipated to enhance further the growth in this region in the near future.
The industry is highly cost-intensive and is exposed to massive raw materials cost. Industry participants are investing in research and development initiatives to generate technologically advanced systems which give them a competitive advantage over other vendors. The industry is presumed to witness several mergers and acquisitions shortly, with companies taking active measures to gain market share and to deliver a diversified product portfolio.
Prominent industry participants include Cisco Systems, INC, Cooper Power Systems, LLC, Elster Group SE, GE Energy, International Business Machines Corporation (IBM CORP), Iskraemeco, Landis+GYR LTD, Comverge Inc., Echelon CORP, eMeter Corporation, GRID NET, INC.
Others include Infrax Systems, INC., Itron INC, Osisoft, LLC, S&C Electric Company, Silver Spring Networks INC, STMicroelectronics N.V., Tendril Networks, INC., Ventyx, INC., Power Plus Communications AG, Sensus USA INC, Smartsynch, INC., Telvent GIT, S.A., Trilliant INC., and Verizon Communications INC.
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