Greentech Lead America: According to the latest report by GTM Research, global smart grid market is expected to cumulatively surpass $400 billion worldwide by 2020, with an average compound annual growth rate of over 8 percent.
China will be the largest smart grid market in the world, accounting for over 24 percent of the global market, the report titled, Global Smart Grid Technologies and Growth Markets 2013-2020, said.
As smart grid implementations and applications begin to develop further in various geographies, the once-linear depiction of a smart grid roadmap is becoming increasingly multidimensional.
There are of course, common architectural, hardware and process components that will be deployed regionally; however, the deployment and maturity of applications will evolve differently depending on local drivers, requirements and technological appetites.
According to Ben Kellison, research contributor to the report and Senior Analyst at GTM Research, evolving regulatory requirements and historical IT and infrastructure investments are the biggest drivers shaping global utility demand.
“These factors continue to make transmission optimization and distribution automation the dominant capital expenditures for grid modernization,” Kellison added. “However, in most regions we see the largest growth opportunities in analytics, followed by AMI and network operation software.”
Another recent research on smart grid recently predicted that global smart grid market is expected to reach approximately US $64.3 billion by 2017 with a CAGR of 17 percent over the next five years.
While North America emerged as the leading smart grid customer in terms of value replacing European Union, Asia Pacific is forecast to lead the market due to the greater potential for generation and consumption increase rates are higher cumulatively for APAC regions, the report from Lucintel said.