Smart Grid Communications to touch $2.96 billion in sales in 2014, says Pike Research


Smart Grid Communications to touch $2.96 billion in sales in 2014, says Pike Research

Greentech Lead America: The global shipments of radio
frequency-based communications nodes for distribution automation and/or AMI
applications based on fully standard technologies will be increased rapidly in
next few years. Smart grid communications based on standard technologies were
shipped only 3 percent in 2010 and this figure will grow to 70 percent by 2015
and to 85 percent by 2020.

The integrated grid-wide communications system will require
more sophisticated and higher value, networking and communications gear. As the
utilities shift toward fully integrated system,  this market will
grow to $2.96 billion in sales in 2014, before subsiding to just under $2.6
billion per year in 2020. The convergence of major smart grid and smart meter
deployments in China, Europe, and North America will drive the revenue growth.

Utility communications networks have traditionally been
implemented within vertical application silos, often using proprietary,
application-specific technologies. According to Pike Research, emerging smart
grid concepts are driving utilities to consider their communications networks
as strategic assets and to adopt standards-based technologies widely. Now
vendors have begun to deliver standards-compliant or standards-capable
solutions increasingly.

“The promise of standards-based, multi-purpose utility
networks is finally arriving. While there is still room for innovative
proprietary network elements, the momentum is clearly with standard IP-based
wired and wireless technologies, whether provided by public carriers or on
privately built networks,” said chief research director Bob Gohn.