Smart Grid networking market in the Americas to grow to nearly $1 billion by 2016

The market for equipment supporting smart grid communications and networking to grow from $700 million in 2011 to nearly $950 million by 2016.

07/10/2012


http://www.imsresearch.comIMS Research (recently acquired by IHS Inc.) forecasts the market for equipment supporting smart grid communications and networking to grow from $700 million in 2011 to nearly $950 million by 2016. This growth is projected even as smart meter shipments are forecast to decline from 2012 onwards in North America and general economic growth remains elusive.

Smart metering projects in the mid- to late-2000s propelled North America’s market for radios and other networking hardware supporting feeder line tasks. Later growth in distribution automation intelligent electronic device (IED) shipments furthered this trend, supporting opportunity for traditional serial radios as well as a wide assortment of next generation solutions. As of 2012, smart meter rollouts are slowing in North America, however, substation modernization, distribution automation, and Latin America’s expected smart metering expansion will all counter this slowing to offer substantial total growth of smart grid networking equipment markets in the Americas.

Americas market for smart grid networking hardware, Source: IMS Research

Senior Analyst Donald Henschel comments: “Smart metering is only beginning in Latin America, but perhaps more interestingly, in North America, utilities are seeing increased efforts from AMI solution providers and grid automation specialists to effectively integrate smart meter data and infrastructure into more sophisticated distribution automation tasks. Distribution automation-enabled smart meter concentrators will hasten this process.”

 The supplier environment for smart grid automation and networking is in a dynamic period, with major substation networking supplier RuggedCom recently purchased by Siemens, and smart grid mesh radio provider Tropos acquired by ABB. Both ABB and Siemens offer deep catalogues of grid automation solutions, but their market presence in the Americas has not been as high as in other regional markets.

 “These acquisitions of networking and communications specialists by global automation brands reveal industry acknowledgement of networking as the next critical step to achieving the goals of the smart grid evolution,” Henschel notes.

This analysis is drawn from IMS Research’s recently published The Americas Market for Smart Grid Networking – 2012. The report evaluates the present and near future opportunity for suppliers of networking and communications hardware supporting automation of the smart grid in the Americas as well as market shares of key suppliers. Building on IMS Research’s experience in the distribution automation and smart meter markets, this market study investigates Ethernet and serial connectivity trends for intelligent electronic devices, security concerns of utilities, and the status of IEC 61850 adoption in the substations and feeders.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Water use efficiency: Diminishing water quality, escalating costs; Lowering building energy use; Power for fire pumps
Building envelope and integration; Manufacturing industrial Q&A; NFPA 99; Testing fire systems
Labs and research facilities: Q&A with the experts; Water heating systems; Smart building integration; 40 Under 40 winners
Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.