China Smart Grid market to hit $61B by 2015
The total value of China’s Smart Grid market is expected to rise from $22.3 billion in 2011 to $61.4 billion in 2015, according to a new market report.
In 2010, China ranked number one for the first time in the world for energy consumption and total investment in clean energy. The country will hold that ranking for at least the next five years, according to analyst firm Zpryme.
The largest portion of China’s market is in Smart Grid T+D, which Zpryme projects will grow from $4.5 billion in 2010 to $21.2 billion by 2015, an annual growth rate of 36.4%.
Because of China’s limited technological capabilities, providing IT and networking solutions to automate distribution and manage electricity demand is the best way for foreign firms to capitalize on China’s booming Smart Grid industry. Zpryme projects that the software and hardware segment of China’s Smart Grid market will grow from $4.0 billion in 2010 to $13.0 billion USD in 2015, an annual growth rate of 26.4%.
Other findings from the report:
- Chinese domestic firms serving the Smart Grid market will expand their footprint beyond their nation’s borders as their technologies and services will become increasingly competitive with their foreign counterparts.
- The Chinese government totally supports the efforts of domestic and foreign Smart Grid and clean energy manufacturers through subsidies, R+D funding, and major lines of credit (domestic).
- While utilities in the U.S. are updating infrastructure, China has the advantage of building Smart Grid technology into transmission infrastructure from the outset–essentially a clean slate.
Zpryme’s report, "China: Rise of the Smart Grid", assesses the current China market landscape in China while examining the major players, trends, and drivers motivating this high-growth space.
– Edited by Amanda McLeman, Consulting-Specifying Engineer, www.csemag.com