Smart Grid Technology Revenue Will be $70B by 2023
Global smart grid technology revenue will grow from $44.1 billion in 2014 to $70.2 billion in 2023, according to a new report from Navigant Research.
The report “Smart Grid Technologies” finds government mandates for energy efficiency and grid reliability are still critical drivers for power system upgrades worldwide, but today, the changing nature of electricity generation and an increasingly competitive environment are forcing utility company executives to reassess—and, at times, accelerate—their commitment to smart grid upgrades, Navigant says. As a result, tens of billions of dollars will be invested each year over the next decade in transmission network upgrades, distribution automation and substation automation, utility IT solutions, and advanced metering infrastructure. Billions more will be spent on the communications networking infrastructure necessary to tie it all together.
Overall, Navigant’s outlook for the smart grid technology market has not changed dramatically since its 2013 smart grid technology report; however, the composition and timing of growth in various segments and regions has shifted somewhat, as new visibility into deployments and trends has come to light. For example, Navigant’s expectation for transmission upgrades in the near term has grown, but estimates for distribution automation spending are now somewhat lower based on vendor reports of slower utility uptake in the first half of 2014.
Nonetheless, the market for smart grid technology is growing. On a cumulative basis, Navigant expects nearly $600 billion to be invested worldwide between 2014 and 2023.
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