The creation of the smart grid remains a colossal undertaking. Many
complex smart grid programs are underway, but the scale of what remains
to be done is enormous. The challenges ahead translate into strong
growth for vendors of smart grid technologies - transmission upgrades,
automation of substations and distribution, smart grid IT, and smart
meters. According to a new report from Pike
Research, a part of Navigant's Energy Practice, the market for smart
grid technologies will grow from $33 billion annually in 2012 to $73
billion by the end of 2020, totaling $494 billion in cumulative revenue
over that period.
"The overlay of modern smart grid technologies onto existing grids
promises numerous benefits to utilities, including increased reliability
and capacity, reduced energy losses, and deferring or eliminating the
need for new generation resources," says senior research analyst Bob
Lockhart. "These benefits reach far beyond the business of any
particular utility to underlie economic growth, social well-being, and
the shift to energy sources that are less damaging to the environment."
There is no single "smart grid solution" that will work for all
utilities, according to the report. Utilities are likely to take
individual approaches to smart grids, some starting with smart metering
while others begin with transmission upgrades. However, the number of
smart meter deployments (estimated at a total of 832 million smart
meters during the 2011-2020 timeframe) implies that quite a few
utilities have yet to set out on an advanced metering infrastructure
course but are likely to do so over the coming seven years.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1,
2012, provides in-depth analysis of global clean technology markets. The
team's research methodology combines supply-side industry analysis,
end-user primary research and demand assessment, and deep examination of
technology trends to provide a comprehensive view of the Smart Energy,
Smart Utilities, Smart Transportation, Smart Industry, and Smart
Buildings sectors. Additional information about Pike Research can be
found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm
dedicated to assisting clients in creating and protecting value in the
face of critical business risks and opportunities. Through senior level
engagement with clients, Navigant professionals combine technical
expertise in Disputes and Investigations, Economics, Financial Advisory
and Management Consulting, with business pragmatism in the highly
regulated Construction, Energy, Financial Services and Healthcare
industries to support clients in addressing their most critical business
needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the
report, "Smart Grid Technologies," is a summary and reflects Pike
Research's current expectations based on market data and trend analysis.
Market predictions and expectations are inherently uncertain and actual
results may differ materially from those contained in this press release
or the report. Please refer to the full report for a complete
understanding of the assumptions underlying the report's conclusions and
the methodologies used to create the report. Neither Pike Research nor
Navigant undertakes any obligation to update any of the information
contained in this press release or the report.
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