Smart Grids Infrastructure Market, 2018-2030

Smart Grids Infrastructure Market, 2018-2030

  • February 2018 •
  • 271 pages •
  • Report ID: 5368684 •
  • Format: PDF
With growing electricity consumption, the peak electricity demand is expected to increase manifold by 2050. It is believed that, owing to their intelligence features, smart grids have the potential to reduce the projected peak demand increases by up to 24% across some of the major regions of the world. This is because sensors in smart grids can detect peak load in advance and divert surplus supply from low demand areas to meet the peak requirements in a particular region. Moreover, with countries having ambitious renewable energy targets, it is important to ensure that a compatible infrastructure is put in place in parallel.

Several geographies across the world have already recognized the need of upgrading to smart grids and have taken initiatives to encourage this transition. The US, for instance, allocated USD 4.5 billion initially towards grid modernization; the investment increased over the years under the American Recovery Reinvestment Act of 2009. In Europe, the European Technology Platform (ETP) SmartGrids was formalized in 2005 to create a vision for the European networks till 2020 and beyond. A recent 2017 report by Joint Research Centre (JRC) included 950 smart grid projects (R&D and demonstration) across Europe; across these, a total of EUR 5 billion has been invested.

Emerging economies are also planning to upgrade existing systems to smart grids. The ambitious renewable energy targets of countries such as China and India are expected to drive the smart grids market in the future. In China, the government announced an investment of USD 96 billion between 2010 and 2020 to accelerate smart grids deployment. Similarly, in India, several pilot stage smart grid projects are underway.

Smart Grids are expected to play a pivotal role in clean energy initiatives. Specifically, smart meters are amongst the most focused infrastructures across several countries. In the US, more than 75 million smart meters had been installed by 2017. In addition, the EU has set a target of replacing at least 80% (~ 245 million) of the conventional electricity meters with smart meters by 2020. In fact, it is reported that Sweden, Finland, Italy and Luxembourg have already reached full deployment. The EU Smart Grids Task Force believes that the planned rollout of smart meters and smart grids has the potential to reduce carbon emissions in the EU by 9%.

The ‘Smart Grids Infrastructure Market, 2018 - 2030’ report features an extensive study of the current landscape and future outlook of the growing market for smart grids. The focus of this study is on the smart grids infrastructure, equipment, modules / components / systems offered by different players. The field is backed by grants / investments from various government agencies and is characterized by the presence of several well-established companies.

Amongst other elements, the report features:
• A detailed assessment of the current market landscape, providing information on various infrastructure components offered by companies for deploying smart grids in an existing network; these include transmission and distribution equipment, substation automation modules / components and supported communication channels.
• Detailed profiles of some of the leading players in the industry, highlighting the current focus of the companies with details on their specific smart grid infrastructure equipment / module / component / systems and services. The profiles also include a section on recent developments, highlighting the achievements, partnerships / collaborations and the likely strategies that may be adopted by these players to fuel growth in the foreseen future.
• A comprehensive benchmark analysis, highlighting key focus areas of small, mid-sized and large sized companies; the benchmark analysis provides a means to compare the existing capabilities within respective peer groups and help industry stakeholders identify ways to achieve a competitive edge over contemporary players.
• A detailed market attractiveness analysis elucidating the attractiveness of major markets across the globe based on parameters that are likely to determine the future growth opportunities in specific regions.
• A case study highlighting the regulatory initiatives across various geographies and the regulatory standards / norms designed for a uniform and standardized smart grid deployments.
• An overview of some of the recent smart grid deployment projects across the EU, North America and rest of the world (Australia, China, India, Japan and South Korea). Specifically, we have highlighted the current focus area across the regions defined by the type of projects that have been undertaken (AMI, distribution network or transmission network).

One of the key objectives of the study was to understand the primary growth drivers and estimate the future size of the market. We looked at the likely future investments to be made in the key geographies (the US, the EU, China, Japan, South Korea, Australia, Canada, Russia, Singapore, India and UAE). Based on this, we have provided an informed estimate on the likely evolution of the market in the long term, for the period of 2018 - 2030. Considering the uncertainties related to the investments and political influence across the geographies, and to add robustness to our model, we have provided three forecast scenarios, representing the conservative, base and optimistic tracks of the market’s evolution.

The opinions and insights highlighted in this report were influenced by discussions held with senior stakeholders in the industry. These include Emmanuel Albert (CEO, Trispectra Innovation), Fulvio Ferrari (Founding Partner, Wemworld) and Jenny Erwin (Business Development Manager, Smart Wires). All the actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this report are in USD, unless specified otherwise.

The data presented in this report has been gathered via secondary and primary research. For all our projects, we conduct interviews with experts in the area (academia, industry and other associations) to solicit their opinions on emerging trends in the market. This is primarily useful for us to draw out our own opinion on how the market will evolve across different regions and technology segments. Where possible, the available data has been checked for accuracy from multiple sources of information.

The secondary sources of information include
• Annual reports
• Investor presentations
• SEC filings
• Industry databases
• News releases from company websites
• Government policy documents
• Industry analysts’ views

While the focus has been on forecasting the market till 2030, the report also provides our independent view on various non-commercial trends emerging in the industry. This opinion is solely based on our knowledge, research and understanding of the relevant market gathered from various secondary and primary sources of information.

Chapter 2 is an executive summary of the insights captured in our research. The summary offers a high-level view on the likely evolution of the smart grids infrastructure market in the long term.

Chapter 3 is an introductory chapter that highlights the technological evolution of traditional electricity grid components and the associated challenges. In addition, the chapter emphasizes on the need to shift towards smart grids and provides details on the key smart grid equipment / modules / components / systems.

Chapter 4 presents a case study on the regulatory standards and norms defined by various geographies for smart grid deployment, and elucidates the key policies designed by governments and regulatory institutions in these geographies. It lists the standards designed by several regulatory authorities, including (in alphabetical order) the Australian Department of Resources, Energy and Tourism, European Committee for Standardization (CEN), European Committee for Electrotechnical Standardization (CENELEC), International Electrotechnical Commission (IEC), India Smart Grid Forum (ISGF), India Smart Grid Task Force (ISGTF), International Organization for Standardization (ISO), International Telecommunication Union (ITU), Japan Smart Community Alliance (JSCA), National Institute of Standards and Technology (NIST) and State Grid Corporation of China (SGCC), for their respective geographies.

Chapter 5 includes information on around 170 key stakeholders that offer smart grid-based equipment / modules / components / systems for electric utilities across the world. The information is presented on the basis of type of transmission and distribution equipment offered, type of substation automation modules / components offered, and type of supported communication systems offered. In addition, we have provided information on the geographical location, year of establishment and employee size of the companies.

Chapter 6 features detailed profiles of some of the leading stakeholders that offer smart grid equipment / modules / components / systems to electric utilities. Each profile includes an overview of the company, details on their smart grid offerings and the recent developments that have taken place with respect to electrical networks / grids.

Chapter 7 presents a benchmark analysis of all the players engaged in this domain. It highlights the capabilities of these companies in terms of their expertise across smart grid equipment / modules / components / systems offered to the electric utilities. The analysis allows companies to compare their existing capabilities within and beyond their peer groups and identify opportunities to become more competitive in the industry.

Chapter 8 presents a market attractiveness analysis of likely major markets across the globe. It highlights key parameters such as total geographical area, quality of workforce, ease-of-trade, smart grid policy initiation, capital support, total power consumption in the region, renewable energy usage plans, likely cost of implementation / deploying new technologies, regulatory standards, availability of cybersecurity solutions, and overall benefits and awareness, that are likely to determine the future growth opportunities across several regions, such as (the US, the EU, China, Japan, South Korea, Australia, Canada, Russia, Singapore, India and UAE)

Chapter 9 presents a comprehensive market forecast, highlighting the future potential of the market till 2030. The forecast, which provides estimates on the market opportunity across the key regions (the US, the EU, China, Japan, South Korea, Australia, Canada, Russia, Singapore, India and UAE) is backed by robust secondary research, as well as inputs from senior stakeholders in the industry. The analysis also highlights the relative growth opportunity across different smart grid equipment types (transmission & distribution, substation automation and communication network). To account for the uncertainties associated with the adoption of these technologies, we have provided optimistic and conservative forecast scenarios, in addition to the base forecast scenario.

Chapter 10 presents a case study on various smart grid infrastructure projects / initiatives by the governments / local authorities across North America, Europe, Japan, Australia, China, South Korea and India. It includes information (wherever available) on the type of project, location, estimated cost involved, and the project starting year / completion year.

Chapter 11 summarizes the overall report. In this chapter, we have provided a list of key takeaways from the report, and expressed our independent opinion related to the research and analysis described in the previous chapters.

Chapter 12 is a collection of executive insights collated from existing stakeholders in this market. The chapter provides interview transcripts of the discussions that were held with Emmanuel Albert (CEO, Trispectra Innovation), Fulvio Ferrari (Founding Partner, Wemworld) and Jenny Erwin (Business Development Manager, Smart Wires).

Chapter 13 is an appendix, which provides tabulated data and numbers for all the figures provided in the report.

Chapter 14 is an appendix, which provides the list of companies and organizations mentioned in the report.

1. Close to 170 stakeholders currently offer a variety of smart grids infrastructure equipment. Around 28% of these companies offer transmission and distribution equipment; these include players providing high voltage direct current (HVDC) systems, remote terminal units (RTUs), flexible AC transmission systems (FACTS), voltage ampere reactive (VAR) optimizer and synchrophasors. Examples of such companies include (in alphabetical order, no selection criteria) Amantys, Circutor, Dynex Semiconductor, Edison Power Constructors, Grid 20 / 20, Protrol, Helberg Electrical Supply, Landis + Gyr, Mitsubishi Electric, Smart Wires, Sumitomo Electric Industries and Sietec Solutionz.
2. Majority (~90%) of the companies offer substation automation equipment. The substation automation segment can be further classified into two categories, namely substation automation modules (communication networks, supervisory control and data acquisition, and intelligent electronic devices (IEDs)) and substation automation components (reclosers, programmable logic controllers, RTUs, capacitor bank controllers, smart meters, load tap controller, communication channels and digital relays). Examples of such companies include (in alphabetical order, no selection criteria) ADD Grup, AEM, Aqua Metric, aSAY Energy, Bitlismen, Bivocom, Celestica, C-EPRI, Delta Electric, dVentus Wind Technologies, Eaton, Heyi Electric, IntelliSAW, SEC Grid Automation Technologies, Sietec Solutionz, Smart Energy Instruments, Takaoka Toko, Unipower and Wemworld.
3. Over 30% of the companies offer communication channel solutions, which include power line, optical fiber, copper wire, ethernet and cellular network communication. Examples of companies providing these solutions include (in alphabetical order, no selection criteria) Aclara, Benden, Eltel Networks, Encore Networks, Energomera, Energy Care Holding, Mastec, Microchip Technologies, Mirait Technologies, Nexans, Phoenix Contact and Trispectra Innovation.
4. The current market is dominated by large enterprises. In fact, we identified 69 large sized companies that offer smart grid infrastructure; a number of these companies offer a wide range of solutions (independently or in collaboration) required for the deployment of smart grids. Examples of such companies include (in alphabetical order, no selection criteria) ABB, CG Power and Industrial Solutions, GE, Hitachi, Itron, L&T Power, PowerCom, Powerline Technologies, Schneider Electric and Siemens.
5. Our market attractiveness analysis reveals that, at present, the market is highly lucrative for stakeholders in the US and the EU based on multiple parameters, such as quality of workforce in the regions, ease of trade, financial support, power generation / consumption, plans / availability of renewable energy resources and cost of implementation of smart grids.
6. With targeted goals and investments across many regions in the world, the market is anticipated to grow at a steady pace between 2018 and 2030. In fact, primary research confirms that the global investment opportunity could be as high as USD 1 trillion. Though the short-term market is likely to be driven by developed economies, long term sustainability will be offered through the contributions of emerging economies, such as China and India.

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