Smart grids use analogues to gather user information in an automated fashion. This collection of data from the customers as well as suppliers helps to improve the efficiency and sustainability of electricity production and distribution. The aging utility grids and increasing non-technical losses in the grids are creating problems for the utility operators. Installation of smart grid networking systems helps them overcome these problems and concentrate on sustainability of the available resources. The global smart grid networking market is strongly driven by the rising demand for electricity from around the world. Industrial growth across the world and replacement of the traditional grids with the smart variants are expected to be some of the major driving factors for the industry.
Scope of Research – Segments and Forecasts
In order to understand the latest trends in the market and provide accurate future predictions, researchers segment the global market on the basis of its vital components. The smart grid networking market is segmented on the basis of the types of hardware, software, services and demand from different geographic regions. The types of hardware are segmented into routers, controllers, cables, switches and smart meter com modules. The types of software include performance, devices, security, network management, IP and configuration. Analysis of all these segments along with the demand patterns across major geographic regions provides vital details about the future growth opportunities.
What Drives the Market?
According to the experts, the smart grid networking market is expected to be driven by growing electricity demands during peak hours and limitations in the capacity expansions. Increasing shares of renewable energy resources across the global market are also expected to drive the market at a healthy growth rate. Rising environmental concerns and changing government regulations about the utilization and conservation of energy resources are also expected to reflect on the growth rate of this market. Regulatory frameworks however, are expected to restrain the growth of the market. Issues like cyber security and high costs are expected to create major challenges for the key players.
What to Expect?
However, growing applications across the transport industry and advanced systems like control and analysis are expected to create growth opportunities for the key players. As per the latest reports the smart grid networking market is expected to grow at a steady CAGR of over 10% from 2014 to become worth more than $11.61 billion by the end of the year 2019. In 2014, the market is estimated to be worth $7.12 billion. North America is expected to dominate the global market. However, emerging regions like Asia Pacific, Middle East and Latin America are also expected to witness impressive growth during the next few years to come.