Global smart grid spending will grow at a CAGR of 17.4 percent from 2010 to 2015 to reach $46.4 billion, while the smart grid software market will hit $2.9 billion by 2017, according to two reports released this week.
Smart Grid IT Systems from Pike Research said that the global smart grid software market will be worth $1.1 billion by the end of 2011 and will reach grow at a CAGR of 15.2 percent through 2017. Including related IT services, the market will reach reach more than $8.6 billion by 2017, Pike said.
Meanwhile, IDC Energy Insights’ Worldwide Utility Smart Grid Spending Forecast, 2010-2015, said that in North America, widely deployed advanced metering infrastructure and smart meter investment will lead to increased demand response for 2014. In the same period, North America distribution automation investments will concentrate on feeder automation, volt/var optimization, and automated fault restoration, IDC said.
Both reports see the North American market sector to be more dynamic than other regions’ in the short-term. European and Asia/Pacific markets will ramp up as Europe’s 2020 sustainability targets get closer, and China catches up with other regions.
In the Europe and Asia/Pacific regions, smart meters and advanced metering infrastructure investments carry the sector’s growth forward as major project deployments begin later in the forecast period. China has a goal of deploying 300 million smart meters by 2020, IDC Energy said.
The scale of Chinese investments in grid infrastructure is yet to be matched by similar investments into the IT market, but Pike Research sees China becoming a more active player in the market in coming years.
You can learn more about the ins and outs of demand response at the upcoming Environmental Leader webinar, Strategic Load Response: Uncovering the Real Value of Your Megawatt Reduction, Wednesday, April 18 at 11am Pacific/2pm Eastern.