North America Smart Grid Market - Growth, Trends, and Forecast (2020-2025)
The North America smart grid is expected to grow at CAGR of more than 6% during the forecast period of 2020-2025. To meet the increasing power demand, reduce the transmission and distribution losses, and upgrade the grid network with developing renewable power sources, the smart grid market is expected to grow significantly during the forecast period. Also, to improve the collection of revenue for electricity and to address electricity theft in low-income areas, the demand for smart grid network is expected to grow in the region. However, a considerable investment that is required for setting up and modernizing power generation, transmission, and distribution networks can be a restraining factor in the growth of the smart grid market.
- AMI devices are expected to witness a significant growth rate owing to the grid modernization efforts taken up by the state and federal governments across the region.
- According to an estimation, Mexico is expected to invest USD 6.3 billion in smart grid infrastructure and a further USD 2.1 billion in LED and smart street lighting by 2027. This, in turn is expected to create vast opportunities for concerned market players.
- In 2017, 39 states of the United States took a total of 288 policy and deployment actions related to grid modernization, integrated resource planning, utility business models, rate reform, and the application of advanced metering infrastructure, and microgrids. these initiatives and ploicies are going to drive the smart grid market in the forecast period.
Key Market Trends
Advanced Metering Infrastructure to Witness a Significant Growth Advanced metering infrastructure (AMI) or smart metering is an integrated system of smart meters, communications networks, and data management systems that enables two-way communication between utilities and customers. In 2016, Mexico, under its Smart Grid Pathway, planned to complete large-scale smart grid investment, proceed to retail smart grid applications, plan and implement selective smart meter installation and develop and implement smart grid standards. The installation of smart meters in the United States is expected to reach 98 million by the end of 2020, driven by the successful installation of more than 86 million by the end of 2018. Several utilities in the United States are planning to deploy AMI. Still, regulators have shown a mixed reaction with the rejection of the Dominion grid modernization plan with an installation of 2.1 million smart meters in 2019. With the increasing efforts to modernize the electricity grid and reduce transmission and distribution losses, governments across North America are investing in advance metering infrastructure. This, in turn, is expected to drive the AMI market during the forecast period.
United States as a Potential Market for Smart Grid Significant AMI growth in the United States over the forecast period is expected, with smart meter installation share reaching 80% among electricity customers by the end of 2024. The United States has witnessed significant growth in electricity production until 2018, which is expected to grow in the forecast period. With 4363 TWh in 2014 to 4460 TWh in 2018, electricity production has increased the demand for the smart grid. With the development of variable renewable energy sources like wind and solar with a capacity of more than 81 GW in 2014 and 145 GW by the end of 2018, the demand for the smart grid has increased. With further renewable growth in the forecast period, the market is expected to grow significantly. During outages, the smart grid has been proved efficient in coordinating response efforts and visibility to the distribution grid. Speedy recovery efforts following Hurricanes Harvey and Irma in 2017, Hurricane Michael in 2018, and Hurricane Dorian in 2019 have made the need for the smart grid crucial. The United States, with its enormous resources and ambitious projects, is expected to grow in the smart grid market considerably in the forecast period
The North America smart grid market is partially fragmented. The major companies include General Electric Company, ABB Ltd, Itron Inc, Honeywell International Inc, Siemens AG, and others.
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- 1 INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
- 2 RESEARCH METHODOLOGY
- 3 EXECUTIVE SUMMARY
- 4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2025
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
- 5 MARKET SEGMENTATION
- 5.1 Technology Application Area
- 5.1.1 Transmission
- 5.1.2 Demand Response
- 5.1.3 Advanced Metering Infrastructure (AMI)
- 5.1.4 Other Technology Application Areas
- 5.2 Geography
- 5.2.1 United States
- 5.2.2 Canada
- 5.2.3 Others
- 6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Siemens AG
- 6.3.2 General Electric Company
- 6.3.3 ABB Ltd
- 6.3.4 Cisco Systems, Inc
- 6.3.5 Honeywell International Inc
- 6.3.6 Itron Inc
- 7 MARKET OPPORTUNITIES AND FUTURE TRENDS