Smart Grid to be $9.6 Billion Business by 2015
According to a new report from GTM Research, the United States smart grid market will grow more than 70 percent over the next five years, reaching $9.6 billion by 2015. The U.S. Smart Grid Market Forecast : 2010–2015 analyzes key trends in four technology sectors – Advanced Metering Infrastructure (AMI), Distribution Automation (DA), Home Area Networks (HAN) and Smart Utility Enterprise. The study concludes that the factors driving the market expansion include federal ARRA grants for utility modernization, increased market competition and consolidation, and enhanced technology synergies.
David J. Leeds, the report’s author and lead smart grid analyst at GTM Research, says, “Over the next 10 to 15 years, GTM Research expects the distinction between ‘smart grid’ and traditional distribution grids to dissolve. The day is quickly approaching when the bulk of new hardware, software and systems added to grids will be intelligent.”
The report also addresses some of the long-term challenges facing the emerging smart grid industry such as the $165 billion estimated cost of wide scale integration and a deployment timeline of 20 years. Such obstacles, says the report, require stable government incentives, clear policy at the state and national levels, and more effective utility demonstrations pertaining to how the new technology benefits customers.
Leeds adds: “The promises and pitfalls of smart meters continue to monopolize the headlines, and the industry remains in the ‘honeymoon’ phase of technology transition. Utilities are only beginning to deploy next-gen devices and to re-conceptualize how their grids will operate at the distribution level.”
Leeds will be moderating the Meeting Climate Goals session on September 23 at the GridWise Global Forum in Washington, D.C., and his report will be highlighted when GTM Research and Greentech Media host The Networked EV in San Francisco on Nov. 9, 2010.
For detailed information about U.S. Smart Grid Market Forecast : 2010–2015, visit www.gtmresearch.com/report/us-smart-grid-market-forecast-2010-2015
