Asia Pacific to Lead in Smart Grid Market

Smart grids are in high demand owing to a growing need for power and support regulations by governments across regions. Higher transmission and distribution losses are other factors that will drive the market for smart grids. The rising demand for quality, secure, and reliable power supply is expected to ensure a significant growth of the market. Growing concerns regarding reduction in carbon footprints and the need to replace aging infrastructure is shaping the global smart grid market. In addition to this, there is a need for centralized grid distribution management and control. Due to all these factors, the global smart grids market is expected to register an 18.20% CAGR between 2013 and 2019, rising from US$37.7 bn in 2012 to US$118.1 bn by 2019. The high demand for smart grids from growing economies and a surge in ICT spending will also aid the market’s growth.

The market size of smart grids has been growing considerably in the last few years owing to a growing adoption of smart meters and regional government initiatives and funding for smart grid projects. Governments across countries are striving to transform cities into smart cites and this will also help driving the market towards growth.

Although the can be felt across the globe, Asia Pacific is particularly witnessing a significant rise. Asia Pacific is expected to account for 47% of the market in 2019. China has the highest share of the smart grid market in Asia Pacific. Japan and India are other countries making progress in the smart grid market. The need to reduce transmission and distribution losses in developing nations across APAC will drive the market. Moreover, the need to reduce carbon emissions from developed nations in the region and the growing consumption of electricity in China, South Korea, Australia, New Zealand, India, and Singapore will drive the smart grid market.

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North America is expected to follow Asia Pacific in terms of high growth. The U.S. is expected to be the most significant contributor to the North American smart grid market. With investment support from various universities, this regions is expected to contribute to quite an extent in the near future.

Transmission Upgrades Continues to Lead in Smart Grid Market

On the basis of technology, the market is segmented into advanced metering infrastructure, distribution automation, cyber security, software and hardware, communication technologies, and transmission upgrades. Of these, the transmission upgrades segment not only led in the past but is expected to continue its leading position by 2019, accounting for 45.2% of the market. The market for transmission upgrades is expected to be significantly large in Asia Pacific.

The global smart grid market is fragmented in nature. Big players in the industry are acquiring software vendors that have the most promising potential. An increasing number of mergers and acquisition activities are taking place in the global smart grid market. The inherent need to scale up the manufacturing capacity is resulting in high exit barriers, intensifying the degree of competition. Some of the key players in the market are Bimeda Animal Health, Bayer AG., Boehringer Ingelheim GmbH, Merck & Co., Inc., Ceva Santé Animale, Merial (Sanofi), Zoetis, Inc., and Vetoquinol, Elanco (Eli Lilly and Company).

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Ganesh Rajput

As one of the lead news writers on CMFE News, Ganesh’s specialization lies in the science and technology domains. His passion for the latest developments in cloud technology, connected devices, nanotechnology, and virtual reality, among others, shines through in the most recent industry coverage he provides. Ganesh’s take on the impact of digital technologies across the science, technology, and business domains gives his writing a fresh and modern outlook.

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