December 26, 2018 – Boulder, CO – A new report from Navigant Research provides a granular look at the global marketplace for utility networking and communications equipment and services for smart grid applications.
Power utilities are faced with a fast-changing operating environment. Not only are competitive threats and operational challenges mounting, but customers are also demanding more from their utilities—as are regulators. Meanwhile, technological advances are making it easier and cheaper to deploy connectivity throughout a utility’s territory. Click to tweet: According to a new report from @NavigantRSRCH, utilities are projected to spend nearly $100 billion on networking and communications equipment and services over the next decade.
“Sophisticated IT and analytics programs can leverage the data made available by connected devices to improve grid reliability, safety, resilience, and operational efficiency—all of which augment the utility’s return on the networking investment,” says Richelle Elberg, principal research analyst with Navigant Research. “Thus, investment in networking for a multitude of utility applications is accelerating even as the ways that utilities solve connectivity problems are diversifying.”
Globally, $7.9 billion is forecast for investments in smart grid communications equipment and services in 2018, with $6.8 billion attributable to utility CAPEX in networking equipment. Services, which include leased lines, cellular service, tower leasing, satellite services, and low power wide area (LPWA) solutions, are anticipated to account for more than $1 billion, according to the report.
The report, Networking and Communications for Smart Grids and Utility Applications, provides a granular look at the global marketplace for utility networking and communications equipment and services for smart grid applications. The study covers three smart grid applications: advanced metering infrastructure (AMI), distribution automation, and substation automation at the transmission and distribution levels (as well as secondary substations in Europe). Technologies covered include cellular, RF mesh, point-to-multipoint, microwave point-to-point, private 4G, Wi-Fi-based systems, satellite services, leased lines, TDM/ethernet/broadband, power line carrier (PLC), fiber, LPWA. Global market forecasts, segmented by application, technology, utility type (in the US), and region, extend through 2027. The forecasts include spend on equipment and services for near area networks (NANs, or field area networks) and wide area networks (WANs). Services forecasts include those provided by cellular carriers, satellite providers, tower leasing companies, and telcos for leased line, TDM/ethernet, or broadband services. An Executive Summary of the report is available for free download on the Navigant Research website.
About Navigant Research
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.
* The information contained in this press release concerning the report, Networking and Communications for Smart Grids and Utility Applications, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.