A report from Pike Research, “Smart Grid Technologies,” analyzes the global market opportunity for Smart Grid technologies and applications. The report concludes that global spending on smart grid initiatives will more than triple between 2009 to 2013 from $10.5 billion to $35.8 billion. The report also suggests that after 2013, the smart grid market will shrink as the infrastructure becomes established and the investments taper off but the cleantech industry will vibrant.
Pike Research senior analyst Bob Gohn says, “What we now call ‘Smart Grid’ has actually been a substantial global utility automation industry for years. The current surge in Smart Grid activity has been primarily driven by government initiatives, and naturally this adrenaline boost will wear off in the next few years. We forecast that the Smart Grid market will decline at an average rate of 6% per year after 2013, but it will still be a huge business compared to what we have seen in the past.”
Gohn also notes the market value changes will vary country to country and region to region. It’s estimated the North American market will only decline one percent a year after 2013, primarily because the United States has more infrastructure that needs to be replaced. Similarly, Pike’s analysis suggests the Smart Grid market in Europe won’t peak until 2014, and the subsequent decline there will be slower than in other parts of the world.
The report examines utility business models, regulatory factors, and detailed global market forecasts through 2015.