Smart Grid Networking and Communications

Monday, 26 July 2010 13:19

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The power network and communications technologies are at the heart of utility smart grid deployments but there has been vigorous debate over which will play the primary role.
A new report from Pike Research, “Smart Grid Networking and Communications”, examines the global market opportunity for communication technologies in all areas of smart grid operations, from the utility substation to the home area network.

The report estimates that 276 million smart grid communications nodes will be shipped worldwide between 2010 and 2016, with annual shipments increasing significantly from 15 million in 2009 to 55 million by 2016. The increase represents an industry investment of $20.3 billion during the seven-year forecast period, with annual revenues increasing from $1.8 billion in 2009 to $3.1 billion by 2016. While revenues will increase, average selling prices will decrease dramatically.

Pike Research senior analyst Bob Gohn says, “The greatest myth of the smart grid is that there will be one communications technology to rule them all. The reality is that smart grid networks will be as diverse as the internet, including fixed and wireless, public and private, standard and proprietary technologies.  Different technologies will lead in various application categories, based on their respective cost and performance characteristics.”

Gohn also predicts that advanced metering infrastructure (AMI) nodes for smart meters will be the largest communications equipment category over the next several years. Home area network (HAN) nodes will be the second, but much smaller category followed by network interface converters.  Pike defines smaller node categories to include: “Generalized grid routers, AMI concentrators, wide area network (WAN) backbone nodes, substation routers, and substation Ethernet switches.”

In the report, industry players are profiled and detailed market forecasts are provided through 2016, segmented by region, application, device, and technology.  An Executive Summary of the report is available for free download on the firm’s website.

For more information, visit www.pikeresearch.com