Published on : May 27, 2016
The global market for smart grid is exhibiting a healthy rise. The decrease in transmission and loss in distribution has fueled the demand for power supply in emerging economies. The implementation of various government regulations and policies to increase the quality and the efficiency of the power supply is boosting the worldwide smart grid market significantly.
On the whole, the global smart grid market looks flourishing; however, the high cost associated with the deployment of smart grid networks is likely to hinder the growth of this market in the near future. Apart from this, the market is also facing severe issues due to the absence of interoperability standards.
Asia Pacific to Remain Dominant Regional Market for Smart Grid
In 2012, Asia Pacific dominated the global market for smart grids, accounting for a share of more than 45%. Analysts expect this regional market to remain dominant over the next few years. China and India have emerged as the market leaders in Asia Pacific.
North America and Europe are also witnessing healthy growth in terms of market shares, owing to the growing demand for the power supply.
Global Smart Grid Market to Consolidate in Coming Years
Comverge, Alstom, Silver Spring Networks, Landis+Gyr, Schneider Electric, Aclara, GridPoint Inc., Itron, Sensus, Schweitzer Engineering Laboratories Inc., eMeter, and Siemens are the leading participants in the global smart grid market. The market exhibits a fragmented structure and the top players are confined to their domestic markets. However, companies have started to expand their businesses in foreign location by involving in mergers, acquisitions, and strategic alliances.
In the coming years, the global market for smart grids is likely to consolidate as small enterprises are entering into partnerships with leading companies and are increasingly focusing on appropriate mergers and acquisitions with enterprises operating in the markets for other smart grid technologies.