Aging infrastructure and the need for higher reliability and resiliency will compel economies to adopt a digital grid, says Frost & Sullivan
SAN ANTONIO, Oct. 29, 2021 /PRNewswire/ — Frost & Sullivan’s recent analysis, Global Digital Grid (Sensors, Meters, and Communications) Growth Opportunities, finds that technological advancements and countries’ emphasis on climate change policies are expediting market growth of the global digital grid. Aging infrastructure, the need for higher reliability and resiliency, increased distributed resources, and the declining cost of digital solutions will also compel economies to adopt a digital grid. As a result, the market is likely to garner $9.21 billion in revenue by 2030 from $8.15 billion in 2020, an uptick at a moderate compound annual growth rate of 1.2%. However, the COVID-19 pandemic slowed market expansion in the short and mid-terms. Despite this, the industry will likely cross 2019 levels by 2026 as halted digital gird deployment projects gradually gather momentum and new projects begin.
Frost & Sullivan – Global Digital Grid Growth Opportunities
China will remain the largest market in terms of revenue potential for digital grid solutions through 2030. The country’s move to replace first-generation meters is one of the main reasons it will dominate the global digital grid market. North America will be the second-largest market due to its increase in second-generation metering deployments. Similarly, driven by the smart meters rollouts, Europe will occupy the third spot, followed by Asia-Pacific (excluding China), where electrification initiatives, growing renewables, and electric vehicles (EVs) prompt digital grid adoption.
For further information on this analysis, please visit: https://frost.ly/6l4
"Integrating technologies such as digital grid equipment, virtual power plant (VPP), distributed energy resources management system (DERMS), demand response (DR), 5G, Big Data, and blockchain will have strategic implications on future growth in the grid space," said Rajalingam Arikaarampalayam Chinnasamy, Energy & Environment Industry Principal at Frost & Sullivan. "This will intensify competition between traditional grid equipment manufacturers and start-ups. As a result, grid equipment companies will focus on offering Internet of Things (IoT)-enabled grid equipment to capture a sizeable market, addressing the challenges posed by standalone digital grid solution providers."
Chinnasamy added: "Global trends, such as evolving business models—which comprise software-as-a-service (SaaS), smart metering-as-a-service (MaaS), infrastructure-as-a-service (IaaS), and outcome-as-a-service (OaaS)—and growth in the adoption of Big Data analytics in the digital grid space will unlock new revenue streams for companies. Further, smart meters as grid intelligence devices will play a pivotal role in edge intelligence as an integral asset to grid intelligence, benefiting utilities and prosumers."
To tap into digital grid growth opportunities, participants need to focus on:
- IoT to enable T&D equipment integration and grid to strengthen resiliency: Switchgear manufacturers should adapt their product offerings to synchronize with future industry preferences.
- Mergers and acquisitions (M&As) between strategic competitors to leverage market synergies: Companies should partner with data analytics experts to develop use cases for ecosystem vendors.
- As-a-service business models to enable superior customer experiences: Partner with cloud providers to design cloud-hosted applications that can rapidly develop new functionalities for predictive maintenance and energy-efficient solutions.
- Digital marketing for transformed selling process: Vendors can use the massive customer data to react swiftly to shifting market trends, leveraging an innate understanding of the consumer psyche.
Global Digital Grid (Sensors, Meters, and Communications) Growth Opportunities is the latest addition to Frost & Sullivan’s Energy & Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
About Frost & Sullivan
For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion
Global Digital Grid (Sensors, Meters, and Communications) Growth Opportunities
K520
Media Contact:
Jaylon Brinkley
Corporate Communications
E: [email protected]
P: +1 210.247.2481
Photo – https://mma.prnasia.com/media2/1673015/Frost_and_Sullivan_Digital_Grid.jpg?p=medium600
Related Links :
http://www.frost.com
