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Back in October during our smart grid webinar, we referenced a report on the smart grid from Pike Research that had some pretty massive global figures. Well, this morning Pike has officially launched that report which says the smart grid market will bring in $200 billion in worldwide investment between 2008 and 2015. Out of that total investment, annual smart grid global revenues will grow to $35 billion in 2013 from about $10 billion in 2009.
As we pointed out in October, Pike Research says that smart meters will play a pretty small percentage of that total investment while smarter grid infrastructure — including transmission upgrades, substation automation, and distribution automation — will generate the majority of those funds. Grid automation will generate 84 percent of the global investment, smart meters 14 percent, and electric vehicle management systems only 2 percent. In other words, despite the focus on smart meters by many governments, deeper in the grid (away from consumers) is where the real investment will happen.
Another thing interesting to remember about these figures is that total smart grid funding will actually peak in 2013, largely because these are infrastructure investments. Utilities only need to make these once every several decades. For entrepreneurs and investors, that means another thing entirely: There’s a very specific window opening up through which companies need to act fast to capitalize on.
Image courtesy of numstead’s Flickr photo stream Creative Commons.