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Pike Research: Smart Grid Communications Are Shifting Toward Standards-Based Technologies
[August 01, 2012]

Pike Research: Smart Grid Communications Are Shifting Toward Standards-Based Technologies

Aug 01, 2012 (Close-Up Media via COMTEX) -- Emerging smart grid concepts are driving utilities to consider their communications networks as strategic assets, and to adopt standards-based technologies, built to support the Internet Protocol (IP) suite as well as legacy protocols, according to a recent report from Pike Research, a part of Navigant's Energy Practice.

According to a release, in response, vendors are rushing to deliver standards-compliant or standards-capable solutions.

In 2010, only 3 percent of global shipments of radio frequency-based communications nodes for distribution automation and/or advanced metering infrastructure (AMI) applications were based on fully standard technologies. This figure will increase to more than 70 percent by 2015, the market intelligence firm forecasts, and to 85 percent by 2020.

"The promise of standards-based, multi-purpose utility networks is finally arriving," says chief research director Bob Gohn. "While there is still room for innovative proprietary network elements, the momentum is clearly with standard IP-based wired and wireless technologies, whether provided by public carriers or on privately built networks." As utilities shift toward a fully integrated grid-wide communications system that will require more sophisticated, and higher value, networking and communications gear, this market will peak at $2.96 billion in sales in 2014, before subsiding to just under $2.6 billion per year in 2020, according to the report. The revenue peak in the middle of the decade will result from the convergence of major smart grid and smart meter deployments in China, Europe, and North America.

The report, "Smart Grid Networking and Communications," analyzes the current market dynamics and future opportunities for public and private, wired and wireless networks for a range of smart grid applications including smart meters, distribution automation, substation automation, and home area networks. The study provides an examination of market drivers, technology issues and standards, and the competitive landscape for smart grid networking. Detailed market forecasts are included for unit shipments and revenue, segmented by technology, application, and world region, through 2020.

Pike Research provides analysis of global clean technology markets.

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