The number of communications node shipments associated with smart grid will rise to 133.3 million worldwide by 2018, up from 91.8 million in 2013, says Navigant Research.
The volume of communications node shipments will decline slightly in 2019-2020, the study says.
The growth and spending on smart grid communications is driven by the demand for more robust networks that can be leveraged for a growing range of applications.
The report says vendors and service providers have responded by improving the suitability of their communications platforms for a variety of applications, not only smart meters, but also for enhanced distribution automation applications.
The research identifies that managing the buildout, security and optimization of the communications network for the smart grid represents one of the great challenges and opportunities in the power sector today.
“The industry has made significant strides in just a few years; accordingly, many of the expectations and assumptions from as little as two or three years ago have shifted dramatically,” Elberg added.
Previously, many smart grid communications devices were part of specialized, proprietary systems, the research said. Over the past 18 months, however, vendors have recognized the value in supporting standards-based technologies. This has resulted in unprecedented activity and cooperation among many stakeholders, the research said.
Global smart grid market to surpass $400 billion by 2020
Recent report by GTM Research finds that global smart grid market is expected to cumulatively surpass $400 billion worldwide by 2020, with an average compound annual growth rate (CAGR) of over 8 percent.
China will be the largest smart grid market in the world, accounting for over 24 percent of the global market, the report said.