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Connectivity Modernizes Grid Communication in North America Boosting Market to $1 Billion by 2023

 

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Frost & Sullivan's new analysis, North American Digital Grid Communication Infrastructure, Forecast to 2023, provides an assessment of disruptive trends and technologies, market share, and competitive analysis of key players such as ABB, Siemens, Landis & Gyr, Elster, and Itron. The research finds that the market is expected to increase at a compound annual growth rate of 9.1 percent from 2016 to 2023, reaching an estimated $1 billion by 2023 in North America.

With grid edge intelligence expected to gain prominence, utilities will increasingly deploy smart communication devices across various transmission and distribution assets. Adhering to open protocols and standards will ensure interoperability of products across vendors and the possibility of future system expansion.

"The rapidly changing market environment demands flexibility in the communications infrastructure," said Frost & Sullivan Global Program Leader - Digital Grids Farah Saeed. "With a forward-looking market, vendors should develop a compelling business model like the communication-as-a-service model to improve bottom-line results for end users."

Other key findings include:

  • The total digital grid communication infrastructure market for the North American electric grid will grow at a CAGR of 9.1 percent until 2023;
  • Advanced metering infrastructure (AMI) application continuing to drive the demand for wireless communication devices in the short and medium terms, and emerging applications such as edge intelligence will boost demand and dominate wireless technology applications in the long term;
  • Double-digit growth of grid intelligence using wireless technologies;
  • Rapid development in the wireless market from 2020 due to 5G rollout out bringing down cost of migration; and
  • Increase in deployment of wired technology devices due to progression in distribution and substation automation.

"With rapid developments in smart grid technology in North America, inherent cyber vulnerabilities will push for utilities to upgrade or overhaul their communications infrastructure," concluded Saeed. "Strategic partnerships and mergers will further stimulate product and service development, and address the challenges for utilities of managing multiple vendors for individual applications."

 

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