Smart grids are in high demand owing to a growing need for power and support regulations by governments across regions. Higher transmission and distribution losses are other factors that will drive the market for smart grids. The rising demand for quality, secure, and reliable power supply is expected to ensure a significant growth of the market. Growing concerns regarding reduction in carbon footprints and the need to replace aging infrastructure is shaping the global smart grid market. In addition to this, there is a need for centralized grid distribution management and control. Due to all these factors, the global smart grids market is expected to register an 18.20% CAGR between 2013 and 2019, rising from US$37.7 bn in 2012 to US$118.1 bn by 2019. The high demand for smart grids from growing economies and a surge in ICT spending will also aid the market’s growth.
The market size of smart grids has been growing considerably in the last few years owing to a growing adoption of smart meters and regional government initiatives and funding for smart grid projects. Governments across countries are striving to transform cities into smart cites and this will also help driving the market towards growth.
Asia Pacific to Lead in Smart Grid Market
Although the growth of the smart grid market can be felt across the globe, Asia Pacific is particularly witnessing a significant rise. Asia Pacific is expected to account for 47% of the market in 2019. China has the highest share of the smart grid market in Asia Pacific. Japan and India are other countries making progress in the smart grid market. The need to reduce transmission and distribution losses in developing nations across APAC will drive the market. Moreover, the need to reduce carbon emissions from developed nations in the region and the growing consumption of electricity in China, South Korea, Australia, New Zealand, India, and Singapore will drive the smart grid market.
North America is expected to follow Asia Pacific in terms of high growth. The U.S. is expected to be the most significant contributor to the North American smart grid market. With investment support from various universities, this regions is expected to contribute to quite an extent in the near future.
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