The China Smart Grid market is to grow at a CAGR of 28.30 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing need for grid connecting and management systems. The Smart Grid market in China has also been witnessing the increasing environmental concern. However, the increased exposure to cyber attack could pose a challenge to the growth of this market.
In recent years, the steadily growing population, higher living standards, and rapid industrialization have had a negative impact on the environment and the ecosystem. Consequently, the Chinese government has increased its focus on environmental issues such as GHG emissions and global warming. One of the major trends being witnessed in the Smart Grid market in China is the initiatives being taken by the government to reduce GHG. China has identified fossil fuel-based power generation as one of the major sources of GHG and has therefore induced various power plants to take steps to reduce these emissions. It has also shifted its focus to cleaner energy generation technologies. Consequently, an increase in investments in clean and RE power generation will boost the growth of the market since the RE sector is an integral part of the Smart Grid market in China.
One of the major drivers in this market is the increasing need for grid connection and management systems. In line with the Chinese government's plans, the SGCC and CSG are initiating steps to develop smart grids in China. The smart grid initiative of the SGCC, which commenced in 2011, will continue till 2020.
One of the major challenges in this market is the high susceptibility of smart grids to cyber attacks. The software used in smart grids is highly susceptible to the threat of virus attacks and mishandling by engineers or operators. The main information control system in smart grids is exposed to security threats because of the regular usage of the internet and access through points for electrical and communication lines.
The key vendors dominating this market space are ABB Group, Alstom SA, GE Energy, and Schneider Electric Co.
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14 June 2017