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Research firm Technavio forecast the global market for smart grid communications will record a 12% growth between 2019 and 2023.

Revenue generation is expected to reach $1.67 billion by 2023 whilst year on year rate growth for 2019 is estimated at 10.67%.

An increase in the adoption of smart meters is expected to be the key market driver.

Utilities' first step towards the deployment of smart grids is the rollout of smart meters, which in turn will result in the generation of huge volumes of data. This will boost the need of smart grid communications.

The need for two-way communication between the utility and its customers to facilitiate increased energy efficiency, accurate energy billing and optimised grid management is driving the need for smart meters.

In addition, the integration of renewable energy solutions is driving the need for smart grid communications technologies.

Smart grid communications technologies enable utilities to address the challeng resulting from integrating grids with distributed energy reources as energy providers diversify their energy sources to reduce dependence on fossil fuels, losses in existing electricity grids and environmental concerns.

A senior analyst at Technavio, said: “Countries such as China, India, and the US are integrating renewable energy sources into smart grid communications to support energy-saving practices. For instance, the US government is working on reducing carbon emissions by 83% by 2050. In addition, countries such as Japan are offering incentives in the form of zero interest rate loans to finance renewable energy projects.”

The Asia Pacific region led the market in 2018 with 33% of the overall market share, followed by North America, Europe, South America and MEA.

APAC led owing to the increasing government initiatives and the implementation of smart grid communication projects in emerging countries.

The market is moderately fragmented with a few players