networking and communications infrastructure
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Research firm Guidehouse Insights predicts that utilities will spend over $113 billion on networking and communications equipment and services between 2020 and 2030.

Up to $8.3 billion is investments is expected to be made in smart grid communications equipment and services in 2020. Of this total, $7.4 billion is attributable to utility CAPEX in networking equipment. Services, which include leased lines, cellular service, tower leasing, satellite services, and LPWA solutions, are anticipated to account for $954 million.

Through 2030, equipment spend is projected to grow at a compound annual growth rate (CAGR) of 3.8% to $10.7 billion. Utility spend on services will likely rise at a CAGR of 8.7% to $2.2 billion in 2030.

Factors driving an increase in investments in networking and communications equipment and services include the need for more robust and grid-wide connectivity for optimised management of networks.

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Utilities seek clear visibility on changes within their networks hence will accelerate digitisation and digitalisation to adapt to a rapidly transforming operating environment.

Interest in 4G and private LTE among larger utilities worldwide is growing, and low power wide area (LPWA) options are also finding their place in the mix for smart metering, especially in emerging markets, and for asset monitoring and predictive maintenance applications. 

Richelle Elberg, a principal research analyst with Guidehouse Insights, said: “020 have new options for their networking needs. Globally, shared spectrum options are emerging, and in the US, new spectrum bands are available for critical infrastructure needs. As such, accelerating investment is expected throughout the next decade as utilities build their communications networks.”

Learn more about the Market Data: Networking and Communications for Smart Grids and Utility Applications report.