A new report by US smart infrastructure market intelligence firm Northeast Group reveals that there are more than 500 smart grid vendors competing and partnering to take advantage of the opportunity that the growing Internet of Things market has to offer.
The Washington-based firm notes that the bulk of IoT deployment has occurred in the electric power sector, with a further US$380.1 billion to be invested smart grid infrastructure between 2015-2025. It goes on to say that there are currently more than 500 smart grid vendors competing and partnering with each other.
Says Ben Gardner, president of Northeast Group: “Smart grid infrastructure is the first concrete example of the ‘Internet of Things’ on a significant scale.
“Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customers. The next decade will see billions invested in the global smart grid market, creating a huge opportunity for vendors.”
Trends in the smart grid IoT uptake
Northeast Group has also identified four key trends shaping the smart grid vendor landscape in the IoT space. The firm states that partnership, merger and acquisition activity is accelerating, infrastructure investment is also ‘shifting’ from developed to emerging market where opportunities exists for the grid expansion, retrofits and demand for smart grid technologies.
Thirdly, vendors are taking steps further that traditional investment in smart metering, and expanding this to include smart city and smart infrastructure investments. Lastly, vendors in the smart grid industry are repositioning themselves away from hardware and transitioning to analytics software and service market segments.
Gardener added: “The four trends we identified shape how smart grid vendors are formulating their longer-term strategies. In order to succeed over the next decade, vendors will need to proactively leverage these broader market trends to their advantage.”