775m electric meters served by automated substations by 2020, forecasts Navigant Research


Kristoffer Torvik,
Senior Research
Analyst, Navigant
Boulder, CO, U.S.A. — (METERING.COM) — September 17, 2013 – There will be 775 million electric meters served by distribution management system (DMS)-equipped substations by 2020, according to a recent report from Navigant Research.

Serving as the user interface to critical distribution infrastructure, DMSs increasingly form the brains of the energy distribution network, supporting all aspects of utility power grid operations.  Information technology (IT) upgrades, following in the wake of smart grid equipment rollouts, are driving steady growth for these third generation DMSs. Moreover, rapidly growing interest in integrated distributed energy resources  management motivated by renewables integration and demand response is spurring innovation.

“The underlying operational benefits of increased reliability and cost effective optimization are contributing to advances in the DMS market,” says Kristoffer Torvik, senior research analyst with Navigant Research. “Operators can focus on keeping the lights on, storms that cause overwhelming outages are more manageable, and line workers and outage crew are kept safe.”

The global market for DMS is estimated at $507 million in 2013 and is expected to grow at a compound annual growth rate of 9.1 percent to reach $935 million in 2020. Growth is expected to be led by Asia-Pacific, Europe, and North America, but Latin America and the Middle East and Africa will also contribute. The CAGR is modest for a relatively immature market but significant barriers to faster DMS uptake worldwide include the pace of distribution automation (non-automated circuits and substations are not candidates for DMS) and challenges associated with capital allocation for DMS projects.