In a detailed analysis the firm says investment in smart grid technologies by utilities and governments will rise at a healthy pace over the next several years, driven by the overall expansion of energy markets in the region and new opportunities for cleaner and more efficient power generation, transmission, and distribution.
According to Pike Research, over the next five to six years alone, the smart grid market will grow from $11.9 billion this year to about $28.8 billion by 2017.
“Smart grid market drivers differ significantly by country within the Asia Pacific region,” said Andy Bae, a senior analyst with Pike Research.
“Chinese market players believe that the construction of a smart grid is a key part of economic growth and enhancing the ability to optimize energy allocation, including the integration of new generation capacity from both renewable and fossil fuel sources,” he continued. “Japan’s electric utilities have been investing huge amounts of capital in power infrastructure, resulting in advanced capabilities in transmission infrastructure and power delivery services.
“However,” Bae said, “the tragic March 2011 earthquake, tsunami, and resulting Fukushima nuclear accident are likely to redefine not only Japan’s smart grid planning, but perhaps the direction of the nation’s utility industry.
Bae said Korea is seeking to leverage its technology leadership in the IT and communications space to form an advanced smart grid infrastructure within the country, as well as an opportunity to export smart grid technologies around the world.
“Significant and influential smart grid projects are also underway in Australia, India, and the Association of Southeast Asian Nations (ASEAN) region,” he added.
The researcher also pointed out that transmission upgrades will be the largest application category within the region, representing 54 percent of total smart grid investment between now and 2017. Distribution automation and advanced metering infrastructure (AMI) will also be key applications, capturing 18 percent and 15 percent of total spending, respectively.
Pike Research’s report, “Smart Grid in Asia Pacific”, provides an in-depth analysis of market drivers, business models and applications, and technology issues for the development of the smart grid in key markets within the Asia Pacific region. The study includes detailed forecasts by application area for China, Japan, Korea, Australia, India, and the ASEAN region. Profiles are also provided for more than 30 key industry players.
An Executive Summary of the report is available for free download on the firm’s website.
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