Utilities Are Projected to Spend Nearly $100 Billion on Networking and Communications Equipment and Services over the Next Decade

Investment in networking for a multitude of utility applications is accelerating even as the ways that utilities solve connectivity problems are diversifying

Dec 26, 2018

A new report from Navigant Research provides a granular look at the global marketplace for utility networking and communications equipment and services for smart grid applications.

Power utilities are faced with a fast-changing operating environment. Not only are competitive threats and operational challenges mounting, but customers are also demanding more from their utilities—as are regulators. Meanwhile, technological advances are making it easier and cheaper to deploy connectivity throughout a utility’s territory. Click to tweet: According to a new report from @NavigantRSRCH, utilities are projected to spend nearly $100 billion on networking and communications equipment and services over the next decade.

“Sophisticated IT and analytics programs can leverage the data made available by connected devices to improve grid reliability, safety, resilience, and operational efficiency—all of which augment the utility’s return on the networking investment,” says Richelle Elberg, principal research analyst with Navigant Research. “Thus, investment in networking for a multitude of utility applications is accelerating even as the ways that utilities solve connectivity problems are diversifying.”

Globally, $7.9 billion is forecast for investments in smart grid communications equipment and services in 2018, with $6.8 billion attributable to utility CAPEX in networking equipment. Services, which include leased lines, cellular service, tower leasing, satellite services, and low power wide area (LPWA) solutions, are anticipated to account for more than $1 billion, according to the report.

The report, Networking and Communications for Smart Grids and Utility Applications, provides a granular look at the global marketplace for utility networking and communications equipment and services for smart grid applications. The study covers three smart grid applications: advanced metering infrastructure (AMI), distribution automation, and substation automation at the transmission and distribution levels (as well as secondary substations in Europe). Technologies covered include cellular, RF mesh, point-to-multipoint, microwave point-to-point, private 4G, Wi-Fi-based systems, satellite services, leased lines, TDM/ethernet/broadband, power line carrier (PLC), fiber, and LPWA. Global market forecasts, segmented by application, technology, utility type (in the US), and region, extend through 2027. The forecasts include spend on equipment and services for near area networks (NANs, or field area networks) and wide area networks (WANs). Services forecasts include those provided by cellular carriers, satellite providers, tower leasing companies, and telcos for leased line, TDM/ethernet, or broadband services. An Executive Summary of the report is available for free download on the Navigant Research website.

Contact:

Lindsay Funicello-Paul

+1.781.270.8456

lindsay.funicello.paul@navigant.com

* The information contained in this press release concerning the report, Networking and Communications for Smart Grids and Utility Applications, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.