Navigant Research expects utilities to spend close to $100 billion on networking and communications equipment over the next decade

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. This report expects utilities to spend nearly $100 billion on networking and communications equipment and services over the next decade.

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.

Globally, $7.9 billion is forecast for investments in smart grid communications equipment and services in 2018, with $6.8 billion attributable to utility capital expenditure 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 low power wide area (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.