Published By : 21 Mar 2016 | Published By : QYRESEARCH
Smart grids are a sophisticated means of electricity distribution and utilize a two-way data flow to supply electricity in a highly efficient manner. Data about the consumption patterns in a particular complex is fed into smart meters, which analyze the data and adjust the flow of electricity to the location accordingly. This helps cut down on wastage of electricity, which has emerged as a feasible means of making the most of available energy resources. According to Transparency Market Research, the global smart grid market is exhibiting a robust 18.2% CAGR between 2013 and 2019 and is expected to be valued at US$118.1 bn by the end of 2019.
India Emerging as Pioneer in Smart Grids Market
Regionally, the Asia Pacific market for smart grids emerged as the largest smart grid market in 2012, with a 45% share. The rapid urbanization and subsequent industrialization in countries such as China and India have been immensely helpful in convincing the policymakers that conserving electrical energy is the need of the hour. India is among the pioneers in the smart grid market, with a favorable regulatory background supporting the rise of this regional segment. The rising demand for smart city infrastructure in India is expected to result in high demand for smart grid infrastructure. The high supply-demand gap in electricity distribution in India is also conducive for growth of the smart grids market.
Europe is another major regional market for smart grid technology. Several countries in Europe rely heavily on renewable energy sources such as hydropower, geothermal, and wind power. Though this helps make electricity distribution more environmentally viable, the problem of incorporating renewable power into the existing power distribution systems has raised its head in recent years. A new research group called ERIGrid was recently launched to come up with the means to tackle this problem. Smart grids are also on the rise in Europe and ERIGrid’s solution is likely to heavily feature smart grids.
Due to such steady support across the world, the global smart grids market is expected to traverse a steep growth trajectory in the coming years.