Accelerating investment is expected throughout the next decade as utilities build their communications networks, report finds
Nov. 23, 2020 – Boulder, Colo. – A new report from Guidehouse Insights examines the technologies utilities are using to build their communications networks, providing global market forecasts for investments in communications hardware and services, through 2030.
The need for more robust, grid-wide connectivity and visibility remains clear as utilities digitalize to adapt to a rapidly transforming operating environment. Interest in 4G and private LTE among larger utilities worldwide is growing, and low power wide area (LPWA) options are also finding their place in the mix for smart metering, especially in emerging markets, and for asset monitoring and predictive maintenance applications. Click to tweet: According to a new report from @WeAreGHInsights, utilities are projected to spend more than $113 billion on networking and communications equipment and services between 2020 and 2030.
“Utilities in 2020 have new options for their networking needs.” Says Richelle Elberg, principal research analyst with Guidehouse Insights. “Globally, shared spectrum options are emerging, and in the US, new spectrum bands are available for critical infrastructure needs. As such, accelerating investment is expected throughout the next decade as utilities build their communications networks.”
Globally, $8.3 billion is forecast for investments in smart grid communications equipment and services in 2020. Of this total, $7.4 billion is attributable to utility CAPEX in networking equipment. Services, which include leased lines, cellular service, tower leasing, satellite services, and LPWA solutions, are anticipated to account for $954 million. Through 2030, equipment spend is projected to grow at a compound annual growth rate (CAGR) of 3.8% to $10.7 billion. Utility spend on services will likely rise at a CAGR of 8.7% to $2.2 billion in 2030.
The report, Market Data: Networking and Communications for Smart Grids and Utility Applications, provides a granular look at how utilities are building their communications networks, detailing the technologies employed and the applications supported by these networks. Ten-year forecasts for investment by utilities in more than a dozen communications hardware and services are included. Spend on services, including cellular, satellite, leased lines/TDM, and tower leasing, is detailed. Forecasts are broken out for five global regions. Further breakouts are provided for the US. Supported applications covered include smart metering networks, distribution automation, and substation automation at the transmission, distribution, and secondary transformer station levels. Asset monitoring is also covered. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
About Guidehouse
Guidehouse is a leading global provider of consulting services to the public and commercial markets with broad capabilities in management, technology, and risk consulting. We help clients address their toughest challenges with a focus on markets and clients facing transformational change, technology-driven innovation and significant regulatory pressure. Across a range of advisory, consulting, outsourcing, and technology/analytics services, we help clients create scalable, innovative solutions that prepare them for future growth and success. Headquartered in Washington DC, the company has more than 7,000 professionals in more than 50 locations. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets and agenda-setting issues driving national and global economies. For more information, please visit: www.guidehouse.com.
