The development of the smart grid up to this point has largely focused on highly visible, consumer-facing deployments of smart meters. While this has powered the market over the past few years, both in terms of revenue and visibility, much of the smart meter installation activity is projected to slow down, due to factors including the completion of large utility deployments, a reduction in federal stimulus funding, and the utilities’ desire to focus on projects that can more quickly deliver a positive return on investment. As such, the communications networks and equipment used to construct them are shifting from the high unit volume and less expensive nodes used in smart meters, to somewhat lower unit volume, yet higher value, networking equipment and communications gear found in substation automation projects, distribution network upgrades, and other projects that focus on delivering measurable grid efficiency improvements, enhanced security and reliability, and a path to a fully integrated grid-wide communications system.
While smart metering initiatives will continue to drive the market over the next 2 to 3 years, investment in advanced metering infrastructure (AMI) networks will be reduced starting in the second half of the decade, as utilities focus on high-return grid enhancement projects that provide important reliability, security, and efficiency gains, with less need for the challenging process of customer education.
This Pike Research report analyzes the current market dynamics and future opportunities for public and private, wired and wireless networks for a range of smart grid applications including smart meters, distribution automation, substation automation, and home area networks. The study provides an in-depth examination of market drivers, technology issues and standards, and the competitive landscape for smart grid networking. Detailed market forecasts are included for unit shipments and revenue, segmented by technology, application, and world region, through 2020.
Key Questions Addressed:
- What is the market opportunity, in terms of unit shipments and revenue, for each category and application of smart grid communication equipment?
- How are various smart grid projects using advanced communication systems in different regions around the world?
- What is the state of standards development in North America, Europe, and Asia?
- How viable are public cellular networks as an alternative to private wireless systems?
- What are the strategies of the utility industry with regard to key security issues?
Who needs this report?
- Smart grid hardware and software companies
- Networking and telecommunications equipment vendors
- Telecommunications service providers
- Systems integrators and consultants
- Electric, water, and gas utilities
- Government agencies
- Investor community
Table of Contents
1. Executive Summary
1.1 Introduction to Smart Grid Communications
1.2 Smart Grid Communications Forecast Overview
2. Market Issues
2.1 The Smart Grid
2.2 Market Drivers
2.2.1 Utility Operating Cost Reduction
2.2.2 Grid Reliability and Security
2.2.3 Energy Efficiency and Management
2.2.4 Renewable and Distributed Generation
2.2.5 Electric Vehicle-to-Grid Infrastructure
2.3 Market Opportunity and Environment
2.3.1 Market Environment and Business Structures
2.3.2 Government and Regulatory Environment
2.3.3 Regional Smart Grid Activities and Updates
2.3.3.1 North America
2.3.3.1.1. United States
2.3.3.1.2. Canada
2.3.3.2 Latin America
2.3.3.2.1. Brazil
2.3.3.2.2. Mexico
2.3.3.2.3. Other Latin American Countries
2.3.3.3 Europe
2.3.3.3.1. Western Europe
2.3.3.3.2. Italy
2.3.3.3.3. Sweden
2.3.3.3.4. United Kingdom
2.3.3.3.5. France
2.3.3.3.6. Eastern Europe
2.3.3.4 Asia
2.3.3.4.1. Japan
2.3.3.4.2. South Korea
2.3.3.4.3. China
2.3.3.4.4. Other Southeast Asian Countries
2.3.3.4.5. Australia
2.3.3.4.6. India
2.3.3.5 Middle East & Africa
2.3.3.5.1. Middle East
2.3.3.5.2. Africa
2.4 Market Challenges and Risks
2.4.1 Interoperability and Standards
2.4.2 Security
2.4.2.1 Increasing Worries about Protecting Critical Assets
2.4.2.2 Cyber Security
2.4.3 Legal Challenges and Public Criticism
2.4.4 Declining Levels of Federal and Local Funding
2.4.5 Market Distortions
3. Smart Grid Applications and Networking Requirements
3.1 Introduction
3.2 Electrical Grid Overview
3.3 Smart Metering and AMI
3.3.1 Why Smart Meters?
3.3.1.1 Smart Meter Utility Operating Benefits
3.3.1.2 Consumer Energy Use Reduction Benefits
3.3.1.3 Peak Demand Shifting
3.3.1.4 Criticism of Smart Meters
3.3.1.5 Net Metering, Local Generation, and Electric Vehicle Support
3.3.2 Advanced Metering Infrastructure Architecture
3.3.3 Home Area Network Technology
3.3.4 Smart Metering Communications Requirements
3.4 Substation Automation
3.4.1 SCADA Systems
3.4.2 Physical Security
3.4.3 Workforce Communications
3.4.4 Substation Automation Communications Requirements
3.5 Distribution Automation
3.5.1 Basic Automation
3.5.2 Distribution Automation Communications Requirement
3.6 Enterprise Voice and Data Communications
3.7 Derivative Smart Grid Applications
3.7.1 Outage and Fault Management
3.7.2 Asset Management and Monitoring
3.7.3 Distributed and Alternative Generation Integration
3.7.4 Demand Response and Dynamic Pricing
3.7.5 Contingency and Capacity Planning
3.7.6 Workforce Automation
4. Smart Grid Communications Architecture and Standards
4.1 The Smart Grid Architecture Challenge
4.1.1 Networking versus Communications
4.1.2 A Sample Architecture
4.2 Smart Grid Networking Standards
4.2.1 The Internet Protocol Suite and the Smart Grid
4.2.2 SCADA Standards
4.2.2.1 Distributed Network Protocol
4.2.2.2 IEC 61850
4.3 Emerging North American Smart Grid Standards
4.3.1 NIST Release 2.0
4.3.2 SGIP’s First Six Standards for the Catalog of Standard
4.4 IEEE 2030 Guides
4.4.1 Emerging European Union Smart Grid Standards
4.4.1.1 European OPEN Meter Project
4.4.1.2 Utility-Driven Standardization
4.4.2 Asian Smart Grid Standards
4.4.2.1 China
4.4.2.2 South Korea
4.4.2.3 Japan
4.4.3 International Standards Cooperation
4.5 Challenges with Standards Development
4.6 Smart Grid Communications Security
5. Smart Grid Networking Technologies
5.1 Private vs. Public Networks
5.2 Public Wired Technologies
5.3 Public Wireless Technologies
5.3.1 2G/3G Cellular
5.3.2 Market Environment and Business Structure
5.3.3 U.S. Wireless Adoption Issues
5.3.4 Technology Challenges
5.3.4.1 Availability and Reliability
5.3.4.2 Latency
5.3.4.3 Interoperability
5.3.5 Security Concerns
5.3.6 4G Cellular
5.3.7 Other Public Wireless Technologies
5.4 Private Wired Technologies
5.4.1 Fiber Optic Communications
5.4.2 Dedicated Copper Communications
5.4.3 Power Line Communications
5.4.3.1 Low Speed Power Line Communications
5.4.3.2 Narrowband Power Line Carrier
5.4.3.3 Broadband-over-Power Line
5.4.3.4 In-Home Power Line Carrier
5.4.3.4.1. HomePlug
5.4.3.4.2. HomeGrid/ITU G.hn
5.4.3.4.3. Echelon LonWorks
5.5 Private Wireless Technologies
5.5.1 Proprietary RF Mesh
5.5.1.1 Physical and Link Layer Protocols
5.5.1.2 Network Layer Protocols
5.5.1.3 Performance Characteristics
5.5.1.4 RF Mesh Vendor Examples
5.5.1.5 Home-Oriented Proprietary RF Mesh Technologies
5.5.2 IEEE 802.15.4 Standards
5.5.2.1 ZigBee
5.5.2.1.1. ZigBee Smart Energy Profile
5.5.2.1.2. ZigBee Evolution
5.5.2.1.3. Migration Issues
5.5.2.2 IEEE 802.15.4g (SUN)
5.5.2.3 Wireless M-Bus
5.5.3 IEEE 802.11 Metro Wi-Fi
5.5.4 Microwave Point-to-Point Links
5.5.5 Proprietary Point-to-Multipoint Communications
5.5.6 WiMAX and Private LTE
5.5.7 Satellite Communications
5.5.8 Summary Comparisons
6. Key Industry Players
6.1 Introduction
6.2 Selected Utility Profiles
6.2.1 American Electric Power
6.2.2 Austin Energy
6.2.3 Avista Corporation
6.2.4 CenterPoint Energy
6.2.5 Consumers Energy
6.2.6 Consolidated Edison, Inc.
6.2.7 Duke Energy Corporation
6.2.8 EDF Group
6.2.9 Glendale Water & Power
6.2.10 Oklahoma Gas and Electric Company
6.2.11 Pacific Gas & Electric
6.2.12 PECO Energy Company
6.2.13 Progress Energy
6.2.14 Salt River Project
6.2.15 San Diego Gas & Electric
6.2.16 Scottish and Southern Energy
6.2.17 Southern California Edison
6.2.18 Texas New Mexico Power
6.2.19 Xcel Energy
6.3 Grid Infrastructure Vendors
6.3.1 ABB Group
6.3.2 Alcatel-Lucent
6.3.3 Cooper Power Systems
6.3.4 GE Energy
6.3.5 S&C Electric Company
6.3.6 Schweitzer Engineering Laboratories
6.3.7 Siemens Energy
6.4 Smart Meter Vendors
6.4.1 Echelon Corporation
6.4.2 Elster Group
6.4.3 Holley Metering Ltd.
6.4.4 Iskraemeco
6.4.5 Itron, Inc.
6.4.6 Landis+Gyr
6.4.7 Sensus
6.4.8 SmartSynch, Inc.
6.5 Networking and Software & Systems Vendors
6.5.1 Aclara (ESCO Technologies)
6.5.2 ADTRAN
6.5.3 Ambient Corp.
6.5.4 AT&T
6.5.5 BPL Global Ltd.
6.5.6 Cisco Systems
6.5.7 CURRENT Group, LLC
6.5.8 ECI Telecom
6.5.9 FreeWave Technologies
6.5.10 Grid Net
6.5.11 iDirect, Inc.
6.5.12 Nokia Siemens Networks
6.5.13 On-Ramp Wireless, Inc.
6.5.14 PayGo Electric
6.5.15 RuggedCom Inc.
6.5.16 Silver Spring Networks
6.5.17 Tendril
6.5.18 Trilliant Inc.
6.5.19 Tropos Networks Inc.
6.5.20 Verizon Wireless
6.6 Semiconductors and Components
6.6.1 Certicom Corp.
6.6.2 Digi International Inc.
6.6.3 Ember Corporation
6.6.4 NightHawk
6.6.5 Sierra Wireless
6.6.6 SkyCross
6.6.7 Texas Instruments
7. Market Forecasts
7.1 Worldwide Smart Grid Communications Forecast & Methodology
7.1.1 Worldwide Forecast by Device Type
7.1.2 Worldwide Forecast by Technology
7.1.3 Worldwide Forecast by Region
7.2 North American Smart Grid Communications Forecast
7.3 Latin American Smart Grid Communications Forecast
7.4 European Smart Grid Communications Forecast
7.5 Asia Pacific Smart Grid Communications Forecast
7.6 Middle Eastern and African Smart Grid Communications Forecast
7.7 Communications Device Forecast Risks
8. Company Directory
9. Acronym and Abbreviation List
10. Table of Contents
11. Table of Charts and Figures
12. Scope of Study, Sources and Methodology, Notes
List of Charts and Figures
- Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
- Communications Node Revenue by Region, World Markets: 2011-2020
- Communications Node Segmentation by Technology, World Markets: 2011-2020
- Communications Node Unit Shipments by Application, World Markets: 2011-2020
- Communications Nodes by Smart Grid Application, World Markets: 2014
- Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
- Communications Node Revenue by Device Type, World Markets: 2011-2020
- Communications Node Segmentation by Technology, World Markets: 2011-2020
- Communications Node Revenue by Region, World Markets: 2011-2020
- Communications Node Revenue by Device Type, North America: 2011-20200
- Communications Node Revenue by Device Type, United States: 2011-2020
- Communications Node Revenue by Device Type, Canada: 2011-2020
- Communications Node Revenue by Device Type, Latin America: 2011-2020
- Communications Node Revenue by Device Type, Europe: 2011-2020
- Communications Node Revenue by Device Type, Asia Pacific: 2011-2020
- Communications Node Revenue by Device Type, Middle East & Africa: 2011-2020
- Simplified Smart Grid Communications Architecture
- Simplified Grid Transmission and Distribution System
- Typical Smart Meter Network Architecture
- SCADA System General Layout
- Examples of Distribution Feeder Devices
- Smart Grid Networking Architectural Model
- Example IPv6 networking stack for Smart Grid Field Area Networks
- Overview of IEC 61850 Functionality and Associated Communication Profiles
- NIST Conceptual Reference Diagram for Smart Grid Information Networks
- OPEN Meter Project Scope
- Example of a SONET/SDH Application in a Utility Network
- Mesh Network Configurations
- Municipal Wi-Fi Architecture for a Smart Grid Deployment
- Star Network Configuration
- Example of a WiMAX Smart Grid Application
- General Comparison of Performance vs. Costs
List of Tables
- Communications Requirement Descriptions
- Smart Metering NAN, HAN, and AMI-WAN Communications Requirements
- Substation Automation Communications Requirements
- Distribution Automation Communications Requirements
- Smart Grid Networking Devices
- Standards Identified by NIST in Revision 2.0 of Framework Document
- Categories of Power Line Communications for NANs
- Examples of RF Mesh NAN Systems
- Relative Comparison of Smart Grid Communications
- Vendor Taxonomy
- Forecasted Communications Technologies
- Communications Node Unit Shipments by Application, World Markets: 2009-2020
- Communications Node Unit Shipments by Device Type, World Markets: 2009-2020
- Communications Node Average Selling Price by Device Type, World Markets: 2009-2020
- Communications Node Revenue by Device Type, World Markets: 2009-2020
- AMI-WAN Node Unit Shipments by Technology, World Markets: 2009-2020
- HAN Node Unit Shipments by Technology, World Markets: 2009-2020
- AMI-NAN Node Unit Shipments by Technology, World Markets: 2009-2020
- Communications Node Unit Shipments by Application, Canada: 2009-2020
- Communications Node Unit Shipments by Device Type, Canada: 2009-2020
- Communications Node Revenue, by Device Type, Canada: 2009-2020
- Communications Node Unit Shipments, by Application, Latin America: 2009-2020
- Communications Node Unit Shipments, by Device Type, Latin America: 2009-2020
- Communications Node Average Selling Price, by Device Type, Latin America: 2009-2020
- Communications Node Revenue, by Device Type, Latin America: 2009-2020
- HAN Node Unit Shipments, by Technology, Latin America: 2009-2020
- AMI-NAN Node Unit Shipments, by Technology, Latin America: 2009-2020
- AMI-WAN Node Unit Shipments, by Technology, Latin America: 2009-2020
- DA-WAN Node Unit Shipments, by Technology, Latin America: 2009-2020
- SA-WAN Node Unit Shipments, by Technology, Latin America: 2009-2020
- Communication Node Unit Shipments by Application, Europe: 2009-2020
- Communications Node Unit Shipments by Device Type, Europe: 2009-2020
- Communications Node Average Selling Price by Device Type, Europe: 2009-2020
- Communications Node Revenue by Device Type, Europe: 2009-2020
- HAN Node Unit Shipments by Technology, Europe: 2009-2020
- AMI-NAN Node Unit Shipments by Technology, Europe: 2009-2020
- AMI-WAN Node Unit Shipments by Technology, Europe: 2009-2020
- DA-WAN Node Unit Shipments by Technology, Europe: 2009-2020
- SA-WAN Node Unit Shipments by Technology, Europe: 2009-2020
- Communications Node Unit Shipments by Application, Asia Pacific: 2009-2020
- Communications Node Unit Shipments by Device Type, Asia Pacific: 2009-2020
- Communications Node Average Selling Price by Device Type, Asia Pacific: 2009-2020
- Communications Node Revenue by Device Type, Asia Pacific: 2009-2020
- HAN Node Unit Shipments by Technology, Asia Pacific: 2009-2020
- AMI-NAN Node Unit Shipments by Technology, Asia Pacific: 2009-2020
- AMI-WAN Node Unit Shipments by Technology, Asia Pacific: 2009-2020
- DA-WAN Node Unit Shipments by Technology, Asia Pacific: 2009-2020
- SA-WAN Node Unit Shipments by Technology, Asia Pacific: 2009-2020
- Communications Node Unit Shipments by Application, Middle East & Africa: 2009-2020
- Communications Node Unit Shipments by Device Type, Middle East & Africa: 2009-2020
- Communications Node Average Selling Price by Device Type, Middle East & Africa: 2009-2020
- Communications Node Revenue by Device Type, Middle East & Africa: 2009-2020
- HAN Node Unit Shipments by Technology, Middle East & Africa: 2009-2020
- AMI-NAN Node Unit Shipments by Technology, Middle East & Africa: 2009-2020
- AMI-WAN Node Unit Shipments by Technology, Middle East & Africa: 2009-2020
- DA-WAN Node Unit Shipments by Technology, World Markets: 2009-2020
- SA-WAN Node Unit Shipments by Technology, World Markets: 2009-2020
- All Node Unit Shipments by Technology, World Markets: 2009-2020
- Communications Node Unit Shipments by Application, North America: 2009-2020
- Communications Node Unit Shipments by Device Type, North America: 2009-2020
- Communications Node Average Selling Price by Device Type, North America: 2009-2020
- Communications Node Revenue by Device Type, North America: 2009-2020
- HAN Node Unit Shipments by Technology, North America: 2009-2020
- AMI-NAN Node Unit Shipments by Technology, North America: 2009-2020
- AMI-WAN Node Unit Shipments by Technology, North America: 2009-2020
- DA-WAN Node Unit Shipments by Technology, North America: 2009-2020
- SA-WAN Node Unit Shipments by Technology, North America: 2009-2020
- Communications Node Unit Shipments by Application, United States: 2009-2020
- Communications Node Unit Shipments by Device Type, United States: 2009-2020
- Communications Node Revenue by Device Type, United States: 2009-2020
- DA-WAN Node Unit Shipments by Technology, Middle East & Africa: 2009-2020
- SA-WAN Node Unit Shipments by Technology, Middle East & Africa: 2009-2020
- HAN Communications Node Unit Shipments by Region, World Markets: 2009-2020
- AMI-NAN Communications Node Unit Shipments by Region, World Markets: 2009-2020
- AMI-WAN Communications Node Unit Shipments by Region, World Markets: 2009-2020
- DA-WAN Communications Node Unit Shipments by Region, World Markets: 2009-2020
- SA-WAN Communications Node Unit Shipments by Region, World Markets: 2009-2020
- HAN Node Unit Shipments and Revenue by Region, World Markets: 2009-2020
- AMI Node Unit Shipments and Revenue by Region, World Markets: 2009-2020
- AMI Concentrator Unit Shipments and Revenue by Region, World Markets: 2009-2020
- Network Interface Converter Unit Shipments and Revenue by Region, World Markets: 2009-2020
- Substation Router Unit Shipments and Revenue by Region, World Markets: 2009-2020
- Substation Ethernet Switch Unit Shipments and Revenue by Region, World Markets: 2009-2020
- WAN Backbone Unit Shipments and Revenue by Region, World Markets: 2009-2020
- Generalized Grid Router Unit Shipments and Revenue by Region, World Markets: 2009-2020
- Total Smart Grid Communications Revenue by Region, World Markets: 2009-2020