Long Term Evolution (LTE) is seen by most as the gold standard of wireless technology today, but hurdles remain before it becomes a mainstream communications network option for utilities deploying smart grid applications. LTE is a high-speed, high-capacity wireless communications standard with low latency, as well as flexibility in prioritization and in quality of service (QoS) that will enable its use in critical applications where legacy 3G wireless systems are unsuitable. LTE may also be used for AMI-NAN, AMI-WAN, substation automation, distribution automation, video monitoring, and mobile workforce management applications in the smart grid, and the standard is considered future-proof by many utilities.
Today, however, cost and spectrum availability issues make many utilities reluctant or unable to commit to LTE as a private solution, and many utilities, particularly in the United States remain wary of relying upon public communications providers. Longer term, partnerships with the federal government’s FirstNet initiative, or with incumbent local exchange carriers, may allow U.S. utilities to share the costs for LTE network deployment and operation. Navigant Research forecasts that shipments of LTE-based communications nodes will surpass 5 million units annually by 2020.
This Navigant Research report details emerging utility uses of the LTE wireless standard and analyzes its value as a smart grid communications network for a variety of applications. The report provides a comprehensive assessment of the demand drivers and inhibitors, and details the possible business cases for LTE in smart grid deployments. Key industry players are profiled, and worldwide unit shipments of LTE communications nodes are forecast, segmented by application and region, through 2020.
Key Questions Addressed:
- What are the advantages and disadvantages of the LTE wireless standard as a communications solution in utility applications?
- Where has LTE-based smart grid technology been deployed, and by whom, worldwide?
- How does the availability of spectrum assets globally (or lack thereof) affect the attractiveness of LTE as a communications solution in the smart grid?
- What are the pros and cons of using LTE service via a public communications provider as opposed to developing a private network?
- What types of partnership opportunities are emerging for utilities interested in using LTE networks? What are the costs and benefits of such partnerships?
- How large is the market opportunity for vendors of LTE-based solutions worldwide and how extensive will utility implementations be by 2020?
Who needs this report?
- Utilities
- Public wireless service providers
- Wireless communications equipment vendors
- Industry associations
- Investor community
- Government agencies and policymakers
Table of Contents
1. Executive Summary
2. Market Update
2.1 Background
2.2 Smart Grid Applications
2.2.1 Market Drivers
2.2.2 Market Inhibitors
2.3 Spectrum Allocation and Costs
2.4 LTE Deployments: Public and Private
2.5 Partnership Options
2.5.1 Green Mountain Power
2.5.2 FirstNet
3. Key Industry Players
3.1 Public Service Providers
3.1.1 AT&T
3.1.2 Sprint Nextel
3.1.3 Verizon Wireless3.2.3 Green Mountain Power
3.2 Utilities
3.2.1 Ausgrid
3.2.2 Duke Energy
3.2.3 Green Mountain Power
3.2.4 San Diego Gas & Electric
3.2.5 Tri-County Electric Coop
3.3 Equipment Vendors
3.3.1 Alcatel-Lucent
3.3.2 Ambient
3.3.3 CalAmp
3.3.4 Ericsson
3.3.5 GE Digital Energy
3.3.6 Grid Net
4. Market Forecast
4.1 Global Outlook
4.1.1 North America
4.1.2 Europe
4.1.3 Rest of World
4.2 Applications
5. Conclusions and Recommendations
5.1 Recommendations for Utilities
5.2 Recommendations for Public Service Providers
5.3 Recommendations for Equipment Vendors
List of Charts and Figures
- LTE-based Communication Node Shipments by Region, World Markets: 2012-2020
- Global LTE Deployments
- LTE-based Communication Node Shipments by Application, World Markets: 2012-2020