Memoori, a UK research firm, has released a report “The Smart Grid Business 2012 to 2017”, which analyzes global smart grid-related sales. Its research has identified some interesting trends in the current smart grid market.
Globally
In the last 3 years Memoori estimates that the world smart grid-related sales has more than doubled from $16.2 billion in 2010 to $36.5 in 2012. 40% of this is smart meters
Most of this business is going to the major international suppliers. 26 companies shared most of the sales in 2012, but they represent only 1% of the population of suppliers.
Over the past 6 years mergers and acquisitions have grown from $134 million in 2007 to $10.6 billion in 2011 and $19.5 billion in 2012.
Memoori forecasts demand for pure smart grid products and systems will be worth about $2 trillion over the next 20 years.
In the last 3 years mergers and acquistions have been driven by strategic buys, particularly by the major global electrical transmission and distribution supplier companies.
Strategic buys as % of deals
- 2010 73%
- 2011 75%.
- 2012 60%
In 2012 Memoori says that significant acquisitions were made by companies external to the electrical transmission and distribution industry, such as IT and communications companies, who are interested in getting a foothold in the smart grid business.
The U.S. represents about 20 percent of the smart grid market. Europe is about 10 percent.
Smart grid investment in the U.S. was approximately $7 billion in 2012, including the refurbishment business.
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