500 Vendors Vying for $380 Billion Power Sector “Internet of Things” Market
WASHINGTON, May 27, 2015 /PRNewswire/ — The Internet of Things (IoT) is a much-hyped market promising a number of futuristic applications. The reality is that the first mass deployment of the IoT has already occurred in the electric power sector. Smart grid infrastructure has been deployed in many geographic regions already and between 2015-2025, a further $380.1 billion will be invested globally, according to a new study published today by Northeast Group, LLC.
“Smart grid infrastructure is the first concrete example of the ‘Internet of Things’ on a significant scale,” said Ben Gardner, President of Northeast Group. “Smart meters with two-way communications and other sensors across the power grid are already providing tangible benefits for utility customers. The next decade will see billions invested in the global smart grid market, creating a huge opportunity for vendors.”
There are currently more than 500 smart grid vendors both competing and partnering with one another. Northeast Group identified four trends currently shaping the vendor landscape. First, partnership and M&A activity is accelerating in the market. Second, infrastructure investment is shifting from developed to emerging markets and this is where the opportunities will be over the next decade. Third, vendors are branching out from traditional investment in smart metering to new smart city and smart infrastructure market segments. Fourth, vendors are repositioning themselves away from hardware towards higher-value segments such as analytics software and services.