Navigant Research Report Shows Utilities Are Projected to Spend Nearly $100 Billion on Networking and Communications Equipment and Services over the Next Decade

Investment in networking for a multitude of utility applications
is accelerating even as the ways that utilities solve connectivity
problems are diversifying

BOULDER, Colo.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/Analytics?src=hash” target=”_blank”gt;#Analyticslt;/agt;–A new report from Navigant
Research
provides a granular look at the global marketplace for
utility networking and communications equipment and services for smart
grid applications.

Power utilities are faced with a fast-changing operating environment.
Not only are competitive threats and operational challenges mounting,
but customers are also demanding more from their utilities—as are
regulators. Meanwhile, technological advances are making it easier and
cheaper to deploy connectivity throughout a utility’s territory. Click
to tweet
: According to a new report from @NavigantRSRCH,
utilities are projected to spend nearly $100 billion on networking and
communications equipment and services over the next decade.

“Sophisticated IT and analytics programs can leverage the data made
available by connected devices to improve grid reliability, safety,
resilience, and operational efficiency—all of which augment the
utility’s return on the networking investment,” says Richelle Elberg,
principal research analyst with Navigant Research. “Thus, investment in
networking for a multitude of utility applications is accelerating even
as the ways that utilities solve connectivity problems are diversifying.”

Globally, $7.9 billion is forecast for investments in smart grid
communications equipment and services in 2018, with $6.8 billion
attributable to utility CAPEX in networking equipment. Services, which
include leased lines, cellular service, tower leasing, satellite
services, and low power wide area (LPWA) solutions, are anticipated to
account for more than $1 billion, according to the report.

The report, Networking
and Communications for Smart Grids and Utility Applications
,
provides a granular look at the global marketplace for utility
networking and communications equipment and services for smart grid
applications. The study covers three smart grid applications: advanced
metering infrastructure (AMI), distribution automation, and substation
automation at the transmission and distribution levels (as well as
secondary substations in Europe). Technologies covered include cellular,
RF mesh, point-to-multipoint, microwave point-to-point, private 4G,
Wi-Fi-based systems, satellite services, leased lines,
TDM/ethernet/broadband, power line carrier (PLC), fiber, and low power
wide area (LPWA). Global market forecasts, segmented by application,
technology, utility type (in the US), and region, extend through 2027.
The forecasts include spend on equipment and services for near area
networks (NANs, or field area networks) and wide area networks (WANs).
Services forecasts include those provided by cellular carriers,
satellite providers, tower leasing companies, and telcos for leased
line, TDM/ethernet, or broadband services. An Executive Summary of the
report is available for free download on the Navigant
Research website
.

About Navigant Research

Navigant Research, the dedicated research arm of Navigant, provides
market research and benchmarking services for rapidly changing and often
highly regulated industries. In the energy sector, Navigant Research
focuses on in-depth analysis and reporting about global clean technology
markets. The team’s research methodology combines supply-side industry
analysis, end-user primary research and demand assessment, and deep
examination of technology trends to provide a comprehensive view of the
Energy Technologies, Utility Transformations, Transportation
Efficiencies, and Buildings Innovations sectors. Additional information
about Navigant Research can be found at www.navigantresearch.com.

About Navigant

Navigant Consulting, Inc. is a specialized, global professional services
firm that helps clients take control of their future. Navigant’s
professionals apply deep industry knowledge, substantive technical
expertise, and an enterprising approach to help clients build, manage
and/or protect their business interests. With a focus on markets and
clients facing transformational change and significant regulatory or
legal pressures, the Firm primarily serves clients in the healthcare,
energy and financial services industries. Across a range of advisory,
consulting, outsourcing, and technology/analytics services, Navigant’s
practitioners bring sharp insight that pinpoints opportunities and
delivers powerful results. More information about Navigant can be found
at navigant.com.

* The information contained in this press release concerning the
report
Networking and Communications for Smart Grids and Utility
Applications is a summary and reflects Navigant Research’s current
expectations based on market data and trend analysis. Market predictions
and expectations are inherently uncertain and actual results may differ
materially from those contained in this press release or the report.
Please refer to the full report for a complete understanding of the
assumptions underlying the report’s conclusions and the methodologies
used to create the report. Neither Navigant Research nor Navigant
undertakes any obligation to update any of the information contained in
this press release or the report.

Contacts

Lindsay Funicello-Paul
+1.781.270.8456
lindsay.funicello.paul@navigant.com

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