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.
U.S.
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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