World Smart Grid sales at installed prices climbed to $36.5 billion in 2012 a growth of 30% on 2011 according to Memoori’s latest report. However, the market is rather unbalanced because the current share taken by Smart Meters is running at around 40%; whilst its potential market value over the full 20 year program to deliver a complete Smart Grid, will be no more than 9%.
M&A activity reached $19.5 billion almost doubling the value of deals in the previous year. Both the growth and now scale of M&A activity show the supply side is gearing up to meet the requirements for new technology and the forecast demand for pure Smart Grid products and systems worth approximately $2,000 billion over the next 20 years.
Total new VC investment in Smart Grid for 2012 was $779 million based on 41 transactions, which is a fall of 37% on 2011. So along with Clean Tech VC investment, it suffered a general decline which we don’t expect to continue.
Solid progress in the Smart Grid Industry has been made in the last 3 years but there is still much work to be done. The regulators and policy makers in the developed markets of the world are struggling to find the framework on which Smart Grid can be effectively built. In some cases they are losing site of the most important reason for developing a Smart Grid and that is to build a system that will accept as much Variable Renewable Energy that is practical to meet the needs of a low carbon economy in the 21st century.
About the Report
At 239 pages with 31 charts and tables, The Smart Grid Business 2012 to 2017 report filters out important conclusions, supported with facts, as to what is shaping the future of the Smart Grid industry. You can learn more at the reports website; http://www.memoori.com/portfolio/the-smart-grid-business-2012-to-2017/
Memoori is an independent market research and business intelligence provider. Our intelligence and advice helps technology companies and investors create sound strategies for future success. For more information, visit http://memoori.com