China Takes Smart Grid Lead With Projected $61.4 Billion Market
Photo by SMercury98 via Flickr Creative Commons
The trend of China taking the lead on smart grid spending isn't new. Zpryme showed that the country would outspend the US in this sector during 2010. However, the numbers projected by the research firm for China's smart grid spending over the next five years will send it far out into the lead ahead of other countries investing in an intelligent grid, including the US. New research from Zpryme shows that China's market will zoom from $22.3 billion to $61.4 billion by 2015, which will make it the biggest smart grid market in the world. For a country as populated and rapidly growing as China, having an effective smart grid is a very big deal. The country wants to reduce its carbon footprint while meeting rising energy demands from renewable energy. The smart grid is essential to accomplish this, and there are companies around the world eager to help out.
Zpryme expects transmission and distribution will be a big slice of the market, growing from $4.5 billion in 2010 to $21.2 billion in 2015, but that the biggest opportunity for firms to get into the Chinese market is through IT and networking systems for automating distribution and consumption of electricity.
That's great news for companies like GE, IBM, HP, Cisco and Accenture among others who are leading the way in this area, and who will also lead the way into China's smart grid market. While the US still slogs along with smart grid upgrades, the companies will be able to make big strides in China, where all new infrastructure is being installed.
Zpryme's report states, "An olympic leap forward has been taken by China in the past 12 months. Where around the globe and more specifically the U.S. is at a snail's crawl injecting grants and loans for Smart Grid programs and pilots, China is well ahead. The leading Asian economic power has proven to have more government gusto to fuel Smart Grid infrastructure and development. In the near future the Smart Grid sector coupled with clean energy industries such as solar and wind generation have the power to determine an economy‟s energy consumption fate - well ahead of the curve China is already in preparation mode by: building strategic global relationships, aggressively building electric infrastructure, and more importantly making the Smart Grid initiative a national policy."
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