Press Release

Smart Grid Distribution Automation Spending to Total $46 Billion Worldwide by 2015


November 24th, 2010

Global Information Inc. would like to present a new market research report, "Distribution Automation: Global Market Analysis and Forecasts" by Navigant Research.

As the smart grid has evolved, most of the media and public focus has been on consumer-facing products and technologies, such as smart meters, automated metering, and home energy management systems. While those areas will continue to be important, the study from Pike Research finds that utilities are placing increased emphasis on adding greater intelligence and control capabilities to their distribution infrastructure. During the period from 2010 to 2015, the cleantech market intelligence firm forecasts that worldwide utility investment in distribution automation (DA) will total $46 billion, with a robust growth in spending over the next few years.

"Distribution automation is emerging as the next hot topic in the smart grid industry," says senior analyst Bob Gohn. "For utilities, DA deployments can yield significant cost savings through measurable improvements in operational efficiency, reliability, service quality, and energy conservation all of which can contribute to customer satisfaction. In many cases, we expect that DA will yield stronger return on investment than smart meters or other high-profile smart grid initiatives."

Gohn adds that the largest category for DA spending will be distribution switchgear, which includes upgraded distribution transformers, reclosers, sectionalizers, disconnect switches, and fused cutout switches. Pike Research anticipates that switchgear will represent 53% of distribution automation spending during the 2010-2015 forecast period. Other key DA categories will include Volt/VAR optimization; fault detection, isolation, and recovery (FDIR); and feeder protection and control.


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