Market Research Report

Satellite Communications for Smart Grid Applications - VSAT and BGAN Satellite Technologies for Substation Automation, Distribution Automation, and Advanced Metering Infrastructure Backhaul
cover Published by Navigant Research (formerly Pike Research)
Published Product code 245714
Content info 77 Pages
Price

Introduction

Abstract

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Over the past several years, smart grid initiatives around the world have focused largely on the deployment of smart meters. Increasingly, however, utilities worldwide are beginning to look at applications like substation automation, distribution automation, advanced metering infrastructure (AMI) backhaul, remote monitoring, workforce mobility, and communications network redundancy. These applications are expected to bring dramatically improved operational efficiency to utilities as well as reliability to the grid. While substation and distribution sites in urban and suburban markets can be readily connected to the grid via existing terrestrial communications networks, in order to create a fully-automated, reliable grid, rural and remote sites must also be accommodated and backup systems need to be in place for critical sites.

Thanks to a number of advances in both technical characteristics - latency, in particular - as well as a dramatic declines in pricing for both the equipment as well as monthly service, satellite communications is emerging as a viable and attractive means of connectivity for many smart grid applications, particularly as smart grid efforts move beyond developed, densely populated regions. Numerous satellite service providers and equipment manufacturers are now aggressively pursuing the utility market, a trend which should further the reduction in satellite service and equipment pricing even as bandwidth and connection speeds improve.

This Pike Research report examines the economics and dynamics of satellite communications as it relates to smart grid deployments. The study provides an in-depth examination of market drivers, technology issues and standards, and the competitive landscape for smart grid networking. Detailed market forecasts are included for unit shipments and infrastructure and satellite service revenue, segmented by technology, application, and world region, through 2020.

Key Questions Addressed:

  • How large is the market opportunity, in terms of unit shipments and revenue, for each category and application of smart grid satellite communications equipment?
  • How large is the worldwide opportunity for satellite service providers, and which regions show the most potential?
  • Who are the key players in the satellite services and infrastructure arena?
  • Where do satellite communications stand out as a promising smart grid connectivity solution?
  • How do the costs associated with satellite communications compare with terrestrial networks?

Who needs this report?

  • Satellite service providers
  • Satellite equipment vendors
  • Systems integrators and consultants
  • Utilities
  • Government agencies
  • Industry associations
  • Investor community

Table of Contents

Table of Contents

1. Executive Summary

  • 1.1 The State of the Smart Grid
  • 1.2 The Scope of this Report

2. Market Issues

  • 2.1 The Smart Grid
    • 2.1.1 Smart Grid Communications Drivers
    • 2.1.2 Smart Grid Applications
  • 2.2 The Satellite Communications Industry and the Smart Grid
    • 2.2.1 Satellite Industry Overview and History
  • 2.3 Satellite Industry and Smart Grid
    • 2.3.1 Emerging Smart Grid Applications Using Satellite Communications
      • 2.3.1.1 AMI Backhaul
      • 2.3.1.2 Substation Automation
        • 2.3.1.2.1. Case Study: Rio Grande Electric Cooperative
      • 2.3.1.3 Distribution Automation
      • 2.3.1.4 Network Redundancy
      • 2.3.1.5 Mobile Workforce
      • 2.3.1.6 Voice and Broadband Connection for Remote Sites
    • 2.3.2 Advantages to Satellite Communications in Smart Grid Applications
      • 2.3.2.1 Ubiquitous Coverage
      • 2.3.2.2 Reliability
      • 2.3.2.3 Scalability
      • 2.3.2.4 Rapid Deployment and Portability
      • 2.3.2.5 Slower Obsolescence Compared with Terrestrial Wireless Standards
    • 2.3.3 Perceived Disadvantages to Satellite Communications in Smart Grid Applications
      • 2.3.3.1 Latency
      • 2.3.3.2 Interoperability
      • 2.3.3.3 Rain Fade
      • 2.3.3.4 Bandwidth Efficiency
      • 2.3.3.5 Security Concerns
      • 2.3.3.6 Costs
      • 2.3.3.6.1. Net Present Value Analysis
    • 2.3.4 Availability of Alternative Communications Networks: A Global Perspective
      • 2.3.4.1 North America
      • 2.3.4.2 Latin America
      • 2.3.4.3 Europe
      • 2.3.4.4 Asia Pacific
      • 2.3.4.5 Middle East & Africa
      • 2.3.4.6 Australia and New Zealand
    • 2.3.5 Population Density for Major Countries Worldwide
    • 2.3.6 Government and Regulatory Issues and Spectrum Licensing
    • 2.3.7 Regulation of Satellite Spectrum

3. Technology Issues

  • 3.1 Smart Grid Communications Requirements
    • 3.1.1 Smart Grid Communications Architecture
    • 3.1.2 An Architectural Model Example
    • 3.1.3 Smart Grid Communications Standards
    • 3.1.4 Smart Grid Networking Technologies - Wired
      • 3.1.4.1 Leased Lines and Broadband
      • 3.1.4.2 Private Fiber
      • 3.1.4.3 Narrowband Power Line Communications
      • 3.1.4.4 Broadband over Power Line
    • 3.1.5 Smart Grid Networking Technologies: Terrestrial Wireless
      • 3.1.5.1 Private RF Mesh Networks
      • 3.1.5.2 Private Point-to-Point Microwave Radio Networks
      • 3.1.5.3 Private RF Point-to-Multipoint Systems
      • 3.1.5.4 Cellular Networks
      • 3.1.5.5 Satellite Communications
  • 3.2 Smart Grid Applications and Satellite Communications
    • 3.2.1 Satellite Orbits
      • 3.2.1.1 Geosynchronous Orbit
      • 3.2.1.2 Low Earth Orbit
      • 3.2.1.3 Medium Earth Orbit
      • 3.2.1.4 GEO versus MEO versus LEO
    • 3.2.2 VSAT versus BGAN Technologies
      • 3.2.2.1 Very Small Aperture Terminal
      • 3.2.2.2 Broadband Global Area Network
      • 3.2.2.3 VSAT versus BGAN in the Smart Grid
    • 3.2.3 Fixed versus Mobile Satellite Services
    • 3.2.4 Satellite Spectrum Bands
      • 3.2.4.1 L-band
      • 3.2.4.2 S-band
      • 3.2.4.3 C-band
      • 3.2.4.4 Ku-band
      • 3.2.4.5 Ka-band

4. Key Industry Players

  • 4.1 Introduction
  • 4.2 Satellite Service Providers
    • 4.2.1 Globalstar
    • 4.2.2 Inmarsat
    • 4.2.3 Infosat Communications LP
    • 4.2.4 SES/ASTRA2Connect
  • 4.3 Equipment and Solutions Vendors
    • 4.3.1 Cisco
    • 4.3.2 Hughes Network Systems, LLC
    • 4.3.3 iDirect
    • 4.3.4 Logica
    • 4.3.5 Schneider Electric
    • 4.3.6 Silver Spring Networks
    • 4.3.7 Spacenet, Inc.
  • 4.4 Utilities Using Satellite Communications in Smart Grid Deployments
    • 4.4.1 Pacific Gas & Electric
    • 4.4.2 Southern California Edison
  • 4.5 Industry Associations
    • 4.5.1 Satellite Industry Association

5. Market Forecasts

  • 5.1 Worldwide Satellite-based Smart Grid Communications Forecast

6. Company Directory

7. Acronym and Abbreviation List

8. Table of Contents

9. Table of Charts and Figures

10. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Total Smart Grid Satellite Services and Equipment Revenue, World Markets: 2011-2020
  • Satellite-based Smart Grid Unit Shipments by Application, World Markets: 2011-2020
  • Satellite-based Smart Grid Device Revenue Forecast by Region, World Markets: 2011-2020
  • Satellite Service Provider Smart Grid Revenue by Region, World Markets: 2011-2020
  • Satellite Industry Revenue by Segment, World Markets: 2006-2011
  • Satellite-based Communications Node Unit Shipments by Application, World Markets: 2011-2020
  • Satellite-based Communications Nodes by Smart Grid Applications, World Markets: 2014
  • Satellite-based Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, World Markets: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, World Markets: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, World Markets: 2011-2020
  • Satellite-based Communications Node Revenue by Region, World Markets: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, North America: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, United States: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Canada: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Latin America: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Europe: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Asia Pacific: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Middle East & Africa: 2011-2020
  • Satellite Service Provider Revenue by Region, World Markets: 2011-2020
  • Total Smart Grid Satellite Services and Equipment Revenue, World Markets: 2011-2020
  • Simplified Smart Grid Communications Architecture
  • The Satellite Network in Context
  • Strength of Wireless Communications Signals: North and Central America
  • Strength of Wireless Communications Signals: Northern South America
  • Strength of Wireless Communications Signals: Southern South America
  • Strength of Wireless Communications Signals: Eastern and Western Europe
  • Strength of Wireless Communications Signals: Asia Pacific
  • Strength of Wireless Communications Signals: Middle East and Northern Africa
  • Strength of Wireless Communications Signals: Southern Africa
  • Strength of Wireless Communications Signals: Australia and New Zealand
  • Smart Grid Networking Architectural Model
  • NIST Smart Grid Framework 2.0
  • Mesh and Star Network Configurations
  • List of Tables
  • Satellite Frequencies and Selected Services
  • Net Present Value Analysis: Satellite Communications in the Smart Grid
  • World's Largest Countries Ranked by Population Density (Lowest to Highest)
  • Satellite Industry Revenue by Segment, World Markets: 2006-2011
  • Communications Requirement Descriptions
  • Smart Grid Communications Requirements Summary
  • Smart Grid Networking Devices
  • Satellite Frequencies and Selected Service Providers
  • Satellite-based Communications Node Unit Shipments by Application, World Markets: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, World Markets: 2011-2020
  • Satellite-based Communications Node Average Selling Price by Device Type, World Markets: 2011-2020
  • VSAT-based Communications Node Average Selling Price by Device Type, World Markets: 2011-2020
  • BGAN-based Communications Node Average Selling Price by Device Type, World Markets: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, World Markets: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, World Markets: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, World Markets: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Application, North America: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, North America: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, North America: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, North America: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, North America: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, North America: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, North America: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Application, United States: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, United States: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, United States: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, United States: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, United States: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, United States: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, United States: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Application, Canada: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, Canada: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, Canada: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, Canada: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Canada: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, Canada: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, Canada: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Application, Latin America: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, Latin America: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, Latin America: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, Latin America: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Latin America: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, Latin America: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, Latin America: 2011-2020
  • Satellite-based Communication Node Unit Shipments by Application, Europe: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, Europe: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, Europe: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, Europe: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Europe: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, Europe: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, Europe: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Application, Asia Pacific: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, Asia Pacific: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, Asia Pacific: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, Asia Pacific: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Asia Pacific: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, Asia Pacific: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, Asia Pacific: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Application, Middle East & Africa: 2011-2020
  • Satellite-based Communications Node Unit Shipments by Device Type, Middle East & Africa: 2011-2020
  • VSAT-based Communications Node Unit Shipments by Device Type, Middle East & Africa: 2011-2020
  • BGAN-based Communications Node Unit Shipments by Device Type, Middle East & Africa: 2011-2020
  • Satellite-based Communications Node Revenue by Device Type, Middle East & Africa: 2011-2020
  • VSAT-based Communications Node Revenue by Device Type, Middle East & Africa: 2011-2020
  • BGAN-based Communications Node Revenue by Device Type, Middle East & Africa: 2011-2020
  • Mobile Vehicle Satellite Equipment Unit Shipments by Region: 2011-2020
  • Mobile Vehicle Satellite Equipment Revenue by Region: 2011-2020
  • Satellite-enabled Mobile Vehicle Service Revenue by Region: 2011-2020
  • Total Satellite Service Provider Smart Grid Revenue by Region, World Markets: 2011-2020

Satellite Communications for Smart Grid Applications - VSAT and BGAN Satellite Technologies for Substation Automation, Distribution Automation, and Advanced Metering Infrastructure Backhaul published by Navigant Research (formerly Pike Research) in June 27, 2012. This report consists of 77 Pages and the price starts from US $ 3900.

Press Release

Shipments of Satellite-Based Communications Nodes for Smart Grid Applications Will Quadruple by 2020

November 19th, 2012

Global Information Inc. would like to present a new market research report, "Satellite Communications for Smart Grid Applications - VSAT and BGAN Satellite Technologies for Substation Automation, Distribution Automation, and Advanced Metering Infrastructure Backhaul" by Navigant Research (formerly Pike Research).

As the smart grid market matures, applications like substation automation, distribution automation, advanced metering infrastructure backhaul, network redundancy, remote monitoring, and mobile workforce applications are all gaining increased attention from utility managers looking to wring more costs out of their business models. Whereas alternative communications options are generally more practical and cost-effective for home area network and neighborhood area network smart grid applications, in the situations mentioned above, satellite communications is an increasingly viable and, at times, the only alternative. According to a recent report from Pike Research, a part of Navigants Energy Practice, this will lead to steady growth in the market for utility satellite communications.

Shipments of satellite-based communications nodes for smart grid applications will more than quadruple by 2020, the study concludes, growing from 11,500 in 2012 to nearly 48,000 in 2020.

"In order to bring smart grid functionality and all of its benefits to sparsely populated geographies, satellite communications represent a clear path forward," says research director Carol Stimmel. "Whats more, as a non-terrestrial-based network, satellite communications may be the only solution to keep the grid connected or bring it back online rapidly in cases of natural (or manmade) disasters. Looking ahead, as satellite technology advances and emerging markets bring electric service to underserved areas, satellite appears to be well-positioned to play a growing role."

Satellite communications will play a key enabling role in not only the expansion of the smart grid but also the spread of renewable distributed generation facilities, according to the report. Integrating the growing number of wind and solar microgrid sites into utilities overall communications networks often means reaching remote, rural areas. Satellite communications ubiquitous coverage and relatively low equipment costs allow utilities to attach these sites to their communications network quickly and inexpensively.

The report, "Satellite Communications for Smart Grid Applications", examines the economics and dynamics of satellite communications as it relates to smart grid deployments. The study provides an in-depth examination of market drivers, technology issues and standards, and the competitive landscape for smart grid networking. Detailed market forecasts are included for unit shipments and infrastructure and satellite service revenue, segmented by technology, application, and world region, through 2020.

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