North American smart grid market spikes on the back of government incentives

The North American distribution automation market is set to grow to nearly $1.5 billion this year, according to new data from IMS Research.

Austin, TX - 8th March 2011 The North American distribution automation market is set to grow to nearly $1.5 billion this year, according to new data from IMS Research. This data comes from the upcoming IMS Research report titled The World Market for Distribution Automation Equipment - 2011.


Utilities had been holding back on their distribution automation* projects while waiting for funding relating to the American Recovery and Reinvestment Act of 2009. This had an adverse affect on revenues for distribution automation suppliers until financing finally snapped back to deliver a record year for those in this segment.

Initial growth in the smart grid market was seen predominantly in the metering space, thanks to government incentives. Latest IMS Research data indicate an increase from 2008 through 2010 of more than 90% in smart meter revenues, which reached close to $1.5 billion in North America last year.

However, the smart meter market is expected to decline over the next few years, while distribution automation revenues continue to grow on the back of a record 2010.

"Sensing and control electronics on feeder lines are particularly exciting at this time," says IMS Research Market Analyst Donald Henschel. "The retrofit opportunity for electronic controls and sensors can only be expected to increase as the installed base of electromechanical switchgear and reclosers grows on North America's aging feeder lines."

But while IMS Research findings indicate divergence between distribution automation and smart metering investment, the two segments are anticipated to bolster one another in the long-run as utilities reap the benefits of communication and control across their full distribution network, and the data backhaul needs of the two systems are handled in a more cost-effective, unified fashion.

About The World Market for Distribution Automation Equipment - 2011

The upcoming IMS Research report titled The World Market for Distribution Automation Equipment - 2011, published April 2011, reviews the above market on a global level, with particular emphasis on efforts to automate operation of distribution feeder lines downstream of the distribution substation.

About IMS Research - Smart Grid
IMS Research is a leading supplier of market data to the smart grid industry, with reporting on utility metering, feeder automation, renewables, switchgear, own-use energy management, the smart home, and other areas of smart grid investment. To find out more, contact IMS Research: enquiries@imsresearch.com; http://imsresearch.com

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