More than 400 smart grid vendors vying for $66bn emerging markets opportunity

News provided by

Feb 19, 2013, 05:07 ET

WASHINGTON, Feb. 19, 2013 /PRNewswire/ -- Across 35 emerging market countries, there are more than 400 vendors vying for the more than $66 billion smart grid market opportunity by 2023. Among these 400 vendors, the number of local-based vendors active in smart grid projects currently exceeds the number of large international vendors, signaling an opening up of the smart grid vendor landscape. A new study from Northeast Group - Emerging Markets Smart Grid: Vendor Analysis - highlights this growing trend as well as the increasing level of collaboration between international and local-based vendors. Among the local vendors, over 160 of them based in Central & Eastern Europe, Eurasia, Latin America, Middle East & North Africa, South Africa, and Southeast Asia are well positioned in the smart grid market. Of these, over 25% are already active in significant smart grid projects.

"The smart metering market alone is expected to cumulatively reach $66.3 billion in emerging markets by 2023," said Northeast Group. "It is not surprising that emerging market-based companies are rising to meet this demand. Local vendors are often best positioned to understand the unique characteristics of specific smart grid markets, which can vary greatly from region to region. These vendors are proving to be invaluable partners for international vendors and several of them are also capable of carrying out large-scale projects on their own."

International smart grid vendors have taken note of the market opportunity in emerging markets. Of the leading smart metering, distribution automation, IT, home energy management and professional services vendors, nearly all already have a significant presence in emerging markets, and over 10% already have offices in all 35 countries covered in this study. On average, leading international vendors currently have between three to five emerging market partners, which help them in a number of ways, from gaining local market insight to avoiding potential tariff barriers.

"As smart grid markets in North America and Western Europe mature, the leading vendors are looking for growth opportunities in emerging markets. International vendors have already deployed nearly 3.5 million smart meters in emerging markets, with plans for millions more. The rise of emerging market-based local vendors is more likely to lead to increased partnerships rather than a significant loss in market share for the leading international vendors in most markets."

These market dynamics could also lead to an increase in mergers and acquisitions in the smart grid sector in emerging market countries. M&A activity is forecast to level off in the more developed smart grid markets after a flurry of activity over the past couple of years. Leading smart grid vendors with sufficient capital could look to acquire emerging market-based vendors, who often own technologies and capabilities well suited to local markets. There have already been approximately a dozen significant acquisitions of emerging market-based smart grid vendors in recent years.

Northeast Group's study found that vendors in the smart grid market vary in terms of size—ranging from less than 10 employees to well over 1,000—and segment, covering smart metering, distribution automation, IT, home energy management and professional services. The study provides detailed analysis of the leading 40 emerging market-based vendors already active in smart grid projects, and an assessment of over 120 additional vendors based on company capacity, business partnerships, and product development.

"Emerging Markets Smart Grid: Vendor Analysis" is over 100 pages long and includes over 55 unique charts, tables and graphics. A total of over 400 vendors from both developed and emerging market countries are identified in the study. To order a copy of the study, please visit our website at: www.northeast-group.com or email Ben Gardner at: [email protected]

ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm. Our research is focused on the smart grid opportunity in emerging market countries.

Key questions addressed in this study:

Which are the leading emerging market-based smart grid vendors and where do they have active projects?
Which international smart grid vendors are currently leading in emerging markets? What are their market shares in smart metering?
What major partnerships have there been between international and emerging market-based smart grid vendors? What major mergers and acquisitions?
What is the market opportunity for specific smart grid segments in emerging markets?
What are the characteristics of the more than 160 emerging market-based vendors currently positioned to operate in the smart grid market?

Table of Contents

i. Executive Summary	1
ii. Methodology	6
1. Introduction	8
1.1 Smart grid overview	8
1.2 The case for emerging markets	14
1.3 Emerging markets smart grid market forecast	16
2. Detailed smart grid segment analysis	19
2.1 AMI	19
2.1.1 Meter hardware	19
2.1.2 Communications options	20
2.1.3 IT: MDMS and links to CIS	25
2.1.4 Professional services	26
2.2 Wide area measurement	27
2.3 Distribution automation	27
2.3.1 Overview of DA in emerging markets	28
2.3.2 Substation automation and SCADA vendors	29
2.3.3 Advanced distribution automation vendors	30
2.4 Home energy management	34
2.4.1 Home area networks	34
2.4.2 Distributed generation	35
2.4.3 Electric vehicle supply equipment	36
3. International smart grid vendors	38
3.1 Overview of international vendor presence in emerging markets	40
3.2 Partnerships and mergers & acquisitions	41
3.2.1 Mergers and acquisitions	41
3.2.2 Partnerships	43
3.3 Leading international smart grid vendors	44
3.3.1 AMI	44
3.3.2 Distribution automation	50
4. Emerging market-based smart grid vendors	53
4.1 Characteristics of emerging market-based vendors	55
4.2 Emerging market-based vendors already active in smart grid projects	58
4.2.1 Central & Eastern Europe	59
4.2.2 Eurasia	64
4.2.3 Latin America	67
4.2.4 Middle East & North Africa	74
4.2.5 Southeast Asia	78
4.2.6 Others: South Africa and Turkey	81
8.3 Additional emerging market-based smart grid vendors	83
5. Conclusion	87
6. Appendix	88
6.1 List of abbreviations and acronyms	88
6.2 List of all vendors covered in this report	89

List of Figures, Boxes, and Tables

Emerging markets smart grid vendor analysis: key takeaways	2
Leading international vendors active in emerging markets smart grid projects	3
Leading emerging market-based smart grid vendors	4
Emerging market-based vendors active in smart grid projects	5
Figure 1.1: Smart grid value chain	8
Figure 1.2: Smart grid model highlighting focus in emerging markets	9
Figure 1.3: Emerging markets smart meter potential	15
Table 1.1: AMI forecast data	17
Figure 1.4: Emerging markets AMI forecast by market segment	18
Table 2.1: Emerging market-based AMI solution providers	20
Table 2.1: Emerging market-based meter hardware providers	21
Table 2.1: Emerging market-based AMI/DA communications technology providers	21
Figure 2.1: Meters deployed in emerging markets by communications technology	22
Figure 2.2: Investment in AMI meters in emerging markets by communications	22
Table 2.4: Communications technologies	23
Table 2.5: Leading telecom providers in emerging markets	25
Table 2.6: Emerging market-based IT providers	26
Table 2.7: Emerging market-based professional services providers	26
Figure 2.3: Substation and distribution automation in emerging markets	28
Table 2.8: Emerging market-based substation automation/SCADA providers	30
Table 2.9: Emerging market-based distribution automation components providers	31
Table 2.10: Types of electric vehicle incentives	35
Figure 3.1: Countries with most international-based smart grid vendors	38
Table 3.1: Leading international vendors active in emerging markets projects	39
Figure 3.2: Countries with most vendors active in smart grid projects	40
Table 3.2: Major emerging market smart grid acquisitions	42
Figure 3.3: Major emerging market smart grid acquisitions	43
Table 3.3: Emerging market partners of leading smart grid vendors	44
Figure 3.4: Examples of smart grid partnerships in emerging markets	45
Table 3.4: Leading international smart meter hardware vendors	46
Figure 3.5: Market share of leading AMI full solution providers in emerging markets	47
Figure 3.6: Market share of AMI vendors in emerging markets, excluding Brazil	47
Figure 3.7: Locations of smart metering projects by vendor	48
Figure 4.1: Countries with most emerging market-based vendors	53
Table 4.1: Leading emerging market-based smart grid vendors	54
Figure 4.2: Number of emerging market-based vendors by market segment	55
Figure 4.3: Number of emerging market-based vendors by region	56
Figure 4.4: Number of emerging market-based vendors by size and activity	56
Figure 4.5: Number of emerging market-based vendors by size and segment	57
Figure 4.6: Percentage of vendors with partnerships	57
Figure 4.7: Large smart grid vendors already active in emerging markets	58
Figure 4.8: Emerging market-based vendors active in smart grid projects	59
Figure 4.9: Cities with leading smart grid vendors in CEE, Turkey, and Ukraine	60
Figure 4.10: Number of CEE-based vendors by size and segment	60
Table 4.2: Other leading smart grid vendors in Central & Eastern Europe	63
Figure 4.11: Number of Eurasia-based vendors by size and segment	64
Table 4.3: Other leading smart grid vendors in Eurasia	66
Figure 4.12: Cities with leading smart grid vendors in Latin America	67
Figure 4.13: Number of Latin America-based vendors by size and segment	67
Table 4.4: Other leading smart grid vendors in Latin America	73
Figure 4.14: Cities with leading smart grid vendors in MENA	74
Figure 4.15: Number of MENA-based vendors by size and segment	74
Table 4.4: Other leading smart grid vendors in Middle East & North Africa	77
Figure 4.16: Cities with leading smart grid vendors in Southeast Asia	78
Figure 4.17: Number of Southeast Asia-based vendors by size and segment	78
Table 4.5: Other leading smart grid vendors in Southeast Asia	81
Figure 4.18: Number of South Africa/Turkey-based vendors by size and segment	81
Table 4.6: Other leading smart grid vendors in South Africa and Turkey	82
Table 4.7: Additional vendors poised for smart grid projects	83
Table 6.1: List of vendors covered in this report	89