Asian Smart City Market $260B by 2020
Smart cities and communities are a towering market opportunity for companies in the smart grid value chain such as utilities, and vendors of high-tech, software and wireless communication and electronic devices and systems. According to the report, Asia Smart City Snapshot, the Asia market for smart city projects is expected to expand from $55.6 billion in 2013 to $260.0 billion in 2020.
With China’s future “smart cities” being a main driver of its urbanization process and the recent Japanese stimulus package clicked for download, many more smart cities and communities such as those described in this report are planned, and are likely to continue to be announced in Asia since having a diverse range of pilot projects is such an important and necessary step in the testing and planning phase of smart grid implementation.
Zpryme’s top insights focused on the outlook for industry players and potential entrants in the Smart City and Community market space in Asia are as follows:
- Japan’s recent government stimulus package will be the catalyst in “immediate” new business for renewables, smart cities and the smart grid.
- Smart grid momentum will continue to accelerate, as government support in China, Japan, and South Korea becomes increasingly accessible.
- Data analytics will be a sweet spot for growth as utilities will want to learn how to make effective use of smart meter data that will be delivered in droves.
- The constant evolution of regulations (especially in China) and the regulatory structure will be a significant driver of continued focus on energy efficiency and demand response programs.
- Network and distribution automation will attract the highest levels of smart grid related investment.
- Utilities that center a smart grid strategy around customers, customer data and knowledge gleaned from data, will be the most successful.
- Incorporation of renewable energy sources will continue to grow, but this will represent a challenge for utilities until utility-scale storage technologies mature, and will take focus away from other key strategic development areas.
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