Calling smart cities and communities "a towering market opportunity" for companies in the smart grid value chain, a new Zpryme report forecasts that the Asian market for smart cities projects will jump from $55.6 billion in 2013 to $260 billion in 2020.
With China's future smart cities being a main driver of its urbanization process and the recent Japanese stimulus package, Zpryme suggests many more smart cities and communities such as those described in its report - Asian Smart City Snapshot - are planned. That should be good news for vendors of high-tech, software and wireless communication and electronic devices and systems.
Top insights from the Zpryme research include:
· 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.
You can download Asian Smart City Snapshot, which was released in January, 2013, here.