The smart energy paradigm is gaining traction worldwide, opening a window of opportunity for transformation. A number of convergent market drivers are leading to expanded availability and increasing revenue opportunities across the smart energy continuum. These drivers include the rising costs of maintaining the current energy system as well as regulatory and policy initiatives in many countries around the world. According to a new report from Pike Research, total revenue from smart energy and smart energy storage reached $222 billion in 2011. By 2015, the cleantech market intelligence firm forecasts, total market value will be $420 billion — an increase of 90% in just four years.
“Our annual report demonstrates that smart energy is no longer a niche market”
“Our annual report demonstrates that smart energy is no longer a niche market,” says research director Kerry-Ann Adamson. “The overall smart energy market is now growing at such a pace that it represents over 10% of the global annual additional capacity forecast by the International Energy Agency between now and 2020.”
Pike Research defines smart energy as “the range of efficient technological options available to providing electricity in a distributed fashion, either for local use or for grid support.” Thanks largely to the directed policies of the European Union, Europe represents the largest regional market for smart energy today. While North America is adding new capacity at the highest rate, it’s clear that, if Asia Pacific’s current development trajectory holds, then this region will challenge North America in terms of its global leadership position in annual capacity additions. Although North America is heavily reliant on the biofuel and biopower sectors for revenue and new installations in the smart energy sector today, there are a number of exciting underlying growth areas that could create a more sustainable, high value, high growth smart energy sector in North America, and indeed globally, by mid-decade.
Source: Business Wire