Mexico smart grid market to reach $8.3 billion by 2020
Other smart grid market segments such as distribution automation, wide area measurement, and home energy management are also projected to grow strongly over the forecast period
Washington, D.C., October 11, 2011 — Northeast Group, LLC today released its Mexico Smart Grid Market Forecast (2011-2020) which projects the total smart grid market will reach a cumulative $8.3 billion by 2020.
Mexico trails only Brazil in terms of potential for smart grid in the Latin America region. The smart metering market in Mexico represents the biggest opportunity, with more than 21 million smart meters to be deployed by the end of the decade.
Other smart grid market segments such as distribution automation, wide area measurement, and home energy management are also projected to grow strongly over the forecast period.
"Mexico is well positioned to develop into a leading smart grid market, both in the Latin America region and globally. Like other Latin American and emerging market nations, the country faces high rates of electricity theft and power outages, both of which can be reduced through smart grid technologies. Mexico is also uniquely situated to benefit from positive spillovers from the US market. These include smart grid standards, US vendors looking for new markets and a transfer of smart grid technical know-how," according to Northeast Group, LLC.
Northeast Group, LLC continues, "Mexico will also benefit from a single, state-owned utility that ensures a streamlined regulatory framework and efficient deployment. Much like ENEL's pioneering smart meter deployment in Italy, CFE (Mexico's sole distribution utility) can ensure that smart grid deployments are quickly rolled out to all parts of the country."
Mexico's smart meter market alone will contribute $5.1 billion to the overall smart grid market value by 2020. This includes meter hardware, communications, IT, installation costs and professional services. Combined with Northeast Group, LLC's South America forecast (released June 2011), the total Latin American smart metering market is expected to reach nearly 126 million meters by 2020.
In addition to smart meter deployments, Mexico is projected to invest heavily in distribution automation, wide area measurement and home energy management in the later half of the decade. These other segments of the smart grid market make up an additional $3.2 billion in cumulative market opportunity by 2020.