M2M : Moving the Grid Forward

M2M (machine-to-machine) technology has been established as the technology of the future in a variety of industry verticals. One area in particular where M2M has made a profound impact and is expected to continue moving forward is the energy/utilities space. Utilities and consumers alike have been exposed to the benefits of using M2M to increase energy efficiency, lessen our environmental impact, and establish communications between utilities and their customers.

In some areas of the world, including Europe and parts of Canada, local governments are making the installation of smart meters mandatory. Last year the EU (European Union) enacted a program which aims to see every utility meter in the region to be replaced with a smart meter by 2022. According to ABI Research, www.abiresearch.com, Scottsdale, Ariz., a total of 76 million smart meters were deployed throughout the world in 2009; a number the firm expects will rise to 212 million by 2014.

“As momentum for infrastructure renewal grows, a number of factors are driving the process,” says Sam Lucero, practice director, ABI Research. “High on the list are government regulators.”

Another significant driver pushing the growth of smart meters is an increasing concern for our impact on the environment and an effort to reduce CO2 emissions. Other factors include establishing a consistent connection between utilities and individual meters on the grid, which will enable faster response times in the event of a power outage, as well as more reliable data transmissions. Incentives such as demand-response programs which encourage customers to use energy more efficiently in return for lower energy bills will also help in increasing customer satisfaction.

As with any industry, increased revenue will play a role as well. According to Lux Research, www.luxresearchinc.com, Boston, Mass., the smart grid market will increase more than $10 billion by 2015, growing from a current level of $4.5 billion to $15.8 billion. Following interviews with 25 companies in the smart grid space, Lux identified a number of segments of the market set to see the most substantial growth in the near future.
One area is communication and measurement. Lux says technologies being used for AMI (advanced metering infrastructure) and smart meters are expected to exceed $5 billion by 2015. Lux also believes with the implementation of demand-response applications, the services and analysis sector will increase with a CAGR (compound annual growth rate) of 30%, increasing from less than $1.4 billion currently to more than $6.7 billion by 2015.

At a time when energy conservation is a hot-button issue, the use of M2M technology can help consumers and utilities alike cut down on wasted energy usage and promote a smarter environment for everyone.

Source : M2Mmag, 3/02/10