Proving the Business Case for the Internet of Things

India to invest $44.9bn in smart grid infrastructure

William Payne
March 16, 2017

Research by Northeast Group reveals that India, after a period of significant delays, is on the verge of committing to a projected $44.9 billion investment in smart grid infrastructure over the period 2017-2027.

The country faces steep electricity demand growth rates, plans to incorporate large-scale renewable resources, and a government eager to modernise the country. Smart grid infrastructure has been seen as fundamental to this transformation, but until recently projects have been slow to materialise. 

The study by Northeast Group, "India Smart Grid: Market Forecast (2017-2027)", argues that this is now changing and projects smart grid infrastructure investment of $44.9 billion over the period 2017-2027.

"India has always been seen as the largest potential smart grid market for international vendors," according to Ben Gardner, president of Northeast Group. "But until recently, this potential has been slow to materialize, despite extensive government plans and pressing concerns over the $23.2bn lost each year to electricity theft. We are now finally seeing utilities progress out of the pilot stages with multi-million endpoint smart meter projects recently announced."

India's recently established National Smart Grid Mission has charted out a deployment schedule for the next ten years, but several utilities are also moving forward with smart grid deployments independent of government plans. These include private franchisees that are deploying smart grid infrastructure to improve poor utility performance. India's smart grid market will vary widely across states, with each state possessing a unique industry structure and regulatory framework. 

The largest smart grid market opportunities exist in the states of Maharashtra, Karnataka, Delhi, Tamil Nadu, Gujarat, West Bengal, and Kerala.

The competitive landscape of India's market is comprised of a number of well-established vendors from both the domestic and international spheres. Four local vendors — Secure Meters, Genus, HPL, and Larsen & Toubro (L&T) — hold the majority of market share in legacy metering and are poised to similarly impact the smart metering market. 

A number of leading global vendors such as ABB, CyanConnode, GE, Honeywell, Itron, Landis+Gyr, Schneider, Siemens, Silver Spring Networks, and others are already active on some level in the overall market.