Proving the Business Case for the Internet of Things

Western Europe to invest $134bn in smart grid by 2027

Steve Rogerson
June 20, 2017

Western Europe is to invest $133.7bn in smart grid infrastructure by 2027, according to a study by Notheast Group.
Western Europe is now in the process of massive power grid modernisation investments to underpin its position as one of the global leaders in promoting energy efficiency and renewable energy development. These smart grid infrastructure investments are led by large-scale smart metering projects already underway and upcoming investments in distribution automation, battery storage and information technology.
In total, Western Europe will invest $133.7bn in smart grid infrastructure by 2027, according to the study by Washington-based market intelligence firm Northeast Group.
"Western Europe has long been a global smart grid leader and is solidifying this position with large-scale smart meter deployments in countries such as France and the UK," said Ben Gardner, president of Northeast Group. "The large German market has been slower to develop but is now getting a boost with new regulations and early leaders Italy and Sweden are set to begin their first replacement cycle of smart meters. As a result, there will be billions of dollars of smart grid infrastructure investment in the region over the next decade."
Smart grid deployments are driven primarily by EU regulations, which require most countries to deploy smart meters to four-fifths of residential customers by 2020. Northeast Group projects that Western Europe as a whole will reach 67% penetration by 2020, with 12 countries meeting the 80% mandate.
The EU has recently increased its renewable energy and emissions reductions goals and will need to invest in a wide range of smart grid infrastructure to ensure that European grids can handle these challenges. Distribution automation and renewable energy integration will be of particular importance and will be the largest overall smart grid segment.
Both European and international vendors have won significant contracts in the market. The current leading European vendors include Aidon, Ericsson, Iskraemeco, Kamstrup, Landis & Gyr, Sagemcom and Ziv, and international vendors include Aclara, EDMI, Honeywell, Itron, Sensus and Silver Spring Networks. Kaifa is also active, demonstrating opportunities for Chinese vendors in the region.