Business Wire

The Satellite Communications Market for Smart Grid Applications Will Reach Nearly $370 Million by 2020, According to Pike Research


Source: Business Wire

BOULDER, Colo.--(BUSINESS WIRE)-- Thanks to a number of technology advances as well as dramatic declines in the price of equipment and monthly services, satellite communications are emerging as a viable and attractive means of connectivity for many smart grid applications, including substation automation (SA), distribution automation (DA), advanced metering infrastructure (AMI) backhaul, remote monitoring, and mobile workforce applications.Numerous satellite service providers and equipment manufacturers are now aggressively pursuing the utility market, a trend that should further reduce the cost of satellite service and equipment even as bandwidth and connection speeds improve.

According to a new report from Pike Research, revenue from satellite services and equipment for smart grid applications will reach $368 million by 2020, increasing from just under $67 million in 2012.

“Satellite-based communications have historically been a last resort for grid operators, mostly for remote substation connectivity,” says vice president Bob Gohn.“But improved cost and performance is allowing satellite communications to be used in an increasing number of grid applications, enabling a tripling of forecasted equipment revenue over the next 8 years, with even higher service revenue growth.Though satellite-based systems will remain a niche technology compared with terrestrial options, utilities will increasingly consider them in their list of communications options.”

Many utility executives remain wary of using satellites for critical smart grid applications because of concerns over latency, interoperability, security, and bandwidth efficiency.Pike Research’s analysis, however, indicates that many of these concerns are based on outdated perceptions.New technology and product offerings have addressed many of the cost, performance, and reliability challenges associated with earlier systems.At 600 milliseconds, round-trip satellite communications latency today is adequate for most smart grid applications and compares favorably with many terrestrial options.And data rate options of up to several megabits per second (Mbps) are commonplace, while planned systems may even be faster than some cable or 4G broadband services today.

Pike Research’s report, “Satellite Communications for Smart Grid Applications”, examines the economics and dynamics of satellite communications as it relates to smart grid deployments.The study provides an in-depth examination of market drivers, technology issues and standards, and the competitive landscape for smart grid networking.Detailed market forecasts are included for unit shipments and infrastructure and satellite service revenue, segmented by technology, application, and world region, through 2020.An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets.The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors.For more information, visit or call +1.303.997.7609.

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