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South and Central America Smart Grid Market - Growth, Trends, and Forecasts (2020-2025)

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  • 100 Pages
  • May 2020
  • Mordor Intelligence
  • ID: 5025383
The market for smart grid networks in South and Central America is expected to grow at CAGR of more than 3% in the forecast period of 2020-2025. Factors such as efforts to incorporate increasing renewable energy and to reduce the ongoing rampant power theft in the concerned region are expected to drive the smart grid network in the forecast period. Also, the smart grid network will assist in minimizing transmission and distribution losses, which further help in better electricity price regulation in the region. However, deployment of a smart grid network at a large scale requires a high initial investment and further operational investments. For developing countries of Central and South America, this is a serious challenge that will restrain the growth of the smart grid in the forecast period. ­­­­­
  • Advanced Metering Structure devices are fundamental devices in the modernization of the grid network. With sound installation, AMS is expected to witness considerable growth in the forecast period.
  • In January 2018, the Colombian Ministry of Mines and Energy established a target for advanced metering infrastructure (AMI) to be deployed by 2030 to cover 95% of consumer units in urban centers and 50% of rural units, equivalent to 11 million units. This is going to create vast market opportunities for market players.
  • Brazil is the largest producer of electricity in the entire South, and Central America has the potential to be the largest market for the smart grid in the forecast period. With more than 500 TWh of electricity in 2018, Brazil is expected to drive the smart grid market in South America.

Key Market Trends

Advanced Metering Infrastructure to Witness a Significant Growth
  • Advanced metering infrastructure (AMI) or smart metering is an integrated system of smart meters, which are expected to be installed widely with the growth of renewable electricity in the region to more than 150 TWh in 2018.
  • In Chile, according to the Energy Ministry, the installation of more than 6.5 million smart meters by 2025 is planned. By this, Chile is expected to increase its share in the smart grid significantly.
  • In 2019, the Eletrobras Distribution Rehabilitation project initiated distributing AMI meters with telemetering capability to low voltage (LV) users on a large-scale. This resulted in benefitting four million consumers in six states of Brazil and increasing the AMI market significantly.
  • In January 2018, the Colombian Ministry of Mines and Energy established a target for advanced metering infrastructure (AMI) to be deployed by 2030 to cover 95% of consumer units in urban centers and 50% of rural units, equivalent to 11 million units. This is going to create vast market opportunities for market players
  • With multiple advantages of modifying grids, more countries of Central and South America are accepting the smart meters and smart grid technology, which is anticipated to grow further in the forecast period.

Brazil to Emerge as a Largest Market for Smart Grid in the Region
  • In 2018, Brazil generated 588 TWh of electricity out of which more than 100 TWh is generated from renewable resources. Large scale modification of the grid network is required to incorporate developing renewable energy
  • With a vast network of a country-wide interconnected grid of 130,000 km of high voltage transmission lines, Brazil is expected to invest USD 41 billion by the end of 2024 in the development and modification of the transmission sector.
  • In 2018, Enel Group acquired the Eletropaulo company, which distributes electricity to the 23 municipalities of the metropolitan area of Sao Paulo, working towards digitalization and automation of the grid network.
  • In 2019, the United States Trade and Development Agency (USTDA) awarded a grant to Grupo Equatorial Energia to develop a smart grid network improving the delivery of electricity to more than 2.4 million customers in the state of Maranhão.
  • Brazil, with its enormous resources and ambitious renewable projects, is expected to grow in the smart grid market considerably in the forecast period.

Competitive Landscape

The South and Central America smart grid network is partially consolidated. Some of the major companies include Enel Group, Honeywell International Inc., Itron Inc., Siemens Ag, Schneider Electric Se, and others.

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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5.1 Technology Application Area
5.1.1 Transmission
5.1.2 Demand Response
5.1.3 Advanced Metering Infrastructure (AMI)
5.1.4 Other Technology Application Areas
5.2 Geography
5.2.1 Brazil
5.2.2 Argentina
5.2.3 Chile
5.2.4 Rest of South and Central America
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Siemens AG
6.3.2 General Electric Company
6.3.3 ABB Ltd
6.3.4 Cisco Systems, Inc
6.3.5 Honeywell International Inc
6.3.6 Enel Group
6.3.7 Schneider Electric Se
6.3.8 Itron Inc

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Siemens AG
  • General Electric Company
  • ABB Ltd
  • Cisco Systems, Inc
  • Honeywell International Inc
  • Enel Group
  • Schneider Electric Se
  • Itron Inc