Analyst Insight: Megatrends in Smart Grid Networking and Communications

The energy transition is changing the way that utilities operate. After more than a century of relatively stable load growth and centralized power generation serving end users, today’s rapid rise in distributed energy resources (DER) means that, more than ever, grid operators need visibility all the way to the grid edge. Add the advent of Industry 4.0 advances such as sophisticated analytics and automation, and connectivity across a utility’s territory is becoming imperative.

Guidehouse Insights has identified several megatrends impacting utility networking and connectivity. Where previously, only larger, higher voltage substations might be networked with utility operation centers, today that connectivity is extending to substations throughout the distribution grid—and fiber is more commonly deployed than ever. Large utilities are investing in spectrum to build private LTE (PLTE) networks, enabling robust connectivity across their territories, while low power wide area (LPWA) networking solutions are making sensing and measurement affordable for even smaller assets such as pole top transformers and meters.

This Guidehouse Insights Smart Grid and Networking and Communications Analyst Insight focuses on several key trends that are helping shape the smart grid networking and communications market for utilities: market trends, drivers and barriers, and analysis of the main trends in the smart grids market. The report also includes analysis of data from the Smart Grid and Networking and Communications Database released in 2Q23.