The Mexico Smart Grid Market Forecast that was released late last week by DC-based research and consulting firm Northeast Group,projects that the total market will reach at least $8.3 billion by the year 2020,trailing only Brazil in all of Latin America. This opportunity is represented largely by the smart metering market in Mexico,which plans to deploy more than 21 million smart meters by the end of this decade. In addition,areas of the market,such as distribution automation,wide area measurement and home energy management are expected to grow substantially over this period.
“Mexico is well positioned to develop into a leading smart grid market,both in the Latin America region and globally,” said a representative from Northeast Group. “Like other Latin American and emerging market nations,the country faces high rates of electricity theft and power outages,both of which can be reduced through smart grid technologies.”
According to the statement,Mexico is also in a unique position to benefit from US spillovers,including smart grid standards,a transfer of smart grid technical knowledge and US vendors looking for new markets south of the border. Mexico is also expected to benefit from implementing a single,state-owned utility to oversee the project,which will result in streamlined regulations and efficient implementation practices.
The smart meter market alone is predicted to add at least $5.1 billion to the country's total smart grid market value by the year 2020,including communications,IT,installation costs,meter hardware and other related professional services. In addition,Mexico is expected to invest upwards of $3.2 billion in other areas of the smart grid market by 2020,including distribution automation,wide area measurement and home energy management. The total Latin American smart metering market is expected to reach nearly 126 million meters by the end of the decade.