When a growing nation with growing energy needs such as South Korea proclaims it’s going to smarten up its electric grid, technology companies across the globe — not surprisingly — take note. South Korea has a US$162 million smart grid equipment and technology market, projected to grow over the next five years at a compound annual rate of 12.3 percent. By 2015, the total will be nearly US$290 million, a sizable opportunity for firms interested in breaking into the market. In the Zpryme report, South Korea: Smart Grid Revolution, Zpryme examined six different sectors of the smart grid industry in Korea; software and hardware, sensors, communications and wireless infrastructure, smart T&D equipment, AMI and “other”.
Given Korea’s roadmap and targets, the breakdown of some smart grid market segments is not surprising. While the Korean national government, KEPCO, the Korea Smart Grid Institute (KGSI), Jeju Special Autonomous Province and Korea Smart Grid Association are the key players in the Jeju Island pilot project, the totality of the initiative involves a number of Korea’s global corporations and over 160 companies.
For example Park Jong-man, Deputy General Manager at the integrated control center of KEPCO’s Jeju Demonstration Complex said “operating the smart grid involves implementing a flexible management strategy that takes into consideration the various application standards, development speeds and requirements of that particular region. This collaboration with IBM allows KEPCO to create a model based on international standards, such as CIM that can be used to infuse intelligence into any smart grid infrastructure.”
Guido Bartels, General Manager, Energy and Utilities industry at IBM and Chairman, Global Smart Grid Federation supported Mr. Jong-man by explaining, “His collaboration with KEPCO will not only improve operational efficiencies at the complex but will also help drive the development of international standard technologies in the Korean smart grid market – allowing domestic businesses to operate and compete at an international level.”
Jason Rodriguez, Director of Research at Zpryme also echoed similar sentiment regarding South Korea’s smart grid drive, “Evident by South Korea’s metro areas gradually becoming festooned with solar panels, broadband technology, and all-things-new-tech and billions in clean tech investment; look for South Korea to not only gel seamlessly with the smart grid revolution, but also lead it.”
South Korea Smart Grid Market Projections from the report:
Smart Grid Segment (2015 – USD, millions):
• Smart T&D Equipment ($73.2)
• AMI ($63.7)
• Sensors ($50.4)
• Software & Hardware ($46.4)
• Communications & Wireless Infrastructure ($45.9)
• Other ($10.1)
Download the complete, free report here: South Korea: Smart Grid Revolution (PDF 2.2 MB)
Zpryme: South Korean Smart Grid market to reach $290MM by 2015