South and Central America Smart Grid Market Size

South & Central America Smart Grid Market Analysis

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.