Smart energy for smart cities technology revenue is expected to reach $20.9 Billion in 2024 according to a new report from Navigant Research.
Increasing pressure from climate change
The report, Smart Energy for Smart Cities, has its focus on the smart grid and advanced energy technologies segments.
Smart energy management is an important area for city leaders. They are under increased pressures to take measures to deal with climate change, which mean city leaders need to develop policies around energy efficiency and carbon reduction.
Navigant Research says this has given rise to ambitious energy policies involving a range of innovations such as smart grid technology, demand management, alternative and renewable energy generation and distributed energy resources.
Synergies and complementary technologies
The report points out that there are many synergies in the technology framework that makes up the backbone of a smart grid. Over the next ten years cities, utilities, and third-party vendors are expected to increasingly seek out complementary technologies. This will be vital if they are to optimise the use of resources – both those of the city and the citizen – and to ensure that investment is used to best effect.
The report says the smart energy for smart cities vision has both economic and technical barriers which inhibit current development. The varying business models of cities’ utilities and private stakeholders mean that alignment between stakeholders can be difficult to achieve. Nevertheless the report says that global smart energy for smart cities technology revenue is expected to grow from $7.3 billion in 2015 to $20.9 billion in 2024.
“Energy is the lifeblood of a city,” says Lauren Callaway, research analyst with Navigant Research. “Developing an integrated and sustainable energy strategy within the smart city framework is one of the most effective ways cities can contribute to their larger goals of addressing climate change, supporting citizen well-being, and fostering economic development.”