Mexico’s smart grid market to reach US$8.3bn by 2020, says northeast group study

Mexico Mexico

Mexico is poised to become a major smart grid market over the course of the next decade. So says a new report from northeast group llc, Mexico Smart Grid: Market Forecast (2011–2020). According to the Washington DC-based analysts, this will provide American smart grid vendors, international players, and domestic Mexican firms with opportunities to expand in the country.

While deployments are still in the early and pilot stages, Mexico has the core conditions and government backing to create a significant smart grid market in the latter half of this decade. With high non-­technical distribution losses, unreliable grid infrastructure, and rapidly growing electricity demand — especially from an emerging middle class — Mexico faces many of the same conditions driving smart grid development throughout Latin America.

What differentiates Mexico, though, is its proximity to the US and its largely monopolised utility sector. Mexico has been in close co-ordination with the US on smart grid co-operation and is a natural market for US vendors, in particular, to enter. As a result, the country has the potential to become a key market for wireless mesh communication technologies popular in the US.

At the same time, there is still equally strong potential for powerline communication (PLC) technologies (PLC) common in European and other countries. Finally, unlike other countries in Latin America, Mexico has a single state-­owned utility. While this may limit the number of stakeholders to whom vendors can market, it will help ensure streamlined start dates and deployment throughout the country.

Key questions answered in this report:
• How will the combined smart grid market develop over the next decade?
• What are the market possibilities for PLC and wireless mesh communications technologies in Mexico?
• How much value will distribution automation and home energy management add to the Mexico smart grid market?
• Which international vendors are already active in Mexico? Which domestic vendors are poised to partner with international firms to exploit the growing smart grid market?


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