Despite the background of a troubled world economy during the last two years Memoori’s annual report The Smart Grid Business in 2011 shows that pure Smart Grid business has grown from a world market value in 2010 of $16 billion to approximately $22 billion in 2011. The report estimates that the technical market potential to retrofit the world grid and future extensions to meet the CO2 emission targets by 2030 would require an investment of $2 trillion. To keep on track to achieve full penetration by the year 2030 Memoori estimates that it will need to grow by a CAGR of 23% to reach its zenith of $155 billion in 2022. The Smart Grid is therefore currently in its embryo stage of development and is also heavily biased to one segment of the market with AMI business complete with smart meters taking almost 40% of the pure Smart Grid market in 2010 but will account for only 9% market share of the total investment of $2 trillion needed to achieve Smart Grids full penetration. Fig1 shows how AMI is leading the field and will reach maturity well before other sectors of the pure Smart Grid businesses. The prime reason that smart meters have run away with the investment dollars is that they are considered by the utilities as a relatively safe bet to provide a return on their investment at little technical risk.
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