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Smart Grid Market, Frost & Sullivan Identifies the Fastest-growing Sectors in Europe
Protection of consumer information and proper privacy laws will be critical to promoting smart meter rollout

LONDON, Dec. 5, 2012 /PRNewswire/ -- The past 2-3 years have witnessed an increasing interest in smart grids and smart energy. Smart grids are seen as key to addressing the intensifying demand for high-quality power and greater energy-efficiency.

Smart meters are considered to be the first step towards smart grid implementation. The smart meter rollout in Europe is well underway, boosted by the European Union legislation to achieve 80 per cent coverage by 2020. Sweden and Italy had full scale penetration in 2010, while Finland, Norway, and Denmark are likely to achieve their targets by 2016.

New analysis from Frost & Sullivan (, Smart Grids in Europe – Identification of Key Growth Opportunities, identifies five of the fastest-growing sectors within the European smart grid market including advanced metering infrastructure (AMI), integration of distributed generation, sensors and advanced transmission technologies and electric vehicles.

"The success of the smart meter rollout in Europe is largely due to the regulatory push," noted Frost & Sullivan Energy & Power Supplies Research Manager Malavika Tohani. "Smart grids are integral to achieve the EU 20-20-20 targets – 20% increase in energy efficiency, 20% reduction of CO2 emissions and 20% renewables – by 2020."

However, uncertainty regarding financing, lack of incentives for distribution system operators (DSOs) and consumers, issues regarding information security, interoperability and absence of concrete regulations and legislations are some of the restraints hindering smart grid growth.

"Particularly with regards to integration of distributed generation, there is a lack of clarity on who will bear the costs of connection and to which stakeholders the benefits will accrue," remarked Tohani. "In terms of demand response, uptake in Europe is slow due to limited awareness about the level of financial benefit that households will enjoy against the cost that they must bear in terms of expenditure on devices such as energy monitors and smart thermostats."

Clear standards and legislations need to be put in place to tackle issues regarding interoperability and cost sharing. Moreover, consumers need to be educated on the demand response methods as well as given sufficient rewards for saving energy.

"Concerns related to information theft have hampered smart meter rollout in the past in the Netherlands and are currently slowing down the pace of rollout in Germany," concluded Tohani. "Advances in software and technology to protect consumer information, together with proper privacy laws to prevent data theft, will be critical to overcoming this challenge."

If you are interested in more information on this study, please send an e-mail with your contact details to Chiara Carella, Corporate Communications, at

Smart Grids in Europe – Identification of Key Growth Opportunities is part of the Energy & Power Growth Partnership Service programme, which also includes research in the following markets: European Smart Meter Market, European Substation Automation and Impact of Smart Grid, APAC Advanced Metering Infrastructure Market and, Global Smart Grid Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Smart Grids in Europe – Identification of Key Growth Opportunities


Chiara Carella
Corporate Communications – Europe
P: +44 (0) 20 7343 8314
M: +44 (0) 753 3017689


SOURCE Frost & Sullivan

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