Utility adoption of public wireless networks will assist in achieving a cumulative shipment of 73 million cellular M2M communication nodes for use in smart grid applications during 2011- 2020, according to Pike Research (News - Alert).

The global unit shipments will peak at 10.7 million units annually in 2015. During this period, the build out of neighborhood area networks (NANs) for smart meter connectivity will grow substantially. The unit volumes will start declining to 8.2 million nodes by 2020.

Revenue from the sale of cellular communication nodes to utilities will reach $1.9 billion during the forecast period.

“Public wireless networks are emerging as a more important complement to private utility communication networks,” said Bob Gohn, research director at Pike Research, in a statement.

“Few utilities will rely on just one network, but cellular connectivity will be an important part of the mix in neighborhood area networks and wide area networks for smart meters, as well as other key applications like distribution automation, substation automation, and mobile workforce communications,” Gohn added.

3G technologies including UMTS/HSPA and EV-DO will have 54 percent of the cellular M2M node market in the smart grid sector.

2G air interface technologies such as GSM/GPRS/EDGE and 1xRTT will grab 25 percent market share in the smart grid market.

4G networks will represent the fastest growing segment of the smart grid market. LTE (News - Alert) networks will have 19 percent share of the total utility market between 2011 and 2020. WiMAX networks will have 2 percent of the public carrier market for smart grid applications.

Recently, a report from Northeast Group said that the total smart grid market in Mexico will reach a cumulative $8.3 billion by 2020. The smart metering market in Mexico will have more than 21 million smart meters to be deployed by the end of the decade.