The Global smart meter market is projected to grow at a CAGR of 8.71% and was valued at USD 20.2 Billion in 2021: Bonafide Research

Supportive government policies, growing adoption of renewable energy, smart city projects, real time usage readings and innovation in technology are driving the global smart meter market.

Clifton, New Jersey, Nov. 09, 2022 (GLOBE NEWSWIRE) -- The report published by Bonafide Research, "Global Smart Meter Market Outlook, 2027", reveals that the smart electric metre market contributes over 55% of the market share in 2021. High investments in digital electricity infrastructure and the varied connectivity technologies used by smart electric metres are fuelling the growth. The installation of smart electric metres in residential areas helps in reducing the dependence on fossil fuels as it enables consumers to monitor, regularize, and reduce their consumption from the grid, generators, and solar installations. Because Asia-Pacific is the world's most populous region, there is a high demand for electricity.The rise in investments in smart grid technologies and smart cities, the increase in the number of data centres, and a surge in IT hubs and commercial institutions drive the smart electric metre market in the region.

Drivers and Challenges

Smart metres provide reduced metre reading costs, prevent disconnection, improve efficient metre readings, and wave-off reconnection costs to both the utility provider and end user. Utility providers' large-scale installations have strengthened the distribution network of smart meters. Additionally, governments' focus on reducing AT & C losses in power grids to reduce carbon emissions is likely to drive the market ahead. The complex metre design demands highly skilled manpower to resolve minor issues. The large volumes of consumer data collected by smart metres have to be safeguarded against antisocial elements. The rising adoption of electric and hybrid vehicles by consumers is further expected to create demand for smart meters. Integration of AI and machine learning technologies into smart metres would offer lucrative demand. Maintenance, integrity, and dependency on reliable connections to achieve highly accurate data are key challenges faced by smart metering systems.

Key Takeaways

  • Global Smart Meter Market is anticipated to grow at a CAGR of 8.71% during the forecast period 2022-2027.
  • In 2021, Residential users constitute over 80% market share.
  • The Asia-Pacific region dominates the global smart meters market with more than 38% in 2021.
  • The top five companies in the smart meter market have captured nearly 25% of the market.
  • The Software & Services segment is expected to grow at a CAGR of 13.41% in the forecast period.
  • The Cellular Technology is expected to reach a market share of over 37% by the end of the forecast period 2027.
  • The industrial sector is expected to grow over the forecast period.

Opportunities & Restraints

Increased investment interest in the digitalization of electrical systems and efforts to expand grid infrastructures are expected to create growth opportunities for the smart electricity metre market. An increase in electricity demand from commercial and residential sectors also provides opportunities for the market's growth. The restraints to the smart metre market are the high cost of the initial instalment to be borne by end users, data privacy, and high capital investment by utilities to set up smart metres to replace traditional meters. However, automatic metre reading with real-time usage monitoring and bill generation is expected to fuel market growth over the forecast period. In the forecast period, smart metre deployments in developing economies are expected to provide lucrative opportunities for market participants.

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Covid-19 effect: The pandemic has adverse effects on industries related to the smart metre market as the industry comes under non-essential businesses. The imposition of lockdowns resulted in delayed start-ups for power distribution systems across the globe. The shipments and installations of smart metres also witnessed a downfall. Companies and governments postponed their power infrastructure plans and investments. However, it has shifted to contactless and remote metering solutions with enhanced investments. Reduced infrastructure development investment and a low return on investment delayed smart metering.During the pandemic, the demand for smart electric metres decreased. There was limited supply of smart metres as the manufacturers faced supply problems owing to halted production. Consequently, the manufacturing and supply of smart metres is returning to normal levels. Several manufacturers have started to witness a recovery in sales.

The smart meter's main advantages include the detection of any leaks in the supply; continuous monitoring of the electricity, gas, and water flow; and detection of any theft in the supply. Smart metres also assist in the elimination of manual monthly metre readings and the optimization of profit with existing resources. Smart meter adoption reduces blackouts and failures of utility systems and helps achieve carbon neutrality.

By component, software and services are expected to grow rapidly over the forecast period. The software and cloud computing revolution has resulted in massive growth for smart devices, making smart metering systems an absolute requirement.Improved communication between consumers and service utilities, vast data management with multiple users, smart payment options using mobile phones, and increased billing transparency are propelling market growth.

By communication type, the cellular segment is expected to lead the market growth with large scale applications. GPRS, 3G, or 4G networks are used for quick service, low investment costs, and good performance. Since this is wireless technology, it can be easily used in remote areas across small towns and villages. The key factors driving this technology are: no maintenance costs for communication networks; data transmission is faster; and good network reach.

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By technology, AMI leads the market with over 60% as it enables the gathering and transfer of energy and utility usage information in near real-time. The main distinction between the two technologies is the two modes of communication.The new roll out plans are mainly of AMI metre technology to maintain transparency between the utility provider and the end user with precise readings. AMR technology metres are being replaced by AMI technology rapidly by reducing equipment and maintenance costs, as thefts can be detected easily and power outages can be restored more quickly.

By end-user, the residential sector accounted for the largest share of the smart metre market. This is driven by the increased use of smart home appliances in residential buildings. Smart metres help in integrating distributed energy resources, energy storage technologies, and EV charging facilities. In the future, the commercial sector is rapidly replacing smart metres for efficient electricity usage and renewable energy integration into the grid. While the industrial sector is expected to replace existing metres for effective load management and forecasting and reduce energy thefts.

Regions covered

The Asia Pacific smart meter market dominates the smart metre market and is expected to continue its position over the forecast period due to government mandates, higher investments towards the digitization of grids and public-private partnerships. China is expected to be a leader with a value of USD 7 billion by 2027. APAC has a huge population and corresponding electricity demands, as well as significant numbers of unauthorised electricity connections. The increase in smart grid investments, demand for power quality, energy efficiency targets, and the reliability of the power system are the prominent factors for the growth of smart electric metering in the region.

The North America region is a very mature market for smart electricity metres and now focuses on smart water metres to reduce wastage or overuse of water. The US is the leading market and is expected to reach USD 6 billion by the end of 2027. The deployment of smart metres in the United States is overseen by individual states and territories rather than the federal government. Providers are rapidly innovating to be at par with smart metre technology. Moreover, the adoption of smart appliances, smart homes, shared mobility, and 3D printing is enabling the growth of smart electric meters.

Increased adoption of energy efficient and low maintenance equipments will be noticeable across healthcare, retail, and hospitality sector which will drive the future Europe Smart Meter Market growth. Germany is expected to reach value of USD 1.23 Billion by 2027. Three phase electric metering systems boosts industry dynamics with sustainable energy systems. Leading companies in the region are likely to invest in AMI technology meters over the forecast period.

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The increasing per capita consumption of electricity is pushing the need for smart meters in the Middle East & Africa region at forecast CAGR of 10.86%. However, the absence of clear governmental policy is dissuading investments in the sector. The region is also witnessing major international players entering the market through various partnerships or mergers and acquisitions to increase their global presence and gain a stronghold in burgeoning markets, like Saudi Arabia. South Africa market is expected to grow to reduce utility debt is driving market for smart meters

The Latin America smart meter market growth is expected to grow at a CAGR of 9.07%. The growth can be attributed to operate remote and time based pricing policies of smart meters. Utilities in Brazil have experimented with smart meters ranging from prototypes to multimillion meter deployments. The smart water meter market is still in its infancy stage with no large scale deployments and water shortages and has started with experimental basis.

Considered in this report

  •   Geography: Global
  •   Historic Year: 2016
  •   Base year: 2021
  •   Estimated year: 2022
  •   Forecast year: 2027

Table of Contents

1.    Executive Summary
2.    Report Methodology
3.    Market Structure
4.    Economic /Demographic Snapshot
5.    Global Smart Meter Market Outlook
5.1.  Market Size By Value
5.2.  Market Share
5.2.1.    By Region
5.2.2.    By Country
5.2.3.    By Company
5.2.4.    By Type
5.2.5.    By End User
5.2.6.    By Communication Type
5.2.7.    By Phase
5.2.8.    By Technology
5.2.9.    By Component
6.    North America Smart Meter Market Outlook
6.1.  Market Size By Value
6.2.  Market Share
6.2.1.    By Country
6.2.2.    By Type
6.2.3.    By End User
6.2.4.    By Technology
6.3.  US Smart Meter Market Outlook
6.3.1.    Market Size By Value
6.3.2.    Market Share

To be continued..

Market Segmentation Details
By Smart Meter Type
  • Electric Meter
  • Water Meter
  • Gas Meter
By Technology Type
  • AMI
  • AMR
By End-user Type
  • Industrial
  • Commercial
  • Residential
By Component
  • Hardware
  • Software & Services
By Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
By Country
By Company
  • Itron Inc.
  • Landis+Gyr
  • Sensus (Xylem Inc.)
  • Schneider Electric
  • Siemens AG
  • Smart Energy (Honeywell International Inc.)
  • Kamstrup A/S
  • Badger meter, inc.
  • Wasion Holdings Limited
Company profile of other Players
  • Osaki Electric Co. (Edmi),
  • Holley Technology Ltd,
  • ZPA Smart Energy,
  • Secure Meter Limited,
  • Xemex,
  • EDMI Limited,
  • EMH Metering GmbH & Co. KG,
  • Neptune Technology Group Inc.,
  • Shenzhen Kaifa Technology Co. Ltd.,
  • Suntront Tech Co.,Ltd.,
  • Aichi Tokei Denki Co. Ltd.,
  • Aclara Technologies Llc,
  • Diehl Stiftung& Co. KG,
  • Zenner International GmbH & Co. KG.
Other Market Details
  • Key Drivers & Key Challenges,
  • Market Trends and Developments,
  • Strategic Recommendations

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