Global Smart Gas Meter Market Research Report  By Product (Diaphragm, Turbine, Rotary Piston and others), By Application (Residential, Commercial and Industrial) – Forecast to 2024

The global market for smart gas meters is anticipated to grow from USD 1.96 Bn in 2017 to USD 3.07 Bn by the end of 2024 and is expected to witness a CAGR of 6.60% during the forecast period of 2018 to 2024. Smart gas meters are superior to traditional gas meters due to their efficient use of energy, and other useful features; these advantages that the product has are acting as a principal driver of growth for the global smart gas market.

Ever increasing consumption of utilities have sparked investments in smart grid projects, which have consequently facilitated market growth. Most recently, the UK's Office of Gas and Electricity Markets announced its decision to invest a considerable sum of over USD 50 Mn in smart grid pilot projects. These investments are crucial in making gas and electricity networks more reliable. This, in turn has made positive influence on the government rollouts of smart gas meters. In the EU alone, 45 million smart gas meters are set to be rolled out by 2020, thus ensuring the steady growth of the market over the next few years as more regions shift toward adopting the technology.

One key challenge that the market is poised to face is lack of awareness in third-world countries. These countries have a strong presence of a massive population with a high consumption pattern while being unaware of the benefits of using smart gas meters. It should be noted, however, that the market carries the potential for robust growth in developing countries, which is unrealized. The growing urgency associated with energy consumption and use of smart meters to achieve this is anticipated to prompt growth for the global smart gas meter market.

By product, the market has been segmented into diaphragm gas meters, turbine gas meters, rotary gas meters and others. The diaphragm gas meter segment currently accounts for the dominant share of the market and is expected to grow at an above-average CAGR during the assessment period. Diaphragm gas meters integrate traditional meters with current technologies making it easier to implement and has the added advantage of accuracy thus cementing its lead position. By application, the market has been segmented into residential, commercial and industrial, with the residential segment possessing the most significant share and will move on a fast growth trajectory. The segment is expected to achieve a CAGR of 7.02% during the review period; this can be attributed to government rollouts of smart gas meters in the residential sector and the requirement for accurate and efficient consumption of gas in a highly populous global environment, which is rapidly urbanizing.

Regional Analysis

North America accounts for over a third of the total market share and the market in the region was valued at USD 725.9 million in 2017. This is primarily attributable to the presence of the leading market players in the region. Additionally, the U.S possesses more than 30 electric and gas companies with fully implemented smart meters. Over 50% of U.S households use smart meters, and deployments are expected to reach 90 million by 2020. The rapid implementation of this technology has put North America on track to be the fastest growing market during the forecast period.

The EU has acknowledged the potential and importance of cost-cutting energy savings provided by smart gas meters and is expected to witness exponential growth over the review period. Expansion of smart grid deployments has been recognized as vital to achieving better energy management and improving overall energy savings, thus affecting positive growth for the region. The need for implementation of relevant infrastructure to support smart meters are prompting EU members to use sustainable energy supply for the targeting of effective operations.

The Asia-Pacific is a huge market for smart gas and holds a lot of unrealized potential. Although the region faces the challenge of awareness regarding smart meters, there are several plans in place to convert certain cities in developing countries such as India into “smart cities.” China has made considerable investments in infrastructure and is potentially the world’s largest market for smart meters. Favorable government policies and the market potential is expected to attract eminent market players, thus contributing toward the growth of the market over the forecast period. 

Competition Tracking

The competitive landscape of the global smart gas meters market is influenced by several prominent market players such as Honeywell International Inc., Itron Inc., Aclara Technologies, Xylem Inc. and Landis+Gyr. Other market players include MeteRSit s.r.l, Zenner International, Apator Group, Diehl Metering, Schneider Electric, Flonidan A/S and EDMI Ltd.

Global Smart Gas Meters Market: Competitive Landscape

Landis+Gyr (Switzerland), Xylem, Inc. (U.S.), Aclara Technologies LLC (U.S.), Honeywell International Inc. (U.S.), and Itron Inc. (U.S.) are the five major players in the global smart gas meters market. Landis+Gyr & Itron Inc. holds the first position among the top five players, commanding 32.0% market share as of 2016 followed by Honeywell International Inc. with 18.0% market share. These companiers are likely to maintain their strong global presence through expansion, merger & acquisition, partnership & collaboration, and extensive product portfolio.

Itron Inc. a prominent player in smart gas meters market specializes in advanced metering, network communications, smart grid, home area networking, smart metering, gas meters, meter data management, and thermal energy measurement and control. The firm invests heavily in research and development to develop and deliver high-quality products to their customers. The firm mainly caters to specific industries, which include Gas, Water, Electricity, Thermal Energy, Internet of Things and Smart Cities. Over time, the firm has managed to establish operations, across the globe, specifically in the United States, EU, Asia Pacific and other regions.

Landis+Gyr is a leading solution provider for electricity, gas, heat/cold, and water utilities worldwide. It offers electricity meters, such as commercial and industrial, grid, residential, and prepayment meters; MV/LV monitoring and control terminals; gas meters; communication units; and heating and cooling meters. Landis+Gyr operates in over 30 countries, across the five continents of Americas, Asia Pacific, Europe, Middle East and Africa with more than 6,000 employees.

Honeywell International Inc. a diversified technology and manufacturing company founded in 1906. The company is headquartered in New Jersey, US, they have a unique blend of physical products and software that enable end-users to improve homes, buildings, factories, utilities, vehicles, and aircraft. The company operates through four operating segments of aerospace, home and building technologies, performance materials and technologies, and safety and productivity solutions. Home and Building Technologies is a leading global provider of products, software, solutions and technologies. The segment offers products and services such as controls and displays for heating, cooling, indoor air quality, ventilation, humidification, lighting and home automation, advanced software applications for home/building control and optimization. It also includes products, services and solutions for measurement, regulation, control and metering of gases and electricity; metering and communications systems for water utilities and industries; access control, and others.

Aclara Technologies LLC, a prominent provider of smart infrastructure solutions (SIS) pertaining to water, gas, and electric utilities worldwide. The company offers a comprehensive suite of solutions comprised of meters and edge devices, Advanced Metering Infrastructure (AMI), installation services and provision of labor with a single point of accountability to utilities. Aclara Technologies LLC has its offices in the U.S., the U. K, Taiwan, Philippines, and Taiwan. The company currently has a workforce of over 900 people.

Xylem, Inc. is one of the leading global water technology providers, enabling efficient transport, treatment, testing of water. The company has various brands such as Bell & Gossett, Sensus, AC Fire, Flojet, and Flowtronex, which operate in more than 150 countries such as U.S., India, Canada, U.K. and others. The company operates through three segments, namely, Water Infrastructure, Applied Water, and Sensus. The Sensus segment delivers communications, smart metering, measurement and control technologies and services that allow customers to use their distribution networks more effectively, for delivery of critical resources such as water, electricity and natural gas.

The growth of the market vendors is dependent on market conditions, government support, and industry development. Players focus on strengthening their presence worldwide through expansion followed by mergers & acquisitions during the forecast period. These strategies are widely adopted to increase their presence, customer base, and achieve the operational efficiency. The competitive environment in the market is likely to intensify further due to the increase in new product developments and business expansions. Companies continue to emphasize on the adoption of new growth strategies to gain a greater foothold in the market on a global level.