ID: MRFR/E&P/1154-CR | June 2018 | Region: Global | 111 pages
Market Research Future (MRFR) projects a robust growth for the Global Smart Gas Meters Market between 2018 and 2024 (forecast period). Factors like government policies and mandates in developed economies and accurate billing and better customer service drive the market worldwide.
The smart gas meter market was greatly affected by the outbreak of COVID-19. At the start of the outbreak, the biggest effect faced by many smart meter manufacturers was supply issues due to halted production. Due to lockdown measures, non-essential businesses and the demand for residential, commercial, and industrial use of smart gas meters have been reduced. As a result, the output and supply of smart gas meters are returning to normal levels. Several manufacturers have begun to see revenue recovery.
While the COVID-19 pandemic has forced the fieldwork of many major smart metering projects to halt temporarily, the market is still expected to remain resilient, with the total number of shipments of smart gas meters relatively unchanged over three years. Despite economic slowdowns, demand for smart gas meters has increased in a variety of industries.
COVID-19 has highlighted the vulnerabilities of the smart meter supply chain industry, as many organizations rely on China as a global manufacturing hub for the smart meter industry and have also experienced disruptions in global supply chains. While factories and businesses in China are slowly reopening operations, there is an impact on the smart gas meter industry due to COVID-19.
Supporting government policies
Supporting government policies, the growth of communication network infrastructure, and the fast development of advanced metering infrastructure are key factors driving the smart gas meter industry. Utilities are taking these solutions for their vast benefits. For example, in May 2020, the U.S. utility Indianapolis Power & Light selected Landis+Gyr to extend its advanced metering infrastructure program. They will install 350,000 smart meters and update the current utility network to optimize data telemetry using smart meters, which are expected to help them boost the management of energy distribution, incorporation of renewable resources, consumer energy efficiency, and quality of service. High development and demand for advanced metering infrastructure boost the growth of the smart gas meter industry.
The segmental analysis of the smart gas meters industry has been conducted on the basis of product and application.
Based on product, the global smart gas meters market has been segmented into diaphragm gas meters, turbine gas meters, and rotary gas meters.
By application, the global smart gas meters market has been segmented into diaphragm residential, commercial and industrial.
APAC to lead the global market
Asia Pacific accounts are expected to sustain strong business growth in the coming years. As per China's 13th Five-Year Plan (2016 to 2020), the country will further advance its development of natural gas by 2020, where the share of gas used as a primary energy source will grow to 9-10% from 5.9% in 2015. The pipeline network is projected to expand by 40,000 km in China, with an annual growth rate of approximately 10%. In addition, natural gas services will be provided to a population of 470 million, which is 42% more than 140 million baselines providing 10% annual growth (source GSMA). China will import more natural gas, further improve its infrastructure for peak-load regulation, and digitalize urban natural gas services.
In addition, domestic gas is being supplied from oil and gas fields in the western and south-eastern regions of India. The Hazira Basin, the Mumbai Offshore Basin, the KG Basin, and the North East Region (Assam and Tripura). It is supplied and distributed in compliance with the guidelines on pricing and utilization policies issued by the Government from time to time. In the 2018-2019 fiscal year, total domestic gas output was approximately 90.05 MMSCMD (Metric Standard Cubic Meter per day). In June, the Indian Government announced further measures to raise the share of gas in the country's energy mix. The aim is to increase the contribution of gas from 6pc to 15pc by 2030. The Petroleum and Natural Gas Regulatory Board (PNGRB) stated that the new pipeline tariff policy would soon be introduced to rationalize gas prices across the country. There are currently 29 natural gas fields in countries such as Bangladesh. The Gas Act, 2010 ('the Gas Act' or 'the Act') has been enacted to control the transmission, distribution, marketing, supply, and storage of natural gas and liquid hydrocarbon in the territory of Bangladesh and its sea borders and economic zones.
The market for smart gas meters is fragmented and consists of many significant players. In certain regions, the smart gas meter market has matured. This is leading companies to try to retain a competitive advantage in the market. Companies are using joint strategic initiatives to boost market share and profitability. Companies are also acquiring start-ups operating in smart gas meter market technologies to improve their production capabilities.
Landis+Gyr (Switzerland), DIEHL Metering (Germany), Xylem, Inc. (U.S.), Aclara Technologies LLC (U.S.), Apator Group (Poland), Honeywell International Inc. (U.S.), Itron Inc. (U.S.), EDMI (Singapore), Zenner (Germany), MeteRSit (Italy), and Flonidan A/S (Denmark).
May 2020-Itron Inc. has announced a partnership with EDMI Limited to develop and launch a SMETS2 compliant gas meter in the United Kingdom to meet the region's increasing demand by bringing to the market a complete solution for the secure and reliable supply of natural gas.
This research report predicts revenue growth at global, regional, and national levels and provides insight into the new updates in each sub-sector from 2018 to 2024. For this research, MRFR divided the global smart gas meter market report by product, application, and region.
Frequently Asked Questions (FAQ) :
The lack of awareness in third-world countries is projected to create impediments in the growth of the market as a broad consumer base is till unaware of the benefits.
The market players in the market such as Aclara Technologies, Itron Inc., Honeywell International Inc., Xylem Inc. and Landis+Gyr are optimizing their strategies to meet the opportunities that may come in the future.
The need to gain overall energy savings is expected to spur the Asia Pacific region into a favorable position during the forecast period.
An income worth USD 3.07 Bn is expected to be gained by the end of 2024, due to the increasing consumption of utilities.
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.
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.
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.