Smart Meters Market Research Report—Global Forecast till 2030

Smart Meters Market Research Report: Information, by Type (Electric Meter, Gas Meter, Water Meter), by Technology (Advanced Metering Infrastructure, Automatic Meter Reading), by Application (Residential, Commercial, and Industrial) and Region (North America, Europe, Asia Pacific, Rest of the World) - Forecast till 2027

ID: MRFR/E&P/3150-CR | September 2022 | Region: Global | 116 Pages         

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Smart Meters Market

Smart Meters Market is projected to be worth USD 39,442.3 Million by 2030, registering a CAGR of 8.2% during the forecast period (2022 - 2030)

Segmentation
By Type Electric Meters Gas Meters Water Meters
By Technology Automatic Meter Reading (AMR) Advanced Metering Infrastructure (AMI)
By Application Residential Commercial Industrial
Key Players
Companies Profiled   Siemens AG. (Germany)    Schneider Electric (France)    Landis+Gyr (Switzerland)    Aclara Technologies LLC (U.S.)    Xylem Inc. (U.S.)    Badger Meter Inc. (U.S.)    Itron Inc. (U.S.)    Honeywell International Inc. (U.S.)    EDMI (Singapore)    DIEHL Metering (Germany)    Apator Group (Poland)    Kamstrup A/S (Denmark)    Zenner (Germany)
Drivers
Market Driving Forces   Growing Investment In Smart Grid Projects    Supportive Government Initiatives    Demand/Needs For Efficient Energy Usage
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The global smart meters market is expected to reach USD 39,442.3 Million by 2030 and register a CAGR of 8.2% during the forecast period of 2022 to 2030.


Smart Meters Market Overview:


Smart meters are next-generation meters for both gas and electricity. They are a replacement for standard meters that use technology created decades ago and require households to track their own readings and submit them to suppliers if they want accurate bills. Smart meters deployment has enabled the implementation of a Home Energy Management System (HEMS) or Building Energy Management System (BEMS) that allows visualization of the electric power usage in individual homes or entire buildings.​ Factors such as the growing investment in smart grid projects, supportive government initiatives, and demand for efficient energy usage are expected to drive the smart meters market growth during the forecast period. Scope in the developing nations and technological developments are also expected to bring growth opportunities to the market. However, high initial capital investment is expected to hinder the growth of the Smart meters market.



  • The Andhra Pradesh power utilities will soon implement the Centre's smart meters project in order to provide consumers with quality power, better services, and accurate billing. The Andhra Pradesh power utilities will implement the Centre's smart meters project in order to provide consumers with better power, better services, and more accurate billing, while also increasing accountability, transparency, and efficiency and reducing technical and commercial losses. The move would aid in addressing consumer issues such as incorrect billing, reconnecting after being disconnected due to nonpayment of bills, saving electricity, and monitoring meter readings online.


Covid-19 Impact


The COVID-19 outbreak has had detrimental effects on the global economy as most industries have been affected by the current circumstances, and operations of various sectors have come to a standstill. As the global economy is struggling with the pandemic, the energy sector has been significantly impacted by the COVID-19 pandemic owing to a decline in the electricity demand, especially from the industrial and commercial sectors. This outbreak has had a huge impact on the energy sector, primarily on renewable energy sources. Factors such as supply chain disruptions, delays in completing energy power plant projects, and the risk of being unable to benefit from government incentives are likely to decrease investments and growth of various technologies, of which DCS is a significant part. These factors will further hamper the demand for smart meters designed to control and communicate with hardware installed in any industrial plant and provide a centralized human-machine interface (HMI) for controlled equipment.



  • EESL had installed 1.2 million smart meters and assisted DISCOMs with billing during the COVID-19 crisis. This allowed distribution companies in generating a billing efficiency via the usage of its smart meters at the time of the lockdown thus leading in a 20% rise in monthly revenue per every consumer. 



Smart Meters Market Growth Dynamics


Siemens Ltd and Tata Power Delhi Distribution Limited (TPDDL) have announced a collaboration to install Smart Metering technology in 200,000 smart meters in North Delhi. Siemens' cutting-edge EnergyIP Meter Data Management System, which was installed and commissioned, enables the timely and accurate collection of electricity meter data, resulting in increased visibility of the consumer network and lower carbon emissions.


Drivers

  • Growing Investment in Smart Grid Projects


Smart grids are key technologies that have modernized gas networks by providing utilities and consumers with the information to manage gas use efficiently. Energy utilities worldwide are increasingly investing in smart grid technologies that enable automatic monitoring and controlling of gas consumption, develop new business models, and reduce outages and shorten response times during natural hazards. The electricity demand is rising continuously, while security and environmental concerns are changing the way energy is generated and distributed. The smart meter is the fundamental building block of smart grid technologies. These meters enable real-time measurements needed to monitor equipment health, grid congestion, and stability, and system control is an integral part of smart grids.



  • Supportive Government Initiatives

  • Demand/Needs for Efficient Energy Usage


Restraints

  • High Initial Capital Investment


Smart gas meter projects across the globe have witnessed delays or cancellations as their deployment is highly capital-intensive and could be an investment risk for utilities and consumers. The overall cost of installation and operation of smart gas meters is very high. This is due to the cost associated with the current advanced technology, raw material, manpower, and other major factors. In most countries, states do not provide subsidies, and there are no binding targets or mandates for smart gas meter installations. Due to limited consumer acceptance, the new generation smart gas meter implementation in these countries could be extended until 2030. Due to such a long delay in the realization of ROI, companies refrain from installing smart meters.


Opportunity

  • Scope in the Developing Nations


The growth of smart meters market in the developing economies, growing urbanization, and improvement in lifestyle have increased the demand for power. The strong growth in the economy and the population expansion have led to the increase in the consumption of power. Developing markets such as India and China tend to have higher growth rates with a low level of competition. This creates more opportunities for the power business in these countries. Indian companies are showing interest in power generation and the electricity sector in India and have developed 319.60 GW of power generation capacities. For developing cities, many governments are planning to install smart energy meters in every home and sensors that take measurements every fifteen minutes in every energy meter.



  • Technological Development


Smart Meters Market Insights - Segment Overview:



  • Itron introduced the eHZ-B residential smart meters, which are dependable and affordable, and enable utilities and cities to safely transition to a smart and connected distribution network. The smart meter is designed with advanced functionality for supporting Germany's ongoing energy transition to a low-carbon, environmentally sound, reliable, and affordable energy supply, as well as to equip utilities and cities for a safe transition to a smart and connected distribution network.


By Type



  • Electric Meter


The electric meters measure the electricity consumption and communicate this to the utility system. The installations of these devices help reduce CO2 emissions globally as a consumer's inclination toward peak time savings of energy would increase. Hence, the growing construction sector across the globe drives the growth of smart electric meters. According to the European Commission DG Energy, it estimates the 2020 installed base to have required USD 22.98 billion in investment, growing to USD 46.30 billion by 2030, with a total deployment of 266 million smart meters.



  • Gas Meter


There are two types of smart gas meters: smart ultrasonic gas meter and smart diaphragm gas meter. The increasing number of residential and light commercial buildings helps in driving smart diaphragm gas meter types. Increasing investments in gas distribution infrastructure, digitalization of distribution grids, and optimization of network operations are the key factors driving the demand for smart gas meters. Increasing focus on advanced metering infrastructure development in developed regions supports the demand for smart gas meters. Increasing consumption of gas, coupled with rising energy prices, will also fuel the demand for smart gas metering systems.



  • Water Meter


Smart water meter is an integrated system that enables customers to monitor and diagnose consumption problems continuously, identify maintenance issues, and provide data to track usage patterns effectively. Focus on reducing non-revenue water, i.e., water produced for consumption and lost before it reaches the customer, increases the demand for smart water meters. In 2019, San Francisco Public Utilities Commission (SFPUC) had installed automated water meters in more than 96% of San Francisco's 178,000 water accounts. With this, reliable and frequent water usage information helps customers monitor their use and detect leaks faster than possible compared to the manually read meters.


By Technology



  • Advanced Metering Infrastructure (AMI)


Advanced Metering Infrastructure (AMI) integrates smart meters, communication networks, and data management systems. It enables two-way communication between utilities and customers. The system performs various important functions that had to be performed manually, such as automatically and remotely measuring electricity use, connecting and disconnecting service, identifying and isolating outages. The factors such as the advancement of mobile networks and the digitization of water consumption equipment management are helping the segment grow at a significant rate.



  • Automatic Meter Reading (AMR)


AMR automatically collects consumption data from a water meter or energy metering device and transfer that data to the utilities. In AMR, the billing can be based on near real-time consumption rather than on estimates based on previous consumption. AMR systems promote more cognisant electricity and water usage by revealing exactly how a site uses the resources and where reductions can be made to improve efficiency and lower costs.


By Application



  • Residential


Smart electric meter plays a significant role in the residential sector, as this meter measures the energy consumed by the end users. Standalone autonomous houses and suburban/urban apartments are the application areas of the smart meters in the residential segment. There has been a shift in the population in the urbanized areas, especially in developing nations. This transition leads to the increasing demand for homes and residential complexes. This induces the smart meters market in the coming time. Additionally, rising electricity prices with the growing demand for residential energy consumption have a positive influence on the market's growth. Globally, installations of these devices in the residential sector impact the reduction of CO2 emissions, owing to the increased consumer's inclination toward peak time savings of energy.



  • Commercial


Commercial application is another major application, which has been covered in the application segment of the global smart meters market. The flow of investment starts towards infrastructure building & construction purposes. Governments are now focusing on developing better infrastructure (heavy civil works such as rail, road, dams, irrigation canals, etc.) for a greater nation and betterment of the public. These collective factors are leading to the growth of smart meters. Digitalization plays a major role in smart meters in commercial building, including hybrid cloud infrastructure, which will allow leveraging high data processing capacity and IoT to manage networks in an increasingly flexible and efficient way.



  • Industrial


With rapid industrialization in countries such as India, China, and Brazil, there is an increased demand for construction. This fuels the demand for smart meters technology due to its additional benefits, such as the more efficient transmission of electricity and reduced peak demand, which will also help lower electricity rates. The growing adoption of IoT has increased digitalization across multiple industries, such as gas and electricity, at a significant rate. The electric power industry continues to transition toward cleaner energy by modernizing the energy grids to smart meters. This helps electric companies increase the energy grid's resilience and operations and help more gain more visibility into the system operations and avoid outages


Smart Meters Market Regional Analysis


The global smart meters market has been segmented, on the basis of region, into North America, Europe, Asia-Pacific, and Rest of the World.



  • For example, Tokyo Gas, TEPCO Power Grid, & the Industrial Technology Research Institute (ITRI) collaborated to develop a next-generation metering platform in Shalun Green Energy Science City's area D. ITRI intends to build seven energy-efficient smart demonstration houses in Area D. The model homes will be built at the Tainan experimental field and will generate big data that will provide insight into what a green lifestyle means for energy conservation.

  • Adani Electricity Mumbai (AEML) announced on Tuesday that it will invest Rs 500 crore for installing smart meters for seven lakh customers in Mumbai by the end of 2023. The power distribution company, a subsidiary of the publicly traded Adani Transmission, stated that the 7 lakh smart meters are the first phase target, with the remaining 20 lakh customers receiving smart meters by the end of FY25.


Asia-Pacific SMART METERS MARKET, BY country, 2020 (% SHARE)Asia-Pacific SMART METERS MARKET, BY country, 2020 (% SHARE)Source: MRFR Analysis Industry Expert, Secondary Research, and MRFR Analysis


Asia-Pacific


Asia-Pacific comprises China, Japan, India, South Korea, and the Rest of Asia-Pacific. The increasing smart cities projects in countries like India, China, and Japan drive the market's growth. Also, the demand for energy in the region is very high owing to the growing population and improvement in the lifestyle in the region. This leads to an increase in investment in T&D (Transmission & Distribution), which increases the demand of the market. Further, the growing electricity theft rates in the countries such as India and Japan have been addressed to overcome the issue by installing smart meters. Moreover, the presence of players such as Landis+ Gyr, EDMI, and other local firms are involved in a partnership with domestic and international metering vendors, thereby offering the potential for the smart meters market.


Rest of the World


The Rest of the world includes the Middle East & Africa and South America. This region is at an early stage of adoption of smart meters, as most of the countries in this region are not fully developed. The electricity meters are mainly adopted in this region, followed by gas and water meters. The rising use of technology across different end users is expected to form opportunities for the growth of the smart meters market.


Smart Meters Market Outlook - Competitive Landscape


The global smart meters market consists of various global and regional service providers that are continuously evolving to enhance their market position. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, and frequent changes in government policies are key factors that restrict the smart meters market growth. The vendors compete based on the quality of services, affordability, and reliability of products. It is crucial for the vendors to provide advanced technologies and value-added services to survive and succeed in an intensely competitive market environment. The market share analysis is derived by considering various factors such as financial position, R&D investment, brand value, product portfolio, strategy analysis, and key innovations in the global smart meter market.


Key Players


The prominent players in the global smart meters market are Schneider Electric (France), Siemens AG (Germany), LANDIS+GYR (Switzerland), Xylem (US), Honeywell International Inc. (US), Aclara Technologies LLC (US), Badger Meter, Inc. (US), Itron, Inc. (US), EDMI Limited (Australia), Apator SA. (Poland), Diehl Stiftung & Co. KG (Germany), ZENNER International GmbH & Co. KG (Germany), and Kamstrup (Denmark) among others.


Recent Developments



  • In October 2021, Siemens AG to provide software solutions for smart meter roll-out in Lithuania. Siemens will provide Lithuanian distribution system operators with the EnergyIP meter data management system as well as service and maintenance for ten years.

  • In August 2021, Kamstrup introduced a new OMNIA e-meter. The company expanded its offering to include the metering platform exclusively based on cellular IoT to complement the existing OMNIPOWER RF mesh-based meter platform.

  • In July 2021, Landis+Gyr has acquired Etrel, an interactive charging hardware and software solutions provider for electric vehicles, with headquarters in Grosuplje, Slovenia.



Smart Meters Market Report Overview


The study covers the existing short-term and long-term market effects, helping decision-makers draft short-term and long-term plans for businesses by region. The report covers major regions in North America, Europe, Asia-Pacific, and Rest of the World. The report analyzes smart meters market drivers, restraints, opportunities, and Porter's Five Forces.


Market Segmentation


Global Smart Meters Market, by Type



  • Electric Meter

  • Gas Meter

  • Water Meter


Global Smart Meters Market, by Technology



  • Advanced Metering Infrastructure (AMI)

  • Automatic Meter Reading (AMR)


Global Smart Meters Market Share, by Application



  • Residential

  • Commercial

  • Industrial


Global Smart Meters Market Analysis, by Region



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • UK

    • France

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • India

    • Japan

    • Rest of Asia-Pacific



  • Rest of the World

    • South America

    • Middle East & Africa





Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 39,442.3 Million
  CAGR   8.2%
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2018 & 2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Technology, Application, and Region
  Geographies Covered   North America, Europe, Asia-Pacific, Middle East & Africa, and South America
  Key Vendors   Schneider Electric (France), Siemens AG (Germany), LANDIS+GYR (Switzerland), Xylem (US), Honeywell International Inc. (US), Aclara Technologies LLC (US), Badger Meter, Inc. (US), Itron, Inc. (US), EDMI Limited (Australia), Apator SA. (Poland), Diehl Stiftung & Co. KG (Germany), Zenner International GmbH & Co. KG (Germany), and Kamstrup (Denmark)
  Key Market Opportunities   â€¢ Scope in the developing nations • Technological development
  Key Market Drivers   â€¢ Growing investment in smart grid projects • Supportive government initiatives • Demand/needs for efficient energy usage


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Frequently Asked Questions (FAQ) :

The Increased energy conservation efforts and improved power supply are the trends influencing the design of modern electricity management infrastructure.

2022-2030 is the growth period of the market,registering a CAGR of 8.2% during the forecast period

Siemens AG. (Germany), Schneider Electric (France), Xylem, Inc. (U.S.), Aclara Technologies LLC (U.S.), Landis+Gyr (Switzerland), and Badger Meter, Inc. (U.S.) are the key players of the market.

Smart Meters Market is projected to be worth USD 39,442.3 Million by 2030