The global smart meters market is expected to reach $20.6 billion by 2020, registering a CAGR of 10.6% during 2015–2020 (forecast period). The market is being driven by the government policies across the globe that are supporting the installation of such devices.
Based on type, the smart meters market is categorized into a smart electric meter, smart water meter, and smart gas meter. Of these, the smart gas meter category is projected to register the fastest CAGR during the forecast period. This can majorly be attributed to the theft prevention feature offered by such meters unlike conventional gas meter. Moreover, technological advancements such as the advent of the meter-to-cash model, and asset management & leakage detection, are expected to drive the growth of the smart gas meter category.
On the basis of end-user, the smart meters market is classified into residential, commercial, and industrial. Among these, the residential category is expected to witness the highest CAGR over the forecast period. This is due to the rising deployment of smart electric meters in housing projects in North America and Asia-Pacific (APAC).
Geographically, the APAC region is projected to witness the highest CAGR of 10.8% over the forecast period. This can be ascribed to the supportive government initiatives toward the installation of smart meters in countries such as India, China, and Australia. It is also expected that the deployment of smart gas meters would grow the fastest, followed by smart water meters and smart electric meters, across the region in the coming years. Hence, the rising deployment of smart gas meters would correspondingly support the growth of the smart meters market in APAC.
Governments’ policies are supporting the installation of such devices, which is driving the growth of the smart meters market across the globe. For instance, in 2013, the U.K. government mandated that the utilities deploy approximately 50 million smart gas and electric meters in business centers and residences by 2020. Similarly, the Government of France started a pilot smart meter program in 2013 and invested $15 billion in digital infrastructure with an allocation for smart meters. Under this plan, Electricite de France (EDF) will install 35 million meters in the nation by 2020.
One of the factors which would provide ample growth opportunities to the global smart meters market during the forecast period is the grid operators managing the demand for power. It has been noted that the issues of congestion in smart grid infrastructure mainly occur during the peak-electricity-demand periods. To overcome such issues, distribution system operators follow demand-side management (DSM) for adjusting the demand and supply of power through smart meters. The smart meters also allow distribution system operators to switch loads in the consumer’s prioritized areas, so as to eliminate the need of emergency service providers and critical customer service providers for switching.
The lack of interoperability among different types of smart meters and related appliances is restraining the growth of the smart meters market. Interoperability is important for grid modernization, as it allows end-users and service providers to incorporate various technological solutions and capabilities while supporting reliable operations at the same time. To overcome the lack, industry experts and governments are enhancing the interoperability through standard testing, development, and supporting policies. For instance, the Smart Grid Interoperability Panel (SGIP) was formed in 2009 by the National Institute of Standards and Technology for improving the interoperability in the U.S.
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Some of the key players operating in the global smart meters market include Itron Inc., Iskraemeco d.d., Landis+Gyr AG, Osaka Electric Co. Ltd., Elster Group GmbH, Siemens AG, General Electric Company, ICSA(India) LTD., Schneider Electric SE, and Holley Technology UK Ltd.
Global Smart Meters Market Segmentation
By End User