POWER METERING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Power Metering Market Size and Trends

The power metering market is estimated to be valued at USD 12.72 Bn in 2024 and is expected to reach USD 19.25 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The power metering market is expected to witness significant growth over the forecast period. The high deployment of smart grids across utilities to ensure effective distribution and monitor power consumption is driving the demand for advanced metering infrastructure. Also, the focus toward establishing a strong energy infrastructure, reduction in energy losses, and meeting globe’s increasing power demand will continue boosting the implementation of smart meters. Further, favorable government policies and regulations aimed at the deployment of these meters to achieve energy conservation through behavior change shall accelerate the market expansion. However, high initial costs associated with the installation and replacement of conventional meters with smart meters may hinder the growth of the power metering market during the forecast period to some extent.

Climate Change Concerns

As environmental awareness continues to increase globally, more emphasis is being placed on reducing carbon footprints and transitioning to cleaner sources of energy. Continuous monitoring of energy consumption has become important to identify areas where wastage can be minimized. Power metering provides valuable insights into power usage patterns and helps pinpoint inefficiencies. This allows households and organizations to make small adjustments that cumulatively contribute to carbon emission reductions. With climate change becoming a pressing issue, many countries have implemented policies and programs encouraging energy efficiency. The installation of smart meters is being incentivized as they facilitate a greener lifestyle. Consumers are also actively looking to play their part in mitigating global warming. Power metering supports this shift towards sustainability by creating awareness about energy usage behaviors and recommending simple optimizations. Over time, as societies transition to net-zero targets, advanced monitoring solutions will be vital to manage demand and optimize supply from renewable sources on a distributed level.

Market Concentration and Competitive Landscape

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Emergence of Smart Grid Technology

The aging electrical infrastructure in many nations requires modernization to meet evolving needs. Traditional power grids are being upgraded to become smarter and more resilient. Two-way communication between utilities and end users is seen as key to the success of smart grids. It helps utilities better manage generation and load requirements. For consumers, it opens up opportunities to monitor and control usage according to preferences like opting for off-peak rates. Smart meters serve as an interface between customers and utilities in a smart grid set up. They facilitate demand response by transmitting near real-time consumption data. This enables flexible demand side management and stimulates shift to renewable sources. Utilities also gain insights into power events on distribution feeders to reduce outages. With investments growing in smart grid technologies, power metering takes on an important role in supporting reliable, efficient and cost-effective distribution of electricity. Harmonization of metering infrastructure across networks will ease the modernization efforts of grid operators over the coming years.

Key Takeaways from Analyst:

The power metering market is poised to grow at a significant rate over the next five years. The adoption of smart grid technologies and the need to reduce non-technical losses are major drivers for the increased adoption of smart meters globally. Government regulations and policies mandating the installation of smart meters in many countries will further propel market expansion. The ability of utilities to get real-time consumption data and efficiently manage load distribution through automated meter reading are expected to drive the replacement demand.

High initial installation costs involved in replacing existing infrastructure with smart meters could hinder the market growth. Data privacy and security concerns related to meters that collect and transmit household-level energy usage data online are notable restraints. The lack of standard communication protocols also challenge large-scale deployments.

North America currently dominates the market but Asia Pacific is emerging as the fastest growing regional market. Government initiatives to upgrade aging infrastructure in countries like India and China are boosting demand. Additionally, several utility providers in Southeast Asian countries are investing in smart grid projects which will require smart meter rollouts over the coming years.

Market Challenges: High initial investments

High initial investments are significantly restraining the growth of the global power metering market. Power metering solutions require heavy capital expenditure for hardware components such as sensors, communication infrastructure and data management systems. These solutions involve complex equipment and technology which drives up installation and deployment costs. For residential consumers, the upfront costs associated with adopting advanced metering infrastructure can be quite steep. This inhibits mass adoption, especially in cost-sensitive and price-conscious markets.

Market Opportunities: Integration of smart grid and Smart city initiatives

The integration of smart grid and smart city initiatives presents a great opportunity for the global power metering market. With more cities investing in smart infrastructure and digital technologies, the demand for advanced metering infrastructure and smart meters will see a significant rise. Smart grids aim to modernize the traditional power grid by incorporating two-way digital communication technology and automation. This allows for better monitoring of electricity distribution and more efficient management of demand and supply. Smart meters, which can accurately measure and report energy usage in short intervals, play a vital role in the development of smart grids. As smart grids become widely adopted, the need for smart meter deployment will increase exponentially across both residential and commercial sectors.

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Insights by Type: Digitization is driving the digital segment growth

In terms of type, digital is expected to contributes 38.7% share of the market in 2024, owing to rapid digitization across sectors. Digital meters offer advantages like remote monitoring of consumption which helps utilities better manage power distribution and detect faults. They also allow two-way communication for automated meter reading that reduces manual intervention. This has significantly improved operational efficiency for utilities. Further, digital meters provide consumers with granular usage data through mobile apps. This empowers consumers to curb wastage and optimize consumption. The availability of usage patterns helps consumers reduce bills through behavioral changes and targeted efficiency programs. The ability to detect theft and tampering has also benefitted utilities through reduced losses. Government initiatives to replace aging infrastructure with smart grids and smart meters have accelerated adoption. In addition, smart city projects envisage the extensive deployment of digital meters. Rapid urbanization and focus on energy management are other factors contributing to the digital segment's leadership position.

Insights by Phase Type:  Infrastructure upgrades enable growth in the three-phase segment

In terms of phase type, three-phase is expected to contributes 67.8% share of the market in 2024 owing to infrastructure upgrades. Three-phase meters are primarily used to measure the consumption for medium and heavy industrial facilities or large commercial setups with higher load requirements. Given rapidly growing industrial and infrastructure development activities across developing regions, demand from these sectors has increased substantially. Modernization of existing industrial infrastructure also involves the replacement of obsolete meters with advanced three-phase meters. Furthermore, the construction of new industrial parks and special economic zones necessitates the installation of three-phase meters. Government initiatives to boost manufacturing and 'Make in India' have promoted in-country investment, thus augmenting requirements. Utilities are also replacing the aging three-phase infrastructure to reduce transmission losses and improve load management for high power consumers. Such refurbishment programs have boosted the replacement demand. Considering imminent needs of expanding industries and infrastructure players, three-phase meters will continue capturing a dominant share.

Insights by End User: Emphasis on energy savings propels the residential segment growth

When analyzed by end user, residential is expected to contributes 61.6% share to the power metering market in 2024, owing to growing focus on energy conservation. Population increase has led to higher overall domestic consumption. At the same time, greater awareness about financial and environmental benefits of efficient consumption patterns is driving adoption. Policy interventions like time-of-day tariff systems have encouraged the adoption of smart meters that provide real-time usage analysis to residents. This enables behavioral changes to shift loads to off-peak hours and reduce bills. Furthermore, favorable regulatory norms for the integration of decentralized renewable sources have expanded residential prosumers. Smart meters effectively support micro-grid and net-metering arrangements. Additionally, incentive-based replacement programs run by utilities and governments promote retrofitting with advanced meters. Promotion of green buildings and smart homes augment the residential segment. Overall emphasis on conservation and sustainable living will continue aiding the segment's leadership.

Regional Insights

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North America has established itself as the dominant region in the power metering market. The region is expected to account for 34.4% of the market share in 2024. The region boasts of a huge demand due to the high penetration of smart grid projects. Countries like the U.S. and Canada have stringent norms to integrate renewable energy through extensive network upgrades. This has compelled utility companies as well as industrial consumers to invest heavily in advanced metering infrastructure. The presence of leading metering providers such as Siemens and Itron further strengthens North America's position. The technology-driven approach of utilities to optimize consumption helps sustain demand. Moreover, efforts by state regulators to incentivize the adoption of smart meters via rebate programs promotes market growth. Large scale installations of smart grid pilots foster innovation and raise the bar for suppliers.

The Asia Pacific region is poised to be the fastest growing market for power metering globally over the coming years. Economic developments across countries like India, China and Southeast Asian nations are expected to fuel demand. Power shortages and the need to reduce commercial and domestic losses drive utilities in APAC to invest in smart infrastructure upgrades. This presents immense opportunities for networked metering rollouts. Countries are introducing smart metering mandates that boost the market potential. Additionally, inexpensive smart meter manufacturing capabilities within China and local sourcing by utilities to maximize cost savings augurs well for the region. Rising incomes are also enabling individual users to install distributed energy monitoring setups. The increasing focus on renewable integration under government energy policies provides tailwinds for meter data management providers.

Market Report Scope

Key Developments

• In May 2024, Accuenergy, a leading manufacturer of energy management solutions, announced the launch of its Acuvim 3 Series Power Quality Meter. This advanced metering device is designed to provide comprehensive power quality monitoring and analysis, meeting the stringent IEC 61000-4-30 Class A compliance standards.
• In March 2024, Airtel Business, the enterprise arm of Bharti Airtel, announced a collaboration with Adani Energy Solutions Limited (AESL) in January 2024 to deploy connectivity for over 20 million smart meters. This strategic partnership aims to ensure the reliable and secure connectivity for AESL's smart metering deployments across India.
• In 2023, HPL Electric and Power Ltd, a leading manufacturer of electrical equipment in India, announced a strategic partnership with Wirepas, a global provider of wireless connectivity solutions. This collaboration aims to accelerate the deployment of smart metering infrastructure across India, leveraging the strengths of both companies.
• In 2023, UnaBiz, a leading IoT service provider, and KAIFA, a prominent manufacturer of smart meters, announced a strategic partnership to accelerate the global adoption of smart water metering solutions using Sigfox 0G network technology. This collaboration aims to revolutionize the water metering industry by providing a cost-effective and energy-efficient solution for water utilities worldwide.

*Definition: The power metering market comprises companies involved in manufacturing, distributing, and selling devices that are used to monitor and measure the electrical power consumption of residential, commercial, and industrial properties. Power meters help utility companies collect accurate usage data from customers while also enabling customers to better understand and manage their power consumption. Some of the key products in this market include smart meters, electricity meters, and industrial power meters.

Market Segmentation

• Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Smart
  • Digital
  • Analog
•  Phase Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Single-phase
  • Three-phase
•  End User Insights (Revenue, USD Bn, 2019 - 2031)
  • Residential
  • Commercial
  • Industrial
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • General Electric
  • Itron
  • Toshiba Corporation
  • Melrose Industries plc.
  • Wasion Group Holdings Ltd.
  • ABB
  • Eaton Corporation Plc
  • Siemens AG
  • Holley Metering
  • Aclara Technologies LLC
  • Kamstrup AS
  • HPL India
  • Power India Meters
  • Schneider Electric
  • Techno Meters & Electronics
  • Genus Power Company
  • Eastron Electronic Co., Ltd.
  • Camax Ltd
  • Autometers Systems
  • Holley Tech UK