ELECTRICITY METERS MARKET ANALYSIS

Electricity Meters Market Size and Trends

Global electricity meters market is estimated to be valued at US$ 9.62 Bn in 2024 and is expected to reach US$ 15.41 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7% from 2024 to 2031.

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Rising demand for smart metering infrastructure along with the need to upgrade aging electricity distribution networks can drive the market growth.

Global electricity meters market is witnessing positive trends such as widespread adoption of smart meters, implementation of advanced metering infrastructure and integration of Internet of Things technologies. Governments across nations like U.S., Canada, Japan, China, etc. are developing conducive policies to replace conventional meters with smart meters to improve grid reliability and enable better demand response. Digitalization of energy sector can drive the market growth.

Growing Adoption of Smart Grid Technologies

Traditional electricity infrastructure has been in place for decades with a unidirectional flow of power from central generation units to consumers. However, with advancing digital technologies, grids are evolving into two-way communication networks enabling more efficient load management, demand response capabilities, integration of distributed renewable energy resources and energy storage systems. Smart grids essentially add an IP address to each component in the electricity delivery network such as advanced meters, distribution automation equipment, intelligent transmission systems and communication networks. This enables real-time monitoring of power flows, two-way communication between utilities and end-users, remote connectivity and controllability of distribution assets.

Smart meters are a key enabling component of smart grids, providing two-way interaction at the consumer level. Compared to conventional meters, smart meters can record electricity usage hourly or at shorter intervals and communicate that information back to the utility for monitoring and billing purposes. These also allow utilities to remotely connect or disconnect power supply and offer consumers a more dynamic view of their energy consumption through online portals and mobile applications. This fosters greater awareness about usage patterns and encourages behavioral changes. The European Union has mandated the installation of smart meters for 80% of consumers by 2020 as part of its energy efficiency strategy. Additional functionality such as home energy management, electric vehicle charging and renewable energy connectivity are expected to augment the value proposition of smart meters. Adoption of such intelligent metering solutions will increase as countries strengthen grid modernization programs.

Market Concentration and Competitive Landscape

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Increasing Demand for Energy Efficiency and Management Solutions

With depletion of fossil fuel reserves, rising energy prices and mounting environmental concerns, there has been urgent need to maximize resource efficiency and minimize energy wastage worldwide. Buildings, industry and transportation account for over 60% of total global electricity consumption and offer substantial potential for savings through effective efficiency measures and demand side management. Retrofitting aging infrastructure with advanced monitoring and controls can help optimize processes and reduce operating costs significantly. At consumer level, rising environmental awareness and economic incentives boosts uptake of solutions such as smart thermostats, lighting controls, energy management displays and load curtailment technologies.

Utilities are also encouraging energy audits, efficiency upgrades and peak load shifting through innovative rate designs and demand response programs. Advanced metering infrastructure plays a pivotal role in enabling such efficiency strategies by providing real-time usage data and remote asset visibility and control capabilities at broad scale.

Key Takeaways from Analyst:

Global electricity meters market growth is driven by large-scale replacement of aging electricity infrastructure in developed nations of North America and Europe. The stringent regulations regarding deployment of smart grids and smart meters in these regions present significant growth opportunities. Growing focus on energy conservation and demand side management can boost adoption of advanced metering infrastructure.

North America region is expected to dominate the market, owing to massive investments planned in the region's electric grid modernization efforts. Countries like Canada, U.S. are in the process of upgrading their distribution networks, and this can boost demand for electricity meters. Increasing rural electrification programs in developing North American countries such as Canada, U.S. can also lead to growth in this sector.

High initial installation costs of smart meters can hamper the market growth. Equipment manufacturers must focus on developing cost-effective and secure communication modules to tap growth opportunities.

Replacement of aging analog fleet with modern electronic meters due to ongoing grid modernization programs worldwide can drive the electricity meters market growth.

Market Challenge - High Initial Installation Costs for Smart Meters

Global electricity meters market growth can be hampered due to high initial installation costs associated with smart meters. Replacing traditional electromechanical meters with more advanced smart meters requires significant upfront capital investments. Smart metering infrastructure involves not only the hardware component costs for procuring millions of smart meters but also expenditures on communication networks, management systems and related IT infrastructure. Furthermore, installation and replacement of existing meters across households and commercial establishments is a highly labor-intensive process. All of these factors contribute to substantially elevated deployment costs for utilities in the initial phases of transitioning to smart metering. The return on investments also takes a relatively long period of time. This high capital commitment poses serious budgeting and affordability challenges, slowing down the pace of smart meter adoption globally. Utilities must devise prudent funding mechanisms and offer incentives to overcome this hurdle to the widespread implementation of smart grids supported by intelligent metering devices.

Market Opportunity - Expansion of Renewable Energy Initiatives Requiring Advanced Metering

Global electricity meters market can witness growth opportunities due to increasing reliance on renewable energy sources for power generation. The integration of renewable energy from intermittent sources like solar and wind into national grids requires considerable monitoring and control capabilities. Advanced meters that support two-way communication are ideal for facilitating greater penetration of renewable power sources into existing electricity networks. The ability of smart meters to provide real-time data on energy consumption and generation helps maintain continuous grid balancing as supply fluctuations occur. It allows utilities and grid operators to better manage the intermittent renewables through demand response programs as well. As countries step up their renewable energy production targets and renewable portfolio standards to meet climate goals, there will be rising investments in smart grid technologies including smart electricity meters. This presents lucrative prospects for vendors in the market.

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Insights By Type- Rise of smart technology in electricity metering

In terms of type, smart meters segment is estimated to contribute the highest market share of 55.3% in 2024, owing to growing demand for enhanced energy monitoring and management. Smart meters allow two-way communication between utilities and customers, providing real-time energy usage data that helps consumers reduce their consumption. Their ability to automate meter readings reduces operating costs for utilities. Many countries have implemented nationwide smart meter rollouts to upgrade aging infrastructure and better handle intermittent renewable energy on grids. Remote disconnect and reconnect features of smart meters further aid load management. Rise of internet of things has seen more home appliances integrating with smart meters for automated control. Their advanced analytics capabilities are used in demand response programs and developing personalized energy reduction plans. With the push for grid modernization and emphasis on consumer empowerment, smart meter segment can witness growth.

For instance, in February 2021, Siemens, a global technology company specializing in digital industries, smart infrastructure, and mobility solutions, launched a new range of smart meters aimed at enhancing energy management. This innovative lineup is designed to provide utilities and consumers with advanced capabilities for monitoring and managing energy consumption more effectively. The smart meters leverage cutting-edge technology to offer real-time data insights, enabling users to optimize their energy usage and reduce costs. This launch reflects Siemens' commitment to supporting the transition towards more sustainable energy systems and improving the efficiency of energy distribution networks globally.

Insights By Technology - Leveraging advanced technology for effective metering

In terms of technology, advanced metering infrastructure (AMI) segment is estimated to contribute the highest market share of 64.7% in 2024, owing to its superior data collection and communication abilities. AMI utilizes two-way wireless networks to connect smart meters, collect usage data, and remotely manage metering operations. This enables features like remote connect/disconnect, outage notification, and tamper detection. AMI has emerged as the preferred technology for national smart meter rollouts due to its ability to automate meter reading and streamline utility processes. Its integration of meters, communications networks, and data management software provides utilities actionable consumer load profiles for grid management. The wireless network infrastructure of AMI makes it highly scalable for nationwide implementation. With its advanced functionalities, AMI addresses the metering requirements of the modernizing grid and aids the energy transition through improved demand response programs.

For instance, in October 2022, Schneider Electric, a global leader in the digital transformation of energy management and automation, announced a partnership with a major utility provider to deploy advanced metering infrastructure (AMI) across their service area. This strategic partnership aims to modernize the utility's grid, enhance customer engagement, and drive energy efficiency. By leveraging Schneider Electric's EcoStruxure Grid solutions, the utility will be able to collect and analyze real-time data from smart meters, enabling improved outage management, better demand forecasting, and more accurate billing. The partnership is expected to benefit over 1 million customers, providing them with enhanced energy management tools and insights to optimize their energy usage. This initiative aligns with Schneider Electric's commitment to enabling a more sustainable and efficient electric world through innovative partnerships.

Insights By End User - Empowering residential customers with innovative metering

In terms of end user, residential segment is estimated to contribute the highest market share of 49.3% in 2024, owing to the mass adoption of smart meters at homes. With consumers taking a proactive role in energy management, residential metering is undergoing technological innovation. Smart residential meters paired with consumer engagement platforms are helping customers track usage patterns, set savings goals, and modify behaviors accordingly. This empowerment of residential customers makes energy consumption a transparent and collaborative process. Advanced metering is also finding applications in integrated home energy management systems, which automate appliance operation based on real-time rates. Utilities are promoting the benefits of smart meters such as accessible consumption data and tailored billing options to residents. The pro-consumer incentives and convenience of innovative residential metering can drive the segment growth.

Regional Insights

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North America has established itself as the dominant regional market for electricity meters with an estimated market share of 35.1% in 2024, due to robust industrial and commercial activity across countries like the U.S. and Canada. With a highly industrialized economy and increasing proliferation of smart grid technologies, the replacement and upgrade demand for advanced metering infrastructure in North America stays consistently high. Presence of leading electricity meter manufacturers and the greatest number of pilot projects for smart meter rollouts provide the region an edge over others. Moreover, standard of living and initiatives towards energy conservation have driven deployment of smart meters for residential consumers significantly.

Asia Pacific region has emerged as the fastest growing regional market for electricity meters globally. Countries like China, India, Japan, South Korea and several Southeast Asian nations are witnessing exponential growth in electricity consumption year-on-year due to surging population and rapid industrialization. This has compelled utilities in the region to focus on modernizing aging metering infrastructure and implementing smart grid projects to handle the expanding load efficiently. Government mandates supporting installation of smart meters especially in highly populated nations like China and India offer significant sales opportunities. Favorable policies to promote renewable energy adoption and strengthen power distribution networks through smart grid technologies can drive the market growth in Asia Pacific.

Growing market size along with replacement of obsolete meters indicates that North America will sustain its dominant position. Meanwhile, Asia Pacific is projected to outpace others as an attractive market for electricity meter manufacturers. Features like advanced functionalities, communication capabilities, small form factors and competitive pricing will drive their increased preference across various applications. This will enable leading players to augment production capacities and expand their presence in the high potential Asia Pacific region.

Market Report Scope

Electricity Meters Industry News

• In January 2024, Honeywell completed its acquisition of Elster, a global provider of thermal gas solutions for commercial, industrial, and residential heating systems and gas, water, and electricity meters. Honeywell, a company known for its innovative technologies, paid approximately US$ 5.1 billion to acquire Elster from Melrose Industries plc. The acquisition aimed to strengthen Honeywell's position in the smart metering market by adding Elster's outstanding technologies, strong well-recognized brands, energy efficiency expertise, and global presence to its portfolio.
• In July 2023, Honeywell, a global leader in technology and manufacturing, introduced a new smart gas meter featuring advanced data analytics capabilities. The EI5 smart gas meter is designed to measure both hydrogen and natural gas, providing utilities with the flexibility needed for the ongoing energy transition in Europe. This innovative meter not only enhances operational efficiency but also supports sustainability goals by eliminating the need for future replacements as energy networks shift towards hydrogen. Successfully piloted in the Netherlands, the EI5 aligns with the European Green Deal's objectives, marking a significant advancement in clean energy technology.
• In March 2023, Landis+Gyr, a leading global provider of integrated energy management solutions, expanded its manufacturing capabilities to address the increasing global demand for smart metering technologies. This strategic move comes in response to a record-high order backlog and aims to enhance the company's ability to deliver innovative solutions to utilities and consumers. The expansion is expected to significantly improve Landis+Gyr's market share, particularly in the EMEA region, where demand for smart energy solutions is rapidly growing. Additionally, the company reported a strong revenue growth of 33.2% year-over-year in the first half of 2023, underscoring its commitment to meeting customer needs amidst ongoing supply chain challenges.
• In June 2021, Itron, Inc., a prominent American technology company specializing in energy and water resource management, acquired a software company to enhance its smart metering solutions. This strategic acquisition aimed to bolster Itron's capabilities in delivering advanced analytics and improved operational efficiency for utilities. By integrating the new software into its existing portfolio, Itron seeks to provide utilities with better tools for managing resources and optimizing their grid operations. This move aligns with Itron's commitment to innovation and its mission to create a more resourceful world through smart technology solutions.

*Definition: Global electricity meters market consists of companies involved in the manufacturing, distribution, and sale of advanced electricity meters. These meters are used to track residential and commercial electricity consumption. Electricity meters help electricity providers accurately bill customers based on usage and aid customers in conserving energy by making them aware of their consumption patterns. Advanced electricity meters also allow two-way communication between the meter and the central system of the electricity supplier for remote meter reading and outage.

Market Segmentation

• By Type Insights (Revenue, US$ Bn, 2019 - 2031)
• • Smart Meters
  • Analog Meters
  • Digital Meters
• By Technology Insights (Revenue, US$ Bn, 2019 - 2031)
• • Advanced Metering Infrastructure (AMI)
  • Automated Meter Reading (AMR)
• By End User Insights (Revenue, US$ Bn, 2019 - 2031)
• • Residential
  • Commercial
  • Industrial
• Regional Insights (Revenue, US$ 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
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Siemens AG
  • Schneider Electric SE
  • Itron, Inc.
  • Landis+Gyr
  • General Electric Company
  • Honeywell International Inc.
  • Sensus (Xylem Inc.)
  • Elster Group GmbH
  • Kamstrup A/S
  • Mitsubishi Electric Corporation
  • Iskraemeco d.d.
  • Aclara Technologies LLC
  • Echelon Corporation
  • Wasion Group Holdings Ltd.
  • Datang Telecom Technology Co., Ltd.