Global electricity meters market is estimated to witness steady growth, owing to government support for smart grid projects & growing focus on energy efficiency
Global electricity meters market is estimated to be valued at US$ 9.62 Bn in 2024, exhibiting a CAGR of 7% over the forecast period (2024-2031). Factors such as government policies mandating installation of smart meters and focus on energy efficiency can drive the market growth. Furthermore, adoption of internet of things (IoT) and automation technologies can also aid market expansion.
Market Dynamics:
Global electricity meters market growth is driven by factors such as government support for smart grid projects and growing focus on energy efficiency. Various governments across countries like China, Canada, U.S., etc. are supporting installation of smart meters which facilitate two-way communication between utilities and customers. This helps utilities manage demand response and monitor power outages in real-time. Furthermore, smart grid projects also focus on reducing transmission and distribution losses through automatic meter reading. On customer side, smart meters enable consumers to analyze power consumption patterns and implement strategies to optimize usage. This leads to growing deployment of smart meters worldwide.
The market growth is also driven by the need for energy efficiency. With rising energy costs and focus on reducing carbon footprint, utilities and industrial customers are focusing on energy efficient solutions. Electricity meters play a vital role in monitoring usage and identifying areas of excessive consumption.
Growing demand for smart meters can drive the global electricity meters market growth
Increasing deployment of smart grids and smart meters across the world can drive the global electricity meters market growth. Smart meters allow for two-way communication between utilities and customers, enabling remote meter reading and providing more accurate billing. These also empower customers with energy usage data to help reduce consumption. Many governments are mandating the installation of smart meters in homes and businesses to modernize aging infrastructure and drive energy efficiency.
Increasing focus on renewable energy integration can boost electricity meter installations
Rising integration of renewable energy sources like solar and wind power into national grids can drive the market growth. Electricity generated from renewable sources tends to be intermittent and fluctuating in nature. Advanced metering infrastructure with smart meters allows utilities to better manage intermittent energy feeds into the grid from renewables. It also helps consumers sell excess renewable energy back to the grid. This boosts investments into digital electricity metering solutions that can integrate renewable energy seamlessly and optimize grid operations. Countries aiming to achieve high renewable energy targets are installing more smart meters to support their clean energy goals.
High infrastructure development costs pose challenges
Global electricity meters market players can face challenges like high initial investment required for infrastructure development. The installation and upgrading of advanced digital metering infrastructure entails considerable capital expenditure for utilities. Replacing aging electro-mechanical meters with smarter network communication-enabled meters involves high replacement and infrastructure costs. Utilities need to make ongoing investments in wireless network infrastructure, meter data management systems and IT support over the lifetime of the project. This high upfront cost burden restrains the pace of smart meter deployment, especially in price-sensitive developing markets.
Lack of data security standards
Absence of well-defined cybersecurity and data privacy standards for smart metering systems can hamper the market growth. As smart meters collect and transmit highly sensitive consumer energy usage data wirelessly on a regular basis, there are increased risks of security breaches and privacy issues. Any large-scale cyberattacks or data leaks from metering systems could seriously undermine public trust in smart grid initiatives. The lack of globally accepted security certifications creates reluctance among utilities and policymakers regarding widespread adoption of smart metering programs until robust security frameworks are established.
Opportunity for region-wise customized smart metering solutions
The diverse needs across different regional electricity markets present opportunities for customized smart metering solutions. Factors like grid infrastructure, climate conditions, consumer behavior and regulatory frameworks vary greatly between developing and developed nations as well as across geographic regions. This demands innovative metering products tailored to regional requirements, which conventional "one-size-fits-all" solutions cannot fulfill. Vendors developing tailored products and technologies specific to local renewable energy needs, grid modernization objectives, data management requirements, and others will be better positioned to tap new growth opportunities.
Rise of enabling technologies to create new avenues
Emerging technologies like Internet of Things (IoT), cloud computing, big data analytics and artificial intelligence (AI) are opening up new growth avenues for electricity meter providers. Advanced metering infrastructure integrated with IoT enables real-time grid monitoring while cloud-based meter data management systems support large-scale analytics. AI and machine learning algorithms can analyze meter data to provide customized demand response programs, improve load forecasting accuracy and detect technical issues early. Utilities and grid operators shifting to such next-gen "utility in a box" solutions can offer long-term opportunities for innovators in the global electricity meters industry.
Link: https://www.coherentmarketinsights.com/market-insight/electricity-meters-market-4770
Key Developments:
- 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 that is 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. 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 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.
- 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.
Key Players:
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., and Datang Telecom Technology Co., Ltd.
