Smart Meter Market

[318 Pages Report] The global Smart Meter market is expected to grow at a CAGR of 9.4% during the forecast period, from an estimated USD 23.1 billion in 2023 to USD 36.3 billion in 2028. Major factors that would further drive the adoption of smart meters include stringent government policies, increased awareness of the disadvantages of carbon footprint, contactless billing, improved grid reliability and efficient outage response, and the strong need for data analytics in the electric power industry.

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Smart Meters Manufacturers

Some of the top players in the smart meters market are Landis+Gyr, Itron, Inc., Sagemcom, Osaki Electric Co., Ltd, and Siemens. These Smart Meters Manufacturers design, produce, and distribute smart meters and related technology. Utilities play a crucial role within this ecosystem as the primary customers of smart meter manufacturers. They deploy these meters to collect data on electricity, water, and gas consumption from households, commercial buildings, and industrial facilities. Landis+Gyr group and WEC Energy Group have signed an agreement to expand the Advanced Metering Infrastructure (AMI) coverage for gas and electric meters. They are looking to extend the existing managed services agreement through 2038.

Smart Meters Market Dynamics

Drivers: Rising adoption of smart meters to monitor utility systems in real time

The adoption of smart meters to monitor utility systems in real time is on the rise due to several benefits they provide. Smart meters are able to communicate with the utility company in real time, allowing for accurate and up-to-date energy usage data. This can help the utility company better manage its power grid and detect and respond to outages more quickly. Additionally, smart meters provide consumers with more detailed information about their energy usage, which can help them make more informed decisions about their energy consumption and potentially save money on their utility bills. Smart Meters also have inbuilt technology that helps in detecting power theft and tampering of the meters which is a major concern for utility companies. Overall, the use of smart meters in real-time monitoring of utility systems is helping to improve the efficiency, reliability and cost-effectiveness of the power grid, making it more sustainable for the future.

Restraints: Decline in infrastructure development investments and low return on investment

Smart meter installation requires a higher capital cost to install and operate than conventional meters. Utility providers across the world need capital to upgrade their infrastructure. Developing countries with poor infrastructure, such as China, Brazil, and India, also need huge financial support to build and update their infrastructure.

Besides, the integration of devices becomes more complicated when the number of customers increases, which further delays smart meter operations. Even in developed smart meters market, such as Italy and Sweden, to make the integration of a new generation of smart meters profitable, utilities are deploying smart meters in different phases. The deployment of smart meters in these countries can be extended until 2030 due to a lack of consumer acceptance. Due to such a long delay in the realization of ROI, companies refrain from installing smart meters.

Opportunities: Integration of artificial intelligence (AI) and machine learning (ML) technologies into smart meters

Global smart meter manufacturers and utilities are looking to integrate artificial intelligence (AI) and machine learning (ML) software with smart meter operations. This integration will enable utilities to effectively monitor real-time analysis and use smart meter data for better business decisions. For instance, the artificial intelligence of smart meter operations can provide unprecedented, real-time visibility into the utility distribution system, including power flow and integration of distributed energy resources. In addition, smart meters with AI can provide utilities with supply and demand optimization with the enhanced prediction of periods of peak supply and demand.

Challenges: Maintenance, security, and integrity of smart meters and associated data and requirement for skilled professionals

The deployment and maintenance of smart meters can present a number of challenges, including cost, security, and the need for skilled professionals. One of the main challenges is the cost associated with deploying and maintaining smart meters. Smart meters are typically more expensive than traditional meters, and the cost of deploying them can be high, particularly for large-scale rollouts. Additionally, the cost of maintaining and upgrading the infrastructure to support smart meters can also be high. Another challenge is the security and integrity of smart meter data. Smart meters collect and transmit large amounts of sensitive data, including information about energy usage, which could be vulnerable to hacking and other cyber attacks. Ensuring the security of this data is crucial to protect consumers' privacy and prevent unauthorized access to the power grid. Finally, the requirement of skilled professionals is another challenge as the deployment and maintenance of smart meters require a higher level of technical expertise than traditional meters. Utility companies may need to invest in training and development programs to ensure they have the necessary skills to install and maintain smart meters, and to analyze and use the data they collect.

Market Trends

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Smart water meter segment, by type, is expected to be the fastest market during the forecast period

The smart water meter segment is expected to be the fastest smart metering market during the forecast period. Smart water meters are a useful tool for tracking water usage and coordinating with the service provider to regulate water usage and manage the billing cycle. Multiple built-in sensors manage the measuring and recording components, and a module or component resembling those found in smart gas meters is used to carry out communication. The typical mechanical meters were also prone to wear and tear due to which there were consistent inaccuracies in the billing. Water management has been a global issue as every year several water utilities experience a huge amount of water loss. These water management initiatives are increasing the market for smart meters.

By communication, PLC segment is expected to be the second largest market for the global smart meter market during the forecast period

By communication, the market has been segmented into RF, PLC, and Cellular. PLC is a communication technology that uses electrical wiring to simultaneously transmit both data and electric power without any interference as both are at different frequencies. PLC has advantages such as compatibility with the existing utility infrastructure of poles & wires, improved cost-effectiveness for rural smart meter infrastructure, and usability in challenging terrain.

“Asia Pacific: The fastest smart meters market”

Asia Pacific is expected to be the fastest-growing region for the global smart meter market between 2021–2028, followed by Europe and North America. The smart meter market size in the Asia Pacific region is expected to grow rapidly in the coming years due to increasing government initiatives to upgrade the power grid infrastructure and rising consumer demand for energy efficiency. Some of the major countries in the region, such as China, Japan, and South Korea, have already implemented or are planning to implement large-scale smart meter rollouts. Additionally, the increasing adoption of renewable energy sources and the need for more accurate and real-time energy data are also driving the market growth. However, the market growth may also be hindered by lack of standardization and cybersecurity concerns.

Key Market Players

The smart meter industry is dominated by a few major players that have a wide regional presence. The major players in the smart meter market are Landis+Gyr (Switzerland), Itron, Inc. (US), Osaki Electric Co., Ltd (EDMI) (Singapore), Sagemcom (France), and Siemens (Germany) Between 2018 and 2022, the companies adopted growth strategies such as sales contracts to capture a larger share of the market.

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Scope of the Report

This research report categorizes the smart meters market by type, technology, component, communication, end user, and region

Based on type, the Smart meter market has been segmented as follows:

• Smart Electric Meter
• Smart Gas Meter
• Smart Water Meter

Based on technology, the Smart meter market has been segmented as follows:

• AMI
• AMR

Based on Component, the Smart meter market has been segmented as follows:

• Hardware
• Software

Based on end user, the Smart meter market has been segmented as follows:

• Residential
• Commercial
• Industrial

Based on communication, the market has been segmented as follows:

• RF
• PLC
• Cellular

Based on region, the Smart meter market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In November 2022, Landis+Gyr has expanded its portfolio in Smart Metering, Grid Edge Intelligence and Smart Infrastructure fields and will be exhibiting the latest hardware and software solutions for electricity, heat, gas, and water metering.
• In September 2022, EDMI has launched its brand MIRA which are communications agnostic, enabling end-to-end visibility and control based on industry standard protocols such as DLMS, IDIS, and LWM2M over a wide range of bearer services including 4G, NB-IoT, RF Mesh.
• In November 2022, Itron, Inc. has partnered with various technology innovators, consultants, service providers, and channel partners to deliver outcomes for utilities and cities in their mission to connect to customers to accelerate the modernization of energy, water, and smart solutions offered in global markets
• In October 2021, Siemens Smart Infrastructure and its partners, Sagemcom and Bite Lietuva, participated in the rollout of 1.2 million smart meters across Lithuania.

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