- A smart meter enables two-way communication between the meter and the central system.
- Smart meters can be used in power grid management.
- North America and Europe are dominating the global smart meter market.
A smart meter is a recording device that records consumption of a utility and relays the data to the utility company for monitoring and billing. Smart Meter Market is valued at $8,713.8 Million in 2018 and expected to reach $15,355.1 Million by 2025 with the CAGR of 8.43% over the forecast period.
Smart meters record the amount used hourly or more frequently, and report at least daily. A smart meter enables two-way communication between the meter and the central system, making it different from automatic meter reading (AMR). Wireless or fixed wire connections like the power line carrier (PLC) are the communication system, which connects a smart meter to the network.
Non-smart electrical and gas meters only measure total consumption, but not information about when the energy was consumed. But smart meters provide a way to measure this site-specific information, enabling utility companies to charge different prices for consumption according to the time of day and the season. Smart metering provides potential benefits to householders such as estimated bills, a tool to help consumers better manage their energy purchases which provide up-to-date information on gas and electricity consumption.
The Global Smart Meter Market report is segmented on the basis of its type, application, technology and by region & country level. Based upon type, the global smart meter market is classified as electric, water, and gas. Based upon application, the global smart meter market is classified as commercial, residential, and industrial. Based upon technology, the global smart meter market is classified as automatic meter reading and advanced metering infrastructure.
The regions covered in this Global Smart Meter market report are North America, Europe, Asia-Pacific and Rest of the World. On the basis of country level, the market is sub divided into U.S., Mexico, Canada, UK, France, Germany, Italy, China, Japan, India, South East Asia, GCC, Africa, etc.
The Global Smart Meter market report covers prominent players like Schneider Electric, Siemens AG., Xylem Inc., Badger Meter Inc., EDMI, Honeywell International Inc., Aclara Technologies LLC, Itron Inc., Apator Group, DIEHL Metering, Zenner, Kamstrup A/S, Elster Group, Landis+Gyr, ICSA India Limited, Circuator SA, and others.
Automatic Information Sharing, Easy Monitoring of Power Consumption and Other Advantages of Smart Meter are Driving the Global Smart Meter Market.
The smart meter market is growing due to the benefits it provides to customers and utilities such as estimating lower peak electricity demand, easy monitoring of power consumption on a daily basis and steps that can be taken accordingly. It benefits the energy suppliers also, with reduction in reaction time to solve power outages & hardware faults and remote reading conveniences.In addition, favorable government initiatives reinforcing the installation of smart meters are anticipated to be the one of the major factors driving the growth of the smart meter market.
Recently smart meter industry is witnessing a change from automatic meter reading (AMR) to advanced metering infrastructure (AMI) equipment. The smart meter is used to send various information which includes pricing information, pre-pay information, disconnect/reconnect instruction, alarm/load-shed instruction, programming of meter and upgrade of meter software and data & time.
In addition, promotion of green energy and effective transmission facilities, real time information sharing on usage are some of the other factors affecting the growth of the market. However, high installation cost and improper installation of smart meters is the major challenge for the market growth.
North America and Europe are dominating the global smart meter market on account of government initiatives, regulatory conditions and standardized policies. Smart meters are also being used in grid management in these countries which is also supplementing the demand of smart meters.
For example, The Ontario Energy Board in Ontario, Canada has defined the technology and developed the regulatory framework for its implementation. In between 2000 to 2005 world’s largest smart meter deployment was undertaken by Enel SpA, the dominant utility in Italy with more than 30 million customers, deploying smart meters to all its customers.
On 8th July 2016, the new “Digitization of the Energy Turnaround Act” initiated the roll out of smart meters and connected infrastructures in Germany. Asia Pacific is expected to be the fastest growing region in the smart meters market. As China is focusing on sustainable energy management with application of smart meters for smart grid implementation, this in turn will result in growth of the smart meter market in this region.