Smart meters market to hit $20bn by 2022
April 27, 2017
The smart meters market is projected to reach nearly $20bn by 2022, at a CAGR of more than nine per cent from 2017 to 2022, according to a report from Reports & Reports.
Factors such as government policies and mandates in developed economies and accurate billing and improved customer service are driving market globally. Asia-Pacific is estimated to be the fastest growing region
The smart meters market is projected to reach $19.98bn by 2022, at a CAGR of 9.34% from 2017 to 2022.
Smart meters are used in the industrial, commercial and residential sector, measuring energy consumption of the consumers. Factors such as government policies and mandates in developed economies and accurate billing and improved customer service are driving the market globally. Residential customers are the fastest end-users of smart meters, followed by commercial and industrial customers. High installation costs for end-users would be a restraint for the smart meters market, says the report.
The residential segment is expected to constitute the fastest growing market from 2017 to 2022. The meters measure the electricity, water and gas consumption and communicate this to the central utility system. The installations of these devices in the residential sector helps in reducing CO2 emissions globally as the consumer's inclination towards peak time savings of energy would increase.
The increasing residential construction activities and government mandates such as the European Union 20-20-20 policy, which aims to convert four-fifths of the installed meter base to smart ones, have ensured the growth in the demand for smart meters.
With regards to technology, advanced metering infrastructure (AMI) is expected to constitute the fastest growing market from 2017 to 2022 because of its advanced technology. Moreover, AMI reduces labour cost and several power, water and gas utilities worldwide are replacing AMR with AMI infrastructure, further creating growth opportunities for the AMI market.
Asia-Pacific is estimated to be the fastest growing market for smart meters from 2017 to 2022. China is expected to grow at the fastest pace during the forecast period. Furthermore, the growing power sector in India is expected to spur the growth of the market, and represents a promising opportunity for major smart meters providers. Japan is also expected to witness a significant growth during the same period. On the other hand, Europe and the Middle East are trying to boost their energy efficiency programmes, T&D spending, and construction and infrastructural activities.
Interviews were conducted with various key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information, as well as to assess future market prospects.
High installation costs for end-users could be a restraint of the smart meters market, which might lead to decline in profit. Additionally, RF emissions from smart meters are within the US Federal Communications Commission (FCC) limits. However, some campaign groups – such as Stop Smart Meters UK – in both the UK and the USA believe smart meters to be an unnecessary health and security risks. Hence, these uncertainties with respect to smart meters would hinder the smart meters market growth.
Leading players in the smart meters market include Itron (USA), Kamstrup (Denmark), Holley Metering (China), Honeywell International (USA) and Toshiba (Japan). Contracts and agreements were the most commonly adopted strategy by the top players, followed by new product developments, expansions and investments, and mergers and acquisitions.