Rapid urbanization and smart city projects are driving the smart meter market globally. Further, the growth of communication development, network infrastructure, government initiatives and investments in digital electricity infrastructure is bolstering the market growth. Innovations in software and cloud computing has also led to massive growth in the demand for smart devices making it indispensable to invest in smart meter systems. Large scale installations of the smart meters by utility providers are focused on improving the distribution networks. Various new communication technologies like 3G, 4G, 5G, along with information transmission through power line communication (PLC), radiofrequency electromagnetic radiation (RF), and cellular communication is helping the utility providers to effectively manage the energy usage. Smart meters reduce the manual meter reading costs, prevent disconnection, removes estimated billings and re-connection costs to corporations and end users.
According to the research report “Global Smart Meters Market Outlook, 2027” by Bonafide Research, the smart electric meter market is expected to grow further at a CAGR of 8.14% over the forecast period ending 2027. The smart electric meter installations world-wide has crossed over 50% in the year 2021. This is due to government policies framed for quick adoption to electric meters to enable energy efficiency, real time data management and avoid overuse of energy resources. However, smart electric meters have successfully captured nearly 80% market share in Saudi Arabia and Brazil; followed by Argentina, South Africa, Japan and Columbia. The AMI technology meters are gaining traction in the market due to technological innovations and the real time readings to users and quick transmission of data to utility providers on either hourly basis or weekly basis or monthly basis.
Smart water meter market is expected to grow rapidly during the forecast period after the in hand experiences of end users from smart electric meters use. Burgeoning investments by utility providers backed by government policies is causing the smart water meter adoption among the users. However, the initial costs are heavy to be borne by the utility providers to lay out the network of distribution pipelines and the network technology synchronization for real time usage bills to end users. Further, the water leaks can be identified quickly and sorted out to a less of discomfort to users with long hours of cut offs due to maintenance work.
Residential users have majority of smart electric meters installed in their homes to save on electric bills. In some countries pre-paid smart meters are also available, so that the user does not overuse the electricity and manage in limited resources. The smart meter has enabled the users to shift their work from peak load bearing times to other time of the day to reduce their overall tariffs. Smart electric meters have proved to be a boon for the end users as well as utility providers as outrages can be quickly fixed and not much time wasted as earlier in traditional meters.
Gas smart meters are still facing the initial installations as they have to be carefully installed without any pipe line leaks which could result into a blow out and causing injuries. The smart gas meter adoption rate remains low at 11% globally, but with the smart city programmes and government backup the utility providers are turning to reliable, accurate and more convenient measurement solutions to gain a more comprehensive understanding about distribution systems and integrity.
Asia Pacific region leads the smart meter market exclusively due to China who is the global leader in smart meter market. China has over 20% share globally in the smart meter market out of which residential users account for maximum smart electric meters installed till date. North America holds one fourth of the smart meter market globally and is further expected to outgrow with the increasing trend towards adoption of smart water meters in the future years. European smart meter market on the other hand is more developed in countries like Germany and Russia while other countries are rapidly adapting to smart meters. Middle East & South Africa is expected to display sky high numbers in terms of smart meter installations in forecast period with the increasing smart cities in this region.
