The global smart meter market size was estimated to be worth around US$ 21.1 Billion in 2022. Owing to the rising adoption of smart meters in residential and commercial applications, the overall sales are projected to grow at a robust CAGR of 9.4% between 2022 and 2032, surpassing a valuation of over US$ 42.6 Billion by 2032.
Report Attribute
Details
Estimated Base Year Value (2021)
US$ 19.8 Billion
Expected Market Value (2022)
US$ 21.1 Billion
Anticipated Forecast Value (2032)
US$ 42.6 Billion
Projected Growth Rate (2022 to 2032)
9.4% CAGR
Smart meters are modern electronic devices that measure and record energy, water or gas consumption. They communicate the information to the customer for better clarity of consumption behavior, and electricity suppliers for system monitoring and customer billing. What makes smart meters unique is their ability to enable two-way communication between the meter and the central system.
Deployment of smart meters helps the utility companies to effectively manage energy usage as they (smart meters) can send recorded usage information through power line communication or radiofrequency.
As digitalization and automation begin to take over the world, demand for smart meters is on the rise. They are increasingly replacing traditional meters on account of their ability to provide real time insights of power consumption. Today, smart meters are being installed in majority of the structures whether government or private. They have become essential components of modern smart grid systems.
Smart meters enable homeowners to effectively monitor the power consumption remotely, thereby allowing them to control the power usage and reduce the overall energy bills. Growing focus on developing energy efficient buildings will continue to boost the sales of smart meters.
Exponential growth of building and construction industry across both developed and developing regions due to rapidly growing population is acting as a catalyst for the growth of smart meter market and the trend is likely to continue in the future.
Which are Some Prominent Factors Propelling Growth in Smart Meter Market?
Rising adoption of smart meters in residential and commercial sectors, increasing government initiatives, surge in energy consumption, and growing consumer awareness regarding the importance of home energy management systems (HEMS) are some of the major factors driving the global smart meter market.
Smart meter has gained immense traction on account of their attractive features including automatic meter reading, bill generation, greater transparency, and reduced meter reading costs. They have become essential part of smart grids and are gradually replacing conventional meters in end use verticals such as industries, residential buildings and commercial places.
Different types of smart meters such as smart electric meters, smart gas meters and smart water meters are being deployed to measure electricity consumption, gas flow and water usage. These smart meters also have the ability to detect any fault or leakage in the system. Increasing adoption of these smart meters is a major force behind the robust expansion of smart meter market.
Governments across the world are spending billions of dollars on the installation of smart grids and smart meters, with the aim of improving the efficiency of power networks. Moreover, various new smart city initiatives are being constantly launched worldwide. This will create lucrative growth avenues within the global smart meter market during the forecast period.
Rising energy concerns and increasing electricity bills have prompted people to adopt home energy management systems (HEMS) for managing their energy usage. As smart meters form the core of these systems, increasing deployment of these systems across homes and other building structures will eventually trigger the growth of smart meter market in the future.
Similarly, advancements in software and cloud computing, rising investments in digitalizing grid systems, growing need for addressing energy wastage, and increasing penetration of internet of things are anticipated to support the market growth in the future.
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What are the Challenges Faced by the Smart Meter Industry?
Despite rising penetration of smart meters worldwide, there are certain factors that are becoming impediments for the growth of smart meter market. Some of these factors are regulatory constraints, security concerns, complex nature of smart meters, and rising health concerns of wireless signals used in smart meters.
Many low-income households particularly across Asia and African regions are showing their resistance against the deployment of smart meters due to the high bills. This is also impacting the market growth.
Why is Asia-Pacific Emerging as an Opportunistic Market for Smart Meters?
With rising government initiatives for deploying smart meters across residential and commercial sectors, Asia Pacific is projected to emerge as the most lucrative market for smart meters over the forecast period.
Smart meters are gradually revolutionizing the way consumers use electricity, water ang gas. They enable homeowners and industrialists to manage their usage and save costs.
Leading Asia Pacific Countries such as China and India are continuously installing smart meters in residential and industrial buildings for achieving a cleaner and more efficient energy system. Various new projects are being launched by governments to encourage the adoption of smart meters. For instance, in 2021 Indian government launched the Revamped Distribution Sector Scheme (RDSS), under which 25 crore smart prepaid meters will be deployed till march 2025.
Increasing population and rapid urbanization across Asia Pacific is anticipated to further expand the smart meter market size over the forecast period. In addition to this, privatization of electricity across these regions is also favoring the adoption of smart meters.
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How is Western Europe Contributing to Growth of the Smart Meter Market?
According to Future Market Insights, Western Europe is expected to provide immense growth opportunities for the smart meter providers during the forecast period, owing to the rising government initiatives to replace traditional meters, rapid urbanization, growing consumer awareness and presence of leading market players.
European countries such as France and the U.K. are launching pilot project for the rollout of smart meters. According to the European Commission's study, by 2024, around 225 million smart meters for electricity and 51 million for gas will be rolled out in the EU by 2024. Furthermore, it is estimated that about 77% of European consumers will have smart electric meters and 44% will have smart gas meters by 2024.
Adoption of smart meters helps in the better management of electricity, water and gas consumption and increases transparency in billing.
Market Competition
Some of the key participants present in the global smart meter market include Aclara Technologies LLC., Eister Group GmbH, Echelon Corporation, General Electric, Iskraemeco d.d, Itron, Holley Metering Limited, Kamstrup A/S, Landis+Gyr, and Sensus among others.
The global smart meter market is highly competitive in nature with leading players continuously introducing new products that are more efficient and reliable. They are collaborating with governments to supply smart meters for specific regions.
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Scope Of Report
Report Attribute
Details
Growth Rate
CAGR of 9.4% from 2022 to 2032
Base Year for Estimation
2021
Historical Data
2015 to 2020
Forecast Period
2022 to 2032
Quantitative Units
Revenue in USD Billion, Volume in Kilotons and CAGR from 2022 to 2032
Report Coverage
Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Segments Covered
Product Type
Technology
Application
Region
Regions Covered
North America
Latin America
Western Europe
Eastern Europe
APEJ
Japan
Middle East and Africa
Key Countries Profiled
USA
Canada
Brazil
Argentina
Germany
UK
France
Spain
Italy
Nordics
BENELUX
Australia & New Zealand
China
India
ASEAN
GCC
South Africa
Key Companies Profiled
Aclara Technologies LLC.
Eister Group GmbH
Echelon Corporation
General Electric
Iskraemeco d.d
Itron
Holley Metering Limited
Kamstrup A/S
Landis+Gyr
Sensus
Customization
Available Upon Request
Key Segments Profiled in the Smart Meter Industry Survey
By Product Type:
Smart Electric Meter
Smart Gas Meter
Smart Water Meter
By Technology:
Radio Frequency (RF)
Power Liner Carrier (PLC)
By Application:
Residential Application
Commercial Application
Region:
North America
Latin America
Western Europe
Eastern Europe
APEJ
Japan
Middle East & Africa
Frequently Asked Questions
What is the anticipated growth of the smart meter market until 2032?
As per FMI, the global smart meter market is anticipated to grow a healthy CAGR of around 9.4% over the forecast period.
Which region is forecast to be the most lucrative for smart meter market growth?
Asia Pacific is likely to emerge as the most lucrative market for smart meters during the forecast period.
Which are some prominent smart meter manufacturers?
Aclara Technologies LLC., Eister Group GmbH, Echelon Corporation, General Electric, Iskraemeco d.d, Itron, Holley Metering Limited, Kamstrup A/S are some prominent smart meter manufacturers.
