The global market for smart meters is expected to reach USD 22,177 million by 2020, according to a new study by Grand View Research, Inc. Smart meters provide two-way communication and benefits including time-based rates, faster power outage detection and resolution, and dynamic pricing among others. Initiatives by regulatory authorities to establish smart grids and ensure energy efficiency are expected to be a considerable growth driver over the forecast period.
Benefits of smart meter installations resonate across the value chain, which is also a key driving force for the industry. Customers can potentially cut down costs by lowering peak hour electricity demand; additionally, on-site visits and manual readings can be eliminated. Inconsistencies in deployment on a regional level coupled with lack of standardization in technology are expected to pose a barrier to market growth.
Further Key findings from the study suggest:
• Global smart meter shipments were estimated to be 59.6 million units in 2012, which is expected to reach 165.5 million units by 2020, growing at a CAGR of 9.8% from 2014 to 2020
• Residential applications accounted for 82.6% of overall shipments in 2012, and are expected to remain the largest segment in terms of volume over the next six years. This segment is also expected to be the fastest growing, at an estimated CAGR of 10.0% from 2014 to 2020. However, in terms of revenue, they accounted for significantly smaller market share in 2012. This can be primarily attributed to high technical requirements and selling prices of industrial and commercial smart meters.
• Asia Pacific is expected to be the largest regional market in terms of volume and revenue over the forecast period, and accounted for 49.2% of overall shipments in 2012. Europe is expected to be the fastest growing market in terms of revenue, at an estimated CAGR of 9.4% from 2014 to 2020. The market in Europe is expected to contribute significantly to global revenue generation, which can be attributed to high selling prices as compared to other regions.
• The global smart meters market consists of a large number of participants such as Itron, Landis+Gyr, Elster, and Sensus among others. Mergers and acquisitions and vertical integration have been the key growth strategies followed by industry players in order to gain market share and expand their product portfolio. High demand from emerging markets on account of energy efficiency programs and growing need for enabling smart homes is expected to positively impact profitability. Other companies operating in the market include Jiangsu Linyang, Holley Metering, Echelon, Aclara, etc.
For the purpose of this study, Grand View Research has segmented the global smart meters market on the basis of application and region:
• Smart Meters Application Outlook (Volume, Million Units and Revenue, USD Million; 2012 – 2020)
• Smart Meters Regional Outlook (Volume, Million Units and Revenue, USD Million; 2012 – 2020)
• North America
• Asia Pacific