A new market study published by Global Industry Analysts has released its report titled ‘Smart Metres – Global Market Trajectory & Analytics’. The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
A smart metre is an electronic device capable of monitoring usage of utility services, and share the data with utility providers. Using two way communication, smart metre makes records data at the usage point and transmits the information gathered back to the utility companies.
The advanced metering infrastructure holds several merits over conventional metering and supports bi-directional communication. Smart metres are increasingly replacing traditional electric metres, mainly in developed countries, and enabling power system to undergo notable transformation in terms of efficiency and reliability.
These devices provide utilities with the opportunity to exploit data to ensure efficient use of energy, reduce wastage, and minimise human intervention. Smart metering devices in homes deliver accurate readings and eliminate incorrect billing or irregularities.
By monitoring gas, water or electricity consumption, these devices allow users to reduce consumption and save on utility bills.
Amid the COVID-19 crisis, the global market for smart metres estimated at $19.26bn in the year 2020, is projected to reach a revised size of $27.8bn by 2026, growing at a CAGR of 6.5% over the analysis period. Water metres, one of the segments analysed in the report, is projected to record a 7.7% CAGR and reach $4.9bn by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the gas metres segment is readjusted to a revised 5.7% CAGR for the next seven year period.
The US market is rstimated at $3.3bn in 2021, while China is forecast to reach $10.1bn by 2026
Smart metres market in the US is estimated at $3.3bn in the year 2021. China is forecast to reach a projected market size of $10.1bn by the year 2026 trailing a CAGR of 7.6% over the analysis period. Among the other noteworthy geographic markets are Canada and Japan, each forecast to grow at 5.1% and 4.3% respectively over the analysis period.
The market is witnessing growth driven by increasing focus on energy efficiency, favorable government policies and critical role of smart meters in enabling reliable power grids. The global smart metres market is bolstered by government mandates and initiatives to promote installation of these devices in commercial and residential settings.
These initiatives are also intended to raise user awareness about efficient and smart usage of electricity through these metres. Environment and energy policies and legislations across countries like the US, Japan and South Korea focus on 100% penetration of these metres.
Smart metres also facilitate continuous migration towards renewable energy that often results in supply issues. These devices allow forecast of energy usage during peak hours for supply-related adjustments.
The market growth is augmented by increasing focus on smart cities and smart grids, requiring utilities to push distribution efficiency. Global deployment of smart metres is favoured by increasing digitalisation to transform the power sector.
Companies are leveraging information and communication technology and Internet of Things (IoT) to connect variable sources of energy like wind and solar PV to power grid. These approaches result in sustainable and robust grids, and facilitate retrofitting of the existing infrastructure with new equipment for improving performance, reducing redundancies and pushing bottom lines. Energy utilities exploiting these emerging technologies are deploying smart metres to ensure efficient supply and tap monetisation opportunities.
These companies use data and analytical platforms along with AI (Artificial Intelligence) and machine learning to enhance energy efficiency, timely remediate issues, push reliability and improve consumer experience. Smart metres are also finding adoption to manage generation, distribution and transmission of electricity.
In addition, mounting pressure conserve natural resources along with government regulations pertaining to the use of electricity, water and gas are anticipated to present a perfect ground for overall expansion of the global market. Smart metres are expected to gain from environment concerns and ongoing efforts to curb carbon emission and reduce energy waste.
By communication type, cellular segment to reach $13.1Bn by 2026
Global market for Cellular (Communication Type) segment is estimated at $8.9bn in 2020, and is projected to reach $13.1bn by 2026 reflecting a compounded annual growth rate of 7.0% over the analysis period.
China constitutes the largest regional market for Cellular segment, accounting for 30.9% of the global sales in 2020. China is poised to register the fastest compounded annual growth rate of 8.4% over the analysis period, to reach $4.8bn by the close of the analysis period.