The smart electricity meter market is evaluated at US$3.612 billion for the year 2019 and is projected to grow at a CAGR of 28.12% to reach a market size of US$20.468 billion by the year 2026. The smart electricity meter is a device that is used to accurately monitor electrical usage and send usage information to manage energy usage effectively. Factors such as favorable government policies, growing investments in smart grid projects, and rising up-gradation of infrastructure are anticipated to bolster the growth of the smart electricity market.
The market is expected to propel due to the benefits offered by it such as cost-cutting in meter reading, efficiency, and others. Furthermore, increasing investments in smart homes and a corresponding rise in demand for smart electricity meters to reduce electricity wastage by automatically turning off the electricity will continue to boost the market growth during the forecast period. However, factors such as high installation cost and lack of awareness may hamper the market growth.
The recent outbreak of the novel coronavirus disease affected the Smart Electricity Meter industry negatively. The lockdown was implemented in most parts of the world and there were trade restrictions and strict Covid-19 guidelines due to which the supply chain was disrupted. There was a halt in the production of smart electricity meters during that period and the demand was also reduced. But after the lifting of lockdown and the ease of trade and production, the industry has been recovering and is anticipated to come to its normal flow from the years 2021 onwards.
The Smart Electricity Meter market has been classified on the basis of phase, end-user, and geography. By Phase, the market has been classified on the basis of Single Phases and Three Phase. On the basis of End User, the segmentation has been done into Residential, Commercial, and Industrial. Geographically, the market for Smart Electricity Meter has been distributed into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
Government support for installation of smart electricity meters
One of the key factors supplementing the Smart Electricity Meter market growth includes the initiatives taken by the governments of various countries around the world for the installation of smart electricity meters in their countries. In February 2020, the Government of India announced that they have successfully installed 1 million smart meters across the country under Smart Meter National Programme (SMNP). The Finance Minister of India announced in the budget 2020 that the government aims to replace all the conventional electricity meters with smart electricity meters in a span of three years. Under the EU energy market legislation in the Third Energy Package, the installation of smart meters is to be ascertained by member states. As a result, more than 99 million smart electricity meters were installed in the European Union by January 2018 as per the European Commission. In January 2018, the Colombian Ministry of Mines and Energy set up a target to cover 95% of consumer units in urban centers and 50% of rural units with smart meters by 2030. Federal subsidies will be provided by the government for the installation of smart meters.
According to official statistics released by the Department for Business, Energy and Industrial Strategy (BEIS), UK government in May 2020, the Smart Metering Implementation Programme launched by the government has led to a total of 26.6 million electricity meters operated by large energy suppliers in domestic properties across Great Britain as of 31 March 2020. In December 2020, the Australian Energy Market Commission planned to speed up the installation of smart electricity meters in the country and hence launched an independent review into the rules governing electricity meters to discover new possibilities for boosting up the deployment. These government initiatives among many others undertaken by the governments of countries across the globe are bolstering the market growth and are anticipated to propel the growth of the smart electricity market in the coming years.
Cost-saving, energy efficiency, and other advantages over conventional electricity meters
The smart electricity meters provide more accurate and extensive information about energy consumption. The smart electricity meters allow the customers to reduce their costs by varying the amount of energy consumption during the peak and off-peak hours, which may lead to reduce the costs if less electricity is consumed during peak hours and more is consumed during off-peak hours when the electricity rates are cheaper. Also, with the availability of more detailed information regarding electricity consumption, electricity can be used efficiently. Moreover, smart electricity meters help the providers to better manage the electricity. Owing to the increased awareness of these advantages over traditional electricity meters, the smart electricity meter market is anticipated to surge during the forecast period.
North America to hold a prominent share in the market
Geographically, the North American region is anticipated to hold a significant market share in the Smart Electricity Meter market owing to the early start for the adoption of smart meters in countries like the United States and Canada. The Asia Pacific region is anticipated to witness substantial growth due to the rise of investments in smart grid technologies and supportive government policies. China is leading the region in smart electricity meter installations in the region.
Prominent/major key market players in the Smart Electricity Meter market include Honeywell International Inc. (Elster Group GmbH), Holley Technology Ltd, and Schneider Electric, Inc., among others. The players in the Smart Electricity Meter market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Smart Electricity Meter market.
|Market size value in 2019||US$3.612 billion|
|Market size value in 2026||US$20.468 billion|
|Growth Rate||CAGR of 28.12% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Phase, End-User, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Honeywell International Inc. (Elster Group GmbH), Holley Technology Ltd, Schneider Electric, Inc., Itron, ABB, General Electric, Landis+gyr Group AG, Siemens, Iskraemeco, Wasion Group Holdings|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the smart electricity meter market size by 2026?
A1. The smart electricity meter market is projected to reach a market size of US$20.468 billion by the year 2026.
Q2. What is the size of the smart electricity meter market?
A2. Smart Electricity Meter Market was valued at US$3.612 billion in 2019.
Q3. What are the growth prospects for the smart electricity meter market?
A3. The global smart electricity meter market is projected to grow at a CAGR of 28.12% over the forecast period.
Q4. Which region holds the largest market share in the smart electricity meter market?
A4. Geographically, the North American region is anticipated to hold a significant share in the smart electricity meter market owing to the early start for the adoption of smart meters in countries like the United States and Canada.
Q5. What factors are anticipated to drive the smart electricity meter market growth?
A5. Factors such as favorable government policies, growing investments in smart grid projects, and rising up-gradation of infrastructure are anticipated to bolster the growth of the smart electricity market.