Electricity meters are devices used for measuring electric energy consumption and are used for industrial, residential, and commercial purposes. Traditional electricity meters used electromechanical induction; however, electronic, smart, or digital meters have been gaining popularity over the last few years. Smart meters are an alternative to legacy energy meters and provide two-way communication. They communicate directly with the electricity supplier, thus eliminating the intervention of manual readings. Smart meters have transitioned from AMR (Automatic Meter Reading) to AMI (Advanced Metering Infrastructure) capabilities.
The global electricity meters market is estimated to be valued at US$ 25,001.2 million in 2021 and is expected to exhibit a CAGR of 18.7 % over the forecast period (2021-2028).
In March 2021, Itron, Inc., a U.S. based technology company launched eHZ-B residential smart meter for utilities and cities in Germany. The eHZ-B smart meter is built with advanced functionality to support Germany’s energy transition to a low carbon, reliable and affordable energy supply, and equip utilities and cities to safely migrate to a smart and connected distribution network.
In April 2021, Tata Power Delhi Distribution Limited (Tata Power-DDL), a joint venture between Tata Power and the Government of NCT of Delhi has launched Narrow Band-Internet of Things (NB-IoT) for smart meters installed in its service area.
Figure 1. Global Electricity Meter Market Value (US$ Mn), by Region, 2020
APAC held dominant position in the global electricity meter market in 2020, accounting for 49.8% share in terms of Value, followed by EMEA, North America, respectively.
Global Electricity Meters Market: Drivers
Rising proliferation of smart meter is expected to drive growth of the global electricity meters market during the forecast period
Smart meters have witnessed high penetration worldwide in the recent past due to rising regulatory initiatives to install smart meters. Currently, smart meters are under deployment, which depends upon the location under consideration. Furthermore, in the European Union, installation of smart meters has become mandatory with rollout plans set by the Commission for Energy Regulation among other legislative bodies. Smart meters offer numerous advantages including fraud detection, secure supply, prepayment functionality, energy saving, energy offers based on tariffs, self-diagnostics, and awareness of peak consumption. Hence, these factors are expected to drive growth of the global electricity meters market during the forecast period.
Rapid industrialization worldwide is expected to propel the global electricity meters market growth over the forecast period
Electricity meters are used on a vast scale for commercial and industrial purposes. There is a constant demand for meters with high flexibility and high level of robustness, owing to high power requirements. Industries witnessed the use of smart meters before they penetrated into the residential sector due to features such as remote programmability which are essential for evaluating energy consumption. Moreover, high growth of urbanization with rising demand for consumer electronics is expected to boost the global electricity meters market growth over the forecast period.
Global Electricity Meters Market: Opportunities
Rising initiatives for smart grid projects can provide business opportunities
Many countries have started investing rigorously in smart grid projects with the replacement of conventional electrical networks. Smart grids act as an automated monitoring and controlling system and is an enhancement over traditional electrical network. Dynamic pricing and consumption data are the core functionalities provided by smart meters, which are envisioned on a larger scale in the form of the grid. A number of pilots have been undertaken as a prelude to a full-scale grid establishment, with Europe and North America witnessing highly favorable regulatory conditions.
Growing emphasis on renewable energy sources can provide lucrative growth opportunities
Since smart grid helps to save energy, many countries have started investing in smart grids. Many renewable energy projects are being adopted, in order to enhance efficiency and implement effective transmission of electricity. Major companies in the market can capitalize on these opportunities by providing novel solutions and gain a competitive edge in the market.
|Base Year:||2020||Market Size in 2021:||US$ 25,001.2 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||18.7%||2028 Value Projection:||US$ 82,818.6 Mn|
Siemens AG, Holley Metering Ltd., Schneider Electric SA, Itron, General Electric, Landis+Gyr, Delixi Group Co. Ltd., and Jiangsu Linyang Electronics Co., Ltd.
|Restraints & Challenges:||
Inorganic strategies among market players can provide major business opportunities
Key companies in the market are focused on inorganic strategies, in order to gain a competitive edge in the market. For instance, in March 2012, Holley Metering Ltd. entered into a joint venture with Echelon Corporation, with an aim to develop smart meter products for China. In December 2012, Itron received a contract worth USD 150 million to provide smart meters to utilities in Johannesburg. Moreover, in May 2013, Toshiba was selected as the preferred supplier by the Tokyo Electric Power Company (TEPCO) for smart meter communication systems.
Research and development activities is another major trend
Major market players are focused on research and development activities, in order to innovate novel products and gain a competitive edge in the market. For instance, in May 2013, Itron launched an upgraded smart meter version in the Brazilian market.
Figure 2. Global Electricity Meters Market Share, By Application, 2020
Key Takeaways of the Graph:
Global Electricity Meters Market: Restraints
Challenges associated with energy theft are expected to restrain growth of the global electricity meters market during the forecast period
Energy theft remains a major challenge in the industry. This is typically prevalent in high population density and low-income level areas. According to the National Agency for Electric Energy, electricity worth around US$ 4 billion is stolen each year. Tampering varies from brute force methods such as jamming the mechanism to sophisticated techniques such as saturating the in-built magnetic components. This includes bypassing the meter, slowing down the meter, and inverting the meter. Hence, these factors are expected to restrain growth of the global electricity meters market over the forecast period.
Various concerns among end users are expected to hinder the global electricity meters market growth over the forecast period
Although electricity meters are universal, there still remains security and monetary concerns among consumers regarding these devices. It is expected that subsequent reductions in payment are expected to compensate for initial investment. However, end users are still reluctant to switch to this technology without being aware of the advantages. Furthermore, the cost of pilot projects and deployments has to be created by regulatory bodies and utilities, owing to the nascent stage of the smart meter market. Utilities, energy providers, and regulatory bodies need to alleviate user concerns in order to experience successful smart meter rollouts. Therefore, these factors are expected to restrain hinder of the global electricity meters market during the forecast period.
Global Electricity Meters Market: Competitive Landscape
Key players operating in the global electricity meters market are Siemens AG, Holley Metering Ltd., Schneider Electric SA, Itron, General Electric, Landis+Gyr, Delixi Group Co. Ltd., and Jiangsu Linyang Electronics Co., Ltd.
Global Electricity Meters Market: Key Developments
Major companies in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in January 2020, Siemens AG acquired C&S Electric, an India-based manufacturer of electric and electronic equipment.
Key market players are involved in mergers and acquisitions, in order to enhance the market presence. For instance, in May 2018, Schneider Electric SA, an energy management company, acquired L&T’s electrical and automation business.
An electricity meter, power meter, electrical meter, kilowatt meter, direct current meter or solar panel meter is a small device which measures the amount of electrical energy used in a home, an industry, or an electrically operated appliance. These types of devices are commonly referred to as electricity meters, direct power meters, and solar panels meters. Electricity and gas prices are always important factors to consider when purchasing any kind of appliances and systems.
One of the benefits offered by smart metering systems is the ability to obtain accurate and up-to-date pricing information. Through smart metering, customers can receive invoices via email that indicate their monthly consumption in kilowatts. Customers can also monitor and track their usage using the system's online portal. This allows for easy billing correction, maintenance and account reconciliation. Customers can also easily determine if they are paying for services in accordance with their billing period.
Increasing deployment of smart meters is expected to propel growth of the global electricity meters market over the forecast period. For instance, in September 2020, ADD GRUP, together with its partners Intrarom S.A. and Adrem SRL finalized the contract for delivery and deployment of 10 000 ADDAX smart meters to Distributie Energie Oltenia S.A. (DEO), Romania.
Major players operating in the global electricity meters market are focused on enhancing the security capabilities of their solutions. For instance, in June 2021, Networked Energy Solutions selected the Cryptsoft KMIP Key Management SDK to enhance the security capabilities of their advanced metering infrastructure solutions.
Major players in the market are also focused on adopting partnership strategies to enhance their market share. For instance, in June 2020, Itron, Inc. successfully closed the previously announced agreement to partner with Accell as Itron’s regional partner and lead distributor for the Latin America region, giving access to Itron’s full suite of solutions, including networked solutions, analytics, smart cities and outcomes offerings.
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