Electricity meters market

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).

Recent Developments:

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.

Statistics:

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.

Market Trends:

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:

• The commercial held dominant position in the market and accounted for 39.7% share in the global electricity meters market in 2020. The segment is expected to reach US$ 36,300.2million in 2028. The increasing power consumption drives the smart meter growth rate in the sector among commercial consumers due to technological and economic advancements and the growing government support for mandatory smart meter rollout projects in the sector.

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.