Market Trends of Power Metering Industry
Smart Meters Technology is Expected to Dominate the Market during the Forecast Period
- A smart meter is an electronic device that records information about energy consumption more efficiently and effectively. Smart meters provide more detailed energy consumption information to reduce electricity bills and monitor consumption patterns, which are transmitted remotely to the DISCOM company to operate effectively with increasing electricity demand.
- The smart meter market is expected to grow significantly during the forecast period due to supportive government targets and schemes. Several countries are trying to replace old digital or analog meters with smart meters, which is expected to benefit the market’s growth.
- Developed countries like the United States are continuously installing smart meters. According to the Energy Information Administration, in 2022, the United States had about 118 million smart metering infrastructure installations, which accounted for about 72% of total electric meter installations.
- Moreover, according to the Smart Meter Statistics in Great Britain 2023, in 2023, the country had 34.8 million smart meters in homes and small businesses, accounting for 61% of all the meters installed in Britain. In 2023, a total of 3.5 million smart meters were installed. In the same year, other countries, especially in developing regions like Asia-Pacific, also increased the footprint of these meters.
- India has set a target to complete a nationwide smart meter rollout by 2025, aiming to modernize its electricity grid infrastructure and improve energy efficiency. In December 2023, the government sanctioned 222.3 million smart meters for deployment nationwide. By digitizing the electricity distribution system, smart meters can help utilities optimize their operations and enhance overall service delivery to consumers. As per the Smart Meter National Program, the country aims to install 250 million smart meters across the country by 2025.
- In January 2023, the Government of Germany launched a draft law to restart the digitalization of the energy transition and accelerate the installation of smart metering systems. The government set a target of 20% installations by the end of 2025, 50% by the end of 2028, and 95% by the end of 2030 for residential and small business consumers. These installations are expected to provide up to 100,000kWh (and optional for those <6,000kWh) and generators up to 25kW (optionally 1-7kW).
- Companies are actively seeking funding. This expansion requires significant funding, prompting companies to seek financial support from various sources. They are involved in developing smart metering solutions and are actively seeking funding opportunities to support R&D efforts, pilot projects, and large-scale deployments.
- For instance, in December 2023, EDF, also known as Electricité de France, a French government-owned utility services provider, announced its intention to raise USD 100 million to support its smart meter business expansion. Such financial support is expected to boost the presence of smart meter infrastructures.
- Therefore, the adoption of a smart meter in the industrial sector is helping major players in the manufacturing segment optimize energy consumption levels, as a smart meter can facilitate greater control by users over energy usage.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific to Witness the Highest Growth during the Forecast Period
- Asia-Pacific is expected to be the largest region for power meters due to urbanization in India and China, among other countries. Over the past few years, China has been one of the leaders in deploying power meters due to increasing urbanization and the growing service sector.
- India is investing in developing smart grid infrastructure, which relies on advanced metering technologies such as smart meters, communication networks, and data analytics. Smart grids enable bidirectional communication between utilities and consumers, facilitating real-time monitoring, demand response, and integration of renewable energy sources.
- For instance, in June 2023, the International Finance Corp. (IFC), the World Bank Group's private investment arm, planned to provide USD 500 million (about INR 41 billion) in long-term financing to smart meter makers in India.
- In July 2023, the Indian government set up the National Smart Metering Project, and it plans to install 25 crore meters by 2025 with an estimated investment of USD 30 billion.
- China has invested substantially in smart grid infrastructure, including advanced metering systems, communication networks, and grid management technologies. For instance, in January 2024, China's State Grid Corporation unveiled plans to invest around USD 70 billion in grid network construction for the year. This investment aims to advance ultra-high voltage (UHV) lines, enhance power supply reliability, and increase the utilization of renewable energy sources across China. The State Grid Corporation anticipates completing six UHV AC lines in 2024 and initiating several new UHV projects.
- The demand for smart meters in Japan is driven by several factors that offer real-time monitoring of electricity consumption, empowering consumers to optimize energy usage and reduce costs. The Japanese government's initiatives to improve energy efficiency and integrate clean energy sources have further promoted the adoption of smart meters.
- According to the Ministry of Economy, Trade and Industry, Japanese utilities must install smart meters in all households by March 2025 to improve energy efficiency. The setup of utilities had an initial deadline of 2032 but was forwarded to March 2025 in response to government calls. This will, in turn, create avenues for developing the power metering market.
- Singapore's sovereign wealth fund, GIC, and Genus Power Infrastructures have also agreed to set up a joint venture platform to fund smart metering projects and have committed to investing USD 2 billion in the initial pipeline. Genus plans to scale up the deployment of energy "smart meters" across India, supporting energy security and transition through grid optimization and efficiency.
- The growth rate has scaled up over recent years due to increased construction spending, a rise in industrial activities, and the enhancement of the region's grid infrastructure.
- Therefore, owing to the abovementioned factors, Asia-Pacific is expected to witness the highest growth in the power metering market during the forecast period.
Get Analysis on Important Geographic Markets
Download PDF
