Global Smart Metering Markets, 2018-2019 & Forecast to 2024

7/22/2019, 11:15 AM (Source: GlobeNewswire)

Dublin, July 22, 2019 (GLOBE NEWSWIRE) -- The "Smart Metering - World 2019 " report has been added to's offering.

Smart metering is widely regarded as the cornerstone for future smart grids and is currently being deployed all over the developed world, with a growing number of large-scale initiatives now also being launched in developing countries. The Asia-Pacific constitutes the largest market by far while North America ranks as the third-largest market after Europe.

The two highly dynamic market regions saw a wave of massive smart metering projects being launched or completed during the first half of the current decade. Several major utilities in these regions are thus now preparing for second wave deployments to take off, driven by new smart meter functionalities and smart energy use cases. Other emerging markets in South and Southeast Asia are on the other hand just beginning their smart metering journeys, following in the footsteps of the leading markets in East Asia.

Installed base of smart electricity meters in North America is forecast to grow at a compound annual growth rate of 6.0 percent from 100.7 million in 2018 to reach 142.8 million in 2024. Asia-Pacific - defined as China, Japan, South Korea, India, Australia, and New Zealand - is projected to see the installed base of smart meters increase from 618.8 million units in 2018 to 975.0 million units in 2024. At this pace, the four Asian markets China, Japan, South Korea, and India will alone surpass 1 billion installed smart electricity meters in 2025.

North America was the first region in the world to move beyond traditional energy metering through the widespread introduction of AMR that started in the 1980s. Today, intelligent grids are becoming an integral part of the development of smart cities, and smart meters' ability to improve the reliability and resilience of energy supply constitutes an important driver of growth in the region.

A majority of the large investor-owned utilities in North America are now either fully deployed or in the implementation or planning phases of large-scale projects, and a second wave of deployments is soon to begin for the early adopters. The penetration of smart meters is currently about 60 percent and is expected to increase to 81 percent in 2024, primarily driven by large investor-owned utility projects in the US as the relatively mature market in Canada is expected to see moderate growth.

Asia-Pacific constitutes the world's largest and fastest-growing meter market with an estimated installed base of over 1.3 billion electricity and gas metering devices. Annual demand for electricity meters in the region is in the range of 110-200 million units, with China accounting for around 70 percent of the volume. The Asia-Pacific is highly fragmented in terms of the progress of smart metering deployments, and the regional markets can be divided into three general groups.

Two countries - China and New Zealand - have more or less completed their first wave deployments of smart electricity meters. In China, second wave deployments are already underway and are soon to begin in New Zealand as well. South Korea and Japan are on the other hand in the midst of their nationwide deployments and are scheduled to be fully deployed by 2020 and 2024 respectively. The third group consists of markets finding themselves in the early phases of smart meter deployments - Australia and India.

Although Australia was early to deploy smart meters in the state of Victoria, the market has since stayed dormant and just recently resumed deployments after having switched to a market-driven approach. The Indian market has after a few years of pilot projects now begun large-scale deployments of smart metering, largely driven by ambitious governmental targets to reach nationwide coverage within the next few years. In total, the penetration of smart meters in the Asia-Pacific was 67 percent in 2018 and is expected to grow to 94 percent in 2024, primarily driven by the expected mass-deployments in India.

The markets in North America and Asia-Pacific are largely dominated by local or regional players and only a few companies such as Landis+Gyr and Itron have managed to establish a major presence in both regions. China and South Korea constitute two particularly isolated markets where a large number of domestic vendors serve the national utilities in their respective markets. Similarly, the countries have also seen largely independent technology trajectories in the smart meter communications space, with RF mesh historically preferred in North America, Japan, and Australia while national standard PLC technology dominates in China and South Korea, and cellular being the primary choice in New Zealand. Cellular is also expected to be the dominant communications technology in India's mass-deployments as well as in Australia's forthcoming market-driven deployments.

Smart Metering in Europe

Smart meters accounted for around 87 percent of the total electricity meter shipments in 2018. France overtook Spain as the largest market by volume with yearly shipments of more than 8 million units, as the nationwide rollout ramped up to volume. Italy and the UK were other major geographic markets with shipments of 3-4 million units each. Approximately 44 percent of the electricity customers in EU28+2 had a smart meter at the end of 2018 and the penetration rate is expected to reach 71 percent by 2023.

As a consequence, annual shipments of smart electricity meters will reach a peak of around 25 million units per year in the early 2020s. The majority of the new installations will take place in France and the UK, with a significant contribution also coming from countries like Austria and the Netherlands. In the meantime, adoption in Germany is held back by protracted standardization efforts and modest deployment targets set by the regulator. The outlook for Central Eastern Europe is mixed. Romania is seemingly moving towards a full-scale rollout and Poland is headed in the same direction even though there are delays in the regulatory process. Lithuania became the latest country to launch a nationwide rollout in 2018.

Italy and Sweden were the first European countries to embark on nationwide deployments of smart meters in the last decade. As the systems deployed in both countries reach their end-of-life, the DSOs are launching a second wave of rollouts. In Italy, Enel's distribution arm-e distribuzione is leading the way with plans to install 13 million second-generation meters by 2019 and another 28 million in the following decade. Sweden adopted a new regulatory framework for second-generation smart electricity meters in June 2018. The regulations will take effect in January 2025 and most DSOs have already launched the procurement of second-generation systems that fulfil the new requirements.

The rapid development of new technologies for industrial Internet of Things has a major impact on the smart metering market in Europe. DSOs planning for new smart grid projects and rollouts in the 2020s have a wide range of increasingly sophisticated wireless technologies to choose from as networking platforms. Wireless technologies have major advantages compared to PLC technologies which dominated the first wave of smart electricity deployments in Europe. Radio based networks can offer more bandwidth, shorter response times and improved security, combined with excellent coverage, even in difficult locations like cellars and rural areas.

Supported by massive R&D investments in the mobile communications industry, the latest of cellular technologies optimized for cost-sensitive and mission-critical IoT applications is gaining traction in the utilities space. ESO's choice of NB-IoT as the networking platform for its upcoming nationwide rollout in Lithuania was a significant milestone in the adoption of cellular IoT technology in the industry. Even if some of the functional requirements for the project are challenging from a technical perspective, any issues will eventually be resolved through incremental updates of the NB-IoT standard.

Next, to NB-IoT there is also room for the next generation of advanced mesh radio technologies in the European market. Updated radio frequency regulations are opening up new spectrum in the sub-GHz band in a growing number of countries. Norway and Sweden enabled the deployment of mesh radio technology for smart metering by setting aside spectrum in the 870-876 MHz band for smart grid applications. Similar regulatory changes are also considered in other European countries. Mesh radio technology can be combined with cellular technology to create highly cost-efficient networks optimised for performance
and security.

Adoption of smart metering is also growing fast in the European gas distribution market. The Publisher projects that annual shipments of smart gas meters in EU28+2 reached 9.1 million units in 2018. Demand will remain stable until 2020, before dropping as nationwide rollouts are completed. Italy was the largest market in 2018 with yearly shipments of 4.2 million units. France launched the mass rollout in 2017, which will ramp up to a rate of around 2.0 million units per year by 2019. The UK market accelerated in 2016 and should ramp up to more than 4.0 million units per year in the early 2020s. The Netherlands will see volumes of more than 1.0 million units per year for the rest of the decade. Ireland, Lithuania, and Luxembourg will contribute with smaller volumes, presumably followed by Austria and possibly some other
countries in the early 2020s.

Companies Mentioned

Smart Metering in North America and Asia-Pacific

  • Aclara Technologies
  • Aichi Tokei Denki
  • CyanConnode
  • Eaton
  • Fluentgrid
  • Fuji Electric
  • Fujitsu
  • Genus Power Infrastructures
  • GoldCard Smart Group
  • HPL Electric & Power
  • Harris Utilities
  • Hexing Electrical
  • Holley Technology
  • Honeywell
  • IPKeys Technologies
  • ITI Limited
  • Iljin Electric
  • Itron
  • Kaifa Technology
  • LSIS
  • Landis+Gyr
  • Larsen & Toubro
  • Linyang Energy
  • Meter vendors
  • Mitsubishi Electric
  • NURI Telecom
  • NamJun
  • Networked Energy Services
  • Nighthawk
  • OSIsoft
  • Omni System
  • Oracle
  • Osaki Electric & EDMI
  • SAP
  • Sanxing Electric
  • Secure Meters
  • Sensus (Xylem)
  • Siemens
  • Tantalus Systems
  • Toshiba Toko Meter Systems
  • Trilliant
  • Wasion
  • ZenMeter (Enzen)

Smart Metering in Europe

  • A1 Telekom Austria
  • ADD Grup
  • AEM
  • Aclara Technologies
  • Aidon
  • Apator
  • Arkessa
  • Arqiva
  • Atos
  • CGI
  • Capgemini
  • Circutor
  • Com4
  • Cuculus
  • CyanConnode
  • Devolo
  • Diehl Metering
  • EDMI Meters
  • EMH Metering
  • Elgama Elektronika
  • EnoroCX
  • Ferranti
  • Flonidan
  • Grlitz
  • Hager
  • Hexing Electrical
  • Honeywell
  • IBM
  • Iskraemeco
  • Itron
  • Janz
  • Kaifa Technology
  • Kamstrup
  • Kisters
  • LG CNS
  • Landis+Gyr
  • Linyang Energy
  • MeteRSit
  • NIK
  • NURI Telecom
  • Networked Energy Services
  • Oracle
  • Ormazabal
  • Pietro Fiorentini
  • Powel
  • Power Plus Communications
  • RIZ
  • SAP
  • Sagemcom
  • Sanxing Electric
  • Schneider Electric
  • Sensus
  • Siemens
  • Telecom Italia
  • Telecontrol STM
  • Telefnica
  • Toshiba
  • Trilliant
  • UtilityConnect
  • Vodafone
  • Wasion
  • Xemex
  • ZIV
  • ZPA Smart Energy

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Related Topics: Utilities, Smart Grid

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