Smart Electricity Meters Market Size, Share & Trends Analysis Report By Phase (Single-Phase, Three-Phase), By Communication Technology Type (Power Line Communication (PLC), Radio Frequency (RF), Cellular), By End-User (Residential, Commercial, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Smart Electricity Meters Market Size

The global smart electricity meters market size was valued at USD 10.12 billion in 2023. It is estimated to reach USD 19.59 billion by 2032, growing at a CAGR of 8.6% during the forecast period (2024–2032). Factors like the rising need for energy efficiency, conservation, and energy security globally drive the global market.

A smart electricity meter is an electronic instrument that records data, including electric energy consumption, voltage levels, current, and power factor. A smart electricity meter automatically measures your residential, commercial, or industrial electricity consumption and transmits the data wirelessly to the energy provider. Smart electricity meters transmit data to electricity suppliers for system monitoring and customer billing and to consumers for a better understanding of use patterns

Smart electricity meters often report periodically at brief intervals throughout the day and record energy in close to real-time. Smart electricity meters allow two-way communication between the central system and the meter. In addition, certain smart electricity meters allow for studying energy usage patterns during peak and off-peak hours. This analysis can help estimate future usage, allowing one to lower their electricity bills accordingly without further action.

Growth Factors

Rising need for energy efficiency and conservation

The smart electricity meter is projected to lower the peak electricity demand as they enable end-users to monitor power consumption easily and take necessary measures to reduce overconsumption. This is further expected to lessen the stress on power generation plants, thereby allowing efficient resource usage and optimization. Additionally, attentiveness to environmental protection and associated proceedings and policies are estimated to control the surging levels of radiation emissions. Since energy production using renewable approaches varies with time, low power generation ultimately results in unstable energy productivity. However, using smart electricity meters assists in compensating for losses by controlling the energy consumption of various electronic devices.

Furthermore, the need for managed sustainable energy sources and retreating fossil fuel production will drive the global demand for smart electricity meters over the forecast period.

• For instance, in August 2021, Siemens Ltd and Tata Power Delhi Distribution Limited (TPDDL) announced a partnership regarding deploying Smart Metering technology for 200,000 smart meters in North Delhi. The EnergyIP Meter Data Management System, custom-built by Siemens, accurately gathers electricity meter data. The Advanced Metering Infrastructure (AMI) program initiated by Tata Power-DDL aims to transform the grid.

Increasing need for energy security globally

Global electricity systems face growing energy demands and aging transmission and distribution infrastructure. Energy security is a primary concern in all regions around the globe. Implementing renewable energy generation projects resolves the concern to a certain extent. Smart grids suffice the market's needs by providing a better and cleaner solution that is efficient, more sustainable, and more affordable. In addition, smart grids offer an innovative way to conserve energy. Smart grid projects have been started in places like Australia and the United Kingdom to replace the current electrical systems.

Additionally, the rising technological advancement in electricity grids is urging authorities to replace the existing grid system with smart metering systems owing to benefits such as control over consumption and cost, accurate billing, and innovative pricing models over conventional systems. Therefore, the rising concern regarding energy security and innovative solutions to the existing system are expected to drive the market.

Restraining Factors

Lack of standardization

Despite the widespread installation of smart electricity meters, security and monetary concerns among end-users regarding smart electricity meters are expected to act as a barrier to industry growth. End-users are reluctant to switch to this technology due to uncertainty and lack of know-how about smart electricity meters. Besides, the novelty stage of smart electricity meters seeks initial research and development costs from regulatory bodies and governments, which is an additional cost to be borne by administrative authorities of respective countries.

Inconsistent deployment regimens and lack of standardization in technology are the key hindrances resulting in low end-user acceptance. There are no standards for communication between smart electricity meters and the devices they control. Likewise, concerns associated with security and health arising from emissions from smart electricity meter result in a low degree of penetration in selected regions, thereby restraining the market expansion.

Market Opportunities

Rising government initiatives to install smart electricity meter

The need for smart electricity meters is expected to increase as regulatory initiatives to install them multiply. The smart metering mandatory advisory has been established for the European Union with rollout plans set by the Commission for Energy Regulation, among other legislative bodies. In addition, the government of developing countries is taking various initiatives to digitalize the electricity meter and to automate the transfer, processing, management, and utilization of metering data. According to Fitch Solutions, a U.S.-based credit rating agency, China is expected to dominate in smart grid technologies owing to strong government support and substantial investments in research and development.

• For instance, the State Grid Corporation of China (SGCC) announced the Universal Power Internet of Things, which plans to transform the country's power grid by integrating 5G and artificial intelligence (AI). As part of the strategy, around 57 construction projects and 25 smaller experimental initiatives would be launched. They are estimated to be completed in two phases by 2021 and 2024 in two individual phases, although some delays are expected in the completion of projects due to amid pandemic. Such factors create opportunities for market growth.

Regional Insights

Asia-pacific is a dominant region with 5.6% market share

Asia-Pacific is the most significant global smart electricity meters market shareholder and is anticipated to exhibit a CAGR of 5.6% during the forecast period. Rapid demographic shifts, a burgeoning urban population, and a brisk expansion of industrial activities create favorable growth conditions for the demand for smart electricity meters over the forecast period. China is anticipated to dominate the Asia-Pacific market for smart electrical meters. The State Grid Corporation of China initiated the implementation of smart electricity meters across several areas of the country, deploying a total of 476 million meters representing around half the current global installed base. In addition, India is projected to play a vital role in the smart electricity meter market. The latest Smart Meter National Programme (SMNP) seeks to replace 2.5 million conventional meters in India with smart meters in addition to the growing deployment of new smart meters. The recent launch of a centralized ASR financing and procurement process will fuel the consumption of smart electricity meters in the country over the coming years in Japan and South Korea.

Europe is the fastest growing region

Europe is estimated to exhibit a CAGR of 4.9% over the forecast period. In Europe, the smart electricity meter market witnesses a similar adoption rate as North America and is estimated to be nearly 30-40% of all utility customers. The adoption is analogous to North America; however, it is much more assorted, with significant dissimilarities among the countries regarding regulations, the differences in the local utility markets, and the inclination towards the consumption of smart electricity meters. In addition, the EU established the 2009 Third Energy Package plan over the past ten years.

According to a recent progress review, the EU mentioned that nearly 72% of European commercial buildings and households had smart electricity meters in 2020, which means the 80% market penetration target was not achieved in time.

In North America, the smart electricity meter market is relatively mature. Both the USA and Canada have been early adopters of smart electricity meters. Many tier-1 utility operators in the region have installed large-scale smart electricity meter solutions or are presently deploying them. In addition, substantial government investments in the USA to develop electricity infrastructure have made the region an early leader in the market. In recent years, many utilities have chosen turn-key solutions created based on registered RF Mesh Network technologies from prominent market participants such as Itron or Sensus. In the upcoming years, the region is anticipated to witness steady growth in implementing smart electricity meters driven by the large-scale rollouts planned by the remaining tier 1 utilities (particularly private-owned ones) and smaller deployments from many small cooperative and municipal utilities, thereby boosting the market expansion.

The South American market is led by Brazil, where several smart meter projects were introduced in the past decade, from small-scale to large-scale implementations.

• For instance, the government-run utility in Brazil is installing smart meters with a target of 30 million installations by 2025. Contribution from other countries is presently small. However, high growth is anticipated in countries like Peru, Uruguay, Colombia, Chile, and Costa Rica, where key utilities have declared plans for large-scale rollouts in the next decade.

In the Middle East and Africa, the smart electricity meter market is still at an initial stage. Most countries haven't started announcing smart meters or are still in the pilot stage. The market penetration rates in these regions are below 5% of total utility customers. The initial deployments are happening in countries like UAE, Qatar, and Saudi Arabia. Still, most are pilot projects, and only one Abu Dhabi utility has completed the rollout of smart electricity meters for its customers. In addition, several implemented projects in South Africa and Nigeria are also in the pilot phase. At the same time, Egypt recently announced the plan to deploy 30 million meters over the next ten years, positively influencing the market expansion.

Segmentation Analysis

By phase

The single-phase segment is responsible for the most significant market share and is estimated to exhibit a CAGR of 5.1% over the forecast period. Due to its applicability in high-capacity industrial facilities and utility-maintained power networks, the single-phase market is expected to generate sizable sales over the projection period. Appliances in the home typically use a single-phase energy meter. The wire and the load are connected directly to the single-phase energy meter. Urbanization is speeding up, and supportive regulatory measures to upgrade small-scale companies in developing nations will encourage market expansion for smart electric meters in that sector.

Additionally, traditional metering systems need readings to be checked in person. This, coupled with other difficulties, such as aggregate technical and commercial losses, low tariffs, and internal inefficiencies, has left utilities in a tough spot. Smart meters may be the much-needed answer to most of these problems. Smart meters require negligible direct human interaction and have other extensive benefits to enhance the entire power value chain.

The term "poly-phase meter" refers to three-phase energy meters. It can be used to monitor power usage over multiple phases at once. Three-phase energy meters have the same settings as their single-phase counterparts. The surging demand for reliability in power supply for business processes like hospitality, logistics, education, oil and gas, etc., will positively influence the implementation of three-phase smart electricity meter systems. Employing smart and efficient control and monitoring devices facilitates better billing accuracy in the service sector in applications such as private offices, data centers, and government buildings. In addition, smart metering infrastructure has gained traction in recent years, which is anticipated to persist over the forecast period. This is attributed mainly to the surging expenditure for infrastructure development and mounting investments in modernizing educational and healthcare services globally.

By communication technology

Power line communication (PLC) technology transmits data via the current power lines. It is renowned for being stable and dependable, particularly in cities with well-established electrical infrastructure. For smart metering applications, PLC has been widely used, and its dominance has been notable in regions with mature power grid systems.

Radio Frequency communication is used to transmit data wirelessly between smart meters and data collection locations. It can be further subdivided into Wi-Fi, Zigbee, and other radio frequency protocols. Radio frequency is anticipated to grow as it is flexible and simple to implement in a variety of settings, including both urban and rural ones.

By end-user

The residential segment owns the highest market share and is estimated to exhibit a CAGR of 5.1% during the forecast period. Consistent expansion in residential establishments, on the back of surging populations and per capita incomes, is a key influencing factor for the consumption of smart electric meters. The smart metering trend is gaining prominence in many countries, such as Italy, Australia, Sweden, the US, Canada, and the UK. It empowers the utilities to provide precise bills without the manual reading of the meter. It also aids in managing distribution and supply remotely and enables customers to reduce their consumption by providing exact real-time data on their consumption. Further, smart energy meters provide customers with additional features, including recognizing the power usage for individual appliances, real-time cost tracking, generating personalized recommendations for energy efficiency, etc. Considering these factors, the residential sector is anticipated to have a dominant share in the smart electricity meters market due to the focus of power players on investments to deploy smart metering solutions coupled with substantial consumer inclination towards smart electric meters.

Significant prospects in the commercial sector are anticipated due to the development of smart grid adoption proposals, administrative rules, and policy standardization by government authorities in industrialized nations from Europe and North America. The commercial sector is predicted to become the smart electricity meter market's most lucrative sector in the upcoming years. Smart electricity meters empower customers to make informed adoptions on how much energy they use. In order to offer precise, real-time data on the quantity of electricity consumed by the business, the energy provider, and the consumer, utilities construct shared communication systems. By sourcing a nationwide agreement, many clients, especially those with several locations, can experience considerable service improvements and cost savings. Moreover, the rapidly increasing investments in smart city projects and the development of smart grid technologies in emerging countries across the globe are expected to create positive growth prospects for smart electricity meters in the commercial sector.

Recent Developments

• March 2023- JioThings Smart Utility Platform announced a collaboration with Energy Efficiency Services Limited (EESL) to install 1 million smart prepaid meters in Bihar.
• May 2023- Eltel, a Nordic infrastructure and communications service provider, inked a EUR 51 million (USD 54.7 million) contract with Swedish DSO Vattenfall Eldistribution AB through its smart grids business to install 664,000 new-generation smart electricity meters nationwide.