Smart Gas Market

Market Overview

The global smart gas market was valued at USD 21.75 billion in 2022. It is estimated to reach USD 71.29 billion by 2031, growing at a CAGR of 14.1% during the forecast period (2023–2031). The increase in the need to enhance urban safety and the surge in urbanization are the primary drivers that will fuel the market expansion in the following years.

LPG gas, known as "smart gas," is used in homes for cooking and other purposes. It is used for several things, such as automobiles and various industrial and industrial uses, in addition to being used in homes. The growing demand for smart gas is the primary factor driving the increased urbanization. A downstream gas distribution company using technology is called Smart Gas. Our main areas of interest include the sales of LPG cylinders, LPG wholesale, retail, and oil and gas sourcing. We approach gas retailing via our mobile app by integrating our merchant locations and Independent Gas Retailers nationwide to sell their products on our platform. Our business strategy promotes using gas in our neighborhoods, improves client transactional effectiveness, and boosts vendor sales. We can provide our corporate clients with the most affordable and environmentally responsible services because of our connections with oil and gas equipment manufacturers, vendors, and OEMs. We are dedicated to offering our customers outstanding service and products securely and responsibly.

The moniker "Smart Gas" was carefully chosen because our business model uses cutting-edge technology to provide our products to customers easily and effectively. The distinctiveness of our business strategy places Smart Gas as Nigeria's top technology-based gas distribution firm.

Market Dynamics

Global Smart Gas Market Drivers:

Increase in Need to Enhance Urban Safety

Unwanted pressure in the gas lines can cause the gas pipeline to become compromised, resulting in leaks, malfunctions, and other potential safety risks. In addition, there has been an increase in the incidents in which gas has been stolen, raising the risk of a catastrophe. Therefore, the above elements contribute to developing a demand for smart gas solutions in gas utilities. In addition, smart gas offers real-time data monitoring from pipelines, including temperature, flow, and pressure.

In addition, smart gas offers crucial references for management scheduling and production, adding a layer of safety to the overall process. In addition, customers can establish organized channels with the help of smart gas solutions, which can then be linked with various industries to ensure that service operations are maintained promptly.

Surge in Urbanization

Due to an increase in the number of people moving from less developed areas to developed cities in quest of better employment and income prospects, the rate at which urbanization is expanding is increasing at a rate that has never been seen before. In addition, as the rate of urbanization continues to rise, cities are confronted with additional difficulties relating to the quality of the environment, travel and network congestion, and housing. Using smart gas solutions can benefit cities since they can improve gas distribution and consumer insights, which can, in the end, result in less wasted natural gas.

Additionally, because of the development in urbanization, people are becoming more sensible about technology and choosing solutions that help them save expenses. This is also one of the primary causes anticipated to be one of the primary drivers that will fuel the market expansion in the following years.

Global Smart Gas Market Restraint:

Lack Of Awareness of Smart Gas Systems Among People

Monitoring real-time data and calculating the quantity of gas utilized are the two most frequent uses of the new "smart gas." Additionally, smart gas offers a secure radio frequency communication network, which enables both the gas user and the gas supplier to receive information about the user's gas usage that is automatically delivered. Despite these fantastic benefits, many people are still unaware of the smart gas solution, which is one of the reasons stopping the industry from expanding to its full potential.

People in developing nations like India, Bangladesh, and others continue to use conventional gas systems, further restraining the market expansion for smart gas because people in these nations lack the information required to switch to smart gas. Furthermore, conventional gas systems are more harmful to the environment than smart gas, so smart gas hasn't yet gained widespread use.

Global Smart Gas Market Opportunities:

Increase In Investment and Initiatives for Smart Energy Management by Government

The implementation of smart gas and smart grid technologies is being driven globally by initiatives that aim to mitigate the effects of climate change to speed up the development of renewable energy sources. Another factor projected to fuel the market expansion in the coming years is that many administrations and governments have begun investing in smart grid and natural gas development technologies. This is one of the factors that is driving the market growth currently.

In addition, the execution of these policies is a component of an overarching effort made by governmental administrations to promote the long-term development of their economies and prevent the waste of natural resources. As a direct consequence, it is anticipated that factors such as these will produce expansion opportunities in the years to come. In addition, several governments have already introduced systems for smart meters. On the other hand, several nations are researching the technology and mechanism underpinning these meters.

Regional Analysis

North America Dominates the Global Market

Based on region, the global smart gas market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global smart gas market shareholder and is estimated to exhibit a CAGR of 12.1% over the forecast period. North America's worldwide smart gas market analysis includes the U.S. and Canada. Many nations have recently invested in the smart grid and other related technologies. Significant market participants are one of the primary drivers of expanding the smart gas industry in this area. The market expansion in this region is also fuelled by rising investment and spending on smart metering and smart gas systems.

Additionally, it is projected that the continued development of smart energy and gas systems will fuel the market expansion in this region. For instance, the Office of Electricity reports that the North American Energy Resilience Model (NAERM) is being revised. The model is anticipated to improve existing capabilities and assess the effectiveness of electric power systems and other relevant dependencies of binding energy and natural gas infrastructures.

Europe is anticipated to exhibit a CAGR of 18.6% over the forecast period. In Europe, the global market for smart gas is segmented into the countries that make up Europe: the United Kingdom, Germany, France, Spain, Italy, and the rest of Europe. The increased interest among business owners and investors in smart grid technology and other associated systems, such as smart gas and smart meters, is a major factor driving the expansion of the market in this particular sector.

In addition, higher investments and initiatives by the European Commission and the EU's Energy Efficiency Directive into natural gas and sustainable energy technologies are projected to fuel the market expansion in Europe. This is expected to fuel the growth of the market in Europe. This expansion will take place across Europe and its surrounding areas.

In the Asia-Pacific region, countries like China, India, Japan, and others are fuelling the expansion of the market in this region, which is experiencing increases in both their demand for and consumption of gas and electricity. In addition, the aging transmission and distribution networks in this region are also projected to boost the expansion of the market here. In addition, expanding the requirement to construct sustainable and energy-efficient sources to reduce the consumption of natural gas and electricity will give potential prospects for the market. In addition, a rise in the number of smart city projects being undertaken in developing nations such as India is also contributing to expanding the market in this region.

Latin America, the Middle East, and Africa are all included in the analysis of the global smart gas market in LAMEA. Brazil and Mexico are among the important nations that have dominated the Latin American market for smart meters. Utilities in Brazil, including Celpa, Light, Electrograms, AES Eliopoulos, and others, have already tested smart metering in pilot-scale programs and deployments of millions of meters. Development measures: LAMEA is anticipated to see significant potential for smart gas growth in the ensuing years. It is also anticipated that Chile, Colombia, and Peru will generate a sizable amount of cash from smart meters. Additionally, the increased cooperation among industry participants in this area is giving the market prospects for growth.

Segmental Analysis

The global smart gas market is bifurcated into components, device types, and end-users.

The global smart gas market is bifurcated into solutions and services based on the component. 

The solutions segment dominates the global market and is projected to exhibit a CAGR of 14.6% over the forecast period. Many different types of smart solutions are included in smart gas solutions. Some examples of these smart solutions are Enterprise Asset Management (EAM), Geographical Information System (GIS), Supervisory Control and Data Acquisition (SCADA), and Meter Data Management (MDM). In the smart gas market for solutions, the cumulative share of North America and Asia Pacific segments was 44.8%, predicted to reach 56.9% over the forecasted period. The solution section of smart gas provides many benefits, including the administration of meter data, enterprise assets, network and outages, remote monitoring, and more solutions. Therefore, these solutions ensure safety and make it possible to back up data relating to gas in real-time, such as the temperature and pressure of the device.

The global smart gas market is bifurcated based on device type into automatic meter reading (AMR) and advanced meter infrastructure (AMI). 

The Automated Meter Reading segment owns the highest market share and is predicted to exhibit a CAGR of 15.4% over the forecast period. The Automated Meter Reading (AMR) device is a more advanced energy meter that can measure and store several years of data regarding a building's energy consumption. Data loggers, advanced meters, and gas-embedded meters are the three categories of measuring tools under Straits Research's purview. Meter readers are responsible for handling tremendous amounts of data daily, yet manually entering such enormous volumes of data increases the likelihood of an error being made by a human. Forecasting the electricity and gas used is also essential in the utility sector, which cannot tolerate downtime. As a result, the demand for Automated Meter Reading (AMR) equipment is driven by the abovementioned considerations.

Furthermore, a rise in the necessity to ensure data accuracy and analysis to boost customer satisfaction and cash flow is also one of the major causes fuelling the demand for Straits Research devices in the smart gas market. This is a major element fueling the demand for AMR devices.

Based on end-users, the global smart gas market is divided into commercial, industrial, and residential. 

The Residential segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 15.1% over the forecast period. In the study of the smart gas market's residential end users, households are considered. Recently, natural gas businesses began providing their consumers with complete statistics of their bills. These industries also aim to provide their customers with additional perks in the next years, which is anticipated to be advantageous for the expansion of the industry. Individuals are further aided in saving money and gas because smart gas solutions and applications enable them to monitor their gas consumption in real-time closely. In addition, smart gas reduces the global carbon footprint, safeguards the environment, fosters civic society, and helps preserve natural resources.

Recent Developments

• July 2023- Indraprastha Gas (IGL) shares were up 0.8 percent at Rs 490.70 after the company signed a joint venture agreement with M/s Genesis Gas Solutions Private Limited for setting up an integrated smart meter manufacturing plant.
• July 2022- Hestan was proud to announce a breakthrough in Smart Gas Technology that automatically regulates temperature to the exact degree for precise gas cooking. Removing the guesswork of low, medium, and high-temperature settings, Smart Gas is the first of its kind and available in the latest products for the residential indoor kitchen—the 36” Smart Gas Dual Fuel Range and 36” Smart Gas Rangetop.