Smart Meter Market Size, Share, Competitive Landscape and Trend Analysis Report, by Product and End Use : Global Opportunity Analysis and Industry Forecast, 2021–2030

Smart Meter Market Outlook - 2030

The global smart meter market size was valued at $21.79 billion in 2020 and is projected to reach $54.34 billion by 2030, growing at a CAGR of 10.10% from 2021 to 2030.

Smart meters are electronic devices that accurately monitor electricity, gas, and water usage. These smart meters can send usage information through power line communication, radiofrequency electromagnetic radiation (RF), and cellular communication, helping the utility company to effectively manage energy usage. Smart meters offer a host of benefits such as reduction of meter reading cost, preventing disconnection, removing inefficiencies in billing, and re-connection costs to corporations and consumers. 

Furthermore, surging investment interest in the digitalization of electrical systems, and efforts to expand grid infrastructures are expected to create growth opportunities for the smart electricity meter market. An increase in electricity demand from commercial and residential sectors also provides opportunities for market growth. For instance, Reliance Industries has been focusing on the smart electricity meter market after signing multi-billion dollar deals for Jio Platforms and Reliance Retails.

The major factors that drive the smart meter market growth are the development of communication network infrastructure, government initiatives, and high investments in digital electricity infrastructure. In addition, large-scale installations of the smart meters by utility companies are focusing on strengthening the distribution of the smart meters. 

However, the high cost of installations of the smart meters borne by end users restrain the growth of the market. Various grid operators and other gas utility and water utility providers are effectively managing the demand for smart meters. However, various benefits offered by the market such as automatic meter reading and bill generation are further expected to contribute toward the growth of the market.

In recent times, several factors have been integrated to make smart meters more remarkable, reliable, and affordable. The different connectivity technologies used by smart meters are further fueling the growth of the market. The major benefits offered by the smart meter include detection of any leakages in the supply, continuous monitoring of the electricity, gas, and water flow, and detection of any theft in the supply are helping toward the growth of the market. Also, smart meters help eliminate manual monthly meter readings and optimize the profit with existing resources. 

Key Takeaways

• The global market study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
• More than 1,500 product literature, industry releases, annual reports, and other such documents of major market industry participants along with authentic industry journals, trade associations' releases, and government websites have been reviewed for generating high-value industry insights.
• The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.

Segment Overview

The global smart meter market is segmented in terms of product, end-use, and region.

Further, based on product, the market is segmented into smart electricity meters, smart water meters, and smart gas meters. 

Based on end-use, it is divided into residential, commercial, and industrial.

Region-wise, the global smart meter market trend is analyzed across North America (U.S., Canada, and Mexico), Europe (France, UK, Spain Italy, and the rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America and Middle East & Africa). Asia-Pacific is dominating the market, owing to the smart city projects initiatives being adopted by many emerging and developed countries in Asia-Pacific.      

Top Impacting Factors

The prominent factors that impact the smart meter market growth are the development of communication network infrastructure, government initiatives, and high investments in digital electricity infrastructure. However, the high cost of installation of the smart meter is a major restraint to the market growth. On the contrary, developing smart city projects is expected to create lucrative opportunities for the smart meter market. Therefore, these factors are expected to affect the global smart meter industry during the forecast period.

Key Market Dynamics

The smart meter market is expected to witness notable growth during the forecast period, owing to the rising adoption of smart meters to monitor utility systems in real-time. Furthermore, the increased investment in smart grids drives the growth of the market. Moreover, growth in smart city deployment is expected to propel the growth of the smart meter market during the forecast period.

However, high costs and security concerns of smart meter systems are some of the prime factors that restrain market growth. On the contrary, the growing trend of home automation and IoT devices is expected to provide lucrative opportunities for the growth of the smart meter market during the forecast period.

Regional/Country Market Outlook

• North America: The North American smart meter market is characterized by a strong focus on energy efficiency and sustainability, driven by government mandates and incentives. The United States and Canada are key players in this region, with significant investments in smart grid technologies. In the U.S., initiatives like the Energy Policy Act and state-level programs are encouraging the deployment of smart meters across residential and commercial sectors. Additionally, advancements in data analytics and communication technologies are enhancing the functionality of smart meters, allowing utilities to manage demand response effectively. Canada is also witnessing growth in smart meter adoption, particularly in provinces such as Ontario, which has mandated smart meter installations to improve energy efficiency.
• Europe: The European smart meter market is rapidly expanding due to stringent regulatory frameworks aimed at promoting energy efficiency and reducing carbon emissions. Countries such as Germany, the United Kingdom, and France are leading the charge, with ambitious government targets for smart meter deployment. The European Union has set a goal for all member states to install smart meters for at least 80% of consumers by 2020, driving significant investment in infrastructure. Germany is notable for its commitment to renewable energy, integrating smart meters to facilitate better grid management. The UK is also seeing widespread adoption of smart meters, supported by initiatives like the Smart Meter Rollout Program, which aims to provide smart meters to every household and small business.
• Asia-Pacific: The Asia-Pacific region dominates the smart meter market, propelled by rapid urbanization, increasing energy demand, and strong government initiatives promoting energy efficiency. China and India are key markets, with China leading in the deployment of smart meters to support its ambitious smart grid initiatives. The Chinese government has set a goal to install over 300 million smart meters by 2025, significantly enhancing energy management capabilities. In India, the government is pushing for smart meter adoption as part of its broader push for modernization and efficiency in the power sector. Other countries, like Japan and Australia, are also advancing their smart meter programs, focusing on integrating renewable energy sources and improving grid reliability.
• LAMEA: The LAMEA region is gradually embracing smart meter technology, driven by increasing energy consumption and a focus on sustainability. In Latin America, countries like Brazil and Mexico are implementing smart meter projects to enhance energy efficiency and reduce losses in their electrical grids. Brazil is making strides in smart grid initiatives, with regulatory support for smart meter deployment. The Middle East is witnessing growth as countries like the UAE and Saudi Arabia invest in smart city projects, which include smart metering solutions for efficient resource management. In Africa, while the market is still developing, there is potential for growth in smart meter adoption, particularly in countries like South Africa, where energy management solutions are becoming increasingly essential.

Competitive Analysis

Competitive analysis and profiles of the major smart meter market players Itron Inc., Landis+Gyr, Schneider Electric SA, Siemens AG, Badger Meter, EDMI, Holley Metering Limited, Neptune Technology Group Inc., Sensus, Honeywell International Inc., Kaifa Technology, Suntront Technology, Kamstrup Company, Aichi Tokei Denki, and Wasion Group, are focusing their investment on technologically advanced, cost-effective, and more secure products and solutions for various applications.

Report Coverage & Deliverables

This report delivers in-depth insights into the smart meter market, by product, end user, region, and key strategies employed by major players. It offers detailed market forecasts and emerging trends.

Product Insights

Smart electric meters facilitate real-time monitoring of energy consumption, enabling consumers to manage their electricity usage more efficiently. They support dynamic pricing and enhance grid management for utilities. Smart water meters provide accurate and real-time data on water consumption, helping consumers and utilities detect leaks, reduce wastage, and promote water conservation through detailed usage insights. Smart gas meters monitor gas consumption in real-time, allowing consumers to manage usage effectively and utilities to enhance safety, billing accuracy, and leak detection through timely data analysis.

End User Insight

In the residential sector, smart meters empower homeowners with real-time energy and resource management, promoting efficiency and sustainability. They offer detailed insights into usage patterns for informed decision-making. Smart meters in commercial settings enable businesses to optimize energy and water usage, leading to cost savings and improved operational efficiency. They also facilitate compliance with sustainability initiatives and regulations. In industrial applications, smart meters provide critical data for managing energy and resource consumption, enhancing operational efficiency, and minimizing waste. They support smart manufacturing initiatives and sustainability goals for industries.

Regional Insights

The Asia-Pacific region dominated the smart meter market due to several key factors, including rapid urbanization, increasing energy demand, and robust government initiatives aimed at promoting energy efficiency and sustainability. Countries such as China and India are at the forefront, making substantial investments in smart grid technologies and infrastructure to support their growing populations and expanding industrial sectors. Furthermore, the region's emphasis on integrating renewable energy sources into the grid drives the demand for smart meters, which enhances energy management and enable real-time monitoring. The presence of major technology manufacturers and a burgeoning middle class also contributes to the widespread adoption of smart metering solutions across residential, commercial, and industrial sectors, reinforcing Asia-Pacific's dominance in the smart meter market.

Key Strategies and Developments

• In March 2023, Diehl Metering Inc. announced a strategic partnership with STACKFORCE GmbH, a German company specializing in embedded software for IoT communication devices and integration solutions. This collaboration aims to bolster Diehl's leadership in the market while enhancing its presence in the communication technology sector for smart meters, smart utilities, and smart cities.
• In March 2023, Itron Inc. revealed that Peoples Gas and North Shore Gas, subsidiaries of WEC Energy Group, are collaborating with ComEd, which serves over 4 million customers, to utilize ComEd's existing advanced metering infrastructure (AMI) multi-purpose network. This initiative will streamline natural gas meter readings, promoting operational efficiencies and reducing carbon emissions.

Key Benefits For Stakeholders

• This study comprises an analytical depiction of the global smart meter market outlook along with the current trends and future estimations to depict the imminent investment pockets.
• The overall smart meter market analysis is determined to understand the profitable trends to gain a stronger foothold. 
• The report presents information related to key drivers, restraints, and smart meter market opportunities with a detailed impact analysis. 
• The current smart meter market forecast is quantitatively analyzed from 2021 to 2030 to benchmark financial competency. 
• Porter’s five forces analysis illustrates the potency of the buyers and the smart meter market share of key vendors.  
• The report includes the smart meter market trends and the market share of key vendors.