Smart Meter Market by Type (Electric Gas, and Water), Component, Technology (AMI & AMR), Communication (RF, PLC, and Cellular), End-user (Residential, Commercial, Industrial) and Region - Global Forecast to 2028
[318 Pages Report] The global Smart Meter market is expected to grow at a CAGR of 9.4% during the forecast period, from an estimated USD 23.1 billion in 2023 to USD 36.3 billion in 2028. Major factors that would further drive the adoption of smart meters include stringent government policies, increased awareness of the disadvantages of carbon footprint, contactless billing, improved grid reliability and efficient outage response, and the strong need for data analytics in the electric power industry.
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Smart Meters Market Dynamics
Drivers: Rising adoption of smart meters to monitor utility systems in real time
The adoption of smart meters to monitor utility systems in real time is on the rise due to several benefits they provide. Smart meters are able to communicate with the utility company in real time, allowing for accurate and up-to-date energy usage data. This can help the utility company better manage its power grid and detect and respond to outages more quickly. Additionally, smart meters provide consumers with more detailed information about their energy usage, which can help them make more informed decisions about their energy consumption and potentially save money on their utility bills. Smart Meters also have inbuilt technology that helps in detecting power theft and tampering of the meters which is a major concern for utility companies. Overall, the use of smart meters in real-time monitoring of utility systems is helping to improve the efficiency, reliability and cost-effectiveness of the power grid, making it more sustainable for the future.
Restraints: Decline in infrastructure development investments and low return on investment
Smart meter installation requires a higher capital cost to install and operate than conventional meters. Utility providers across the world need capital to upgrade their infrastructure. Developing countries with poor infrastructure, such as China, Brazil, and India, also need huge financial support to build and update their infrastructure.
Besides, the integration of devices becomes more complicated when the number of customers increases, which further delays smart meter operations. Even in developed smart meters market, such as Italy and Sweden, to make the integration of a new generation of smart meters profitable, utilities are deploying smart meters in different phases. The deployment of smart meters in these countries can be extended until 2030 due to a lack of consumer acceptance. Due to such a long delay in the realization of ROI, companies refrain from installing smart meters.
Opportunities: Integration of artificial intelligence (AI) and machine learning (ML) technologies into smart meters
Global smart meter manufacturers and utilities are looking to integrate artificial intelligence (AI) and machine learning (ML) software with smart meter operations. This integration will enable utilities to effectively monitor real-time analysis and use smart meter data for better business decisions. For instance, the artificial intelligence of smart meter operations can provide unprecedented, real-time visibility into the utility distribution system, including power flow and integration of distributed energy resources. In addition, smart meters with AI can provide utilities with supply and demand optimization with the enhanced prediction of periods of peak supply and demand.
Challenges: Maintenance, security, and integrity of smart meters and associated data and requirement for skilled professionals
The deployment and maintenance of smart meters can present a number of challenges, including cost, security, and the need for skilled professionals. One of the main challenges is the cost associated with deploying and maintaining smart meters. Smart meters are typically more expensive than traditional meters, and the cost of deploying them can be high, particularly for large-scale rollouts. Additionally, the cost of maintaining and upgrading the infrastructure to support smart meters can also be high. Another challenge is the security and integrity of smart meter data. Smart meters collect and transmit large amounts of sensitive data, including information about energy usage, which could be vulnerable to hacking and other cyber attacks. Ensuring the security of this data is crucial to protect consumers' privacy and prevent unauthorized access to the power grid. Finally, the requirement of skilled professionals is another challenge as the deployment and maintenance of smart meters require a higher level of technical expertise than traditional meters. Utility companies may need to invest in training and development programs to ensure they have the necessary skills to install and maintain smart meters, and to analyze and use the data they collect.
Market Trends
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Smart meter segment, by type, is expected to be the fastest market during the forecast period
The smart meter segment is expected to be the fastest market during the forecast period. Smart water meters are a useful tool for tracking water usage and coordinating with the service provider to regulate water usage and manage the billing cycle. Multiple built-in sensors manage the measuring and recording components, and a module or component resembling those found in smart gas meters is used to carry out communication. The typical mechanical meters were also prone to wear and tear due to which there were consistent inaccuracies in the billing. Water management has been a global issue as every year several water utilities experience a huge amount of water loss. These water management initiatives are increasing the market for smart meters.
By communication, PLC segment is expected to be the second largest market for the global smart meter market during the forecast period
By communication, the market has been segmented into RF, PLC, and Cellular. PLC is a communication technology that uses electrical wiring to simultaneously transmit both data and electric power without any interference as both are at different frequencies. PLC has advantages such as compatibility with the existing utility infrastructure of poles & wires, improved cost-effectiveness for rural smart meter infrastructure, and usability in challenging terrain.
“Asia Pacific: The fastest smart meters market”
Asia Pacific is expected to be the fastest-growing region for the global smart meter market between 2021–2028, followed by Europe and North America. The smart meters market in the Asia Pacific region is expected to grow rapidly in the coming years due to increasing government initiatives to upgrade the power grid infrastructure and rising consumer demand for energy efficiency. Some of the major countries in the region, such as China, Japan, and South Korea, have already implemented or are planning to implement large-scale smart meter rollouts. Additionally, the increasing adoption of renewable energy sources and the need for more accurate and real-time energy data are also driving the market growth. However, the market growth may also be hindered by lack of standardization and cybersecurity concerns.
Key Market Players
The smart meters market is dominated by a few major players that have a wide regional presence. The major players in the smart meter market are Landis+Gyr (Switzerland), Itron, Inc. (US), Osaki Electric Co., Ltd (EDMI) (Singapore), Sagemcom (France), and Siemens (Germany) Between 2018 and 2022, the companies adopted growth strategies such as sales contracts to capture a larger share of the market.
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Report Metric |
Details |
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Market size available for years |
2021–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) |
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Segments covered |
Type, Technology, Component, Communication, End user, and Region |
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Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies covered |
Landis+Gyr (US), Aclara Technologies (US), Sensus (Xylem) (US), Itron, Inc. (US), Honeywell International Inc. (US), Iskraemeco Group (Slovenia), Sagemcom (France), BADGER METER, INC. (US), Kamstrup A/S (Denmark), Wasion Group (China), Schneider Electric (France), Siemens (Germany), Larsen & Toubro (India), Genus Power Infrastructure (India), Osaki Electric Co., Ltd. (EDMI) (Japan), Jiangsu Linyang Electronics (China), Hexing Electrical (China), Networked Energy Services Corporation(US), Pietro Fiorentini (Italy), Secure Meters (India) |
This research report categorizes the market by type, technology, component, communication, end user, and region
Based on type, the Smart meter market has been segmented as follows:
- Smart Electric Meter
- Smart Gas Meter
- Smart Water Meter
Based on technology, the Smart meter market has been segmented as follows:
- AMI
- AMR
Based on Component, the Smart meter market has been segmented as follows:
- Hardware
- Software
Based on end user, the Smart meter market has been segmented as follows:
- Residential
- Commercial
- Industrial
Based on communication, the market has been segmented as follows:
- RF
- PLC
- Cellular
Based on region, the Smart meter market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In November 2022, Landis+Gyr has expanded its portfolio in Smart Metering, Grid Edge Intelligence and Smart Infrastructure fields and will be exhibiting the latest hardware and software solutions for electricity, heat, gas, and water metering.
- In September 2022, EDMI has launched its brand MIRA which are communications agnostic, enabling end-to-end visibility and control based on industry standard protocols such as DLMS, IDIS, and LWM2M over a wide range of bearer services including 4G, NB-IoT, RF Mesh.
- In November 2022, Itron, Inc. has partnered with various technology innovators, consultants, service providers, and channel partners to deliver outcomes for utilities and cities in their mission to connect to customers to accelerate the modernization of energy, water, and smart solutions offered in global markets
- In October 2021, Siemens Smart Infrastructure and its partners, Sagemcom and Bite Lietuva, participated in the rollout of 1.2 million smart meters across Lithuania.
Frequently Asked Questions (FAQ):
What is the current size of the smart meters market?
The current market size of the global smart meters market is USD 23.1 Billion in 2023.
What are the major drivers for the smart meters market?
The growth of the smart meters market can be attributed to the supportive government regulations pertaining to digitalization of grids.
Which is the fastest-growing region during the forecasted period in the smart meters market?
Asia Pacific is expected to be the fastest-growing region for the global smart meters market between 2023–2028. Government initiatives and supportive policies are pushing the market in the region during the forecast period.
Which is the fastest-growing segment, by type during the forecasted period in the smart meters market?
By type, the smart meters market has been segmented into smart electric meter, smart gas meter, smart water meter. The smart water meter market is expected to be the fastest market during the forecast period due to the need to reduce the NRW losses in various countries.
Which is the fastest-growing segment, by technology during the forecasted period in the smart meters market?
By technology, AMI is expected to be fastest growing segment due to the two-way communication interface which enables utilities to obtain real-time data on energy consumption. This allows them to have a more accurate and up-to-date understanding of their customers' energy usage, which can help them to better manage the power grid and respond more quickly to outages.
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The study involved major activities in estimating the current size of the smart meter market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the smart meters market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and BP Statistical Review of World Energy, to identify and collect information useful for a technical, market-oriented, and commercial study of the global smart meter market. The other secondary sources included annual reports, press releases, and investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The smart meters market comprises several stakeholders such as smart meter manufacturers, manufacturers of components of smart meter infrastructure, technology providers, and technology support providers in the supply chain. The demand side of this market is characterized by the rising demand for smart meter in the nations to reduce the non-revenue water losses and to improve the power infrastructure. The supply side is characterized by rising demand for contracts from the distribution utilities, and mergers and acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the smart meter market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions have been determined through both primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Smart Meter Market Size: Bottom-up Approach
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Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments, the data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Objectives of the Study
- To define, describe, segment, and forecast the smart meter market size, by technology, meter type, component, and application
- To provide detailed information on the major drivers, restraints, opportunities, and industry-specific challenges influencing the growth of the smart meters market
- To strategically analyze the smart meters market with respect to individual growth trends, prospects, and contributions of each segment to the market
- To analyze market opportunities for stakeholders and provide a detailed competitive landscape for market leaders
- To forecast the revenue of the market segments with respect to five main regions (along with countries), namely, North America, Europe, Asia Pacific, South America, and the Middle East & Africa
- To strategically profile key players and comprehensively analyze their market ranking and core competencies
- To track and analyze competitive developments such as new product developments, contracts & agreements, investments & expansions, and mergers & acquisitions in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
- Detailed analyses and profiling of additional market players (up to 5)
Generating Response ...
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