The global smart meter market, valued at $21.13 billion in 2019, is projected to grow at a CAGR of 8.8%, reaching $39.2 billion by 2027, according to Allied Market Research.
The market’s significant growth rate will be driven by government initiatives in leading economies that are mandating smart meters, upgrades in outdated infrastructure, and replacement of old, conventional meters. The ongoing and continuous development of the communication network infrastructure is also driving the manufacture of smart meters. However, high cost of installations of smart meters, borne by end users, is restraining the growth of the market, the research indicates.
The residential segment is expected to secure the leading position throughout the forecast period, followed by commercial and industrial. The smart electric segment is projected to have the largest share of the smart meters market, followed by smart water meters and smart gas meters. Growth of the smart electric meters segment is being driven by the growing emphasis on dynamic pricing and integration of growing DER into the existing power system operations. Future growth of the segment is also being driven by an increasing demand for highly accurate and precise measurement of utility consumption data for commercial, industrial and residential end-users, according to similar research from MarketsandMarkets Research.
The Asia Pacific region is expected to be the largest market during the forecast period, predominantly due to China. The market in the region is driven by the growing emphasis to reduce carbon emissions from utility operations and effectively integrate DER such as solar and wind power for enhanced power sector operations.
Smart meters offer a host of benefits, including reduction of meter reading costs, preventing disconnection, removing inefficiencies in billing, and reducing re-connection costs to corporations and consumers. Last spring, Navigant Research said that deployments of more than 16 million smart meters occurred globally between April and September 2019.