Factors driving the global smart meters market

A new report published by Research and Markets states that the global smart meters market will expand by 9% between 2021 and 2026 and highlights factors driving the market.

The report states that revenue generation will increase from $19.6 billion to $30.2 billion owing to factors including:

Government mandates and incentives for smart meter installations: Governments across the globe are increasing funding for grid modernisation and developing and enacting policies that support smart technologies including smart metering, according to the study.

Asia Pacific is anticipated to be the largest and fastest-growing market as governments scale up grid digitalisation investments to enable energy firms to implement real-time analysis of grid and consumer usage.

Deployments in China, Japan, Australia and India are expected to help the Asia Pacific region expand its smart meters portfolio as governments seek to address energy sector challenges such as increases in energy demand, as well as to improve power quality. Up to $9.8 billion in smart grid investments is expected to be made in the Asia Pacific between 2018 and 2027.

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Net-zero goals and renewable energy plans: With utilities struggling to leverage renewable energy to provide baseload power and retire fossil fuels, technologies such as smart meters that offer real-time analysis of consumer usage are expected to play a huge role in helping energy firms stabilise grid networks by matching generation with demand, according to the study.

Increases in electric vehicles: The charging of electric vehicles is also expected to result in heavy strains on the grid hence real-time monitoring and smart meter-enabled use cases such as demand response and Time of Use tariffs are expected to provide utilities and EV owners with intelligence regarding when best to charge to avoid straining the grid.

The need to reduce energy bills: Consumer demand for smart and green services continues to grow on a daily basis and they are now seeking personalised services that enable them to optimise usage and reduce bills. Through smart meter data, utilities are able to help customers reduce energy costs, states the study.

The demand for smart meters from the residential sector is driven by the growing power consumption from increased use of home appliances such as air conditioners, televisions, lighting, refrigerators, ceiling fans, cloth washers, dishwashers, personal computers, and heating and air-conditioning equipment at residential buildings. Utilities need to address the dynamic demand for power from the operations of this equipment and they are investing in smart meters to enhance grid resiliency and operations.

Other factors that are expected to drive the market include the need to reduce blackouts and grid failures, the need to reduce technical and commercial losses, as well as the integration of technologies such as machine learning, artificial intelligence, and advanced metering and various sensors to add intelligence at the edge of the grid.

The smart water meter market is projected to grow by 11.7% during the forecast period driven by the need to reduce the non-revenue water in water utility operations.

However, factors such as the high upfront costs associated with smart meters deployment, the impact of the pandemic on smart meter projects, and reduced investments in grid modernisation will hinder growth within the market, according to Research and Markets.

Other market challenges identified in the report include maintenance, security, and integrity of smart meters and associated data. Smart meter data telemetry and connectivity remain a challenge for utilities in deploying advanced metering as well as issues related to data privacy.

Find out more about the study.