The Asia Pacific region is currently the largest smart meters market in the world and is expected to hold the position through 2025, according to a report released by Markets and Markets.
Asia Pacific is anticipated to install the highest number of smart meters as well as generate the highest revenue ahead of other regions, owing to smart meter rollouts in China and India, the world’s most populous countries. Installations in Japan and Australia are also expected to help the region lead the global market.
Currently, China and Japan are the largest markets for smart meters in the Asia Pacific region. China had installed around 437 million smart electric meters by December 31, 2020.
Factors driving the installations include the need for utilities to ensure real-time analysis regarding the operations of the grid and consumer usage. Markets and Markets expect an increase in utility appetite to leverage dynamic pricing to shift consumer heavy energy usage from peak to off-peak periods. This is expected to drive utility investments in smart metering.
In addition, an increasing number of governments in the region have set smart meter mandates and policies encouraging the digitalisation of grid networks. Such measures are forcing utilities to roll up their sleeves and chase both nationwide and company smart meter rollout targets.
Smart meters and renewable energy adoption
Moreover, the ability of smart meters to help utilities expand their portfolio of renewable energy resources and help reduce carbon emissions are driving the market.
For instance, China the world’s largest emitter of greenhouse gas emissions, although a leader in renewable energy deployment, can take advantage of smart metering to speed up its renewables adoption and to optimise consumer energy efficiency.
In Japan, electrical utilities have begun implementing a nationalised grid restructuring programme, which would necessitate investment in T&D equipment and infrastructure.
Given the decommissioning of nuclear power plants in the country, the Japanese government is increasing its focus on renewable energy. The government is working towards generating 25-35% of power from renewable sources by 2030.
Moreover, the Government of Japan also shifted its focus to demand-side management and an increased emphasis on energy security and resiliency through smart grid and energy efficiency technologies. The Energy Environment Council has met the 85% nationwide target for smart electrical meter adoption in the year 2020, and deployed around 58 million smart meters in the country. The plans to reach the 100% mark will help grow smart meter adoption in the region.
At the same time, Singapore, which relies on fossil fuels more than any other country, according to Utility Bidder, can also leverage advanced metering to speed up the shift to clean energy resources. However, a more ambitious approach to smart metering will be required in Singapore.
Today Singapore has only installed 500,000 smart meters since 2017 and has plans to hit the 1.4 million mark by 2024 (a number that countries in Europe with a ‘developed economy’ status such as that of Singapore, can install within a year).
On a global scale, the smart meters market is expected to record 6.7% compound annual growth between 2020 and 2027. The growth is expected to increase market revenue from $20.7 billion in 2020 to $28.6 billion by 2025.
Find out more about the report.