A new report on the global smart electric meters market forecasts that revenue will increase by 4.11% between 2018 and 2023.
According to the report, the market is expected to be worth $11.33 billion by 2023 up from $9.27 billion in 2018.
We examine five reasons behind the anticipated growth as follows:
1. The increased need for efficient data monitoring systems
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Complying with regulatory requirements is part of the overall desire for utilities to have clearer insight into the status of their distribution assets, allowing them to better monitor system outages, overloads and asset health.
2. Favourable government policies for smart meter rollouts
Despite China leading the global market, favourable regulatory frameworks adopted in Europe are expected to contribute to smart meter shipments growing, reaching a peak of over 125 million units globally in 2020.
According to IHS Markit, France and the UK are expected to lead other EU countries in terms of the number of installations.
3. Improved cost savings
Enedis has installed 13 million Linky smart meters in France to help improve consumer efficiency and reduce utilities operational costs through real-time management of grid operations. It is anticipated that savings of between 5% and 15% will be realised due to the installations.
Landis+Gyr has extended its smart meter rollout partnership with Enedis. The two have collaborated on AMI rollout since 2007 and have plans to deploy an additional 13 million units through to 2023.
4. Increased investment in smart grid projects in Europe and North America
A recent study by Northeast Group anticipates an investment of $133.7 billion in smart grid infrastructure by 2027 in Western Europe. This is in keeping with developments in North America, where, according to the IEA, smart grid investment grew by 12% between 2014 and 2016 overall. In many cases, smart meter rollouts are seen as the first step of any major smart grid development.
This development is being mirrored in other parts of the world. A study issued forecast that countries in Southeast Asia will invest $9.8 billion in smart grid infrastructure between 2018 and 2027, with smart meter rollout initiatives playing a huge role in the growth of the market.
Ben Gardner, president of Northeast Group, said: "Singapore and Malaysia are clear leaders in the region, already starting national smart meter rollouts. Thailand has also demonstrated a real commitment to smart grid infrastructure buildout, with long-standing plans finally underway, which should help to jumpstart the rest of the region.”
5. Increased emphasis on renewable energy sources
With calls to expand renewable energy portfolios to reduce carbon emissions intensify at a global scale, the need to employ smart meters in a bid to enable the implementation of demand-side management measures including demand response is also increasing.
Real-time monitoring of energy use provided by smart meters help utilities to manage peak demands, ensure grid reliability during times when demand is high and generation is low.
On the other hand, the delay in smart meter rollout projects and high initial investment will continue restraining the market.