London, U.K. --- (METERING.COM) --- February 13, 2012 - Smart meter revenue in Europe is expected to grow from $318.4 million in 2010 to $1.93 billion in 2017 at a compound annual growth rate (CAGR) of 29.3 percent, according to a new analysis from Frost & Sullivan.
The smart meter installed base in Europe is expected to grow from 43.9 million in 2010 to 200.43 million in 2017 at a CAGR of 24.2 percent. Larger growth is foreseen post-2012, with the publishing of the standardization mandate, which will affect the future development and innovation of smart meters.
Europe is a push market where the smart meter and smart grid markets are legislation driven. There is region-wise disparity due to the different regulatory challenges faced by each country, thus having a direct impact on implementation.
“The smart meter market is expected to prosper, owing to the recent impetus from renewable energy and smart grid implementation,” says Frost & Sullivan research analyst Neha Vikash. “Smart meters are required for integration of renewable energy. Europe is focussed on meeting the 20-20-20 targets which is a necessary driver for increase in renewable energy and the third energy directive targets 80 percent smart meter penetration in the residential sector by 2020.”
Currently, the European smart meter market has less than 20 vendor companies. The competition among manufacturers, utilities, ICT, network, remote monitoring and automation companies is high and it is forecast to increase along with new participants entering the market. In particular, Chinese and other Asian companies will start to make their appearance in this market during the next 1-2 years, say Frost & Sullivan.