Energy market intelligence firm Technavio forecasts revenue generation in the global digital power meter market to reach $11.02 billion by 2021.In a press statement, Technavio says the global market for digital power meters will grow by 4.91% between 2017 and 2021 due to an increase in the adoption of smart grids.
According to findings of the research firm, global utility companies are installing digital power meters and related smart grid technologies to improve management of energy distribution system through data analytics.
Commenting on the findings of the company's latest report on the adoption of digital power meters, Thanikachalam Chandrasekaran, lead analyst at Technavio, said: “Residential end-users dominated the market in 2016, holding 82% of the overall shares.
"The segment is expected to retain its dominance over the forecast period, driven by the rise in the global population, urbanisation rates, and levels of employment.”
In addition, continued implementation of government policies stipulating utility firms to install smart meters to enable residential customers to improve management of their energy consumption will help the growth of digital power meters market.
At the same time, the rollout of digital power meters for commercial consumers is predicted to generate revenue amounting $1.13 billion during the forecasted period.
The deployment of digital power meters for commercial consumers including schools, hospitals, restaurants and shopping centers falls under efforts by utility firms to reduce operational expenses associated with meter tampering and power theft.
Commercial consumers will increase their usage of digital power meters to improve energy conservation to earn environmental ratings such as Leadership in Energy and Environmental Design (LEED) certification under efforts to improve their social image or outlook of their buildings, says Technavio.
“The industrial sector has been expanding due to the rising globalisation and industrialisation across various manufacturing setups. The rising need to effectively manage power and minimise the losses incurred is pushing for the increased adoption of smart power grids and digital power meters,” added Thanikachalam.
Rollout of digital power meters
The news follows an announcement made in early March in South Africa by the city of Johannesburg that its power utility City Power has taken steps to increase its smart prepayment meter deployment target to 20,000.
The smart meters work using cellphone networks with each using a sim card to transmit daily readings to a central hub. The daily readings are then incorporated into customer bills through an automated process.
According to the city, the smart meters will have a "positive impact on the city's revenue," as a result of decreasing billing queries and non-payment because customers would receive accurate and verifiable consumption information. Read more...
Image credit: Shutterstock