08/01/2019 – News / Utilities / Energy / Water / Gas / Smart Meters / Global
Global smart meter revenue to reach US$14bn by 2026
Water and gas meter shipments will see double-digit revenue growth over the next five years. This is welcome news in a market where smart electricity shipments are contracting.
Energy and water utility meter installations resulted in annual shipments of 151 million smart meters in 2018 and will grow at CAGR of 3.2 per cent to reach 193 million units by 2026, according to ABI Research, an advisory firm focused on transformative technologies. Energy utilities drove market demand for smart meters in 2018 – however, future demand will be driven by water utilities.
Regionally, Asia-Pacific (APAC_ followed by Europe and North America are currently the largest markets for smart meter shipments and will continue to be throughout the forecast period. However, there exists a significant price pressure for lower cost smart meters in the Asia Pacific and Europe regions that is slowing revenue growth over the forecast period.
India prepares for large-scale rollouts
In the APAC region, India is coming out of successful pilots and preparing for large-scale rollouts of smart electricity meters to replace over 300 million metering points. In 2018, Request for Proposals (RFPs) from government-owned public utilities were initiated for 10 million smart meters to replace traditional meters and connect to 2G and 3G networks. Water and gas meters have also been witnessing traction from utilities in citywide rollouts.
“As smart electricity meter roll-outs near completion in China, there is an increasing focus on utility smart gas and water meter roll-outs. LPWA network technologies will be popular choices for these metering segments with LoRaWAN technology from ZTE CLAA in China and TATA communications in India competing with telcos’ NB-IoT networks in the region,” said Adarsh Krishnan, Principal Analyst at ABI Research.
Steady ramp-up in shipments to Europe
Europe has experienced a steady ramp-up of smart meter shipments to 2019, with strong growth in electricity and gas metering shipments. The growing footprint of LPWA networks in Europe will drive the uptake of smart metering infrastructure among water utilities to become the second largest market after the Asia-Pacific region.
Utilities are currently the leading adopters of IoT technology, deploying 618 million smart meters in 2018. Meter-to-cash is the primary application driver for smart meter implementation and monetisation opportunities for both energy and water utilities. “Operating in data-rich environments, energy utilities are starting to spend more on implementing analytics platforms using machine learning and Artificial Intelligence (AI) to not only improve customer experience but also to improve energy efficiency, reliability and identify early potential infrastructure and service issues,” Mr Krishnan concluded.
The findings are from ABI Research’s Utilities and Smart Grids report, which can be accessed here: https://www.abiresearch.com/market-research/product/1030672-utilities-and-smart-grids/