Smart Meter Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[227+ Pages Report] According to Facts & Factors, the global smart meter market size was valued at USD 25.14 billion in 2023 and is predicted to surpass USD 56.89 billion by the end of 2032. The smart meter industry is expected to grow by a CAGR of 9.50% between 2024 and 2032.

Market Overview

A smart meter is an advanced metering device that stores the record of the consumption of water, energy, and gas for regular intervals. It is a key component of a modern energy management system. Smart meters offer real-time data and facilitate two-way communication between the central system and the meter. These devices continuously record the data to offer detailed information on energy usage. Smart meters eliminate the usage of estimated calculations, thereby avoiding the chances of errors, and also offer better energy management. Consumers can access the data through their online portals. These facilitate demand response programs by sending signals to consumers to lower their energy usage.

Key Insights

• As per the analysis shared by our research analyst, the global smart meter market size is estimated to grow annually at a CAGR of around 9.50% over the forecast period (2024-2032).
• In terms of revenue, the global smart meter market size was valued at around USD 25.14 million in 2023 and is projected to reach USD 56.89 million by 2032.
• Increasing inclination of people toward vegan diets is driving the growth of the global smart meter market.
• Based on the end-users, the residential segment is growing at a high rate and is projected to dominate the global market.
• Based on the component, the hardware segment is projected to swipe the largest market share.
• Based on types, the smart electric meter segment is expected to dominate the global market.
• Based on technology, the advanced meter infrastructure segment is anticipated to witness significant developments in the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing demand for energy is driving the growth of the global market.

Urbanization and industrialization all across the globe are boosting the demand for energy, which is a major reason for the high growth rate of the global smart meter market. There is a high requirement to upgrade the fast-aging energy infrastructure to deploy smart meters. These help utilities enhance operational efficiency, lower losses, and improve grid reliability with the help of advanced metering solutions.

Also, these help utilities better manage electricity, integrate renewable energy, and optimize grid performance. Growing awareness among people regarding energy efficiency and conversation is further encouraging the adoption of smart meters. Smart meters help people monitor their energy usage in real time, thereby adopting energy-saving behaviors. For instance, Itron Inc. collaborated with different consultants, service providers, technology innovators, and channel partners in 2022 to come up with unique outcomes for cities and utilities to connect with customers.

Restraints

• High initial cost is likely to hamper the growth of the global market.

Installations of smart meters pose a huge requirement for the high initial investment, which is expected to restrain the growth of the smart meter industry during the forecast period. Also, the rising complexities in the deployment of smart meters are likely to further slowdown the growth trajectory of the industry during the forecast period.

Opportunities

• Grid resilience is likely to foster growth opportunities in the global market.

There is a high requirement to improve the grid resilience and its preparedness against any disaster, which in turn is likely to foster growth opportunities in the global smart meter market. However, the growing initiatives to liberate the energy sector are further likely to create opportunities among the vendors.

Rising competition among vendors because of rising product innovations, market expansion, and adoption of smart technologies is likely to expand the industry further. Supporting funding programs like grants and financial incentives from the government are also accelerating the deployment of smart meters. For instance, EDMI came up with MIRA in 2022. These are communication agnostic that facilitate end-to-end visibility and control. The product is based on protocols like LWM2M, IDIS, DLMS, and many others.

Challenges

• Data security is a big challenge in the global market.

Smart meters gather all the sensitive information regarding energy consumption. It is raising privacy concerns among consumers, which is a big challenge in the smart meter industry. Rising incidences of cyber-attacks, unauthorized data access, and data reaches are negatively impacting the growth trajectory of the industry. Also, the resistance to change behavior from utilities and consumers is likely to further slowdown the adoption of smart meters.

Segmentation Analysis

The global smart meter market can be segmented into end-users, components, types, technology, and regions.

On the basis of end-users, the market can be segmented into industrial, commercial, and residential. The residential segment accounts for the largest share of the smart meter industry during the forecast period. Homeowners are adopting smart meters to manage their energy consumption.

Also, the government is playing a crucial role in accentuating the growth of the segment. They are offering subsidies and incentives to boost the installation of smart meters in residential settings. However, the rising awareness among people regarding the environmental impact of high energy consumption is driving people to opt for smart meters, which further help lower their overall carbon footprint.

On the basis of components, the market can be segmented into software and hardware. The hardware segment is leading the global smart meter market in the coming years. The fast deployment of smart meters poses huge requirements for hardware components to assist installations.

Also, the government is investing heavily to swap the traditional meters with smart ones to efficiently manage energy consumption. Technological advancements are another major factor likely to positively impact the growth of the segment. Innovations like improvements in communication technology, advanced functionalities, and improved accuracy are further boosting the adoption of smart meters and associated hardware solutions.

Also, the fast-aging energy infrastructure is posing demand for the deployment of advanced hardware. Therefore, upgrading the entire infrastructure requires many supporting hardware devices like data concentrators and communication modules apart from these smart meters, which are also expected to contribute significantly to the growth of the segment.

On the basis of type, the market can be segmented into smart water meters, smart gas meters, and smart elected meters. The smart electric meter segment is likely to dominate the smart meter industry during the forecast period. The rising demand for efficient energy management is one of the primary reasons for the high growth rate of this segment. People need real-time consumption data to analyze their usage and optimize them accordingly. Smart meters help consumers improve grid stability and lower peak load pressure. Government support, such as incentives and mandates, is further encouraging the adoption of smart electric meters.

On the basis of technology, the market can be segmented into advanced meter infrastructure and automatic meter reading. Advanced meter infrastructure is the fastest-growing segment in the global smart meter market. Advanced metering infrastructure offers utilities with real-time data for better energy usage management. It plays an important role in improving grid functionalities, load balancing, outage detection, and automated meter readings. Governments across many regions are mandating the deployment of AMIs to modernize the grid and better manage energy usage. Advancements in communication technologies like security and data analytics are further likely to foster growth opportunities in the segment. People use it to get access to detailed energy usage information.

However, AMI is beneficial for utilities as well. It helps people to identify and respond to outages and other possible issues quickly. AMI systems are being integrated with renewable energy sources to facilitate the management of distributed energy generation and grid stability.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America accounts for the largest share of the global smart meter market during the forecast period. Government initiative is a primary reason for the high growth rate of the regional market. State authorities in the US, along with the federal government, are taking a proactive part in encouraging the adoption of smart meters through programs like the Smart Grid Investment Grant. The Canadian government is also supporting the deployment of smart grid projects at provincial levels.

Fast-aging energy infrastructure in the region is further posing a huge demand for grid modernization. Smart meters are an important part of the smart grid, which helps end-users manage electricity more efficiently. The United States is the largest country contributing significantly towards the growth of the regional market. State mandates, federal initiatives, and utility programs are some of the major actions taken to drive the demand for smart meters.

Also, regions like Texas and California are witnessing extensive demands for smart meters. The presence of strong market players is further leading the growth of the regional market. Growing consumer demand for energy efficiency and conversation is positively impacting the growth trajectory of the regional market. It also helps end-users manage their energy consumption and cost.

Asia Pacific is another leading region that is expected to experience rapid growth in the coming years. Growing urbanization is a major factor contributing to the growth of the global market. A growing number of residential, commercial, and industrial settings in APAC is boosting the demand for smart grid infrastructure. Government initiatives are coming up with many policies and regulations that focus on increasing the adoption of smart meters in APAC. China undertook the smart grid development project under its five-year plan, which in turn is expected to contribute immensely towards the growth of the regional market. India’s smart mission to modernize the existing grid infrastructure is further likely to support the growth of the regional market.

Also, increasing population growth in the region is another major factor boosting the growth of the regional market. The deployment of advanced communication technology, like PLC, RF, cellular networks, and many more, is also anticipated to contribute to the positive growth trajectory of the market. Japan is making substantial progress in the adoption of smart meters. Utilities like Tokyo Electric Power Company are contributing immensely towards the growth of the regional market.

Therefore, all these factors are expected to propel the growth of the regional market during the forecast period. For instance, Siemens Smart Infrastructure, along with its partners, got involved in a project of smart meters in Lithuania. They invested around 1.2 million in the project.

Competitive Analysis

The key players in the global smart meter market include:

• Sensus
• Landis+Gyr
• Kamstrup A/S
• Holley Metering Limited
• Iskraemeco d.d
• General Electric
• Echelon Corporation
• Eister Group GmbH
• Aclara Technologies LLC.

For instance, Landis+Gyr extended its portfolio in Grid Edge Intelligence, Smart Metering, and Smart Infrastructure in 2022. They are looking forward to software and hardware solutions for water, gas, heat, and electricity metering.

The global smart meter market is segmented as follows:

By End-Users Segment Analysis

• Industrial
• Commercial
• Residential

By Component Segment Analysis

• Software
• Hardware

By Types Segment Analysis

• Smart Water Meters
• Smart Gas Meters
• Smart Elected Meters

By Technology Segment Analysis

• Advanced Meter Infrastructure
• Automatic Meter Reading

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America