Smart Meters Market Size, Share, Growth Analysis, By Type, By Communication, By Technology, By End-User, By Region - Industry Forecast 2024-2031

Global Smart meters market was valued at USD 20.76 billion in 2022 and is expected to rise from USD 22.86 billion in 2023 to reach a value of USD 49.35 billion by 2031, at a CAGR of 10.1% during the forecast period (2024-2031).

Global demand for smart meters is increasing due to urbanization and various smart city initiatives. The software and cloud computing revolution has significantly boosted the demand for smart devices, making investment in smart metering systems essential. Smart meters are commonly used to measure electricity, gas, and water consumption. They come with features that allow them to track consumer usage and send daily or monthly reports directly to the utility provider. The primary advantage of smart meters is their accuracy in readings, eliminating the need for manual labor in generating power bills and noting readings. Smart meters promote transparency by providing recorded usage data to both customers and utility companies. Additionally, the rise of renewable energy sources like solar and wind, along with the establishment of new networks, is driving the adoption of smart meters. There are several types of smart meters available, including smart gas, water, and electricity meters. The global smart meter market is expanding due to the rising demand for smart electricity meters. According to the Institute for Electric Innovation, by January 2020, over 70% of residential customers in the United States had access to smart electricity meters installed by U.S. electric companies. The total number of smart energy meters installed worldwide was projected to reach 107 million by the end of 2020.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Smart Meters market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Smart Meters Market Segmental Analysis

Global smart meters market is segmented based on type, component, communication, technology, end-user, and region. Based on the type, the market is segmented into smart electricity meters, smart gas meters, and smart water meters. Based on the component, the market is segmented into hardware (power system, microcontroller, communication interface), software (customer information system (CIS), meter data management system (MDMS), metering and billing software). Based on the communication, the market is segmented into Radiofrequency (RF), Power Line Communication (PLC), and cellular. Based on the technology, the market is segmented into advanced metering infrastructure and auto meter reading. Based on the end-user, the market is segmented into residential, commercial, and industrial. Based on the region it is categorized into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Smart Meters Market

The global rise in electricity demand, particularly due to increased access to rural electrification, has led to higher prices per unit of electricity. Smart meters provide numerous benefits to electric companies, including the elimination of monthly manual readings, real-time system monitoring, reduced electricity costs based on demand, and real-time data to prevent power failures. These features contribute to more efficient and cost-effective electricity management. For customers, smart meters offer several advantages as well. They provide detailed feedback on energy usage, enabling consumers to manage their monthly costs more effectively. Additionally, smart meters help reduce the frequency of power outages and system breakdowns, enhancing overall reliability and customer satisfaction.

Restraints in the Global Smart Meters Market

Replacing outdated conventional metering infrastructure with new smart meters involves significant costs. The success of this deployment largely depends on the ability to manage network loss and theft. In such cases, mass roll-outs can yield immediate profits. However, the industry faces challenges such as the need for extensive labor training for installations, cybersecurity requirements, and a lack of consumer awareness, all of which can negatively impact the market.

Market Trends of the Global Smart Meters Market

The demand for smart gadgets has surged due to rapid advancements in cloud computing, analytics, and electronics. Government investments in smart cities have significantly expanded the market for smart meters. The growth of remote power grid monitoring and control has also propelled the demand for these meters, contributing to the development of smart grids. In 2015, India launched its "Smart City Mission" to transform its urban landscape. By 2020, the initiative had received a total investment of USD 28.31 billion, with 5,331 projects worth USD 24.31 billion put up for bid. Out of 4,540 projects with work orders, 2,122 projects totaling USD 4.83 billion had been completed by 2020.