The smart meter market was valued at a staggering $13.1 billion in 2019. The same is forecast to grow at 4.9 per cent CAGR between 2020 and 2030
In February 2020, Energy Efficiency Services Limited (EESL), under the Smart Meter National Programme of Government of India, finished installing one million smart meters in the country, and it further aims to install more than 250 million of those in the near future. Due to government initiatives such as this, the global smart meters market is projected to witness a 4.9 per cent CAGR between 2020 and 2030, to grow from $13.1 billion in 2019 to $20.0 billion in 2030, according to P&S Intelligence.
Similarly, in January 2020, $2.53 billion (SAR 9.5 billion) worth of contracts were signed between Alfanar Group and Saudi Electricity Company (SEC) for the installation of 10 million smart meters in Saudi Arabia by March 2021. Another such initiative propelling the smart meters market is the Colombian Ministry of Mines and Energy January 2018 resolution to connect 11 million residential units with advanced-metering-infrastructure (AMI)-supporting smart meters in the nation by 2030.
Highest CAGR in AMI bifurcation
In the immediate future, the higher CAGR in the smart meters market, of 8.2 per cent, would be experienced by the AMI bifurcation, under segmentation by technology. With the help of data management and communication systems, AMI — an integrated smart meter system — allows for two-way communication between customers and utility companies.
“AMI can take readings remotely, connect/disconnect services automatically, generate accurate bills in less time, and allow users to digitally access their utility consumption statistics,” read the report.
The smart meters market currently generates the highest revenue from Asia-Pacific (APAC), which would also be the fastest-advancing region in the immediate future. Mass smart meter installation projects have already kicked-off in numerous regional nations, such as China, where a five-year program to upgrade its grid infrastructure is underway.
Apart from grid modernization, regional countries are installing smart meters to improve the process of revenue generation for utilities and meet energy challenges.
“With the COVID-19 wreaking havoc around the world, the smart meters market growth has shown a substantial dip in 2020. To stop the virus from spreading, manufacturing units and major commercial complexes have been closed and non-essential movement of people and goods has been restricted. This has severely affected the production of smart meters and supply of raw materials and components, especially from China,” read the report.