Metering market to reach nearly $20 billion in 2018

The demand for smart electricity meters was 25 million units in 2011, and is expected to reach over 148 million units in 2018, growing at a compound annual growth rate of 18.7 percent from 2012 to 2018.

In terms of revenue, the smart metering market was valued at $4 billion in 2011, and is expected to reach $19.8 billion in 2018, growing at a compound annual growth rate of 16.5 percent from 2012 to 2018. This is according to a new market report published by Transparency Market Research.

Increasing smart meter penetration due to benefits such as prepayment facilities, fraud detection, peak consumption knowledge and energy saving is expected to drive the market over the forecast period. Regulatory initiatives, especially in the European Union, are estimated to assist in a large number of smart meter rollouts in the coming years.

In addition, growing awareness of the importance of ensuring energy efficiency by controlling electricity usage during peak hours is expected to positively impact smart meter demand. On the other hand, credible security concerns among consumers due to lack of standardization and privacy issues are expected to deter market growth over the next few years.

Meters used for residential purposes held the largest market share in 2011, a trend that is expected to continue in the coming years. Residential applications accounted for over 81 percent of global smart meter units in 2011 while contributing to only 26.3 percent of the overall revenue. The demand for commercial smart meters is expected to reach 15.8 million units by 2018.

North America led the global market in 2011; however, Asia Pacific is expected to be the fastest growing market in the coming years, and is predicted to grow at a compound annual growth rate of 20.5 percent from 2012 to 2018.

The market is fairly consolidated, with the top four players accounting for over 60 percent of the overall demand in 2011. Key participants include Itron, Landis+Gyr, Elster, Sensus, Holley Metering Ltd., General Electric and Jiangsu Linyang Electronics Co. among others.

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