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The Asia Pacific Smart Meter Market is projected to grow with an opportunity of US$ 32,923.9 Mn from 2022-2030 and is estimated to reach US$ 42,809.1 Mn by 2030. Further, the market is registering a CAGR of 20.1% during the forecast period. The growth in the market is attributed to factors such as growing government financial support for the digitalization of grids and the rising need for real-time monitoring. As smart meters are the next-generation meters that have the capacity of collecting information about energy, water, and gas usage and transmit data through a secure national communication network, hence they are replacing standard meters which require one to track meter reading and submit it to the supplier. However, smart meters automatically send energy usage data to the supplier as it involves real-time or near real-time sensors, power outage notification, and power quality monitoring. Further, it enhances consumer satisfaction through better complaint management, reliability, and transparency, thereby prompting many companies to engage in the market.
The cumulative share of five major players is close to 73% in 2021 as the Asia Pacific Smart Meter Market is observed to be slightly Oligopolistic in nature and is projected to shift towards Monopolistic nature in the forecast period. The key players in the market are Itron, Sensus, Badger Meter, Landis+gyr, and Schneider Electric among others. The market players are adopting various strategies such as mergers, acquisitions, and new product launches to stay in the competitive market.
Recent strategies adopted by key market players are:
Factors leading to the growing presence of players in the smart meter market are
1. Rising government financial support for digitalization of grids
The government of various countries across the Asia Pacific region has been keenly focusing on renewables and distributed energy resources thereby limiting the carbon footprint of APAC countries. Further, the smart meters ensure efficient and reliable energy distribution to households. The various government and other development organizations are promoting this idea. For instance, in India, smart meters will be used to replace India's 250 million conventional meters under the Smart Meter National Programme (SMNP). Under this programme, EESL has installed over 13.2 lakh smart meters in Uttar Pradesh, New Delhi, Haryana, and Bihar till August 2021. Further, the Asian Development Bank (ADB) is helping Uzbekistan to increase its energy efficiency by funding 1.4 million pre-paid smart meters which are to be installed in the towns of Bukhara, Jizzakh, and Samarkand. This is due to the monitoring facilities provided by smart meters.
2. Growing need for real-time monitoring is paving the way for the adoption of smart meters
Smart meters help in real-time power quality monitoring and detecting theft by triangulating the location of losses at a much more detailed geographic level than is feasible otherwise. Real-time monitoring provides prioritized warnings and trigger events to aid infrastructure management and team workflow. The smart meter monitoring application template enables utilities and partners to monitor smart meters’ status and data and define alarms and notifications. It provides sample commands, such as disconnect meter and updates software. Further, the adoption of AI, IoT, and big data analytics in smart meters will make monitoring simple.
Current trends in the market
Integration of artificial intelligence (AI) technologies in smart meters
New AI technology has improved how power system equipment monitor data, communicate with the system, evaluates input-output, and displays data in unprecedented ways in recent decades/years. Artificial intelligence and similar technologies are already being used in the electricity sector in Asian developed countries to facilitate communication between smart grids, smart meters, and Internet of Things (IoT) devices.
Further, cellular IoT has been an emerging trend in smart metering for years. In an aim to expand and include this emerging technology in its products, in 2020, Kamstrup unveiled a new smart electricity meter, OMNIA, which the firm claims enable utilities to leverage both RF mesh and IoT cellular communications specifications and technologies for connectivity. However, the market is not free from hindrances.
Factors restraining market growth
High capital cost and maintenance & security of smart meters
A full-scale deployment of smart meters requires expenditures on all hardware and software components, network infrastructure, and network management software. Further, the costs associated with the installation and maintenance of information technology systems in smart meters technology are high, thereby triggering the capital costs. The covid-19 pandemic further led to a fall in market demand.
The power sector witnessed a decline during COVID-19
Electricity consumption by industrial and commercial sectors fell massively due to the government-imposed lockdown and other restrictions. Therefore, the power sector witnessed a fall in demand during the pandemic, thereby leading to the demand and supply gap. This led to many governments reducing the electricity charges. For instance, the government of Vietnam reduced electricity bills for the households impacted by COVID-19. Furthermore, the pandemic and the government-imposed restrictions significantly impacted the manufacturers of hardware devices in the smart grid market due to supply chain disruptions across the globe. However, from the third quarter of 2020, the power sector has started witnessing growth. Further, in a Digital Transformation Survey, it was found that about 84 percent of energy companies (this is the highest across sectors) feel that digital transformation has become more urgent in light of the crisis. Therefore, even though the supply chain disruptions and lower electricity consumption due to Covid-19 affected the market in the short run, however, a rise in the power sector is expected during the forecast period due to rising industrial activities and digitization.
Type Segment Analysis
Based on type, smart electricity meter holds 21% more market share than smart water meter. The growth of the smart electricity meter is attributed to fast power outage restoration by smart electricity meters and easy implementation of new pricing and load management programs. Further, it allows for seamless online billing, real-time monitoring of electricity consumption, and a reduction in billing errors. In addition, the smart water meter segment holds an opportunity cost of US$ 9,646.9 Mn during 2022-2030, whereas smart gas meters hold an opportunity cost of US$ 2,357.1 Mn during the same period. Moreover, these meters help water suppliers in enhancing the water distribution network and incorporating robust water conservation & management practices through various methods.
Communication Method Segment Analysis
In terms of communication methods, power line communication holds 40% of the global market share in 2021, followed by the cellular segment. PLC method is well suited for quick and inexpensive pervasive deployments. However, the cellular segment is estimated to surpass the power line communication segment by 2028. This is because smart meters are being equipped for cellular communications for the past few years. 3G and 4G networks make data uploads from smart meters practical and are used in smart meters for transferring data to central servers of utility. This helps in real-time monitoring using AMI technology.
Technology Segment Analysis
Based on technology, AMI technology holds 33% more than AMR technology in 2021. AMI describes the whole infrastructure from a smart meter to a two way-communication network to control center equipment and applications that enable the gathering and transfer of energy usage information in near real-time. Further, the growth rate of AMR is 17.5% during 2022-2030, whereas the growth rate of AMI is 21.5% during the same period as AMR is an older technology and requires manual reading from an individual to collect data. AMR requires manual reading and further, the technology cannot provide granular time-series data intervals the way AMI can with its newer radio-frequency technology.
Phase Segment Analysis:
Based on phase, the market share of the GISM (single-phase) segment would be exactly equal to the market share of the GISS (heavy consumers) segment by 2030, which is US$ 10,702.3 Mn. However, the GIST (three-phase) segment dominates the market in 2021 as it allows for higher transmission at lower amperage. This makes it possible to use higher gauge (thinner) copper wire, significantly reducing both material and labor costs. Further, a three-phase circuit provides high power density than a one-phase circuit at the same amperage, keeping wiring size and costs lower. In addition, three-phase power makes it easier to balance loads, minimizing harmonic currents and the need for large neutral wires, thereby driving end uses to adopt smart meters.
End-User Segment Analysis
In terms of end-users, the residential segment holds more than 65% of the market share in 2021 and is further expected to continue its dominance during the forecast period. Smart meters most commonly collect electric, water, and gas usage data of households. The new meters have the Time of Day (ToD) tariff feature which allows consumers to reschedule electricity usage to the off-peak hours and thereby reduce the bill amount significantly. The residential segment dominates in all the regions analyzed.
China holds the lion’s share of the Asia Pacific Smart Meters Market in 2021; more than 65% in the year 2021. The country is expected to account for as much as 70–80% of smart electricity meter demand across Asia in the next few years. Around 10,946 million smart meters tenders were going on in 2021. Further, China is the largest producer of electricity in the world, however, 65% of the electricity in China comes from coal, which is leading to greenhouse gas emissions. Thus, China is increasingly focusing on renewables and is also aiding in the adoption of digitization of grids, thereby propelling market growth.
In India, according to the recent data by the National Smart Grid Mission, the Ministry of Power has installed approximately 3.37 million smart meters in the county as of January 2022. Under various programs in Assam, around 208,076 smart meters have been installed up till now. Bihar has installed 478,012 smart meters and Delhi has installed over 36, 319 smart meters under OPEX model and 195,000 under CAPEX model. Further, according to the Ministry of Economy, Trade and Industry (Japan), the Japan utilities are required to install smart meters in all households by March 2025 to improve energy efficiency.
The Asia Pacific smart meter market is sub-segmented into:
By Communication Method
|Market Size Value in 2021||US$ 8,569.6 Million|
|Expected Revenue in 2030||US$ 42,809.1 Million|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Communication Method, By Phase, By Technology, By End-User, By Region|
|Key Companies||Itron, Sensus, Badger Meter, and Schneider Electric among others|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The Asia Pacific smart meters market was valued at US$ 8,569.6 Mn in 2021.
The Asia Pacific smart meters market is projected to expand at a CAGR of 20.1% during the forecast period.
The market is majorly driven by factors such as growing government financial support for the digitalization of grids and the rising need for real-time monitoring.
The high cost of maintenance and the security of smart meters may hinder the market growth over the forecast period.
The growing adoption of electric and hybrid vehicles is providing a lucrative opportunity for the market growth.
The various segmentations considered to analyze the Asia Pacific smart meters are based on type, communication method, phase, technology, end-user, and country.
AMI technology segment dominates the market in 2021.
Residential segment is the highest end-user in the market in 2021.
China is the highest shareholder country in the market in 2021.
The key players in the market are Itron, Sensus, Badger Meter, and Schneider Electric among others.