Story image

Global demand for smart meters to skyrocket, but challenges lie ahead

20 Sep 18

The global smart meter market is riding a wave of popularity as issues such as energy use, aging infrastructure and rising emissions take their toll on traditional systems.

According to a recent report from GlobalData, the global smart meter market will be worth approximately US$10.4 billion by 2022.

The Smart Meters, Update 2018 - Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022 report reveals that nearly 88.2 million installations took place in 2017, when the global market value reached approximately $7.1 billion.

Between 2012 and 2017, the global smart meter market volume achieved a compound annual growth rate (CAGR) of 6.8% with value achieving double digit CAGR of 12%.

According to GlobalData power analyst Subha Krishnan, there are a number of reasons for the growth.

‘‘Despite the growth, significant challenges remain such as high meter pricing, lack of supportive incentives, poor meter standards, regulatory shortcomings and resource management. However, as the market grows, it is expected that favourable regulations, cost reduction, and progressive technology development could alleviate some existing challenges.’’

Countries such as Japan, South Korea and the United States have formed legislation surrounding smart meters. These target 100% market penetration.

As a result, GlobalData says the development and large-scale use of renewables, energy management technologies and efficiency measures are expected to contribute to the projected smart meter market growth.

“In the forecast period, smart meter installations are estimated to slow down in China which is focused on developing new infrastructure to provide reliable and cheap electricity to support its own economic growth. The US and Japan, owing to their weather resiliency challenges, are focused on creating a more responsive and robust modern day grid, capable of moderating critical system failures,” comments Krishnan.

Market drivers will include evolving information and communications technology standards, the replacement of outdated meters (both advanced metering infrastructure and traditional), new infrastructure development, and peak load and asset management.

“In the forecast period (2018–2022), the market is expected to move at a slightly faster pace, despite several large-scale smart-meter roll-out programs ending or nearing completion. The market volume is expected to register a CAGR of 8.9%, while value should reach a CAGR of 8.2%,” Krishnan concludes.

GlobalData is a data and analytics firm. Its mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.
 

One Identity a Visionary in Magic Quad for PAM
One Identity was recognised in the Gartner Magic Quadrant for Privileged Access Management for completeness of vision and ability to execute.
Accenture 'largest Oracle Cloud integrator in A/NZ'
Accenture has bought out Oracle Software-as-a-Service provider PrimeQ, which now makes Accenture the largest Oracle Cloud systems integrator in Australia and New Zealand.
How to keep network infrastructure secure and available
Two OVH executives have weighed in on how network infrastructure and the challenges in that space will be evolving in the coming year.
White box losing out to brands in 100 GE switching market
H3C, Cisco and Huawei have all gained share in the growing competition in the data centre switching market.
Gartner names newcomer Exabeam a leader in SIEM
The vendor landscape for SIEM is evolving, with recent entrants bringing technologies optimised for analytics use cases.
52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.
Genesys PureCloud generates triple-digit revenue growth year on year
In Australia and New Zealand, the company boosted PureCloud revenue by nearly 100%.
Symantec releases neural network-integrated USB scanning station
Symantec Industrial Control System Protection Neural helps defend against USB-borne cyber attacks on operational technology.