There has been a surge in worldwide demand for smart electricity meter devices in recent years, driven by the global push for efficient energy management, sustainability, and technical innovation.
The smart metering market is expected to increase significantly in 2024, thanks to promising government policies, utility investments, and technology developments such as Advanced Metering Infrastructure Service Provider (AMI) and cellular communication.
In this blog, we will understand the global trends in the smart meter industry market and the factors that challenge its acceptance.
A smart energy meter is an electronic IoT device used in measuring systems provided by utility service providers (USPs) to monitor various factors in electricity distribution to customers.
The bidirectional connection capabilities of these devices allow for flexible rate management, real-time monitoring, and accurate data on energy usage.
In addition to real-time consumer data on energy use, smart electricity meter devices provide real-time insights into the quality of power supplied, voltage variances, and interruptions in the USPs’ distribution system.
This leads to improved energy efficiency (because consumers can monitor their consumption), reduction in operational costs (because automated meter readings replace manual operations), and greater sustainability (because smart meters can incorporate renewable energy sources into the power grid).
So far, the global market penetration of smart power meters has produced mixed results. North America and Europe have recorded adoption rates of more than 50%, although South Asia, Latin America, and Africa are rising markets that are gradually catching up.
The adoption of smart electricity meters has been increasingly expanding in North America and European markets, with North America reporting about 77% market penetration by the end of 2023 and Europe reporting 47%, which is predicted to rise even more by 2025.
The primary reasons for their high penetration rates are strong government policies, an emphasis on energy efficiency, and technology developments.
Utility service providers in these regions use cellular connections and AMI systems to improve operational efficiency and cut costs.
2.Expanding adoption in emerging markets
Emerging markets have also realized the need to modernize their energy infrastructure and are accelerating the deployment of smart electricity meter devices.
Asian countries like India, China, and Japan are heavily investing in their smart meter rollouts. For instance, India has devised an ambitious plan to install 250 million smart meters by the end of 2025.
Similarly, Mexico’s utility service provider, CFE, aims to install 30 million smart meters by 2025.
There has been limited adoption in countries like Nigeria, mainly due to outdated infrastructure and rising energy demand, but the potential for growth remains high.
Furthermore, countries such as Brazil and South Africa are moving beyond pilot initiatives to large-scale deployments.
3.Technological advancements
Smart electricity meter devices must undergo constant technological improvement if they are to gain widespread acceptance and break into markets around the world.
Incorporating cellular communication into the smart meters has proved to be a game changer. This technology guarantees reliable data transfer via cellular networks in both rural and urban areas.
In addition, advanced metering infrastructure (AMI) allows utilities to track, anticipate, and respond to energy consumption in real-time.
Despite promising progress, numerous barriers prevent the broad deployment of smart electricity meters:
1.Market saturation and minimal growth
Incorporating advanced technology into smart meters is ongoing in nations such as Sweden, Canada, and Finland, which will raise the cost of the meters and make it challenging to penetrate emerging markets.
2.Uncertain government policies
In countries such as Brazil, India, Mexico, and South Africa, policy indecision creates complicated and ambiguous environments for smart meter stakeholders, thereby hindering creativity and investments that consequently delay smart meter deployments.
3.Security
The security of the data collected by smart meters, including detailed consumption information, is an essential concern for utilities and their customers.
Conclusion
With the installation of over one billion smart electricity meter devices and an expanding digital footprint, the USP industry, previously considered a laggard in adopting new technology, is now at the forefront of the digital revolution.
The smart energy meter market is expected to experience exponential growth from now until 2028, with a CAGR (compound annual growth rate) of 8-10%. These numbers only represent the beginning of what lies ahead.
Additionally, smart meters will become even more powerful by integrating 5G modules and AI-enabled analytics powered by artificial intelligence.
As a pioneer in this industry, Genus Power shows the importance of innovation in overcoming obstacles and boosting adoption. In its capacity as an infrastructure service provider, Genus Power has established itself at the forefront of providing smart meters that are accessible, efficient, and sustainable.
Equipped with state-of-the-art smart meters compatible with technologies like AMI and cellular communication, our cost-effective solutions are ideal for large-scale deployments, particularly in emerging countries. Contact our experts to find out more about our smart metering products and solutions.