According to a new report published by Allied Market Research, titled, U.S. Smart Meter Market By Component and End Use: Opportunity Analysis and Industry Forecast, 2020–2027”, the U.S. smart meter market size was $3.73 billion in 2019, and is projected to reach $7.69 billion by 2027, to register a CAGR of 10.47% during the forecast period.
Smart meter is next generation of gas, water, and electricity meter that measures how much gas, water, and electricity is being used. A smart water meter measures the water flow and also uses wireless communication to connect to local or wide area networks that allowing remote location monitoring and infrastructure maintenance through leak detection. Smart meter shows digital meter reading and uses secure smart data network to automatically and wirelessly send readings to energy suppliers at least once a month, so accurate bills are received. In addition, smart meters also come with in-home display screen, which shows exactly how much energy is used in near real time.
Smart gas meters are electronic devices that measure gas flows and consumption of gas and provides information of how much gas has been consumed and its relevant costing. Smart gas meters are equipped with shock and leakage detection system increasing safety to a great extent. Smart gas meter installations help gas companies some major operational advantages including elimination of noting monthly reading manually, availability of real-time data, and continuous monitoring of pipeline.
Electric companies are enhancing resilience and operations of energy grid and gaining more detailed visibility into system operations that helps them to restore power more quickly or avoid outages. U.S. electric companies have installed 98 million smart meters in 2019, and are covering more than 70% of overall U.S. households. They also installing 107 million smart meters by the end of 2020.
The major factor that drives the U.S. smart meter market size includes development of communication network infrastructure, government initiatives, and high investments in digital electricity infrastructure. However, high cost of installations of smart meters hamper the market growth of U.S. smart meters. In addition, developing smart city projects in U.S. are expected to provide opportunities for the U.S. smart meter market growth during the forecast period.
The U.S. Smart meter market is segmented on the basis of component and end use. The component segment further sub segmented into product, service, and connectivity. On the basis of product, the market is segmented into smart electricity meters, smart water meters, and smart gas meters. On the basis of service, it is classified into installation and repair & maintenance. On the basis of connectivity, it is classified into power line communication, cellular communication, and radio frequency. By end use, it is divided into residential, commercial, and industrial.
COVID-19 Scenario Analysis
The U.S. smart meter market trends has been significantly impacted by the COVID-19 outbreak. At the start of the outbreak, the main impact faced by many smart meter manufacturers was supply problems, owing to halted production. Due to lockdown measures, non-essential businesses, and the demand for the residential, commercial and industrial use of the smart meters have been decreased. Consequently, the manufacturing and supply of smart meter is returning to normal levels. Several manufacturers have started witnessing recovery in sales.
Key Findings of the Study
- In 2019, the electricity meter segment accounted for maximum revenue and is projected to grow at a notable CAGR of 11.3% during the forecast period.
- The residential segment accounted for more than 60.0% of the U.S. smart meter market share in 2019.
- The industrial segment witness highest growth rate during the forecast period.
The key players profiled in the report include Itron Inc., Landis+Gyr, Schneider Electric SA, Siemens AG, Badger Meter, Mueller Systems LLC, Aclara Technologies LLC, Neptune Technology Group Inc., Sensus, and Honeywell International Inc. U.S. smart meter market players have adopted various strategies such as product launch, collaboration, partnership, and agreement to expand their foothold in the U.S. smart meter industry.