U.S. Smart Meter Market Outlook – 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 meters are electronic devices that accurately monitor electricity, gas, and water usage. These smart meters can send usage information through power line communication, radiofrequency electromagnetic radiation (RF), and cellular communication, helping utility companies to effectively manage energy usage. Smart meters offer a host of benefits such as reduction of meter reading cost, prevention of disconnection, removal of inefficiencies in billing, and re-connection costs to corporations and consumers.
The major factor that drives the smart meter market size is the development of communication network infrastructure. The energy sector has been one of the early adopters of digital technologies. In the upcoming decades, digital technologies are expected to make energy systems more connected, efficient, reliable, and sustainable worldwide. Ongoing and continuous development of communication network infrastructure contributes toward the manufacturing of advanced-level smart meters.
In addition, the U.S. smart meter market is estimated to grow at a significant rate driven by various government initiatives in the country. In addition, funds from the American Recovery and Reinvestment Act (ARRA) majorly play a significant role in the growth of the U.S. smart meter market. Replacement of old conventional meters and upgradation of outdated infrastructure also propels the growth of the industry.
Furthermore, digitalization in electricity infrastructure is already improving the productivity, safety, accessibility, and sustainability of energy systems. For instance, according to the International Energy Agency (IEA) report, using smart lighting and thermostats can cut total energy use in commercial and residential buildings by 10% by 2040. Moreover, high investments in digital electricity infrastructure also create opportunities for the U.S. smart meter market.
In addition, various grid operators and other gas utility and water utility providers are effectively managing demand for smart meters. In addition, smart city initiatives involve the adoption of digital technologies for smart retail, IoT, smart mobility, and smart meters to create a sustainable city. Hence, such factors are anticipated to propel the market growth. However, the high cost of installation of smart meters borne by end users restrains the growth of the market.
Smart meters are one of the crucial parts required for smart city initiatives as it majorly depends on smart grid systems to ensure flexible distribution of electricity to supply its numerous functions. In addition, a smart grid in the smart city allows the integration of renewables and enables clean energy production close to where it is needed, which further provides an opportunity for growth of the market.
In recent times, several factors have been integrated to make smart meters more remarkable, reliable, and affordable. Different connectivity technologies used by smart meters further spur the growth of the U.S. smart meter market. Major benefits offered by smart meters include the detection of any leakages in supply; continuous monitoring of electricity, gas, and water flow; and detection of any theft in supply boosting the growth of the market. Moreover, smart meters help in the elimination of manual monthly meter readings and optimize profit with an existing resource.
By Component
Product segment is projected to be the most lucrative segment
Segment Overview
The U.S. Smart meter market is segmented based on component and end-use. The component segment is further sub-segmented into product, service, and connectivity. Based on product, the market is segmented into smart electricity meters, smart gas meters, and smart water meters. Based on service, it is classified into installation and repair & maintenance. Based on connectivity, it is classified into power line communication, cellular communication, and radio frequency. By end use, it is divided into residential, commercial, and industrial.
By End Use
Residential segment is expected to secure the leading position during forecast period
Top Impacting Factors
The major factor that drives the U.S. smart meter market size includes the development of communication network infrastructure, government initiatives, and high investments in digital electricity infrastructure. However, the high cost of installation of smart meters hamper the market growth. In addition, developing smart city projects in the U.S. are expected to provide growth opportunities for the U.S. smart meter industry.
COVID-19 Scenario Analysis
The U.S. smart meter market growth 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. Moreover, owing to lockdown measures, demand for residential, commercial, and industrial use of smart meters has decreased. Consequently, manufacturing and supply of smart meters is returning to normal levels. Several manufacturers have started witnessing a recovery in sales.
Although the COVID-19 pandemic has forced field work of several major smart metering projects to pause temporarily, the market is nonetheless expected to remain robust with a cumulative number of smart meter shipments being largely unaffected over a three-year period.
Competitive Analysis
The key market players extensively 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. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
Key Benefits For Stakeholders
- This study comprises an analytical depiction of the U.S. smart meter market size along with current trends and future estimations to depict the imminent investment pockets.
- The overall U.S. smart meter market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and U.S. smart meter market trends with a detailed impact analysis.
- The current U.S. smart meter market forecast is quantitatively analyzed from 2019 to 2027 to benchmark financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the U.S. smart meter market share of key vendors.
- The report includes the market trends and the market share of key vendors.
U.S. Smart Meter Market Report Highlights
| Aspects | Details |
 By Component |
|
 By End Use |
|
 Key Market Players | NEPTUNE TECHNOLOGY GROUP INC., LANDIS+GYR, SENSUS (XYLEM), ACLARA TECHNOLOGIES LLC., SCHNEIDER ELECTRIC, HONEYWELL INTERNATIONAL INC., MUELLER SYSTEMS LLC, BADGER METER, INC., SIEMENS AG, ITRON INC. |
Analyst Review
Smart meters are electronic devices that record and analyze consumption of electrical energy and sends back information to respective electricity suppliers for billing and regulation. Smart meter automatically detects any theft or tampering in electricity and alerts the company about it. Data gathered through smart electricity meter permits energy distributers and utility companies to enhance power distribution losses across the grid.
The major factor that drives the U.S. smart meter market is supportive government policies and financial incentives. In addition, large scale installations of smart meters by utility companies are focused on strengthening distribution of smart meters. However, high cost of installations of smart meters borne by end users restrain growth of the smart meter market. Moreover, various grid operators and other gas utility and water utility providers are effectively managing demand for smart meters. In addition, various benefits offered by the smart meter market such as automatic meter reading and bill generation are further expected to contribute toward growth of the U.S. smart meter market.
The report focuses on growth prospects, restraints, and trends of the smart meter market analysis. The study provides Porter’s five forces analysis to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers in the smart meter market.
The U.S. Smart Meter Market is estimated to grow at a CAGR of 10.47% from 2020 to 2027.
The U.S. Smart Meter Market is projected to reach $7.69 billion by 2027.
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Development of communication network infrastructure, government initiatives, and high investments in digital electricity infrastructure etc. boost the U.S. Smart Meter market growth.
The key players profiled in the report include Itron Inc., Landis+Gyr, Schneider Electric SA, Siemens AG, Badger Meter, and many more.
On the basis of top growing big corporations, we select top 10 players.
The U.S. Smart Meter Market is segmented on the basis of component and end use.
The key growth strategies of U.S. Smart Meter market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Industrial segment would grow at a highest CAGR of 12.18% during the forecast period.
Product segment will dominate the market by the end of 2027.
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