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 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 manufacturing of advanced level of 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 plays a significant role in growth of the U.S. smart meter market. Replacement of old conventional meters and upgradation of outdated infrastructure also propels growth of the industry.
Furthermore, digitalization in electricity infrastructure is already improving productivity, safety, accessibility, and sustainability of energy systems. For instance, according to 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 creates 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 adoption of digital technologies for smart retail, IoT, smart mobility, and smart meter to create a sustainable city. Hence, such factors are anticipated to propel the market growth. However, high cost of installation of smart meters borne by end users restrain 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, smart grid in smart city allows 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 detection of any leakages in supply; continuous monitoring of electricity, gas, and water flow; and detection of any theft in supply boost growth of the market. Moreover, smart meters help in elimination of manual monthly meter reading, and optimizes profit with an existing resource.
Product segment is projected to be the most lucrative segment
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 meter, smart gas meter, and smart water meter. 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.
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 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. 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 have decreased. Consequently, manufacturing and supply of smart meters is returning to normal levels. Several manufacturers have started witnessing 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 cumulative number of smart meter shipments being largely unaffected over a three-year period.
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 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 the 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
By End Use
Key Market Players
SIEMENS AG, HONEYWELL INTERNATIONAL INC., BADGER METER, INC., MUELLER SYSTEMS LLC, SENSUS (XYLEM), ITRON INC., SCHNEIDER ELECTRIC, LANDIS+GYR, ACLARA TECHNOLOGIES LLC., NEPTUNE TECHNOLOGY GROUP INC.
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.