Smart Meters to Reach 780 Million in 2020 Thanks to China

Homeowners care about how much electricity they’re using, not just because of the expense, but also thanks to climate change concerns, which accounts for much of the interest in the rapidly growing smart meter marketplace.

According to ABI Research’s “Smart Metering Devices and Services Update” study, which came out of the firm’s M2M and IoT research division, the worldwide installed user base of smart meters will reach 780 million by 2020. The growth will be pushed by mass roll-outs in China, where there were almost 210 million units installed by the end of 2014. The Asia-Pacific region will account for almost 65 percent of the predicted 2020 total.

“In Europe, nationwide rollouts in E.U. member states are expected to drive the smart meter penetration. This will make Europe the second biggest market for smart meters by installed base,” said Adarsh Krishnan, senior analyst at ABI. “The region will overtake North America, where mass roll-outs by large utilities peaked already in 2012, leaving the next wave of installations driven by smaller municipal co-operatives.”

At the moment, power line communication technologies represent the largest share of connections, the report said. The early adoption of PLC-enabled smart meters in Italy, Spain, and China has given the technology its current momentum. The supplier landscape is mostly dominated by traditional meters vendors Landis+Gyr, Itron, Sensus, Elster, Holley Metering and Kamstrup, which provide end-to-end smart metering solutions. The incumbent vendors are facing stiff competition from new entrants, with the market beginning to favor more modular AMI solutions.

“As the industry evolves, standards-based solutions are becoming an attractive alternative to many utilities,” said Aapo Markkanen, principal analyst, ABI. “This shift is allowing forward-thinking module vendors like Trilliant, Silver Spring Networks, and EnVerv to gain ground against the traditional metering vendors and their proprietary solutions.”

The utilities market is evolving, like every other industry touched by the IoT. To get your finger on the throbbing pulse of this evolution, make sure you are at the IoT Evolution Expo, at Caesars in Las Vegas from August 17 to 20.