Smart metering to generate $60bn by 2027
- March 28, 2023
- Steve Rogerson
Smart metering will generate $60bn in revenue for vendors globally by 2027, according to market watcher Juniper Research.
The study found that hardware, connectivity and service revenue from smart meter deployments, and in use, will exceed $60bn in 2027, up from $41bn in 2023. This 44% growth reflects how smart meters are becoming critical to increasing the efficiency of energy grids via analytics; this is central to lowering costs to customers during the energy price crisis.
A smart meter records energy usage and leverages onboard connectivity to upload these data to energy suppliers.
By 2027, the research forecasts Italy will have the highest household penetration rate of smart meters globally, at almost 100%. Italy has had mandatory smart meter installations since 2006, setting an example for the wider market. The top five countries by 2027 are expected to be:
- Italy (99.6%)
- UK (98.7%)
- Saudi Arabia (98.4%)
- Hong Kong (98.4%)
- UAE (97.4%)
The research recommends utility companies focus on educating consumers on the benefits of smart metering, as these benefits are often unclear to them. Utility companies should focus on the potential for saving energy, with evidence-based use cases to catalyse adoption.
The research found that, with over 1.8 billion smart meter connections forecast to be in use by 2027 globally, smart meter connectivity represents an important opportunity for cellular networks and low-power IoT connectivity. The low data usage of smart meters lends itself naturally to low-power IoT but, as cellular networks are the only networks capable of providing ubiquitous access in some markets, they clearly still have a role.
“While smart meters have come a long way in deployment terms, they are only as good as the connectivity they leverage,” said report co-author Nick Maynard. “Utility companies must aim to aggregate the best networks for their locations, or they will fail to obtain the benefits smart meters can readily provide.”