Cellular Smart Electricity Meter Market to Reach 9.5 Million Shipments in 2016
Date: 17 October 2011

Advanced electricity meters with integrated cellular communication modules are forecast to increase from 2.6 million shipments in 2010 to 9.5 million shipments annually in 2016. This is one conclusion in the upcoming study, “The World Market for Smart Electricity Meters – 2011” which is publishing in October 2011.

According to Rolando Campos, the author of the report, “The US and UK are forecast to experience the largest volumes of cellular shipments through 2016 for distinct reasons. In the US, telecoms have reduced the cost of data plans for meters significantly to about $1 (or less) per meter, per month. Utilities that wish to reduce up front capital expenditures by over 40% and reduce operating expenses are finally realizing the benefits of using public cellular providers.” Operating costs are lowered by reducing or eliminating the networking and maintenance staff needed to maintain a metering network. In the US, a larger percentage of the opportunity for new smart meter installations (i.e. endpoints not under contract) will likely come from smaller utilities that have spread-out populations in diverse geographies. Smaller utilities have less capital and often do not enjoy the tax write-offs that come with large fixed-capital intensive projects. Campos adds, “as telecoms providers lower the total cost of ownership for a cellular-based smart metering solution, not only will small utilities in the US switch to a cellular option but larger utilities in the US and throughout the world may begin to seek ways to collaborate with local telecoms to make cellular a more viable option.”

The UK is forecast to have the largest cumulative volume of cellular smart meters in the world from 2010 to 2016. Cellular solutions are key in the UK due to the general structure of the utilities and grid operators, whereas a meter change-out may happen piecewise, making cellular M2M devices the likely solution. There are already plans for some suppliers to ship cellular meters next year and as telecoms in the UK begin to see the business opportunity in the US mature, telecoms providers in the region are likely to follow suit and make pricing per meter more competitive. 

Editors Note :

If you would like an interview with an expert in this area, please contact Rolando Campos, Analyst, at Rolando.Campos@imsresearch-usa.com or +1 512 302 1977.

About IHS Inc. (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,600 people in more than 30 countries around the world.

About IMS Research:

IMS Research is a supplier of market research and consultancy services on a wide range of global electronics markets. The company is supported by headquarters in Wellingborough, UK and offices in Austin, Texas and Shanghai, China. IMS Research regularly publishes detailed research on the global utility meter market, power quality meters market, and smart meters. www.imsresearch.com

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