Metering & Energy Management

• The shale gas boom in the United States will play a key role in the development of the nation’s smart electricity grid, affecting almost every part of utility infrastructure decision making in the coming decade—and driving a resurgence in market for related equipment starting in 2015.

The overall utility billing meter market is expected to reach nearly $13 billion in 2016, according to a study recently published by IMS Research, now part of IHS (NYSE: IHS). 2016 is also anticipated to be the first time that revenues for advanced utility meters match those of their basic, non-communicating counterparts.

Revenues for the global gas meter market are to surpass $2 billion annually in 2013, according to a new market study from  IMS Research, part of IHS Inc. (NYSE: IHS). New advanced metering initiatives and construction in developing countries are forecast to grow market revenues to over $2.7 billion by 2016.

IMS Research (recently acquired by IHS Inc. (NYSE:IHS)) forecasts that revenues from the North American utility gas meter and associated communication module market will exceed $500 million per annum starting in the year 2014. This revenue growth will be driven by the continued automation of gas endpoints via new two-way meters and retrofit communications modules, as well as an added boost from the large Southern California Gas Company (SoCalGas) fixed network installation. These findings have been presented in IMS Research’s recently published report, The World Market for Gas Meters – 2012.

IMS Research (recently acquired by IHS Inc. (NYSE:IHS)) forecasts the U.S. market for smart metering backhaul infrastructure to sustain annual revenues near $200 million, even as smart electricity meter shipments decline. Smart metering solution providers will achieve this ongoing revenue by offering utilities added functionality on their data backhaul networks, supporting grid automation.

IMS Research (recently acquired by IHS Inc. (NYSE:IHS)) forecasts the market for equipment supporting smart grid communications and networking to grow from $700 million in 2011 to nearly $950 million by 2016. This growth is projected even as smart meter shipments are forecast to decline from 2012 onwards in North America and general economic growth remains elusive.

A recent study released by IMS Research, recently acquired by IHS Inc. (NYSE: IHS), shows that global billing heat meter market revenues surged in 2011 to roughly $730 million, a growth of almost 15 percent over 2010 levels. Key market drivers are new technology adoption and a continually maturing regulatory environment which promotes end-use measurement for the accurate billing of energy. 

In the next five years, around 400 million ‘smart home energy management’ devices will be shipped globally, according to a recent study from IMS Research, a leading analyst firm recently acquired by IHS Inc. (NYSE: IHS). This includes devices such as smart meters, smart thermostats, in-home displays, ‘smart appliances’, and load control switches [see figure below]. This represents a major opportunity for IC suppliers, driving connectivity technologies into a wide range of typically ‘un-connected’ devices. Yet the type of connectivity technologies selected varies by both country and the type of company deploying the energy management solution.

Following a range of EU and UK-specific mandates, smart meters are set to be installed in most UK homes by 2019. These meters provide two-way communication between electricity (or gas) meters, and utility companies via an Advanced Metering Infrastructure (AMI) network, enabling the companies to measure how much electricity consumers are using remotely and send signals back to the meter. Mass roll-out is expected to occur from 2H14, although a number of utility companies have demonstrated smaller-scale deployments already. According to a recent study from IMS Research, a leading independent supplier of market research and consultancy to the global electronics industry, in the next five years, over £2.4 billion will be spent in the UK on smart home energy management devices – ranging from smart meters themselves, to in-home devices that can ‘talk’ to them.

Following a range of EU and UK-specific mandates, smart meters are set to be installed in most UK homes by 2019. According to a new report by IMS Research, a leading supplier of market research and consultancy to the global electronics industry, the market for smart home energy management devices in the UK – including the smart meters themselves – is projected to exceed £1 billion annually in 2015.

IMS Research predicts that by 2016 annual revenues from the smart gas meter market will reach over $1 billion, roughly four times the 2011 market estimate. This is a key finding from the recently published report, “The World Market for Gas Meters – 2011 Edition”. Growth is anticipated to be strong mainly due to the emergence of new markets for advanced gas meters in Europe and Asia.

The advanced water metering market, estimated at about 5.5 million global shipments in 2010, and anticipated to be roughly 10 million shipments annually in 2016, continues to increase its product share, particularly in North America. These findings come from IMS Research’s recently published The World Market for Water Meters – 2011.