Faced with the challenges of rising emissions, domestic energy resource constraints, ageing infrastructure and the growing demand and cost of electricity globally, the relatively new smart meter is anticipated to reach a whopping $10.4 billion market by 2022.
This is the verdict of GlobalData, a leading data and analytics company in its latest report titled ‘Smart Meters, Update 2018 – Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022’,
This is despite the significant challenges as high meter pricing, lack of supportive incentives, poor meter standards, regulatory shortcomings and resource management.
According to the report, nearly 88.2 million installations took place in 2017 where the global market value reached $7.1bn. Between 2012 and 2017 global market volume achieved a compound annual growth rate (CAGR) of 6.8 percent by value achieving double digit CAGR of 12 percent.
It is however, observed in the report that as the market grows, it is expected that favorable regulations, cost reduction, and progressive technology development could alleviate some existing challenges.’’
“Nations such as the US, South Korea and Japan have issued legislation, targeting 100 percent market penetration for smart meters. Consequently, the development and large-scale use of renewable, energy management technologies and efficiency measures are expected to contribute to the projected smart meter market growth,” noted Subha Krishnan, Power Analyst at GlobalData.
In the period under review by the report, (2018–2022), the market is expected to move at a slightly faster pace, despite several large-scale smart-meter rollout programs ending or nearing completion. The market volume is expected to register a CAGR of 8.9 percent, while value should reach a CAGR of 8.2percent.
Already, system integration companies like CWG PLC has keyed into the initiative and gradually driving the smart meter market in Nigeria with novel meters it said will alter the electricity distribution ecosystem in the country and boost their revenue.
This, the company recently noted it will do by installing evolving information and communications technology standards, the replacement of outdated meters (both advanced metering infrastructure and traditional), new infrastructure development, and peak load and asset management.