Asia Pacific smart meters market is projected to offer a revenue opportunity of US$ 42,104.8 Mn during the forecast period 2023–2031 and is estimated to reach US$ 53,596.9 Mn by 2031 at a CAGR of 20.1%. 

The growth of the smart meters market is driven by several key factors, including the increasing support from governments for the digitization of energy grids and the growing need for real-time monitoring of energy usage. As more and more countries aim to modernize their energy infrastructure, the adoption of smart meters has become a priority.

Smart meters are the next-generation meters that have the capability to collect information about energy, water, and gas consumption and transmit the data securely through a national communication network. This makes them a superior alternative to traditional meters that require manual meter readings to be submitted to the supplier. With smart meters, energy usage data is transmitted in real-time or near real-time, allowing for more efficient and accurate tracking.

Additionally, smart meters market offer several benefits to consumers, including power outage notification, power quality monitoring, and improved complaint management. This leads to higher levels of reliability and transparency, which enhances consumer satisfaction and encourages more companies to engage in the market.

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Market Dynamics 

Drivers 

• Rising Government Financial Support for Digitalization of Grids in Asia Pacific Smart Meters Market

The governments of various countries in the Asia Pacific region are keenly focusing on promoting renewable energy sources and efficient energy distribution to households, thereby limiting the carbon footprint of the region. This is being done through the implementation of smart meter technology. For instance, in India, the Smart Meter National Programme (SMNP) aims to replace the country's 250 million conventional meters with smart meters. Under this programme, the Energy Efficiency Services Limited (EESL) has installed over 13.2 lakh smart meters in states such as Uttar Pradesh, New Delhi, Haryana, and Bihar as of August 2021.

Similarly, the Asian Development Bank (ADB) is helping Uzbekistan increase its energy efficiency by funding the installation of 1.4 million pre-paid smart meters in the towns of Bukhara, Jizzakh, and Samarkand. This is due to the advanced monitoring capabilities provided by smart meters. These initiatives highlight the efforts being made in the Asia Pacific smart meters market to promote sustainable energy practices and ensure reliable energy distribution.

• Growing Need for Real-Time Monitoring Paving the Way for Adoption of Smart Meters

Smart meters provide a multitude of benefits for the energy sector, particularly in the areas of real-time power quality monitoring and theft detection. With the ability to triangulate the location of losses at a much more detailed level than traditional methods, smart meters help to detect theft and improve the overall efficiency of the energy distribution system.

The real-time monitoring capabilities of smart meters also provide prioritized warnings and trigger events, helping infrastructure management teams to prioritize their workflow and address any issues more effectively. Additionally, smart meter market allow utilities and partners to monitor the status and data of smart meters, define alarms and notifications, and even update software as needed.

The integration of AI, IoT, and big data analytics in smart meters is set to further simplify the monitoring process and provide even greater insights into energy consumption patterns. This will ultimately help to improve energy efficiency and reduce waste, leading to more sustainable energy practices.

Current Trends in the Market

Integration of Artificial Intelligence (AI) Technologies in Smart Meters Market

In recent years, the integration of artificial intelligence (AI) technology has greatly improved the way power system equipment monitor data, communicate with the system, evaluate input-output, and display data. This technology is already being used in the electricity sector in Asian developed countries to facilitate communication between smart grids, smart meters, and Internet of Things (IoT) devices.

The use of cellular IoT has also become a trend in smart meter market, with companies such as Kamstrup leading the way in this field. In 2020, Kamstrup launched its new smart electricity meter, OMNIA, which allows utilities to utilize both RF mesh and IoT cellular communications for connectivity.

However, despite the advancements in AI and cellular IoT in smart metering, the market still faces challenges that hinder its growth and widespread adoption. The implementation of smart metering technology requires significant investment and infrastructure changes, which can be a barrier for some organizations. Additionally, there are concerns about privacy and security in the collection and use of data from smart meters.

Factors restraining market growth

High Capital Cost and Maintenance & Security of Smart Meters

However, despite the potential benefits, the widespread deployment of smart meters is not without its challenges. One of the main challenges is the high cost associated with the deployment of smart meters. This includes expenditures on all hardware and software components, network infrastructure, and network management software. The installation and maintenance of information technology systems in smart meter technology are also expensive, which drives up the capital costs in the Asia Pacific smart meters market.

The COVID-19 pandemic has further impacted the demand for smart meters, leading to a decrease in the market. This has resulted in reduced funding for smart meter projects and a slowdown in the development and deployment of smart meter infrastructure.

In addition to the high cost of deployment, there are also concerns about privacy and security in the collection and use of data from smart meters. The implementation of smart meter technology requires significant changes to infrastructure, which can be a barrier for some organizations.

Market Segmentation

Type Segment Analysis

Smart electricity meters are more popular in the smart meters market, holding a 21% larger market share compared to smart water meters. The growth of smart electricity meters is driven by its ability to quickly restore power outages, as well as its ease in implementing new pricing and load management programs. Additionally, these meters offer convenient online billing, real-time monitoring of electricity consumption, and reduced billing errors.

On the other hand, the smart water meter segment presents a significant opportunity of US$ 9,646.9 Mn in Asia Pacific smart meters market during the period 2022-2030. Similarly, smart gas meters have an opportunity cost of US$ 2,357.1 Mn in the same period. These meters help water suppliers improve their water distribution network and implement effective water conservation and management practices.

Communication Method Segment Analysis

The growth of the cellular segment in the smart meters market is driven by the increasing demand for real-time monitoring and the need for efficient data transfer. The widespread availability of 3G and 4G networks has made it possible to transfer data from smart meters to utility servers in real-time. This, in turn, enables utilities to monitor power consumption, detect and resolve outages, and manage pricing programs effectively. 

Additionally, the increasing adoption of Advanced Metering Infrastructure (AMI) technology is also contributing to the growth of the cellular segment in the smart meters market. On the other hand, the power line communication segment, which currently holds the largest market share, is well-suited for quick and cost-effective deployments. However, the increasing adoption of cellular technology is expected to lead to its eventual dominance in the market. 

Technology Segment Analysis

In 2022, Advanced Metering Infrastructure (AMI) technology dominated with a 33% advantage over Advanced Metering Reading (AMR) technology. AMI encompasses a comprehensive system ranging from smart meters to a two-way communication network and control center equipment, enabling the rapid collection and transfer of energy consumption information. 

Moreover, the growth rate of AMI in the Asia Pacific smart meters market is expected to be higher, at 21.5%, during the period 2022-2030 compared to AMR's growth rate of 17.5%. This is due to AMR being a dated technology that requires manual data collection and lacking the capability to provide granular, time-series data intervals that are possible with AMI's cutting-edge radio-frequency technology.

Phase Segment Analysis:

Based on phase, the market share of the GISM (single-phase) segment would be exactly equal to the smart meters market share of the GISS (heavy consumers) segment by 2031, which is US$ 10,702.3 Mn. However, the GIST (three-phase) segment dominates the market in 2022 as it allows for higher transmission at lower amperage. This makes it possible to use higher gauge (thinner) copper wire, significantly reducing both material and labor costs. Further, a three-phase circuit provides high power density than a one-phase circuit at the same amperage, keeping wiring size and costs lower. In addition, three-phase power makes it easier to balance loads, minimizing harmonic currents and the need for large neutral wires, thereby driving end uses to adopt smart meters. 

End-User Segment Analysis

In terms of end-users, the residential segment holds more than 65% of the market share in 2022 and is further expected to continue its dominance in the Asia Pacific smart meters market during the forecast period.  Smart meters most commonly collect electric, water, and gas usage data of households. The new meters have the Time of Day (ToD) tariff feature which allows consumers to reschedule electricity usage to the off-peak hours and thereby reduce the bill amount significantly. The residential segment dominates in all the regions analyzed. 

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Regional Analysis:

The Asia Pacific Smart Meters Market is dominated by China, with a market share of over 65% in 2022. The country is poised to continue its dominance, estimated to account for anywhere between 70-80% of the total smart electricity meter demand across the Asia Pacific region in the coming years. In 2022, the number of ongoing smart meter tenders in China stood at 10,946 million.

China, being the world's largest producer of electricity, is facing challenges related to its reliance on coal-generated electricity, leading to greenhouse gas emissions. In response, the country is actively pursuing the adoption of renewable energy sources and digitizing its grids, which is driving smart meters market growth.

In India, the National Smart Grid Mission reported that as of January 2022, the Ministry of Power had installed approximately 3.37 million smart meters nationwide. Programs in the states of Assam, Bihar, and Delhi have also led to the installation of 208,076, 478,012, and over 36,319 smart meters, respectively, under the OPEX model, and 195,000 under the CAPEX model.

In Japan, the Ministry of Economy, Trade and Industry has mandated that all households be equipped with smart meters by March 2025 to enhance energy efficiency. The country's utilities are working towards meeting this deadline.

Competitive Landscape:

The Asia-Pacific smart meters market is dominated by five major players, accounting for nearly 73% of the market share in 2022. The market structure is characterized as slightly oligopolistic, with indications of shifting towards a monopolistic nature in the forecast period. These leading players include Itron, Sensus, Badger Meter, and Schneider Electric among others. To stay ahead in the competitive landscape, these market players are employing strategies such as mergers, acquisitions, and the launch of innovative products. 

List of Key Companies Profiled:

• Badger Meter​
• ​​EDMI Limited
• Holley Technology Ltd​
• Honeywell International​
• Itron
• Kamstrup​
• Landis+Gyr
• Larsen & Toubro
• Neptune Technology
• Schneider Electric
• Sensus
• Siemens
• Wasion Group
• Zilog Inc.
• Other Prominent Players

Key Developments in Asia Pacific Smart Meters Market:

• In November 2021, EnergyIP, the smart meter data management software offered by Siemens Smart Infrastructure, underwent a significant relaunch with a focus on enhancing the user experience. The relaunch was driven by the growing demand for improved data quality and increased automation in the smart meters market.
• In August 2021, Kamstrup announced the launch of its new OMNIA e-meter, which expands the company's offerings by providing a meter platform based solely on cellular IoT.
• In June 2020, Drax Group started collaborating with Data Communications Developer (DCC), smart meter manufacturer EDMI, and software company Utiligroup on a polyphase SMETS 2 smart meter. The project aims to provide major industrial and commercial organizations with better control over their energy use.
• In January 2020, Honeywell International and Verizon Communications announced their collaboration on the development of LTE-powered smart meters. The goal is to construct a smart energy grid using Verizon's Managed Connectivity LTE and Honeywell's IoT sensors, thereby hastening the creation of a cutting-edge digital ecosystem of utility-connected gadgets on LTE.

Segmentation Overview

The Asia Pacific smart meter market is sub-segmented into:

By Type

• Smart Electricity Meter
• Smart Water Meter
• Smart Gas Meter

By Communication Method

• Radio Frequency
• Power Line Communication
• Cellular

By Phase

• GISM (Single Phase)
• GIST (Three Phase)
• GISS (Heavy Consumers)

By Technology

• Automated Meter Reading (AMR)
• AMI

By End-User 

• Residential
• Commercial
• Industrial

By Country

• China
• India
• Japan
• Australia & New Zealand
• ASEAN
• Rest of Asia Pacific