The full results of the report, produced in collaboration with Navigant Research, will be shared with delegates attending the Smart Metering UK & Europe Summit, which takes place on January 30 and 31 in London.

Market dissemination

The report notes that globally, countries are at different stages in the implementation and deployment of smart metering initiatives, with penetration rates for smart electricity meters varying considerably in the period 2012-2022.

Europe and the Asia-Pacific region show signs of significant growth potential. Specifically, Europe will see market penetration increase of between 16% and 86%, thanks in large part to the energy metering policies adopted by the European Union, which aim to have 80% of households equipped with these meters by 2020. As for Asia-Pacific, the projected penetration rate will reach 68% by 2022, driven primarily by growth in China.

In the United States, however, the projected growth is much more stable after Congress launched various initiatives that led to an initial boom between 2009 and 2012. The installation of smart electric meters will grow steadily in the country over the next ten years, reaching a penetration rate of 91% in 2022.

Penetration forecasts for Latin America, the Middle East, and Africa for the period analyzed are considerably more modest.

Global installation rates

The number of smart electricity meters installed is projected to reach 800 million by 2020. China will be by far the country with the most installed meters, at 435 million in 2020, followed by the United States with 132 million devices. Japan and France follow with 58.7 million and 35 million, respectively. Both countries are preparing to implement initiatives that include the imminent installation of a first wave of smart meters, initiatives that will continue over the next ten years. As for the United Kingdom and Spain, all indications are that both countries will be able to meet the targets set by the European Union for the adoption of these devices before 2020. The United Kingdom, specifically, plans to install 53 million smart electricity and gas meters in 2020.

For technology companies, these countries represent a significant opportunity. However, each country is at a different stage of adoption of these meters, both in terms of timelines and the availability of gas, electricity, and water resources, the management of which involves various political and economic stakeholders. It is crucial for these companies to be aware of these stakeholders and to establish a local presence in these countries in order to capitalize on emerging opportunities.

“Smart meters play a fundamental role in the connected home of the future, a home that is, in turn, essential to what we call a connected life,” said Rob Searle, Head of Smart Metering at Telefónica Digital. “A connected life that will accelerate the transition to a more sustainable economy and revolutionize the way we interact with the devices around us, with our environment, and with other people.”.

Sales and economic potential

The smart meter sector is inherently dynamic, and current sales trends offer important data that will allow businesses to fully realize its potential. During the period analyzed (2012-2022), all regions studied showed significant growth, likely due to an initial adoption phase, followed by a slowdown in growth resulting from the maintenance of small-scale deployments of these devices. While the revenue opportunity from smart meter deployments totals nearly $57 billion, Navigant Research estimates that annual growth will be marginal, rising from $5.2 billion in 2012 to nearly $5.3 billion in 2022, representing a year-on-year growth rate of only 0.1%.

The most profitable year in terms of revenue will be 2018, with projected earnings of $7.4 billion. Subsequent years will see a gradual decline in revenue, with average unit selling prices decreasing by 2022.

The use of these meters brings significant advantages to both energy suppliers and consumers. Consumers will be able to monitor their energy consumption, helping them manage it more effectively. It is expected that in the UK, for example, consumers could reduce their bills by between 5% and 15%. Companies, in turn, will be able to reduce the costs associated with meter reading, as this task will be carried out automatically. This will also help them better protect their revenue through improved management of energy consumption and fraud prevention. Furthermore, improved communication with customers will allow them to strengthen customer relationships.

“The report, produced in collaboration with Navigant Research, demonstrates that smart meters will become an integral part of our daily lives. It also reveals important global trends that all companies in the sector must be aware of in order to plan for and efficiently capitalize on emerging opportunities for a more sustainable lifestyle and to enable consumers to achieve significant savings,” added Rob Searle.