Hardware, connectivity and service revenue from future and in-use smart meter deployments will exceed $60bn in 2027, up from $41bn in 2023, a news study predicts.
According to the analyst Juniper Research, this 44 per cent growth reflects how smart meters are becoming critical to increasing the efficiency of energy grids via analytics and are central to lowering costs to customers during the energy price crisis. A smart meter records energy usage and leverages onboard connectivity to upload this data to energy suppliers.
Smart grid opportunities
By 2027, the report Smart Grid: Key Opportunities, Challenges & Market Forecasts 2022-2027 forcasts Italy will have the highest household penetration rate of smart meters globally, at almost 100 per cent. Italy has had mandatory smart meter installations since 2006, setting an example for the wider market.
The top five countries were ranked as follows:
1. Italy (99.6 per cent)
2. UK (98.7 per cent)
3. Saudi Arabia (98.4 per cent)
4. Hong Kong (98.4 per cent)
5. UAE (97.4 per cent).
Juniper’s research recommends utility companies focus on educating consumers on the benefits of smart metering, as these benefits are often unclear to them. Utility companies should focus on the potential for saving energy, with evidence-based use cases to catalyse adoption.
The research found that, with over 1.8 billion smart meter connections forecast to be in use by 2027 globally, smart meter connectivity represents an important opportunity for cellular networks and low-power IoT connectivity. The low data usage of smart meters lends itself naturally to low-power IoT, but as cellular networks are the only networks capable of providing ubiquitous access in some markets, they clearly still have a role.
“While smart meters have come a long way in deployment terms, they are only as good as the connectivity they leverage. Utility companies must aim to aggregate the best networks for their locations, or they will fail to obtain the benefits smart meters can readily provide,” said Nick Maynard, head of research at Juniper Research and report co-author.