Advances will be driven by the rising share of smart meters in use, particularly advanced metering
infrastructure (AMI) products, and by the greater number of smart meters to service.
US demand to see doubledigit
gains through 2016
Smart meter product and service demand
in the US is projected to increase
more than eleven percent annually to
$4.4 billion in 2016. Advances will be
driven by the rising penetration of smart
meters, particularly advanced metering
infrastructure (AMI) products. In addition,
the rising share of smart meters in use
means that there are a greater number
of meters to service, which will support
demand for parts and services. The
rising number of AMI meters will also
generate demand for related products
such as meter data management software.
As mainly early generations of advanced
meter reading (AMR) products,
reach the end of their service lives, utilities
will begin to replace these products.
In 2011, there were approximately 325
million electric, water and natural gas
meters installed in the US, and 45
percent were smart meters. Through
2016, the penetration rate for smart
meters is expected to continue to grow
rapidly, rising to 63 percent of all meters
installed. Following this strong growth,
the penetration rate for smart meters is
expected to continue to rise at a healthy,
albeit slower pace, as several segments
of the market begin to mature. By 2021,
there will be approximately 285 million
smart meters in use, nearing 80 percent
of all meters installed. The highest penetration
rate is forecast in electric meters,
with smart meters representing over 90
percent of electric meters in use by 2021.
AMI meters to rise rapidly
Demand for smart meters will rise more
than twelve percent annually to $3 billion
in 2016. Growth will be supported by
continued efforts by elec-tric utilities to
increase the intelligence of the electric
grid. Both the gas and water segments
are also expected to see rapid growth in
the use of AMI meters, albeit from a
smaller base than the electric segment.
In these markets, the added capabilities
of AMI vis-à-vis AMR meters are less
valuable to utilities. Still, the greater
visibility provided by AMI meters
and the declining cost difference between
AMR and AMI products is supporting
growth in the gas and water segments.
Northeast, Midwest to see
fastest regional growth
Through 2016, demand for smart meters
will grow most rapidly in the Northeast
and Midwest regions, primarily because
they are rising from a smaller base than
the South and West regions. Utilities in
the Northeast and Midwest have been
slower to roll out large-scale smart meter
installations, particularly installations of
AMI meters in the electric market. In
contrast, demand in the West region will
decline from an elevated level as several
large electric meter rollouts were completed
in this region in 2011.
This study analyzes the $2.6 billion US smart meter product and service industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (e.g., advanced metering infrastructure meters, automatic meter reading meters), market (electric utilities, water utilities, natural gas utilities) and US geographic region.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 24 industry participants, including Itron, Toshiba and Sensus USA.