Smart Meter Market size was valued at USD 25.5 billion in 2023 and is projected to reach a valuation of USD 82.9 billion by the end of 2037, rising at a CAGR of 8.4% during the forecast period, i.e., 2023-2037. In 2024, the industry size of smart meter was estimated at USD 28.3 billion.
The smart meter market is expanding rapidly due to the shift to digital networks, the integration of renewable energy sources, and the pursuit of energy efficiency. Both governments and utility providers have been increasing their spending on smart grid technologies for better energy delivery and usage. In June 2023, Moldova’s Ministry of Energy, together with the UNDP, initiated a pilot project on the introduction of smart electricity meters, which shows the process of digitalization of the energy industry. This is a move towards the improvement of energy management, curtailment of wastage of energy, as well as the realization of national energy efficiency targets through the use of real-time monitoring and automated billing systems. However, the growing emphasis on renewable energy integration to enhance DER management and control also drives market growth.
The use of smart meters in residential, commercial, and industrial sectors is anticipated to rise considerably as a result of the growing need for real time energy management, improved grid stability, and efficient maintenance scheduling. Adani Energy Solutions announced in January 2024 that it aimed to control 25.0% of the country’s smart meter market by focusing on large orders from distribution companies. This aggressive expansion is due to the growing use of smart metering systems, which enhance efficiency, combat energy theft, and meet international goals and governmental regulations. The growing number of smart city projects across the globe escalates the demand for smart meters for effective energy management and evidence-based decision-making among utilities.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2023-2037 |
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CAGR |
8.4% |
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Base Year Market Size (2023) |
USD 25.5 billion |
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Forecast Year Market Size (2037) |
USD 82.9 billion |
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Regional Scope |
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Type (Smart Electricity Meter, Smart Gas Meter, Smart Water Meter)
Smart electricity meter segment is expected to hold over 61% smart meter market share by the end of 2037. This growth is attributed to the increasing need for improved electricity management and better grid control. In June 2024, Mitsubishi Electric and Chunghwa Telecom co-developed a smart metering solution in Taiwan to address the issue of grid efficiency and to support large-scale adoption of the technology. Growing attention to the use of renewable energy and the development of the smart grid only strengthens the position of electricity meters as the fundamental component of smart utility solutions.
Component (Hardware, Software)
By the end of 2037, software solutions segment is predicted to dominate around 76.2% smart meter market share, due to the advancement of data analytics and grid management systems. Smart metering software is a crucial component that helps in the management of assets, detection of leaks and maintenance, and improvement of the performance of utilities. In May 2024, Badger Meter introduced BlueEdge as a water asset optimization suite to improve the data and functionality of the operations. This move toward software-based systems emphasizes the role of digital platforms in the development of new, efficient, and adaptive utility systems.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Component |
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Technology |
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End user |
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Asia Pacific Excluding Japan Market Statistics
APEJ smart meter market revenue is poised to reach USD 30.2 billion by the end of 2037. The growth is driven by increasing urbanization, regulation of smart grid development by the government, and the need for efficient energy management. Expenditure on smart water and gas metering is also increasing as nations focus their attention on water and energy efficiency. The development of infrastructure projects across the region is also pushing the demand for smarter metering in homes, industries, and businesses.
The growth of smart meter market in India is attributed to large-scale infrastructure projects and government policies. In July 2023, Genus Power & Infrastructures Ltd. signed a deal with GIC’s associate company, Gem View Investment, to form an advanced metering infrastructure platform with a capital of USD 2 billion. Genus will be the sole provider of smart meters for the country in a bid to achieve the government of India’s target of installing 250 million smart meters by 2025 under the National Smart Metering Programme. This is in line with the nation’s effort towards meeting energy efficiency, efficient grid management, and improved revenues for utility companies.
China holds the largest share of the smart meter market in APEJ due to the accelerated smart city development and infrastructure improvement. The government has stepped up efforts to eliminate energy wastage and enhance grid efficiency through the installation of smart meters in both urban and rural regions. In the transportation and utilities industries, smart metering is connected with IoT to improve data integrity and promote the sustainable development of the two sectors. China has increased the uptake of smart meters and is already a key player in the provision of smart infrastructure in the market.
North America Market Analysis
North America smart meter market is estimated to observe more than 8.2% growth through 2037, due to rising investments in AMI and smart grid upgrades. The region’s emphasis on decreasing energy use and improving the grid is forcing the adoption of advanced smart metering solutions for utilities. Due to the increasing need for real-time data analysis, smart meters are becoming the most efficient tools in energy supply chain management. The integration of IoT and AI into metering systems also promotes market growth.
The smart meter market in the U.S. is rising steadily due to significant developments in promoting sustainability. In September 2024, Trilliant announced that it would collaborate with Sense to incorporate edge analytics into AMI solutions to enable real-time data processing at rates up to 1MHz. This goes way beyond what first-generation smart meters can do, which means that utilities can now monitor energy consumption more effectively. During the forecast period, funding from the federal and state levels and increasing consumer awareness are also expected to fuel the growth in the residential and industrial sectors.
The smart meter market in Canada is also expanding due to the adoption of energy efficiency policies and the improvement of public utility infrastructure. The emphasis on the integration of renewable energy and the minimization of power losses has resulted in significant investment in smart metering. Some of the Canadian provinces are enhancing the AMI projects for enhanced grid visibility and the integration of cleaner energy solutions. The partnership of utilities and technology providers is anticipated to improve the collection of data, decrease costs of operations, and increase the efficiency of energy delivery and use, making Canada a major participant in North America smart meter market.
Some of the leading industry players in the smart meter market include Itron Inc., Landis+Gyr, Honeywell International Inc., EDMI Limited, Siemens AG, Mitsubishi Electric Corporation, and Badger Meter, Inc., and these companies are focusing on research and development of new products and services and increasing their market presence across the globe. These companies are leading the way through the creation of sophisticated hardware, software, and whole-system metering. These are some of the key stakeholders in the sector due to their emphasis on smart grid, IoT, and utility digitization.
In November 2022, Landis+Gyr expanded its product offerings with new smart metering solutions in the electricity, heat, gas, and water sectors, thus strengthening its position in the smart meter market. This growth is indicative of a larger trend of intelligence at the edge of the grid that seeks to optimize energy delivery and minimize greenhouse gas emissions. With the increasing growth of the market, it is expected that competition will be based on product development, intersectoral cooperation, and partnerships to ensure the future growth of the global market.
Here are some leading companies in the smart meter market:
Author Credits: Dhruv Bhatia
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