Matthew BoyleOver the next decade, the global smart meter market is poised for remarkable growth, with the number of smart meters projected to double from 1.7 billion in 2023 to 3.4 billion by 2033. This surge will drive annual revenue from smart meter sales to $40 billion, more than doubling the $17 billion recorded in 2023. According to insights from Transforma Insights, smart meters currently represent about 10% of all IoT connections, a figure expected to decrease slightly to 9% as other IoT applications expand. Despite this shift, smart metering technology remains crucial for managing utilities in homes, factories, and infrastructure, supported by a robust compound annual growth rate (CAGR) of 7.2%.
Smart electricity meters will continue to dominate the market, holding a significant share of 68% today and projected to be 62% by 2033. Meanwhile, smart gas and water meters will also see substantial growth, with water smart meters leading the pack due to a higher CAGR of 10%. The transition to low-power wide-area (LPWA) technologies like NB-IoT and LoRaWAN is expected to drive these advancements, replacing current methods such as powerline communications and RF mesh. This evolution in smart metering technology promises to enhance utility management and efficiency on a global scale.
Explosive Growth: Smart Meter Market Numbers to Surge from 1.7 Billion to 3.4 Billion in 10 Years
Over the next ten years, the number of clever meters in the world will double, from 1. 7 billion at the end of 2023 to 3.4 billion at the end of 2033. By the end of the period, smart-meter sales will generate $40 billion in revenue per year, well-over double its 2023 total ($17 billion ). Thus says IoT analyst firm Transforma Insights, which has run the numbers on the electricity, gas, and water metering markets, and come up with totals for each, and for all three combined.
As it stands, one in 10 IoT connections is to a smart-meter device of one kind or another. According to Transforma Insights, the proportion will remain roughly steady over the next ten years, falling from 10 % to 9 percent of the total IoT market as different use cases experience “rapid growth.” But the value of smart metering technology in homes, factories, and infrastructure is enduring – borne out in its compound growth ( CAGR ) forecast ( 7.2 percent ), and its steady share.
Electric Meters Lead with 68% Share, Gas and Water Growth Expected
One of the most significant IoT use cases will continue to be one of, according to Transforma Insights. The company splits figures water, gas, and electricity metering,
smart electric meters dominate today, with 1.15 billion connections (68 percent ), compared to 245 million gas smart meters ( 14 percent ) and 296 million water smart meters ( 17 percent ), it said. By 2033, the equivalent figures will be 2.1 billion ( 62 percent ), 510 million ( 15 percent ) and 789 million ( 23 percent ), it predicts.
According to Transforma Insights,” the technologies of choice for connecting intelligent meters will evolve very quickly. Powerline communications and RF mesh are two current applications for connecting electricity meters. Over time this will gradually migrate towards the use of low-power wide-area ( LPWA ) technologies, both cellular mMTC (IoT) technologies such as NB-IoT, and unlicensed technologies such as LoRaWAN and Sigfox”.
The company deeper splits-out the utility mix, regional spread, growth rate, and tech match below, all the quotes are from Transforma Insights.’ Nuff said
1 | Smart electricity metering
Over 60% of all meters will be dominated by electricity over the entire smart metering market during the forecast period. Of the 1.15 billion electricity smart meters today, one billion ( 89 percent ) are residential, a figure which equates to a penetration of 48 percent of households globally. Some nations in the EU, and China, are just a few examples of countries that have apparently completed their bright meter deployments. There is also a lot to be done in different areas. The 1.9 billion home smart meters, according to projections, will result in a 81 percent household penetration globally by 2033.
2 | Smart gas metering
Smart gas metering is only permitted in the nations where piped natural gas (PNG) is most frequently used in Europe. In 2023, there were 246 million gas meters, of which 95 percent were private and the other 5 percent were commercial. Today, around 44 percent of gas households have smart meters, a rate that is expected to rise to 72% in 2033. Gas bright metering prefers to use LPWA technologies like NB-IoT and LoRaWAN without the use of mains power.
3 | Wise water metering
Water smart meters rollouts have been uneven due to varying levels of government focus, but as a result, smart water metering numbers will increase more quickly than either electricity or gas over the course of the time, growing at a CAGR of 10%, compared to a blended average of 7% across all utilities. As will gas bright metering, water will also favour LPWA technologies.
