Market Trends of United States Smart Meter Industry
This section covers the major market trends shaping the US Smart Meter Market according to our research experts:
Smart Gas Meter Segment to Grow Significantly
- A smart gas meter utilizes ultrasonic or electromagnetic technologies to measure gas flow, while using wireless communication to connect to local or wide area networks, which allows infrastructure maintenance, remote location monitoring, and automatic billing.
- The device also has leakage and shock detection systems that can significantly increase safety by detecting emergency situations and enabling the immediate and remote cutting of the gas flow in case of seismic activity or gas leakage. A smart gas meter relies on low-voltage battery power to extend operational life and avoid ignition hazards.
- Smart gas metering allows gas companies to efficiently manage their operations, including energy production, distribution, and deliveries, while reducing costs and optimizing resource allocation. They can remotely monitor customers' consumption and switch gas on and off to avoid costly onsite visits.
- In August 2021, US utility companies Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) signed a five-year contract with Landis+Gyr for the provision of smart meters and smart grid infrastructure and technologies. The agreement includes the supply of 930,000 smart electricity meters, 300,000 gas modules and an IoT network for connectivity.
- Favorable government initiatives towards the installation of smart meters in the US are the primary factors driving the market growth. Further, rising internet penetration along with increased adoption of high-speed network technologies and smartphones are also propelling the market, as the synching of smart gas meters with smartphones can easily be used to perform remote monitoring of the gas meters with smartphone apps.
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Residential Sector to Hold a Major Market Share
- The most demand for smart meters in the United States is for residential meters, as more consumers are using these meters to monitor electricity usage at their homes more accurately. The bulk of residential smart meters is procured and installed by utilities.
- In the residential sector, the demand for smart meters is primarily driven by the rising power consumption due to increased use of home appliances like air conditioners, televisions, refrigerators, lighting, ceiling fans, cloth washers, personal computers, and HVAC (Heating, ventilation, and air conditioning) equipment in residential buildings. Utilities are looking for ways to address the dynamic demand for power from the operations of this equipment and are thus investing in smart meters to enhance grid resiliency and operations.
- Smart meters also help in integrating distributed energy resources (DERs), energy storage technologies, and EV charging facilities in the residential sector.
- Further, the increasing government initiatives to boost the adoption of smart meters in households to reinforce accurate meter readings and provide better transparency in energy consumption for both consumers and utility companies are also propelling the market growth.
- As per the United States Department of Energy, over 100 million advanced smart electric meters have already been installed throughout the country, with residential installations representing 88% of the total. With continued efforts to use modern technology to improve the effectiveness of the electric grid, consumers are expected to have more opportunities to manage electricity consumption efficiently and reap significant savings in the long run through the installation of smart meters.
