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The global smart gas meters market size is forecast to increase by USD 2,051.13 million between 2022 and 2027, at a CAGR of 7.64%. The growth of the market depends on several factors, including error-free and accurate billing by meters, a rise in natural gas demand among industries, and scarcity of fossil fuels. A smart gas meter is a tool for measuring gas flow that connects to local or wide area networks via wireless communication to enable infrastructure upkeep, remote location monitoring, and automatic billing. By recognizing emergencies and enabling the prompt and remote interruption of the gas flow in the event of seismic activity or gas leakage, a smart gas meter also has shock and leakage detection systems that can significantly boost safety. Because batteries power smart gas meters, low-power devices are essential for establishing system configurations.
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The ability of smart gas meters to enable efficient use of gas is notably driving market growth. Smart gas meters and smart energy meters are proving to be of great value to the judicial use of gas and leading to economic savings. These devices help customers monitor and track gas usage patterns. Utility companies install these devices in residential, commercial, and industrial facilities that use natural gas. A smart gas meter has various advantages such as improved gas consumption monitoring, billing accuracy, and Customized report generation. These advantages help in saving costs, tracking real-time consumption rates, and reducing errors. All this is gradually increasing the popularity, which will boost the growth of the market during the forecast period.
Factors such as rising natural gas prices and low-interest rates have encouraged investment in the upstream shale gas sector, resulting in increased gas production and oversupply in 2020 and 2021. According to the US Energy Information Administration, dry natural gas production will increase from 34.5 TCF in 2021 to 42 TCF by 2050. When it comes to primary energy consumption, natural gas has the largest market share in the world. The abundant availability of natural gas resources contributes to its strong competitiveness. Demand for natural gas is increasing as it is the main fuel for the power generation and industrial sectors. Industries use natural gas as a fuel source and/or feedstock to meet various energy needs. The growth of the global manufacturing sector is expected to lead to a steady increase in demand for natural gas in the future. Energy consumption costs make up a large part of the total cost of an industrial plant. Therefore, these sectors rely heavily on gas meters to monitor natural gas consumption.
Upgrading to the latest wireless technologies is the key trend influencing the market growth. Obtaining consumption data manually has proven to be inaccurate and has raised unwanted expenses for Industries. To combat this, adopting wireless technology has proven to be efficient in generating accurate bills and controlling their expenses. Such meters are a part of the smart power network, which comprises sensors, controllers, a two-way communication network, and a data management system to get accurate data and track energy consumption in real-time. As technology advances, the demand for smart home technology solutions increases. Smart devices are also very popular with consumers in their daily life. The number of smart homes in the US is expected to reach 41.3 million by the end of 2022, rising to 77.1 million by the end of 2025.
Property owners who invest in smart home technology will quickly see a return on their investment as they attract quality residents, pay higher rents, and benefit from lease renewals. Over 8,000 start-ups are involved in developing IoT-based hardware and software for smart home automation and security-related applications. In terms of investments, some of the most active investors in the global smart home market include Plug and Play Tech Center, HAX, Techstars, Y Combinator, and Startup Bootcamp. Smart home technology also includes the introduction in residential and commercial spaces. Hence, increasing investment in smart home technology will boost the growth of the global market during the forecast period.
The high installation cost of the gas meters is challenging the market growth. The installation cost is relatively higher than traditional meters. The return on investment for these instruments is realized within 5 to 8 years. The benefits of installing these meters are not a solid business case, especially for small utilities that do not have the capital to make large investments. Moreover, introducing such expensive technology into a country with a large population is a huge proposition. Utilities have to invest in network technology to connect their smart meters to devices. Integration with this network technology is an integral part of installing such meters and increases the overall cost of these meters. The cost of replacing old meters is also high. All these factors hinder the deployment of these systems in certain regions. Therefore, the high capital requirements required for device installation are expected to limit the growth of the global market during the forecast period.
Along with all this, they use wireless technology to transmit data. If the transmitted data is unencrypted, it can be easily intercepted and vulnerable to various cyber hacker threats. Sensors are typically unmanned, allowing consumers looking to reduce their energy bills to hack, sabotage, or circumvent limits on the amount of energy consumed. Also, the lack of privacy in the transmission of this device from the user side to the utility company is very dangerous as this information can reveal personal information about the user. By leaking such information, telemarketers and advertisers also obtain information about end-her users without their consent. Such factors are likely to hamper the growth of the global market during the forecast period.
The market growth in the Automatic meter reading (AMR) segment will be significant during the forecast period. The AMR systems establish a communication channel between gas utilities and customers. It collects and transfers gas consumption, diagnostics, and status data from gas meters to the central database automatically for analysis. Gas companies are using AMRs to automate gas usage readings instead of visiting each location and manually collecting data. For this reason, the gas operator prefers the AMR system over traditional devices that require manual gas readings. Another advantage of this technology is that it enables near real-time billing based on gas consumption rather than estimates based on past or projected consumption.
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The Automatic meter reading (AMR) segment was valued at USD 2,305.00 million in 2017 and continued to grow until 2021. The hardware segment of the global market is expected to grow significantly with the prosperity of the Oil and Gas industry, which uses these meters to measure the consumption of (LPG) and (NG) during the forecast period.
The hardware segment of the global market is expected to grow significantly with the prosperity of the Oil and Gas industry, which uses these meters to measure the consumption of liquified petroleum gas (LPG) and natural gas (NG) during the forecast period. The hardware segment of the global market includes the hardware components of the meters, which include electric meter motherboard, display, sensor with microthermal properties for measuring gas volume, instrument housing, and plastic cover.
Europe is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In 2022, Germany and the UK from Europe region will contribute significantly to the market growth in this region. The growing dependence of European countries on gas imports has significantly increased the demand for intelligent devices. For example, in 2020, the UK imported 32 billion cubic meters of natural gas. However, many countries have increased their gas E&P activities to reduce their dependence on imports. In addition, several initiatives have been taken by various governments in the region to ensure energy security. Therefore, we expect an increase in this device installations in Europe by the end of 2024 to improve energy efficiency for consumers.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Honeywell International Inc. The company is one of the dominant Industry-focused vendors. It is a global company headquartered in the US. It generates over USD 34,392.00 million in revenues with one of its key offerings of this device. It provides a wide variety of electromagnetic flow meters, ultrasonic flow meters, oil meters, water meters, and software. Along with this, it also has businesses in different industries such as Aeropspace, safety, and productivity solutions, building technologies, etc.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market analysis and report of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The market is experiencing a surge in demand due to the growing need for accurate and dependable gas flow measurement, especially with the rise in natural gas consumption. Government initiatives worldwide prioritize the deployment of this technology to enhance operational efficiency and reduce greenhouse gas emissions. Major players like Sensirion and SMS PLC are leveraging next-generation IoT-optimized technologies to meet the increasing demand for this device across residential, commercial, and industrial sectors globally. The market is witnessing a surge in demand due to various driving factors, including the economy's strength and the need for increased efficiency in gas flow. Drilling activities and the efficiency of gas heating systems further contribute to the market's growth. As energy efficiency initiatives gain momentum, gas utility providers are embracing this device for their functional benefits and operational security.
The implementation of these gas meters offers high connectivity and real-time data for efficient monitoring and management of gas supplies. Major companies and utility sectors are prioritizing the installation of these meters, especially in residential and commercial buildings. With technologically advanced features such as prioritized alarms and methane emission detection, these meters enhance safety and reliability in the gas sector. In regions under study, ongoing pipeline monitoring and the adoption of such grids drive the deployment of smart gas meters. As global demand for natural gas increases, the shipment volume of smart meters is expected to rise, providing ample opportunities for manufacturers and end-users alike to capitalize on the benefits of this technology.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and market growth and trends opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 7.64% |
Market growth 2023-2027 |
USD 2,051.13 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.53 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 40% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AEM SA, Aichi Tokei Denki Co. Ltd., Apator SA, Diehl Stiftung and Co.KG, EDMI Ltd., Fanna Technology, Flonidan AS, Genesis Gas, Honeywell International Inc., Hubbell Inc., Itron Inc., Landis Gyr AG, Pietro Fiorentini Spa, Raychem RPG Pvt. Ltd., Sagemcom Broadband SAS, Wasion Holdings Ltd., Xylem Inc., Yazaki Corp., ZENNER International GmbH and Co.KG, and Holley Technology Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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