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The global smart gas meters market size is estimated to decline at a CAGR of 7.64% between 2022 and 2027. The size of the market is forecast to increase by USD 2,051.13 million. 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.
This report extensively covers market segmentation by technology (AMR and AMI), component (hardware and software), and geography (Europe, North America, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The ability of smart gas meters to enable efficient use of gas is notably driving smart gas meters 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 of smart gas meters, 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 smart gas meters market growth.
Obtaining consumption data manually has proven to be inaccurate and has raised unwanted expenses for Industries. To combat this, adopting wireless smart gas meters has proven to be efficient in generating accurate bills and controlling their expenses. Smart gas 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 of smart gas meters in residential and commercial spaces. Hence, increasing investment in smart home technology will boost the growth of the global smart gas meter market during the forecast period.
The high installation cost of the gas meters is challenging the smart gas meters market growth.
The installation cost of smart gas meters is relatively higher than traditional meters. The return on investment for these instruments is realized within 5 to 8 years. The benefits of installing smart gas 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 smart gas meters. Integration with this network technology is an integral part of installing smart gas 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 smart gas metering systems in certain regions. Therefore, the high capital requirements required for smart gas meter installation are expected to limit the growth of the global smart gas meter market during the forecast period.
Along with all this, smart gas meters 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 smart gas meter data 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 smart gas meter market during the forecast period.
The market growth by 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 their 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 gas meters 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 smart gas meters market is expected to grow significantly with the prosperity of the Oil and Gas industry, which uses smart gas meters to measure the consumption of liquified petroleum gas (LPG) and natural gas (NG) during the forecast period.
The hardware segment of the global smart gas meters market is expected to grow significantly with the prosperity of the Oil and Gas industry, which uses smart gas meters to measure the consumption of liquified petroleum gas (LPG) and natural gas (NG) during the forecast period. The hardware segment of the global smart gas meters market includes the hardware components of smart gas 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 gas meters. For example, in 2020, the UK imported 32 billion cubic meters of natural gas. However, many countries have increased their gas E and 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 smart gas meter installations in Europe by the end of 2024 to improve energy efficiency for consumers.
The COVID-19 outbreak in 2020-2021 slowed the growth of the European smart gas meter market. The shutdown of end-user industries due to the imposition of strict lockdowns across the region and the disruption of smart gas meter supply chain operations further hampered the growth of the regional market. However, the lifting of lockdown restrictions and the start of a massive COVID-19 vaccination campaign helped restart manufacturing operations and help the region's smart gas meter market regain momentum in 2021. In addition, restored supply chain operations and improved economic growth in the region fueled growth in the utility sector, increasing demand for smart gas meters. Therefore, such stimulus measures, increased investment in green building development, and the emergence of Industry 4.0 will increase the demand for smart gas meters, driving the growth of the regional smart gas meter market during the forecast period.
Vendors 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 being smart gas meters. 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 vendors, including:
Qualitative and quantitative analysis 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 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 Smart Gas Meters Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Smart Gas Meters Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Decelerate at a CAGR of 7.64% |
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Market growth 2023-2027 |
USD 2,051.13 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.53 |
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Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 40% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, 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. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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