Smart Gas Meters Market Analysis Europe,North America,APAC,South America,Middle East and Africa - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Smart Gas Meters Market Forecast 2023-2027

The global smart gas meters market size is forecast to increase by USD 2.05 billion 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 the efficiency of the 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.

Market Size & Overview

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Market Dynamics

In the modern world of energy management and conservation, Smart Gas Meters have emerged as a game-changer. These advanced metering solutions enable real-time monitoring and analysis of gas consumption, providing valuable insights for both residential and commercial consumers. The Smart Gas Meters market is experiencing significant growth due to various factors, including the increasing focus on energy efficiency, government initiatives to promote the use of smart meters, and technological advancements. The market is also driven by the ability of these meters to offer features such as automatic meter reading, remote disconnection and reconnection, and real-time leak detection. Furthermore, the integration of these meters with IoT platforms and energy management systems is expected to further fuel market growth. The Smart Gas Meters market is a dynamic and evolving space, with key players constantly innovating to meet the changing needs of consumers and the energy industry.

Key Driver

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.  

These smart meters provide real-time data on gas consumption, enabling users to optimize usage and save costs. Residential building, commercial establishments, and industrial facilities using natural gas can benefit from this technology. Sensirion's SGM6200 series and Temetra's U6 gas meter are examples of high-precision smart gas meters with features like methane emission detection and ultra-low current consumption. The market is witnessing increased shipment volumes due to the adoption of smart grids and the need for accurate consumption monitoring. Companies like SMS PLC and start-ups are investing in this sector to offer advanced features such as smart leak detection and prioritized alarms. The slow economic recovery has not deterred the growth of the smart gas meters market, as the benefits of real-time data and improved safety outweigh the initial investment costs.

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. 

Significant Trends

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 market is witnessing significant growth due to the prioritization of safety and accuracy in the utility sector. Technologically advanced solutions, such as those offered by Sensirion's SGM6200 series and Temetra's U6 gas meter, are gaining popularity. These smart meters enable real-time data collection and analysis, providing consumers with valuable information for energy management. The adoption of smart grids is also driving the market, with companies like SMS PLC leading the way in the development of technologically advanced communication systems. The implementation of smart leak detection and methane emission detection systems is essential for addressing aging infrastructure challenges and ensuring network reliability. Despite the slow economic recovery, the shipment volume of smart meters is expected to increase as utilities prioritize upgrades to their infrastructure. Start-ups are also entering the market, offering innovative solutions to meet the growing demand for technologically advanced gas metering systems. With features such as prioritized alarms, ultra-low current consumption, and real-time data transmission, smart gas meters are becoming a crucial component of the energy infrastructure.

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.  

Major Challenge

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. 

The market, technologically advanced solutions, such as those offered by Sensirion's SGM6200 series and Temetra, prioritize safety and efficiency. These meters provide real-time data and smart leak detection, making them essential for residential building and the utility sector. However, the high installation cost, which includes networking technology integration, poses a challenge, particularly for smaller utilities during a slow economic recovery. The benefits of these meters, including prioritized alarms, methane emission detection, ultra-low current consumption, and compatibility with smart grids, may not immediately justify the investment. The shipment volume of smart gas meters is increasing, with companies like SMS PLC leading the way. Start-ups are also entering the market, offering innovative solutions. Despite the challenges, the potential for accurate and networked gas metering systems remains significant.

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.  

 Market Segmentation by Technology, Component, Geography

In the modern world of energy management and conservation smart, meters ave emerged as a game-changer. These advanced metering solutions, also known as Automated Meter Reading (AMR) or Advanced Metering Infrastructure (AMI) systems and AMI essentials for gas, are revolutionizing the way utilities manage and bill their customers. Smart Gas Meters use advanced communication technologies like cellular, radio frequency identification (RFID), and powerline communication to transmit consumption data in real-time. This real-time data enables utilities to implement dynamic pricing, leak detection, and demand response programs, leading to increased efficiency and cost savings. The global Smart Gas Meters market is expected to grow significantly due to various factors, including increasing energy prices, government initiatives to promote energy efficiency, and the rising adoption of IoT and smart city projects. Furthermore, the integration of Artificial Intelligence (AI) and Machine Learning (ML) algorithms in Smart Gas Meters is expected to provide additional benefits, such as predictive maintenance and anomaly detection. In conclusion, Smart Gas Meters represent a significant investment opportunity for utilities and energy companies looking to modernize their infrastructure and improve operational efficiency. With the growing demand for energy conservation and the increasing adoption of IoT and smart city projects, the Smart Gas Meters market is poised for significant growth in the coming years

Technology  Analysis

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 2.30 billion in 2017 and continued to grow until 2021. The smart meters market prioritizes safety and efficiency in the utility sector through technologically advanced solutions like real-time data transmission from residential building. Companies such as Sensirion and Temetra offer products like the SGM6200 series and U6 gas meter, which provide high accuracy and ultra-low current consumption. These smart meters enable automatic meter reading, elimination the need for manual readings and ensuring proper billing. Moreover, smart meters facilitate smart grids and leak detection, providing prioritized alarms for safety concerns. The shipment volume of smart meters is increasing despite the slow economic recovery, with SMS PLC companies and start-ups playing significant roles in this growth. Real-time methane emission detection networks are also being integrated into these systems, further enhancing their capabilities. 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. 

Component Analysis

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 global smart gas meters market is experiencing substantial growth, driven by the Oil and Gas industry's prosperity. Smart gas meters, which measure natural gas (NG) and liquified petroleum gas (LPG) consumption, consist of hardware components such as electric meter motherboards, displays, sensors, instrument housings, and plastic covers. Adoption of smart gas meters offers businesses, including electrical utilities and gas utility providers, functional benefits like accuracy and dependability, automated grid management, and drill-down data collection. With the economy's strength and businesses reopening, the industry is focusing on cost-benefit analysis and implementation of these systems. Developments include high connectivity through NB-IoT and ongoing pipeline monitoring. Gas companies leads elimination conventional meters, reduce energy consumption costs, and improve energy efficiency initiatives.

Gas supplies and gas heating systems also benefit from this technology. Key players include Picarro, and the market is expected to reach Million units by the forecast period. The current infrastructure's upgrades and emerging standards are crucial for operational security and communication.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.

Regional Analysis

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.In Europe's energy sector, the adoption of smart gas meters is on the rise, driven by the dependence on gas imports and the need for energy efficiency initiatives. In 2020, the UK imported 32bcm of natural gas, while Russia's gas imports reached 48%. The EU's LNG imports were 18%. To reduce import dependence, many countries have increased drilling activities. Smart gas meters offer functional benefits, including accuracy and dependability, communication, and drill-down data. The automated grid and high connectivity enable real-time meter data collection and ongoing pipeline monitoring. Businesses' reopening and the economy's strength contribute to the cost-benefit analysis. Gas utility providers and electrical utilities are implementing this technology to improve operational security and energy consumption costs. Gas companies face costs associated with gas heating systems and supplies.

The industry is witnessing developments, including emerging standards and NB-IoT technology. Million units of conventional meters are being replaced with smart gas meters. Picarro's technology ensures climate target compliance. The installation process is ongoing, with high population density areas prioritized. This management solution enhances energy efficiency initiatives and improves the current infrastructure's functionality. Manufacturing plants also benefit from this technology, ensuring ongoing fuel efficiency and reducing gas utility providers' costs. 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. 

Who are the Major Smart Gas Meters Market Players?

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:

• AEM SA
• Aichi Tokei Denki Co. Ltd.
• Apator SA
• Diehl Stiftung and Co.KG
• EDMI Ltd.
• Fanna Technology
• Flonidan AS
• GenesisGas
• 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
• Holley Technology Ltd.

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.

Key Market Customer Landscape

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

Market Analyst Overview

The market is experiencing a surge in demand due to the growing need for accurate and dependable efficiency of the 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.

In the modern energy landscape, the adoption is a significant trend. These advanced metering solutions offer numerous benefits, including real-time consumption data, improved accuracy, and enhanced energy management. The market is witnessing robust growth, driven by various factors such as government initiatives, increasing consumer awareness, and technological advancements. The market is segmented based on technology, application, and region. The major technologies used are Ultrasonic, RF, and Pulse. The primary applications include residential, commercial, and industrial sectors. The market is expected to continue its growth trajectory, with key players focusing on innovation and expansion. The Smart Gas Meters market is a dynamic and evolving sector, offering exciting opportunities for stakeholders.

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.

Segment Overview

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. 

• Technology Outlook
  • AMR 
  • AMI
• Component Outlook
  • Hardware
  • Software
• Geography Outlook
• Europe
  • The UK
  • Germany
  • France
  • Italy
• North America
  • The U.S
• South America
  • Argentina
  • Brazil
  • Chile
  • Columbia
• APAC
  • China
  • South Korea
  • Malaysia
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa

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 2.05 billion
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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the market research and growth of market vendors

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