APAC smart electricity metering market to reach 1.1bn units in 2027: Study
The APAC smart electricity metering market will grow at a CAGR of 6.2% during the 2021-2027 period
The smart electricity metering market in Asia-Pacific is expected to reach 1.1 billion units in 2027, up compared to 757.7 million in 2021, according to a report from IoT analyst firm Berg Insight.
The report forecast that the smart electricity metering market in APAC will grow at a compound annual growth rate (CAGR) of 6.2% during the period.
The report analyzes the development of smart metering technology in China, Japan, South Korea, India, Bangladesh, Indonesia, the Philippines, Thailand, Vietnam, Australia and New Zealand.
Berg Insight estimates that the penetration rate of smart electricity meters in Asia-Pacific will expand from 59% in 2021 to 74% in 2027 while cumulative shipments during the forecast period will amount to a total of 934.6 million units.
The consultancy firm noted that East Asia, including China, Japan and South Korea, has led the adoption of smart metering technology in Asia-Pacific with ambitious nationwide rollouts and today constitutes the “most mature” smart metering market in the region, accounting for more than 95% of the installed base in Asia-Pacific at the end of 2021. Berg Insight also highlighted that China has already completed its rollout while Japan and South Korea are also expected to do so in the next few years. In China and Japan, replacements of first-generation smart meters have already begun and are expected to ramp up significantly in the coming years, according to the report.
“Replacements of aging first-generation smart meters will be the most important driver for smart meter shipments in Asia-Pacific in the coming years and will account for as much as 60 percent of the cumulative shipment volume during 2021–2027” said Levi Ostling, senior analyst at Berg Insight.
Despite the fact that East Asia constitutes the most mature smart metering market in Asia-Pacific, the fastest growing markets are found in South and Southeast Asia with a wave of smart metering projects now expanding across the region. The most significant growth is expected in India where a massive new governmental funding scheme has recently been introduced with the goal of achieving the installation of 250 million smart prepayment meters by 2026. “We’re also seeing positive developments in nascent smart metering markets such as Thailand, Indonesia and the Philippines, which combined constitute a potential market opportunity of around 130 million metering points”, Ostling added.
Along with India, these three markets will be the fastest growing smart metering markets in Asia-Pacific during 2021–2027 with annual shipment volumes forecasted to grow at a CAGR in the range of 65–80%, according to the report.