Smart Meter Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The industry has surged ahead in the past five years, fueled by growing demand for smart meters as utilities convert to smart grids. For this reason, industry research firm IBISWorld has added a report on the Smart Meter Manufacturing industry to its growing industry report collection.

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Rising housing starts and a need to reduce energy consumption will spur strong industry demand

The Smart Meter Manufacturing industry has surged ahead during the past five years, fueled by growing demand for smart meters as utilities convert to smart grids. Revenue growth has also been encouraged by $3.4 billion in stimulus funds from the American Recovery and Reinvestment Act and the need for utilities to modernize their increasingly outdated infrastructure. Over the five years to 2012, industry revenue is expected to grow an average 17.7% per year to $884.9 million, with revenue expected to fall 8.6% in 2012 as stimulus funds dried up and infrastructure upgrades slowed. “The ability to monitor energy consumption in real time has encouraged utilities of all sizes to embrace smart meters,” says IBISWorld industry analyst Nima Samadi. “Smart meter based infrastructure allows utilities to improve customer service and reduce labor costs by remotely connecting and disconnecting power, detecting outages and resolving other power delivery issues.” In 2010, market penetration of smart meters reached 8.7% in the United States, compared with 4.7% in 2008, according to a Federal Energy Regulatory Commission survey. In addition, seven states (as of 2010) had smart meter penetration rates of more than 15.0%, including Arizona, Oregon, Idaho, Pennsylvania, Wisconsin, California and Missouri.

The rise in smart meter demand has also been driven by rising electricity consumption rates. Overall, electricity consumption is expected to rise 0.9% per year on average during the five years to 2012. “Utilities and the federal government have sought ways to reduce increasing energy consumption, and smart meters have proven to be an effective tool in regulating consumption during peak periods if paired with other technology,” adds Samadi. The Smart Meter Manufacturing industry carries a moderate level of market share concentration, with the two major companies, Itron and General Electric, accounting for a significant share of revenue. The remainder of the industry is dominated by small-scale enterprises that compete on a local or regional basis or by providing specialized smart grid and smart meter solutions. Additionally, import penetration plays an important role in the pace of the industry as many prominent smart meter brands installed in the United States manufacture abroad.

During the five years to 2017, Smart Meter Manufacturing industry revenue is forecast to continue growing. The expansion of industry revenue will be prompted by more utilities embracing smart meter and smart grid technology. IBISWorld forecasts that smart meter adoption rates will increase by nearly half during the five years to 2017. The industry's rapid expansion will also be reinforced by the new housing construction market's aggressive recovery. Housing starts are expected to rise during the five years to 2017, which should drive demand for smart meter installations in these new developments. For more information, visit IBISWorld’s Smart Meter Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry manufacture smart meters, which are electrical, gas or water meters that record consumption information in intervals of an hour or less and communicate this information back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the central system.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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