Rising housing starts and a need to reduce energy consumption will spur strong industry demand.
New York, NY (PRWEB) August 06, 2014
The Smart Meter Manufacturing industry has surged ahead during the past five years, fueled by growing demand for smart meters and aggressive adoption of the technology in states such as Texas and California. In addition to improving housing and construction activity, demand for industry products has benefitted from a greater number of utilities converting to smart grids. Grid modernization is quickly becoming the industry standard in energy, buoyed by strong government support and funding. As a result, in the five years to 2014, Smart Meter Manufacturing industry revenue is expected to increase at an average annual rate of 12.9% to $1.5 billion, including growth of 17.7% in 2014 alone.
According to IBISWorld Industry Analyst Darryle Ulama, “The ability to monitor energy consumption in real time has encouraged utilities of all sizes to embrace smart meters.” Smart meter-based infrastructure allows utilities to improve and personalize customer service. Additionally, utilities can reduce labor costs by remotely connecting and disconnecting power, detecting outages and resolving other power-delivery issues. Realizing their benefit, the federal government provided $3.4 billion to jump start grid modernization, boosting demand for industry products. In 2009, only 13 million smart meters were reported in the United States; by mid-2013, estimates had grown to over 46 million. Rising electricity consumption has also contributed to strong industry demand. Overall, electricity consumption is expected to rise 0.9% per year on average during the five years to 2014. 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 the appropriate technology.
“Similar trends are expected in the five years to 2019, as a greater number of states and regions adopt smart grid utilities,” says Ulama. IBISWorld forecasts that smart meter adoption rates will increase by nearly half during the five years to 2019. The industry's rapid expansion will be reinforced by renewed housing construction and certain regions catching up to mature smart grid markets. In addition, emerging market growth will prompt healthy external demand, allowing for export revenue growth. Countries that anticipate high levels of urbanization are expected to upgrade their grid infrastructure, increasing demand for industry products.
For more information, visit IBISWorld’s Smart Meter Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
The Smart Meter Manufacturing industry manufactures 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.
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