Global Smart Gas Market – Key Trends
Governments around the world are exploring various ways of improving energy efficiency and security during prolonged power-cuts. This has created lucrative prospects for the smart gas meter manufacturers. As per Transparency Market Research (TMR), the market is also likely to gain impetus from the favorable policies drafted in various nations to curb the carbon footprint. Furthermore, smart gas meters offer end users greater control over their electricity consumption and bills. Spurred by these factors, the global smart gas market is expected to report a CAGR of 32.2% between 2015 and 2023.
Despite witnessing promising growth opportunities, the high initial investment required for installing smart gas meters limits the market’s trajectory to an extent. Nevertheless, the rising energy demand in Asia Pacific is likely to boost opportunities for the market in the near future.
As per TMR, the global smart gas market stood at US$944.67 mn in 2014. The market is expected to reach US$10.5 bn by the end of 2023.
High Demand from Residential Segment Emerges as Primary Driver
The global smart gas market is segmented into residential, commercial, and industrial sectors. Of these, the market is currently dominated by the residential segment, which held approximately 73.85% of the market in 2014. As compared to commercial users, the consumers in the residential segment pay lesser for installation of smart gas meters. This is one of the key factors leading to the widespread deployment of smart gas meter across the residential sector.
However, during the course of the forecast period, several regulations are likely to be implemented, obligating the installation of smart gas meters across the commercial and industrial segment. Installing smart gas meters enable energy savings by providing the ability to control gas usage. This is a primary factor that will boost the deployment of smart gas in the industrial and commercial segment.
New Opportunities across Europe and Asia Pacific to Augur Well for the Market
Regionally, North America leads the global smart gas market. Based on revenue, it held over 54.41% of the global smart gas market in 2014. However, as per TMR, the deployment of smart gas meters is slowing down in the region as compared to considerable roll outs of smart gas meters in countries such as China. Given the speed at which the developing economies are upgrading their transmission and distribution systems, and generating capabilities, they will very soon match the growth exhibited by the smart gas market across developed regions.
In North America, Canada, Mexico, and the U.S. are currently exhibiting the highest demand for smart gas meters. In Europe smart metering initiatives are propelled by the increasing investments by the governments of Italy, France, and the U.K. The member nations of the European Union, as per a recent mandate, are required to deliver smart gas meters to almost 80% of their gas consumers by the end of 2020. Such regulations are expected to augur well for the future of the smart gas market.
However, during the forecast period, Asia Pacific is expected to emerge as one of the most dynamic markets for smart gas meters. The commencement of various large-scale smart gas metering projects in countries such as China and Japan will fuel demand from the region. With utilities and governments in Asia Pacific encouraging aggressive smart gas meter deployments, the smart gas market in the region is expected to expand at a robust pace.
Some of the leading players operating in the smart gas market include Itron, Inc., Elster Group GmbH, General Electric, EnerNOC Inc., and Sensus Metering Systems, Inc.
This post was originally published on The Market Plan