ELECTRIC SUB-METER MARKET: KEY INSIGHTS
- Rising need to ensure energy efficiency, influenced by stringent regulatory framework, would be a major growth driver for the market.
- Smart sub-meters continue to carve out significant share in the electric sub-meter market.
- Single phase electric sub-meters would remain sought-after; three phase electric sub-meters to lose traction.
- Residential sector continues to generate greater total returns to shareholders; adoption in commercial establishments and industrial sector to dip.
- East Asia would remain at the vanguard of global electric sub-meter market.
KEY FACTORS SHAPING ELECTRIC SUB-METER MARKET
Increasing Demand for Smart Electric Sub-meters over Conventional Ones
Rising smart grid installation projects in countries such as India, China, Indonesia, Brazil, and Argentina are driving investments in smart electric sub-meters. Furthermore, government initiatives have led to the deployment of smart electric sub-meters over conventional electric sub-meters.
For instance, in India, the Smart Meter National Programme is being implemented by the Energy Efficiency Services Limited (EESL), a joint venture (JV) of public sector undertakings under the Ministry of Power, to deploy smart electric sub-meters across the country.
The installation of smart electric sub-meters can help in efficiently managing electricity, checking data-entry errors, billing efficiencies, and cost cutting of manual meter readings through a web-based monitoring system. EESL’s Smart Meter National Programme (SMNP) is working to replace nearly 250 million conventional electric sub-meters with smart meters by 2020.
Joint Ventures & Partnerships with Energy Suppliers to Drive Growth
Growing demand for energy efficiency, monitoring energy leakages, and energy outages are important for electricity suppliers and consumers. This has led government agencies, electricity suppliers, and manufacturers to partner or jointly venture to overcome energy efficiency-related issues. This has resulted in more investments in research & development to produce highly efficient and low-cost electricity sub-meters, which are expected to further drive the growth of the electric sub-meter market.
Electrical utility companies are entering into partnerships with energy and data management and data solution providers to reduce the cost of conserve resources, improve efficiency, and increase the demand for electric sub-meters.
- For example, governments in developing economies are reducing the price of smart electric sub-meters to enhance the adoption rate for residential applications.
Companies such as Jay Auto and Hexing tied up with Pal Mohan Group for making a bid with an Indian company through a joint venture. The benchmark smart electric sub-meter price per meter is INR 1,400 (US$ 20), whereas, the lowest bidding completed was INR 2,200 per meter for the supply of 5 million smart electric sub-meters.
In October 2018, Hexing Electrical signed a joint venture with West Zone Power Distribution Company Limited to develop a new company named Bangladesh Smart Electrical Company Limited, to produce smart prepaid meters.
Strengthening Customer and Vendor Relationships
Growing competition and increasing number of players in regional as well as global markets have made project acquisition more difficult. Market players are now focusing on increasing customer retention and strengthening their relationship with existing customers. Long-term relationships with customers, distributors, and vendors enable companies to acquire long-term contracts for product requirements, and this is expected to be the key strategy for growth in the global electric sub-meter market.
Furthermore, concentration on acquiring new electric sub-meter installation orders related to smart electric sub-meters in solar energy farms is anticipated to drive the global electric sub-meter market in South East Asian countries.
Impact of COVID 19 Pandemic
The global economy has taken a massive hit due to the spread of novel coronavirus across the globe. According to recent findings, even in the best possible scenario, the global economy is anticipated to witness a fallout of US$ 2.3 trillion. As per the International Monetary Fund (IMF), around 170 countries are expected to witness negative per capita income growth. All this economic downfall is anticipated to curb the manufacturing and sales of electric sub-meters.
The current deployment of smart electric sub-meter projects are on hold, and this delay will affect demand and supply in the current year, and have a moderate impact in the first quarter of 2021. The downfall is anticipated for a limited period, after which, the market is expected to recover from its losses.
REGIONAL OUTLOOK OF ELECTRIC SUB-METER MARKET
- In terms of growth, the South Asia Pacific and South Asia markets are anticipated to propel at a promising pace in the global electric sub-meter market.
- Due to increasing manufacturing of smart electric sub-meters in the countries such as India and China, they are expected to progress at a growth rate of nearly 6% from 2020 through 2030.
- Additionally, after the containment of the COVID-19 pandemic, the electric sub-meter market might witness a shift of manufacturing facilities from China to other South East Asian countries.
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ELECTRIC SUB-METER MARKET: STRUCTURE ANALYSIS
- The global electric sub-meter market is considered to be a highly competitive landscape, due to the presence of regional as well as international players. Leading players are focused on acquiring new contracts from respective governments as well as from developing economies.
- Most of the key players are aiming to extend their product portfolios through collaborations, partnerships, and acquisitions to expand their global share.
- The global electric sub-meter market is a fragmented market, with several big market players and regional players.
- Some of the prominent companies in the electric sub-meter market include Itron Inc, Landis+Gyr, Xylem Inc., Schneider Electric, General Electric, Siemens AG, Mitsubishi Electric Corporation, Honeywell International Inc., ABB, Siemens AG, Mitsubishi Electric Corporation, OSAKI ELECTRIC CO., LTD., and others.
- Key players are maintaining strategic focus on mergers and acquisitions, partnerships, and agreements with utility companies for market expansion.
- Some of the top manufacturers that are contributing a high revenue share in the electric sub-meter market are Schneider Electric, General Electric, Honeywell International Inc., Itron Inc., Landis+Gyr, Xylem Inc., ABB, and OSAKI ELECTRIC CO., LTD.
- Base Year - 2019
- Historical Period - 2015-2019
- Forecast Period - 2020-2030
- Market Value in 2019 - US$ 9.7 Bn
- Segments Covered - Product, Phase, Application, and Region
- Regions Covered - North America, Latin America, Europe, South Asia, East Asia, Middle East & Africa, and Oceania
- Key Companies - are Itron Inc., Schneider Electric, General Electric, Siemens AG, Mitsubishi Electric Corporation, Honeywell International, HPL Electric & Power Limited, ABB, Landis+Gyr, Osaki Electric Co. Ltd, Xylem Inc., Bentec Electricals & Electronics Pvt. Ltd., Genus Power Infrastructures Ltd., Kamstrup A/S, Leviton Manufacturing Co. Inc., Hexing Electric Co. Ltd., Zhejiang CHINT Instrument Co. Ltd., and Jiangsu Linyang New Energy Source Co. Ltd.
- Growth Drivers -
- Increasing demand for smart electric sub-meters
- Intensifying need to achieve energy efficiency
- Competitive pricing due to high fragmentation of market
Stakeholders Continue to Invest in Smart Sub-meters
In a bid to maintain their market competitiveness, industrials are walking the extra mile to ensure energy efficiency and performance. This preferential shift is enabling the broader adoption of smart electric sub-meters over conventional variants such as electronic and electromechanical sub-meters. Players in the electric sub-meter market tapping this opportunity and devising distinctive strategies with technology at the center will be well placed for realizing outsized returns. Further, by 2026, these smart meters would register over US$ 10 Bn in revenue.
Regional Analysis - Electric Sub-meter Market to Lead the Way
Uptick in smart grid home area network (HAN) installation projects in East Asia, driven by government initiatives, is creating fertile ground for players in the electric sub-meter market. In addition, local manufacturers are offering smart electric sub-meters for installation in commercial and residential spaces. Considering the rising level of competition, both, global and regional players are focusing on enhancing value-addition in their offerings at competitive pricing. The same theme is sweeping the South Asia electric sub-meter market, especially in Indonesia, and Vietnam. Together, both, East and South Asia capture around half of the total market stack.
Collaborating with Energy Providers for Cost-effective Upgradation
Monitoring energy outages and leakages is imperative for electricity distributors and customers. As the need to achieve energy efficiency continues to defy gravity, players in the electric sub-meter market are establishing strategic collaborations with energy suppliers in a bid to satiate the ever-increasing demand. Combined with progressive R&D activities, these collaborations are poised to allow manufacturers to sell at competitive electric-sub meter prices. Case in point, Hexing Electric Co. Ltd. teamed up with West Zone Power Distribution Company Ltd. to develop smart prepaid meters.
How Growth will Unfold
Around 70% of the electric sub-meter market revenue would be realized by the residential sector. FMI says that, the number would follow an upward trajectory over the decade ahead. Moving ahead, electric sub-meter installation in commercial establishments - small, large, medium (SML) retail stores, and data centers - and the industrial sector is expected to drop in the near term. As such, manufactures allocating their resources to the residential sector will increase their odds of bigger profit margins.
ELECTRIC SUB-METER MARKET TAXONOMY
The global electric sub-meter market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the reader.
- Socket Type/Electromechanical Sub-meters
- Feed-through Sub-meters
- Current Transformers
- Non-socket /Electronic Sub-meters
- Smart Sub-meters
- Single Phase
- Three Phase
- Commercial Establishments
- Large Retail Stores
- Data Centers
- Residential Sector
- Industrial Sector
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa