Smart electricity meter installation in North America will grow at a compound annual growth rate of 8 percent between 2018 and 2024, according to new report from analyst firm Berg Insight.
During the next five years, smart meter penetration among electricity customers in the United States and Canada is projected to increase from about 60 percent in 2018 to more than 80 percent by the end of 2024. And within the next five years, 142.8 million homes will have smart meters, according to the report.
“North America has long been at the forefront of smart grid technology adoption and a large share of the major utilities in the region are now either fully deployed or in the implementation or planning stages of full-scale rollouts,” says Levi Östling, IoT Analyst, Berg Insight and author of the report. “The market is however highly heterogenous in terms of penetration. Some states or provinces remain skeptical towards the business case for advanced metering investments whereas others are soon to begin a second wave of deployments.”
Canada has reached a high penetration of smart meters through ambitious initiatives in its most populous provinces. Continued growth in North America the next few years will be driven by large, investor-owned utilities in the United States that are yet to roll out smart meters for customers. In addition, smaller cooperative and municipal utilities play an increasing role in smart meter growth.
According to the report, yearly shipments of smart electricity meters in North America will grow from 8.8 million units in 2018 to 19.9 million units in 2024. During the next few years, first-wave deployments by utilities such as Consolidated Edison, Duke Energy, Ameren, Entergy, PSEG, National Grid and Xcel Energy will boost shipments.
Second-wave deployments will gradually make their way into the shipment numbers at the end of the forecast period.
“While increasingly powerful meters with edge intelligence capabilities coupled with advanced data analytics software will drive second wave deployments, the utilities are now also looking to leverage their existing RF mesh networks for a wider array of applications beyond metering, bringing an increasingly diverse set of devices onto their networking platforms,” Östling says.