The smart electricity metering market in Asia-Pacific is on track to reach the historic milestone of 1 billion installed devices.
A new research report from IoT analyst firm Berg Insight looks at the development of smart metering technology in China, Japan, South Korea, India, Bangladesh, Indonesia, the Philippines, Thailand, Vietnam, Australia and New Zealand. According to the study, the installed base of smart electricity meters in Asia-Pacific will grow at a compound annual growth rate (CAGR) of 6.2 percent from 757.7 million units in 2021 to 1.1 billion units in 2027. At this rate, the milestone of 1 billion installed devices will be reached in 2026 The penetration rate of smart electricity meters in Asia-Pacific will grow at the same time from 59 percent in 2021 to 74 percent in 2027, while the cumulative shipments during the forecast period will total 934.6 million units.
East Asia, including China, Japan, and South Korea, has led the adoption of smart metering technology in Asia Pacific with ambitious implementations nationwide and today they constitute the most mature smart metering market in the region, accounting for more than 95 percent of the installed base in Asia-Pacific by the end of 2021. China has already completed its implementation, while Japan and Korea from the South are also expected to do so in the coming years. In China and Japan, first-generation smart meter replacements have already started and are expected to increase significantly in the coming years.
Levi Ostling, Senior Analyst at Berg Insight, said:
“Replacements of older, first-generation smart meters will be the most important driver for smart meter shipments in Asia-Pacific in the coming years and will account for up to 60 percent of cumulative shipment volume during 2021-2027.”
While East Asia is the most mature country smart metering market in Asia-PacificThe fastest growing markets, on the other hand, are in South and Southeast Asia with a wave of smart metering projects now sweeping across the region. The most significant growth is expected in India, where a massive new government funding plan has recently been introduced with the goal of seeing the installation of 250 million smart prepaid meters by 2026. In neighboring Bangladesh, smart prepaid meter installations are also emerging. large-scale smart electricity metering. in a similar push to install prepaid smart meters by the government.
“We are also seeing positive developments in emerging smart metering markets such as Thailand, Indonesia and the Philippines, which combined constitute a potential market opportunity of around 130 million metering points”Mr. Ostling continued.
Along with India, these three markets will be the fastest growing smart metering markets in Asia-Pacific during 2021-2027, with annual shipping volumes forecast to grow at a CAGR in the range of 65-80 percent.