India Smart Meter Market to Reach USD 3,179.5 Million By 2032, at 34.57% CAGR: Astute Analytica
The Indian smart meter market is experiencing unprecedented growth, driven by a strong government push towards grid modernization and energy efficiency. The goal of installing 250 million smart meters nationwide by 2025 highlights the scale of this transformation. North India is at the forefront of India's smart meter deployment.
New Delhi, April 08, 2024 (GLOBE NEWSWIRE) -- According to the latest Astute Analytica research, the India smart meter market is projected to attain a market size of US$ 3,179.5 million by 2032 from US$ 219.7 million in 2023 at a CAGR of 34.57% during the forecast period 2024–2032.
The Indian smart meter market is experiencing significant momentum. As of 2024, over 8.6 million smart meters have been installed across the country under the Smart Meter National Program (SMNP), working towards the government's ambitious goal of installing 250 million smart meters nationwide by 2025. Energy Efficiency Services Limited (EESL), the driving force behind the SMNP, has an order book of around 12 million smart meters as of 2023, highlighting the ongoing surge in demand.
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State-wise adoption of smart meters reveals a varied landscape. Uttar Pradesh leads the charge with over 1 million smart meters installed as of 2023. Bihar demonstrates strong intent with plans to install smart prepaid meters for all its 1.8 crore consumers by 2025. Other key states such as Delhi (2.5 million target by 2025), Madhya Pradesh (1 million by 2024), and Rajasthan (270,000 installed) underline the national shift towards smart metering. Large-scale tenders and contracts further highlight the market's growth trajectory. In 2022, EESL floated a tender for 2.35 million smart meters, the second-largest such contract in India smart meter market. Major players like Schneider Electric, Genus Power, and HPL Electric are vying for this contract. EESL also issued a tender for 1.5 million smart meters specifically for the New Delhi Municipal Council (NDMC) area in 2023.
*Domestic Manufacturing of Smart Meters is Promoted *
Importantly, smart meters deployed under the SMNP are domestically manufactured, showcasing India's self-reliance in this sector. The government's mandate for minimum 50% domestic value addition ensures local manufacturing benefits from this growth. These meters offer substantial advantages – they hold the potential to significantly reduce India's aggregate technical and commercial (AT&C) losses from 21% to 12-15% by 2024-25, resulting in potential annual savings of over 200 billion units of electricity.
India's efforts align with global trends. Over 100 million smart meters were installed worldwide in 2022, bringing the global total to approximately 1.8 billion. China boasts the highest penetration at over 500 million, while the United States has approximately 110 million smart meters. The European Union aims for 80% smart meter replacement by 2024.
*Key Findings in India Smart Meter Market *
Market Forecast (2032) US$ 3,179.5 Million
CAGR 34.57%
By Type Smart Electricity Meters (58.9%)
By Communication Method Powerline communication (40.6%)
By Phase GISM (Single Phase) (45.0%)
By Technology Advanced Metering Infrastructure (AMI) (71.9%)
By End User Residential (86.4%)
Top Trends · Rapid growth in smart meter adoption driven by government initiatives and policies
· Growing consumer awareness and satisfaction with smart meters for better control over electricity expenses
Top Drivers · Government's target to install 250 million smart meters nationwide by 2025
· Need to reduce high AT&C losses varying across states, with some recording over 40% losses
· Potential for significant savings by plugging losses through smart metering and improved billing
Top Challenges · Gaps in digital literacy and limited awareness of smart meter apps among consumers
· Lack of dedicated smart meter guidelines in each state for installation, billing, and consumer experience
*Installation of Smart Water and Gas Meters are on the Rise, But Electricity Meters Control Over 58% Revenue *
Beyond electricity, India smart meter market is extending the benefits of smart metering to other utilities. The Jal Jeevan Mission envisions smart water meters for all rural piped water connections by 2024, with pilot projects underway in cities like Delhi, Bengaluru, and Pune. Case studies show that installing smart water meters has helped some residential complexes in India reduce their water consumption by 25-30%. Additionally, India plans a phased rollout of smart gas meters in 40 cities in 2023-24. Indraprastha Gas Ltd (IGL) targets the installation of 200,000 smart gas meters in Delhi by 2024, aligning with a global market expected to reach $3.1 billion by 2024.
Smart meters in India rely on cellular (2G/3G/4G) or RF mesh communication, with data securely stored and accessible to consumers through various platforms. This focus on data highlights the potential for smart meters to empower consumers with real-time information, enabling informed energy management choices.
*Powerline Communication is the Most Dominant Communication Method in India Smart Meter Market, Control over 40% Market Share*
Powerline Communication (PLC) is poised to maintain its dominance in the Indian smart meter market due to several compelling advantages. By directly leveraging the existing power grid, PLC offers a cost-effective and scalable communication solution that minimizes the need for separate network infrastructure. This approach aligns perfectly with India's expansive geography and the need to bring smart metering to both urban and rural areas without incurring substantial network setup costs.
PLC's proven track record of reliability, as seen in over 40 million meters worldwide, is another crucial factor. Utilities require dependable communication networks, and PLC delivers with consistently high remote meter reading success rates. This reliability translates to reduced operational costs and increased efficiency for utilities. The flexibility of PLC technology is a major strength. PLC not only supports core smart metering functions (remote reading, disconnects, etc.) but also offers a foundation for broader smart grid applications. Demand response initiatives, distribution automation, and more, can be seamlessly integrated, leading to increased efficiency and grid stability. It's important to note that international standards like PRIME and G3-PLC provide a robust framework for PLC implementations, ensuring compatibility and interoperability.
The ongoing development of PLC technology promises to make it even more compelling. Innovations like MIMO will increase data rates and overall network efficiency. In India specifically, hybrid PLC-wireless architectures hold promise for specific use cases where wireless backhaul can increase network reach.
*India's Smart Meter Market Demonstrates Surging Potential*
The rapid adoption of smart meters in India indicates a market with immense growth potential. As of January 2024, 8.6 million smart consumer meters have been installed, with 3.02 million installed in 2023-24 alone. This represents a near doubling of installations compared to the previous year, highlighting the accelerating pace of the shift. Underscoring this trajectory, tenders for 104.3 million smart meters have already been awarded. An additional 39.5 million are under evaluation, and 22 million more are in the final stages of the tendering process. This level of investment demonstrates the market's strong momentum.
The potential impact of smart meters market in Inda is significant. Industry estimates suggest India could save Rs 9.5 trillion by replacing 250 million conventional meters with smart technology—a compelling return on a Rs 1.25 trillion investment. Beyond monetary savings, smart meters will revolutionize the metering landscape:
· *Utility Benefits:* DISCOMs gain operational efficiency by aligning power procurement with real-time demand, reducing losses, and streamlining billing.
· *Consumer Advantages:* Smart meters improve transparency, enable better energy management, and drive customer engagement.
· *Wider Impact:* Potential to contribute to national grid stability and sustainability goals.
The Indian smart meter market is poised for significant expansion. Continued government support, rising consumer awareness, and the tangible benefits of smart meter technology will drive this growth in the coming years.
*AMI Technology Rules the Indian Smart Meter Market, Controls over 71% Market Share *
Advanced Metering Infrastructure (AMI) is rapidly emerging as the cornerstone of the Indian smart meter market. AMI, with its integrated system of smart meters, communication networks, and data management, fundamentally transforms the relationship between utilities and consumers. AMI marks the initial step in the broader digitalization of India's electric grid control systems, enabling precise online meter reading, control, and intelligent management of power-related applications. This technology comprises key components like smart meters (encompassing electric, gas, heat, and water meters), access points, network infrastructure, and sophisticated data management systems.
AMI in India smart meter market offers a multitude of benefits for utilities. It empowers them with a wealth of data, including tamper detection, interval data, outage information, and power quality insights. Utilities can leverage AMI to monitor electricity, gas, and water consumption in real-time, significantly reducing the need for manual meter readings and minimizing error potential. Importantly, AMI facilitates remote actions such as time-based pricing adjustments, demand-response measures, or service disconnections. This granular data also helps utilities optimize power generation and distribution based on detailed energy usage patterns.
Consumers also stand to gain significantly from AMI's capabilities. Detailed information on their energy consumption, including specific time periods, usage amounts, and pricing, empowers consumers to make informed choices and better manage their energy usage. This translates to potential for increased energy savings as a direct result of AMI implementation. Furthermore, AMI enables improved customer service, allowing utilities to identify and address outages or other issues with greater agility.
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*North India Drives India's Smart Meter Revolution, Capturing Over 50% Market Share *
North India stands as the clear leader in India's smart meter market. States like Uttar Pradesh, with over 1 million installations, and Delhi, targeting 2.5 million smart meters by 2025, demonstrate this region's strong commitment to smart metering technology. Tata Power Delhi Distribution Ltd (TPDDL) is actively contributing to this transition with plans for 2.5 lakh smart meters in its initial phase and a total of 16 lakh operational meters by 2025. Other North Indian states like Madhya Pradesh (aiming for 1 million smart meters) and Rajasthan (270,000 installed) are further solidifying the region's position in the smart meter landscape.
Beyond mere installations, the benefits of smart meters in North India are becoming evident. A CEEW survey highlights positive consumer sentiment, with 60% of smart meter users across six states (including Uttar Pradesh) expressing satisfaction. Prepaid smart meter users are actively utilizing the technology, with around 30% recharging more than once a month and the highest share in Uttar Pradesh (38%). Consumers across the surveyed states report advantages such as increased control over electricity expenses and improved power supply quality.
The flexibility offered by prepaid smart meters, as seen in Bihar, allows consumers to tailor their consumption based on need and affordability. Interestingly, even during the COVID-19 lockdown, DISCOMs in states with smart meters consistently generated daily revenue through prepaid recharges. This pattern, along with an average daily recharge balance of ₹20, underlines how smart meters provide both consumer empowerment and financial stability for utilities.
*India Smart Meter Market Key Players*
· *Meter Manufacturers*
· Avon Meters
· Badger Meter, Inc.
· BENTEC India Ltd.
· EDMI Limited
· Eppeltone Engineers Pvt. ltd.
· Gram Power
· Holley Technology Ltd
· Honeywell International Inc.
· Itron Inc.
· Kamstrup
· L&T Electrical & Automation
· Landis+Gyr
· Mitsubishi Electric Corporation
· Neptune Technology Group Inc.
· Networked Energy Services
· Schneider Electric
· Sensus
· Siemens
· Wasion International
· *AMI Smart Meters Manufacturers *
· Adani Transmission Ltd
· Allied Engineering Works Pvt. Ltd. (AEW)
· Apraava Energy Private Limited
· BCITS
· Dongfang Electronics Co., Ltd.
· Eaton Corporation plc
· Elmeasure
· Fluentgrid Limited
· Genus Power Infrastructures Limited
· HPL Electric & Power Ltd.
· IntelliSmart Infrastructure Pvt. Ltd.
· JnJ Powercom Systems Ltd.
· L&T Electrical & Automation
· Lakshmi Electrical Control Systems Ltd
· Montecarlo Limited
· Synergy
· Tata Power
· Techno Electric
· ZenMeter
· ZTE Corporation
· Other Players
*Key Segmentation:*
*By Type*
· Smart Electricity Meter
· Smart Water Meter
· Smart Gas Meter
*By Communication Method *
· Radio Frequency
· Heat-based Meters
· Diode Detector-based Meters
· Power Line Communication
· Cellular
*By Phase*
· GISM (Single Phase)
· GIST (Three Phase)
· GISS (Heavy Consumers)
*By Technology*
· Automated Meter Reading (AMR)
· AMI
*By End User*
· Residential
· Commercial
· Industrial
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CONTACT: Vipin Singh
BSI Business Park, H-15,Sector-63, Noida- 201301- India
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/