Smart meter market forecast for European states
August 8, 2011
Many European states are investing in smart metering in the drive to meet EU’s energy targets to be achieved by 2020. The third energy directive is driving member states for 80% smart meter penetration by that date. However, according to Frost & Sullivan, region-wise disparity exists due to the different regulatory challenges faced by each country, thus having a direct impact on implementation.
Forecasts include:
- 26% growth in Europe with the UK holding the highest growth potential amongst all the European countries. The British Government plans to install 53 million electricity and gas smart meters in homes and businesses by 2019.
- The French energy regulator CRE (Commission de régulation de l'énergie) has set out guidelines with an objective for mandatory implementation requiring all electricity consumers to have smart meters by 2016.
- No mandatory roll out has been planned in Germany.
- Sweden attained 100% smart meter penetration in 2010.
- Italy’s deployment is almost complete with 33.5 million smart meters installed till 2010.
- The three hotspots in Europe will certainly be France, UK and Spain. It is expected that high level of growth in smart meter installations will occur in the next 2-3 years.
- With the UK Government publishing its plans for a mass rollout in 2014, the UK smart metering market holds the highest growth potential amongst all the European countries. The UK is expected to witness a 109% growth in smart electricity meter unit shipments from 2010 to 2017.
Competition is high in the European smart meter market and is expected to increase. Chinese and other Asian companies are expected to enter the market in the short to medium term. Echelon and Landis & Gyr hold nearly 90% of the market share in 2010.
Smart Meter operation depends on the network architecture and protocols. Lack of standardization in communication protocols leads to problems of interoperability.
Manufacturers, utilities, network companies, ICT firms, retailers and remote monitoring and automation companies await standardisation in communication protocols. The standardisation is expected to come into effect by 2012, after which the industry is expected to grow rapidly.
The scenario in Europe is that some countries are bordering on completion (e.g. Denmark and Finland), while some are slow to realize nationwide meter deployment. Some countries have no mandatory regulations. The contrast in the level of smart meter deployment between various European states begs the question as to who should be responsible for smart meter penetration: the government or the industry.
