The trajectory of growth within the European smart metering market is currently characterized by a steady and consistent ascent. By the end of 2023, more than 60% of electricity customers in EU27+3 had smart meters installed. The region expects a notable increase in deployment, with projections surpassing 88 million units between 2024 and 2028.
Factors Influencing Smart Metering Market Penetration
Berg Insight, a leading IoT analyst firm, has closely monitored this trajectory since its inception in 2004. By the end of 2023, the EU27+3 countries had installed more than 186 million smart electricity meters. It’s projected that by 2028, these meters will have reached a penetration rate of 78 percent. Key drivers include second-generation rollouts in nations such as the UK, Italy, Spain, and Sweden, complemented by pilot projects in Germany, Poland, and Greece.
Additionally, the smart gas metering sector is primed for substantial growth, with devices forecasted to increase from 56 million in 2023 to approximately 78 million units by 2028.
The composition of smart electricity shipment volumes is expected to change in two significant ways, indicating a shift away from Western European markets that have historically led the way in terms of smart metering deployment. “Firstly, first-generation electricity meter shipment volumes will account for 67% of total shipment volumes over the forecast period, as second-generation rollouts in Western Europe are now either in the final stages or fully completed. Secondly, the share of first-generation shipment volumes to CEE and SEE countries will rise from 50% in 2022 to 80% in 2028, according to Mattias Carlsson, Berg Insight’s IoT analyst.
Standalone Wireless Connectivity Popularity
In recent years, there has been a change in the communication technologies utilized in the smart metering market for exchanging data with the utility’s back office. Standalone wireless connectivity options have grown in popularity in recent years, accounting for 55-65% of annual shipment volumes over the forecast period.
“The majority of the growth is due to 3GPP-based LPWA connectivity options, which are now available in most European markets,” stated Carlsson.
Carlsson concluded that annual shipments of NB-IoT and LTE-M electricity meters are expected to be between 3.5 and 4.0 million during the forecast period.
