The Smart Meter Market in Europe is Booming

The Smart Meter Run – Europe Gears Up to Meet the

Roll Out Deadline

Neha Vikash, Research Associate

Energy and Power

July 2011

2

Highlights

• Introduction

• Technology and Product Overview

• Market Overview

• Industry Challenges

• Force Field Analysis of Drivers and Restraints

• European Smart Meter Market Forecast – A Snapshot

• Tier and Market Share Analysis

• Implementation Vs Regulation Matrix

• Summary

3

Introduction

Europe is a push market where smart meter and smart grid markets are legislation driven. There is region-wise

disparity due to the different regulatory challenges faced by each country, thus having a direct impact on

implementation.

The smart meter market is expected to boom owing to the recent impetus from renewable energy and smart grid

implementation. Smart meters are required for integration of renewable energy.

Europe is focussed on meeting the 20-20-20 targets which is a necessary driver for increase in renewable energy

and the third energy directive focus is towards 80 percent smart meter penetration in the residential sector by 2020.

The market is in the commercialisation stage and is expected to witness higher growth from 2012 throughout

Europe. Several pilot projects are ongoing with a focus towards massive deployments from 2012 to 2020

Competition among the market players is increasing and the future trend is a further increase in potential

competition. Chinese and other Asian companies are expected to enter the market in the short to medium term.

Key Findings

4

Introduction : Technology and Product Overview

Outage Detection

Other FeaturesTime of Usage

Smart meters are superior meters that identify the electricity consumption pattern in better detail as compared to a

conventional meter. They have embedded systems which has the ability to communicate information to the utility in

real time for monitoring and billing purposes.

Smart Meter

Two way Meters

5M6BD-14

Market Overview

State of the Market

Growth Maturity Decline

Ma

rke

t G

row

th T

ren

d

Introduction

France

Spain

UK

Germany

ROE

Denmark

Finland

Norway

Italy

Sweden

2010 2014 2017CountryEuropean Smart Meter Markets : Smart Metering Market Phase (Europe), 2010

Source: Frost & Sullivan

European Smart Meter Markets : Smart Metering Market Phase (Europe), 2010

Country Installed Base (in millions)Start of Large Scale

Rollout

Expected End Date of

Large Scale Roll Out

Denmark 1.4 2005 2013

Finland 1.2 2010 2014

France 0.3 2012 2016

Germany 0.3 2014 NA

Italy 33.5 2005 2011

Spain 0.4 2011 2018

Sweden 5.3 2006 2009

United Kingdom 0.08 2012 2020

European Smart Meter Markets : Country Status of Deployment (Europe), 2010


6M6BD-14

Industry Challenges


Unguaranteed Quality of

Meters

European

Smart Meter

Markets

1 2

European Smart Meter Markets : Industry Challenges (Europe), 2011-2017

Lack of Government

Subsidies and Grants

Risk of Information

SecurityReplacement of Existing Meters

Leading to Stranded Assets

7M6BD-14

Restra

ints

Re

stra

ints

Force Field Analysis of Drivers and Restraints

Driv

ers

Driv

ers

Denotes Long term Impact

Denotes Current Impact

Smart Meters for Effective

Integration of Renewable

Electricity

Smart Meters are Imperative for

Smart Grids and Leads to Efficient

Energy management in T&D space

Long and Capital Intensive Process Lack of Utilities’ Appropriate

Business Models to Invest in Smart

Metering that Slows Down Market

Adoption


EU Directives and Legislations for the

Internal Electricity Market in all

Members States

European Smart Meter Markets : Market Drivers and Restraints Ranked in Order of Impact (Europe), 2011-2017

1 2 3

1 2

Lack of Standardization in

Communication Protocols

Leading to Problems of

Interoperability

3

8M6BD-14

European Smart Meter Markets – A Snapshot

1,926.68

550.70

400.00

900.00

1400.00

1900.00

2010 2017

Revenue

($ million)30.54

6.104.00

19.00

34.00

2010 2017

Units (million)

European Smart Meter Markets : Unit Projection (Europe), 2010 and 2017 European Smart Meter Markets : Revenue Projection (Europe), 2010 and 2017

Note: All figures are rounded;

the base year is 2010.


200.43

43.90

20.00

50.00

80.00

110.00

140.00

170.00

200.00

230.00

2010 2017

Installed Base

(million)

63.09

93.14

55.00

70.00

85.00

100.00

2010 2017

Average Price ($)

European Smart Meter Markets : Installed Base Projection (Europe), 2010 and 2017European Smart Meter Markets : Price Projection (Europe), 2010 and 2017










9

Tier and Market Share Analysis

Tier 3 (1 % Market Share)

Xemtec, Secure Together, Kamstrup, Sagemcom etc.

Tier 2 (9 % Market Share)

Itron, Elster Metering, Iskraemeco

Tier 1 (90 % market share)

Echelon, Landis + Gyr


European Smart Meter Markets : Tier Analysis by Installed Capacity

(Europe), 2010

10

Implementation Vs Regulation Matrix

Sweden

Italy

Finland

Netherlands

Spain

IrelandUnited

Kingdom

Portugal

Denmark

FranceNorway

Germany

Austria

Cyprus

Estonia

Poland

BelgiumHungary

Czech Republic

Latvia

Regulatory Driven &

Utility Driven

Regulation Driven

Utility Driven

Less Regulatory Driven

& Utility Driven

Deg

ree o

f Im

ple

men

tati

on

Degree of Regulatory Push

High

HighLowSource: Frost & Sullivan

European Smart Meter Markets : Country Implementation and Regulation Matrix (Europe), 2010

Malta

11M6BD-14

Smart Meter Roll-Out Implementation in Europe

Smart Meters

Already Installed

Until 2010

Smart Meters are

Being InstalledRoll Out Plan

is Decided

Roll Out

Plan is

Under

Discussion

There is no Roll

Out Planned

Denmark (50%)

Italy (90%)

Sweden (100 %)

Finland (44 %)

Malta (36.32 %)

Denmark (50%)

Italy (5%)

Netherlands (4%)

Finland (45%)

Malta (63.68 %)

Greece

Spain

Austria

Czech Republic

France

Germany

Great Britain

Ireland

Netherlands

Norway

Poland

Portugal

Slovak Republic

Hungary

Luxembourg


European Smart Meter Markets : The Process of Roll-out Project Implementation by Country (Europe), 2010

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Summary of Key Findings

Sweden and Italy have almost completed their deployment according to the EU’s objectives. UK, France, Spain, Scandinavia are seen as

potentially developing markets.

Market Players are awaiting for the standardization mandate to be published to overcome the interoperability setbacks.

Several pilot projects are ongoing with a focus towards massive deployments from 2012 to 2020 to meet the EU deadline of having smart

meters installed in 80 percent of the households by 2020.

Frost & Sullivan estimates the installed base to be 200 million by 2017 with a compound annual growth rate (CAGR) of 24.2 percent between

2010 to 2017. The price is expected to fall gradually with increase in volume deployments, mass regional coverage, technological development

and equipment design.

The market is expected to enter the growth stage. Smart metering being imperative for smart grids will lead to developments at the grid system

level having completed large scale deployments in several countries across Europe. The trend in competition is increasing, and market

entrants see good investment opportunity in this evolving market.

The Smart Meter Market in Europe is Booming

Technology

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