Gas meters are essential for ensuring adequate gas supply of natural or liquefied petroleum gas to keep a track on the usage of gas. Gas meters are widely used in industrial, commercial, and large residential areas to maintain total usage of petroleum gas supplied by utility companies. Moreover, gas billing systems based on automated meter reading in smart meter makes the billing procedure easier than that of conventional gas meters.
Growth in adoption of smart meters in commercial and large residential areas is expected to drive the market growth during the forecast timeframe. The mandatory installation of smart meters in households and commercial areas is anticipated to influence the gas meter market growth. In addition, increase in demand for efficient energy technologies such as implementation of IOT (Internet of Things) will further drive the demand for various smart gas meters.
Global gas meter market size was valued at $5.8 billion in 2020, and is projected to reach $9.7 billion by 2028, growing at a CAGR of 6.6% from 2021 to 2028. On the basis of product type, smart gas meter emerged as the market leader in 2020. This is attributed to rise in demand for various gas meters in residential and commercial areas.
On the basis of end user, the residential end-user industry segment accounted for considerable market share, owing to increase in residential power consumption. Due to economic developments and favourable government policies, the smart meters market witnessed a large demand in the residential sector; therefore, positively impacting the market growth.
Region wise, Asia-Pacific accounted for the highest revenue share in 2020. This is attributed to emerging application of smart gas meters in China, India, and Japan. Furthermore, favorable government policies in these countries regarding subsidies and rebates, and mandatory installation of smart meters positively impact the market growth.
COVID-19 scenario analysis
• The gas meter market has been severely impacted by the outbreak of COVID-19 across the globe. The market witnessed large fall in demand, owing to large number of shutdowns in the industrial sector.
• As the demand from end users gradually decreased, the wholesale gas meter price also decreased.
• In addition, the country wise lockdown measures delayed the installation of large number of new smart meters. Companies, who already invested in Advanced Metering Infrastructure (AMI), will not resume operation until they are financially stable.
• But stockpiling practices disrupted the supply chain of vendors, and countries with mandated installation deadlines will maintain the market demand during the pandemic.
• However, shifting trend toward work from home norms and growing residential energy consumption will escalate the installation of gas meters for residential end users.
• In the post-COVID period, industry players will focus to re-asses their supply chain and consider whether sourcing from domestic players closer to operational site may improve the supply chain.