July 31, 2013
Smart meters offer an essential piece of the energy management solution for commercial and industrial (C&I) customers, because they enable a timely and accurate exchange of data with the utility, enhancing companies’ ability to efficiently manage energy usage — something older meters could not do. At the same time, smart meters can help utilities lower their operating costs. According to a recent report from Navigant Research, cumulative worldwide revenue from smart meters for C&I customers will total $19.1 billion from 2012 to 2020.
Annual revenue will flatten and decline slightly after mid-decade, from $2.2 billion in 2014 to $2.1 billion in 2020, the study concludes.
“Savvy C&I customers who seek to drive down operational costs have realized that smart meters can help accomplish that goal, especially when linked with building energy management systems,” says Neil Strother, senior research analyst with Navigant Research. “For many businesses, even a small percentage reduction on their electric bill is more than enough when electricity costs can run to tens of thousands of dollars or more per month.”
Meter volumes for smart meter deployments in C&I facilities are much lower than residential volumes, since the C&I segment represents approximately 10 percent to 12 percent of total utility customers. (C&I) customers are the largest energy users in a utility’s service territory, however, so utilities have a strong incentive to meter them as accurately as possible. Smart meters are roughly double the price of a standard C&I metering device, according to the report, which presents a funding challenge for utilities as they assemble a business case for the deployment of smart C&I meters. This can lead to a staged deployment approach, especially since installing smart C&I meters involves a more sophisticated level of knowledge for setting up and programming these devices.
The report, “Smart Meters for Commercial and Industrial Markets”, examines the global market opportunity for smart C&I electrical meters, analyzing the drivers and inhibitors that are shaping the market, along with major technology issues. The report also provides market forecasts through 2020 for smart C&I electrical meter shipments and the associated revenue. Case studies, key vendor profiles, and a discussion of broad C&I trends are also included. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Richard Martin
* The information contained in this press release concerning the report, “Smart Meters for Commercial and Industrial Markets,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.