European utilities are deploying smart meters in order to increase operational efficiency, improve energy efficiency, and meet a range of new customer requirements and market opportunities. Over 200 million smart meters will be installed in Europe between 2011 and 2020, with over 30 million meters deployed annually during the peak years of activity. Major upgrade programs will be executed in parallel across Europe’s largest countries, along with many smaller projects in a diverse range of countries and utilities. The adoption of smart metering on this scale across many of the world’s most advanced economies will drive a new wave of technical and market innovation in energy metering.

The smart metering market across Europe remains diverse in terms of maturity, technology preferences, and market drivers. The clear leader in terms of smart meter shipments is Germany, where annual smart meter shipments will reach 7 million by 2020, nearly as much as all Eastern Europe countries combined. The German smart meter market will expand at a compound annual growth rate of 63% between 2011 and 2020. In countries such as Italy and Spain, where smart meter shipments have already reached more than 1 million units annually, shipments will actually decrease after peaking in the middle of the decade. Across Europe, the penetration rate of smart meters will reach almost 70% by the end of the decade.

This Pike Research report analyzes the development of the European market for smart electric meters. It assesses the business drivers, market forces, and technology trends that are transforming the metering landscape across Europe, including developments in European energy policy and national strategies for smart metering. The report forecasts smart meter shipments and penetration rates for Western and Eastern Europe and selected major countries through 2020, as well as the adoption of meter communications technologies and the growth in basic and advanced meter adoption between 2011 and 2020.

Key Questions Addressed:

• Which countries are leading in smart meter adoption in Europe?
• How are EU and national policies influencing the smart meter market?
• Which AMI communications technologies will lead the market?
• What role does home area networking have in the European market?
• What are the major risks to smart meter deployment in Europe?
• How do Western and Eastern European markets differ?
• How many smart meters will be shipped in Europe annually?
• What will the penetration rate be for smart meters by 2020?

Who needs this report?

• Smart meter manufacturers and component suppliers
• Networking and communications companies
• Energy management and automation vendors
• Smart grid software, tools, integration, and installation suppliers
• Industry associations and standards organizations
• Utilities
• Government agencies and energy policymakers
• Investor community

Table of Contents

1. Executive Summary

1.1   Europe’s Smart Metering Boom

1.2   Smart Meters: Enablers for a Low-Carbon Europe

1.2.1     Smart Meters and Energy Efficiency

1.2.2     Smart Meters and Smart Grids

1.3   Market Challenges

1.3.1     The Market Today

1.3.2     Technology Trends

1.3.3     Market Forecast

2.     The Smart Meter Market in Europe

2.1   A Market Taking Off

2.2   Definitions and Scope

2.2.1     Smart Meter Definition

2.2.2     Regional Scope: the EU and Beyond

2.2.3     Other Utility Smart Meters

2.3   Smart Meters and European Energy Policy

2.3.1     The Road to 2020

2.3.2     Smart Meters and the Third Energy Package

2.3.3     Smart Meters and Energy Efficiency in Europe

2.4   Competitiveness and the Internal Market

2.5   Smart Meters and European Smart Grids

2.5.1     Improving Visibility

2.5.2     Helping Accommodate Renewable Energy

2.6   The Benefits of Smart Meters

2.6.1     Helping Customers Monitor and Control Energy Use

2.6.2     Enabling Flexible Pricing Schemes that Reflect Real Cost of Energy

2.6.3     Dynamic Matching of Generation and Consumption Patterns

2.6.4     Net Metering for Solar and Wind Power

2.6.5     Improving the Efficiency of Network Operations

2.7   Smart Meter Deployments in Europe

2.7.1     Western Europe

2.7.2     Eastern Europe

2.7.3     Communications Networks: the European Approach

2.7.4     HAN and IHD

2.8   Market Dynamics

2.8.1     European Requirements and Innovations

2.8.2     The Challenge for European Utilities

2.8.3     Governments and Regulators: National Needs and International Obligations

2.8.4     The Supplier Landscape

2.9   Market Challenges

2.9.1     Funding and the Economic Crisis

2.9.2     Delivering the Smart Meter Programs

2.9.3     Consumer Concerns

2.9.4     Skills and Resources

2.9.5     Interoperability, Standards, and Future Proofing

2.9.6     Security and Privacy

3. Technology Issues

3.1   Smart Meter Basics

3.2   EU Metering Standards

3.3   Meter Communication Technologies in Europe

3.3.1     Power Line Communications

3.3.1.1     PRIME

3.3.1.2     G3-PLC Specification

3.3.1.3     Open Smart Grid Protocol

3.3.1.4     Other PLC Standards

3.3.2     Broadband over Power Lines

3.3.3     Cellular/Wireless Networks

3.3.4     WiMAX

3.3.5     RF Mesh

3.3.6     RF Point-to-Multipoint

3.4   Home Area Networking Technologies

3.4.1     RF Home Area Networks

3.4.1.1     ZigBee

3.4.1.2     Other RF HAN Technologies

3.4.1.3     Power Line Carrier for HANs

3.5   Security and Privacy

3.6   European Standardization Process

3.6.1     European OPEN meter Project

4. Country Profiles

4.1   France

4.1.1     Summary

4.1.2     Market Background

4.1.3     Smart Meter Projects

4.2   Germany

4.2.1     Summary

4.2.2     Market Background

4.2.3     Smart Meters

4.3   Italy

4.3.1     Summary

4.3.2     Market Overview

4.3.3     Smart Meters

4.4   The Netherlands

4.4.1     Summary

4.4.2     Market Overview

4.4.3     Smart Metering

4.5   Nordics

4.5.1     Summary

4.5.2     Market Overview

4.5.3     Sweden

4.5.4     Finland

4.5.5     Norway

4.5.6     Denmark

4.6   Spain

4.6.1     Summary

4.6.2     Market Background

4.6.3     Smart Meters

4.7   United Kingdom

4.7.1     Summary

4.7.2     Market Overview

4.7.3     Smart Meters

4.8   Eastern Europe

4.8.1     Summary

4.8.2     Market Overview

4.8.3     Russia

4.8.4     CIS Countries

4.8.5     Poland

4.8.6     Czech Republic

4.8.7     Bulgaria

4.8.8     Other Eastern European Projects

5. Key Industry Players

5.1   Utility Profiles

5.1.1     British Gas

5.1.2     EDF Group

5.1.3     Enel Group

5.1.4     E.ON AG

5.1.5     Iberdrola

5.1.6     Vattenfall

5.2   Supplier Profiles

5.2.1     Aidon

5.2.2     Arqiva

5.2.3     Connode

5.2.4     CURRENT

5.2.5     Deutsche Telekom

5.2.6     Echelon Corporation

5.2.7     Elster Group

5.2.8     Hewlett-Packard

5.2.9     IBM

5.2.10   Iskraemeco

5.2.11   Itron

5.2.12   Landis+Gyr

5.2.13   Logica

5.2.14   Powel

5.2.15   Power Plus Communications AG

5.2.16   Sensus

5.2.17   Vodafone

5.2.18   Xemex

5.3   Standards and Industry Bodies

5.3.1     European Regulatory Organizations

5.3.1.1     ACER

5.3.1.2     ERGEG/CEER

5.3.2     European Standards Organizations

5.3.2.1     CEN

5.3.2.2     CENELEC

5.3.2.3     ETSI

5.3.3     Industry Organizations

5.3.3.1     DLMS User Association

5.3.3.2     ESMIG

5.3.3.3     ESNA and OSGP

5.3.3.4     Prime Alliance

5.3.3.5     ZigBee Alliance

6. Market Forecasts

6.1   Forecast Introduction

6.2   European Smart Meter Shipments and Revenue

6.2.1     Total European Market

6.2.2     Western Europe

6.2.3     Eastern Europe

6.3   Smart Meter Shipments by Meter Type

6.3.1     Basic Smart Meter Shipments

6.3.2     Advanced Smart Meter Shipments

6.4   Smart Meter Shipments by NAN Technology

6.5   Advanced Smart Meter Shipments by HAN Technology

7. Company Directory
8. Acronym and Abbreviation List
9. Table of Contents
10. Table of Charts and Figures
11. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Smart Meter Installed Base, Western and Eastern Europe: 2011-2020
• Smart Meter Unit Shipments, Western and Eastern Europe: 2011-2020
• Smart Meter Revenue, Western and Eastern Europe: 2011-2020
• All Electrical Meter Unit Shipments, Western Europe: 2011-2020
• Smart Meter Shipments by Selected Countries, Western and Eastern Europe: 2011-2020
• Smart Meter Installed Base by Selected Countries, Western and Eastern Europe: 2011-2020
• All Electrical Meter Unit Shipments, Eastern Europe: 2011-2020
• Smart Meter Shipments by Meter Type, Europe: 2011-2020
• Advanced Smart Meter Unit Shipments, Western and Eastern Europe: 2011-2020
• Advanced Smart Meter Unit Shipments as a Percentage of All Smart Meter Unit Shipments, Western and Eastern Europe: 2011-2020
• Smart Meter Unit Shipments by NAN Technology, Europe: 2011-2020
• Smart Meter Unit Shipments by NAN Technology, Western Europe: 2011-2020
• Smart Meter Unit Shipments by NAN Technology, Eastern Europe: 2011-2020
• Advanced Smart Meter Unit Shipments by HAN Technology, Europe: 2011-2020
• Project Shortfall in EU Energy Efficiency Savings Against 2020 Target
• Average Amount in Euros per kWh of Electricity for Domestic Consumers in EU 27,  November 2011
• Share of Renewables in Energy Consumption by 27 Countries: 2005 and 2020
• Functional Reference Architecture for Smart Metering Communications
• OPEN meter Architecture
• The U.K. Model for Smart Meter Communications Services

List of Tables

• All Electrical Meter Unit Shipments, Europe: 2011-2020
• Electrical Meter Installed Base by Region, Europe: 2011-2020
• Smart Meter Installed Base and Penetration Rates, Western and Eastern Europe: 2011-2020
• Advanced Smart Meter Installed Base and Penetration Rates by Region, Europe: 2011-2020
• Smart Meter Unit Shipments, Average Selling Price, and Revenue, Western and Eastern Europe: 2011-2020
• Smart Meter Unit Shipments as a Percentage of All Electrical Meter Unit Shipments, Western and Eastern Europe: 2011-2020
• Smart Meter Unit Shipments by NAN Technology, Western and Eastern Europe: 2011-2020
• Smart Meter Shipments by Country/Region, Europe: 2011-2020
• Smart Meter Installed Base by Country/Region, Europe: 2011-2020
• Smart Meter Shipments by Meter Type, Europe: 2011-2020
• Basic Smart Meter Unit Shipments, Average Selling Price, and Revenue, Western and Eastern Europe: 2011-2020
• Basic Smart Meter Unit Shipments by NAN Technology, Western and Eastern Europe: 2011-2020
• Advanced Smart Meter Unit Shipments, Average Selling Price, and Revenue by Region, Europe: 2011-2020
• Advanced Smart Meter Unit Shipments by NAN Technology by Region, Europe: 2011-2020
• Advanced Smart Meter Unit Shipments by HAN Technology by Region, Europe: 2011-2020
• Electrical Meter Installed Base by Segment, Europe: 2011-2020
• Advanced Smart Meter Unit Shipments as a Percentage of Total Smart Meter Unit Shipments, Western and Eastern Europe: 2011-2020
• Smart Meter Unit Shipments by NAN Technology, Europe: 2011-2020
• NAN Technology as Percentage of Smart Meter Shipments, Europe: 2011-2020