The smart electricity metering market in the Asia Pacific is approaching a significant milestone, with nearly 1 billion smart meter devices expected to be installed.
According to Berg Insight’s (IoT analyst firm) latest research report, the development of smart metering technology is expanding rapidly across multiple countries including China, Japan, South Korea, Taiwan, India, Bangladesh, Indonesia, the Philippines, Thailand, Vietnam, Australia, and New Zealand.
The report forecasts that the installed base of smart electricity meters in the Asia Pacific will grow at a compound annual growth rate (CAGR) of 6.4%, reaching close to 1.2 billion units by 2029 from 818.6 million units in 2023. This growth trajectory suggests that the region will likely achieve the milestone of 1 billion installed devices by mid-2026.
Concurrently, the penetration rate of smart electricity meters in the Asia Pacific is projected to increase from 61% in 2023 to 80% in 2029. The cumulative shipments during the period of 2024 to 2029 are expected to total 872.7 million units.
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Leading Smart Metering Markets in the Asia Pacific
East Asia, comprising China, Japan, South Korea, and Taiwan, has taken the lead in adopting smart metering technology across the Asia Pacific. Notably, as of the end of 2023, this region represents the most mature smart metering market in the Asia Pacific, accounting for over 90% of the installed meters. China has completed its nationwide smart meter rollout, while Japan is in the final stages of its deployment. South Korea's rollout has faced delays, however, the national utility, KEPCO, aims to finish its planned deployment by the end of 2024. Taiwan, with an installation of just 2.8 million smart meters, remains the least developed market in East Asia.
Both China and Japan have initiated the replacement of first-generation smart meters, especially in China, where the meter life cycle is relatively short. According to Mattias Carlsson, IoT Analyst at Berg Insight, "Replacements of aging first-generation smart meters will be the most important driver for smart meter shipments in Asia Pacific throughout the forecast period. The number of smart meters tendered by the State Grid of China is also expected to become more stable going forward at around 65–70 million units per year."
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East Asia stands as the most developed smart metering market in the Asia Pacific, while the most rapidly advancing markets are located in South and Southeast Asia. This region is currently witnessing a surge in smart metering initiatives. India, in particular, is anticipated to
experience substantial growth following the introduction of a significant government funding program in the early 2020s aimed at deploying 250 million smart prepayment meters.
“India is already reaping the benefits from the modernization of its electricity grid and has, in the last two years, managed to reduce overall aggregate and technical losses significantly,” continued Carlsson.
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In Bangladesh, there is a notable emergence of large-scale smart electricity metering installations, driven by a government initiative similar to India's push for smart prepayment metering.
“We also observe positive developments in markets such as Thailand, the Philippines, Indonesia and Taiwan—particularly the latter two. The Taiwanese smart metering market is showing stable growth, with a state-owned utility that has a track record of meeting set targets. Indonesia still constitutes a nascent smart metering market but is also a huge market opportunity with a growing economy and impressive electricity user base of almost 86 million,” concluded Carlsson.
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