Although 2008 proved to be a strong year overall for the electricity metering market, the fourth quarter was a period of contraction. Continuing into 2009, the bleak economic picture is now impacting shipments of advanced meters.
IMS Research estimates that in Europe, the Middle East, Africa and the Americas, advanced meter shipments contracted by over 15 percent from the same period in 2008, and contracted roughly 10 percent from the fourth quarter of 2008.
IMS senior research analyst Michael Markides said "Even though the economy was shaky during most of 2008, the market for advanced meters continued along relatively unaffected, particularly in North America; however, it was only a matter of time before shipments of advanced electricity meters began to be affected by the depressed economic environment."
In the first quarter of 2009, it is estimated that the advanced meter market in North America experienced its second consecutive quarter of sequential decline.
Added Markides, "At the close of 1Q09, the market in North America for advanced meters still showed positive growth in comparison to 1Q08, but sequential (i.e. quarter on quarter) growth was negative once again. It is unclear at this time if this is a result of a wait-and-see attitude from utilities in regards to government intervention, or if the market is starting to be affected by the economy. It should also be noted that the first quarter of the year is traditionally the slowest for meter shipments, so the market outlook for the year will become clearer once we analyze data in July."
Smart meters in the U.S.
According to recent estimates, more than 8 million smart meters have already been deployed in the U.S. A study by Parks Associates holds that the residential energy management market has taken steps to deploying smart grid technologies and advanced meter infrastructure on a broader scale.
The international research firm says these deployments will open up significant opportunities for companies in the REM value chain. The federal stimulus bill, with the support of the Obama administration, allocates $11 billion for smart grid initiatives through 2010.
In March 2009, Pacific Gas and Electric Co. received state government approval to spend nearly $500 million to upgrade its smart meter program.
The state plans to have 5.2 million electric customers using smart meters. PG&E has installed 360,000 smart meters for its electricity consumers so far.
Smart meters in Britain
In 2008, the U.K. created the Department of Energy and Climate Change (DECC) to be in charge of new green policies. The European Union agreed on emissions and energy consumption targets with the Climate Change Act, which was passed in the U.K.
The country made a firmer commitment to promoting smart meters by agreeing to a smart meter mandate in October 2008. The commitment calls for the installation smart meters for every household and small business within a decade once the deployment process begins.
This roll-out will not happen immediately, but the goal is to see delivery of smart meters by the end of 2020 to align with the country's adopted renewable energy targets.
In 2009, the U.K. we will be laying out the groundwork for long-term energy efficiency improvements and carbon reduction measures. This year will also be crucial given the planned climate change negotiations in Copenhagen.
