Global Smart Meters Market - Growth, Trends and Forecast (2018 - 2023) PDF

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GLOBAL SMART METER MARKET
This Report Offers:
• A well-rounded perspective of the current market influencers and anticipated future trends in the smart meter
market.
• The report focuses on the stakeholders in the market studied, and provides a relative understanding of their
current role in the overall market.
• The report analyses the key trends and governmental initiatives affecting the adoption of smart meters across
major countries listed under the regions that are studied. The report also provides a segment wise breakdown
of the major end-user applications for smart meters.
• The report provides a detailed account of current strategies, product coverage, financials, and relative
strengths and weaknesses of the top 28 vendors operating in the market.
Base Year: 2017

Forecast Period: 2018-2023
Domain: Automation
Sub-Domain: Building Automation
Report Global Smart Meter Market
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TABLE OF CONTENTS 2
1. Introduction
2. Research Approach and Methodology
3. Executive Summary
4. Market Dynamics
5. Segmentation by Type
6. Competitive Intelligence
7. Vendor Market Share Analysis
8. Future of the Market

3
1.1 Study Deliverables

1. INTRODUCTION
1.2 Study Assumptions

1.2 STUDY DELIVERABLES 4
AIM AND OBJECTIVE OF THE STUDY
To gain a fundamental understanding of the global and regional market, by analysing key market dynamics and profiling key vendors to structure the competitive
landscape.
FORECAST PERIOD BASE YEAR COMPANIES PROFILED
2018-2023 2017 28
GEOGRAPHICAL SCOPE SEGMENTS COVERED
DROs
PORTER’S FIVE FORCES ANALYSIS
SEGMENT & SUB-SEGMENT

ANALYSIS
KEY PLAYERS
COMPETITIVE LANDSCAPE

1.2 STUDY ASSUMPTIONS 5
 The base volume forecast for smart meters has been mentioned in million of shipments.
 The base year was identified based on the availability of annual reports and secondary information. The base year considered for this study is 2017.
 The review period considered for this study is from 2012 to 2017. The forecast period and CAGR is from 2018-2023.
 Market size estimations for the forecast years were in real terms.
 Distribution of primary interviews conducted was based on the regional share of the market and the presence of key players in each region.
 As a result of data-triangulation through multiple methodologies and approaches, the weighted averages of resulting estimates were considered to be the final
values.

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2.1 Analysis Methodology

2. RESEARCH METHODOLOGY
2.2 Research Phases

2.1 ANALYSIS METHODOLOGY 7
Market Definitions Segmentation

STUDY STRUCTURE Type / Market Identification
Key Countries and Regions Mapping of Key Players
Data Extraction Process
Data Corroboration Process

Top-down
Value / Supply Chain Validation of Market
Approach
Analysis Size
Analysis
S Consumer Behaviour Bottom-up Approach
Identification of Analysis
Econometric Forecast Modelling + Secondary Exogenous Factors
Research + Expert Verification
Market Dynamics Segment and
Recent Market Region-wise Market
Inference Developments / Market Structure Size Forecasting
Competitive Landscaping Analysis
Data Generation Process (DGP)+Forecast
Infographic and Comprehensive Presentation of

Inferences and Estimates
Market Share Market Sizing Competitive Landscape
Market Structure Company Profiles Porter’s Five Forces Analysis

2.2 RESEARCH PHASES 8
• Plant Managers
• Company Annual Reports • Sales Managers • Industry Experts

• Insights from Data and
• Journals • Surveys • Consultants
Forecasts, Compiled into
• Government Publications • Manager, Purchasing and • Subject-matter Experts
One Report
Logistics • In-house Experts
SECONDARY DISCUSSION PRIMARY ECONOMETRIC EXPERT DATA REPORT

RESEARCH GUIDE RESEARCH MODELLING VALIDATION TRIANGULATION WRITING
• Revalidation of Numbers from Secondary

• Company-related Queries
• Forecasting Model through Primaries
• Market-related Queries
• Monte Carlo Simulation • Combination of Top-down and Bottom-up
• Company Financials
Approaches

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3. EXECUTIVE SUMMARY 3.1 Executive Summary

3.1 EXECUTIVE SUMMARY 10
Smart Meter Market: Unit Shipment in million, Global, The smart meter market had approximately 116.3 millions units shipped across the
2017-2023 1 globe in 2017, estimated to reach to 127.4 million units by 2023 at a compound
annual growth rate of 2.1% for the forecast period.
130
In terms of volume shipped, smart electricity meters led the market with
127.4
126.4 approximately 93 million units shipped in 2017, almost 8 times smart gas and water
125
2 meter each. The market for smart electricity meters is expected to decline by 2% in
123.6
the forecast period due, to market saturation.
The smart gas meter market segment is projected to expand at the fastest rate in the
Shipments (in million units)
120
118.0 Asia-Pacific region, with CAGR of 30.9% in the forecast period. The gas meters
116.3
115.1
3 shipped in APAC are expected to exceed the numbers in Europe by the end 2023
114.7
115 (11 million units in APAC against 10.6 million units in Europe). In 2017 APAC had 1.8
million units shipped against the 7.8 million units in Europe.
The smart water meter market segment is estimated to have the highest demand in
110
4 the residential end user segment, with a CAGR of 10.8%, with demand expected to
reach to 9.3 million units in 2023 from 4.9 million units in 2017.
105
2017 2018 2019 2020 2021 2022 2023 The demand in developed nations is predicted to be higher than developed nations
Year 5 till 2020, after that the emerging nations are expected to dominate the market
Source: Mordor Intelligence Analysis demand, given the population size needed to be covered under these segments.

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4.1 Market Overview
4.2 Market Drivers
4. MARKET DYNAMICS 4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.5 Industry Value Chain Analysis

4.1 MARKET OVERVIEW 12
• Smart metering solutions comprises of meters or modules with communication Country-Wise Operational Efficiency and Loss Percentage
capabilities (either unidirectional or bidirectional), embedded within the meter or of Thermal Power Plants
attached to the meter.
Operational Efficiency Overall Efficiency
Distribution
• Smart electricity meters account for the most significant share of the total market, Country of Thermal Power of Thermal Power
Losses (%)
which is expected to witnesses a declining demand, primarily due to decline in Plants (%) Plants (%)
volume sale from China, the largest market for these systems. Although the overall
Japan 46 5 41
market in terms of shipments is declining, the market excluding China is expected to
Spain 46 9 37
witness substantial growth.
South Korea 39 3 36
• Europe is one of the major markets where smart electricity meters are expected to United Kingdom 44 8 36
witness opportunities for growth. Canada 39 5 34
Italy 40 7 33
• With the ongoing smart electricity meter rollouts, Spain leads the unit shipments
United States 39 6 33
among the European countries. Germany, France, and the United Kingdom are also
Germany 36 4 32
expected to rollout smart electricity meters in large numbers during the forecast
European Union 38 7 31
period.
China 35 6 29
• Smart grids are considered the future of electrical networks, ensuring an efficient and Australia 34 5 29
sustainable system. The efficient infrastructural systems and smart grids are Mexico 43 15 28
expected to play a huge role in this transformation process. Brazil 41 16 25
France 30 5 25
• Many countries are pushing for smart city. Government’s around the world are
Russia 28 10 18
allocating budgets to turn existing cities into smart cities, and also establishing new
India 28 21 7
smart city projects to improve the overall economy.
Source: ACEEE

• The market for smart gas meters is expected to show consistent growth during the forecast
period. Smart Gas Meter - Work flow
• Parallel integration pushes the markets of smart gas meters with electricity meters in
countries, like the United Kingdom, which is incorporating common In-House Displays (IHDs)
for multiple services.
• The market growth in Europe and Asia-Pacific is fuelled by the increasing number of new gas
connections, as well as the government-mandated smart gas meter rollouts.
• Chinese manufacturers are increasingly targeting foreign markets apart from their country,
which might increase the competition in the market.
• The United States, Japan, and the United Kingdom have emerged as the dominant markets in
the global market landscape, as well as in their regional markets. These three countries,
together, held around 42% of the global smart gas meter unit shipments.
• The market is primarily driven by national roll-outs for large-scale incorporations.
• Other drivers are theft prevention and reduction of other non-technical loses, along with
functionality improvements, such as the ability to control utilities remotely and ensure time-
based tariffs.
• The smart meter market has limited product differentiation scope, based on technology. Thus, Source: British Gas, United Kingdom
the price, service, and durability remain the critical factors in product & service selection.

• Due to the growing demand, increasing water stress, rising energy prices, and aging water
Typical working of Smart Water Meters
systems, smart water solutions have emerged with significant benefits by combining
advanced technology, software, and effective communications systems.
1
• The integration of the said components, enables end users to account for every drop of
water consumed and turn water into revenue through enhanced leak detection and
unparalleled near real-time data acquisition.
Water Meters: They
• The critical need for optimized consumption of water in water-scarce areas is driving the
record the flow in
deployment of smart water meters. For instance, according to a report by World Water
4 2
L/Pulse
Development Report, 480 million people in Asia alone will face water scarcity in the future.
The data is converted
• Moreover, about 500 million people live in areas where water consumption exceeds the Data Loggers: Water
into a text file by the
locally renewable water resources by a factor of two. flow is logged at
software and goes for
• There is increased necessity to monitor water usage, which subsequently results in intervals and stored in
the further auditing of all
adoption of smart water meters. data logger
water appliances
3
• The water and wastewater industries are currently undergoing a process of transformation
through the use of ICT. The focus is to increase operational and management efficiencies,
to reduce expenditures and carbon footprints through smart water metering. The data is remotely transferred
to the computer via emails
• More and more utilities are integrating advanced ICT solutions into their operations and with
smart water metering assisting to identify and reduce leakages and non-revenue water, the Source: Australian Water Association
market is expected to grow exceptionally in the forecast period.

Need for improvement in

High utility usage and efficiency
Increase in billing Growth in smart city Demand for sustainable utility

deployment
Market Drivers
revenue and Supportive government supply for all end users

Impact
accuracy regulations
Low
Low
Market Restraints
Utility supplier switching

Impact
Integration difficulties with costs

smart meters
Lack of capital investment for
High costs and security infrastructure installation and lack of
concerns ROI
High
4.2 MARKET DRIVERS 16
NEED FOR IMPROVEMENT IN UTILITY EFFICIENCY
• Many developed and developing nations are facing problems with energy efficiency. In a global survey by
the American Council for an energy-efficient economy, 16 countries, which account for more than 71% of
the worldwide energy consumption, were ranked at less than 70.
• These countries also account for the majority share of carbon emissions. Thus, governments around the
world are focusing on decreasing their emissions, by focusing on renewable energy sources and increasing
the efficiency of the existing network, by deploying smart metering systems and other technologies.
• Smart meters are expected to grow significantly during the forecast period, fueled by the UN climate target
and related energy efficiency measures.
• Efforts to reduce fuel consumption of gas heating systems will increase the demand for smart gas meters,
indirectly, affecting the growth of a fully automated grid.
• Deployment of smart grids and smart metering systems provides solutions to curb energy wastage in the industry. Implementation of smart metering systems
enables energy suppliers to continuously monitor the electricity usage, by employing smart meter systems at multiple points in the grid.
• Thus, the need to improve operational efficiency and decrease power losses is driving the deployment of smart metering systems.

INCREASE IN BILLING REVENUE AND ACCURACY
• Smart meters boost a utility’s ability to precisely and timely bill customers for the extent of utilities used.
The remote read capability allows for smaller intervals between billing reads, better business preparation in
understanding future revenue streams, or producing a continuous flow of capital.
• Smart meters have a significant role to play in reducing theft and safeguarding utility revenues, which act
as powerful drivers. In the case of smart gas meters, loses in most cases, are accounted for theft and
leakage.
• Smart meters can also reduce labor costs and time, as the data provided on smart meters is communicable
two-ways.
• Hence, instead of physical presence to check the reading on the meter, the data from a smart meter is
transmitted to the utility. This reduced dependency on labor and time can save certain costs indirectly
affecting the utility revenue.
• Similarly, simultaneous replacement of electricity and gas meters reduces the cost of both smart meter roll-
outs. A shared communication infrastructure of gas and electricity meters is expected to be more
economical to both, the consumer and the utility provider.

GROWTH IN SMART CITY DEPLOYMENT
• Smart cities can be defined as the integration of smart technologies, such as

intelligent meters, smart grids, and the Internet of Things technologies in the city
infrastructure, to provide efficient operation of all the processes, such as electricity
production and distribution, gas mains monitoring, and other supplies.
• Smart metering systems are employed with two-way communication and control
capabilities, which enable the central systems to analyze the data and take necessary
actions to improve efficiency and handle systems effectively in times of faults and
failures. Smart grids, improved water and energy supply play a crucial role in smart
city deployment and are the primary consumers of smart meters.
• Smart grids are considered the future of electrical networks, ensuring an efficient and
sustainable system. The efficient infrastructural systems and smart grids are expected
to play a huge role in this transformation process. Many countries around the world
are making a move to push smart city developments.
• Government’s around the world are allocating budgets to turn existing cities smart and also establishing new smart city projects to improve the overall economy.
European nations are leading in this segment with many establishments, while countries in Asia-Pacific are exploring this technology for mass deployment.
• This support from the governments is expected to drive the technologies supporting the operations of smart grids and systems. Thus, the increasing deployment of
smart cities, globally, is expected to drive the growth of smart meters.

SUPPORTIVE GOVERNMENT REGULATIONS IN KEY REGIONS
• Supportive regulations and legislation are vital factors to be considered in the rollout of smart meters
in many markets.
• Without government pressure, utilities and distribution network operators are inclined toward a slow
pace of smart meter implementation, as the case for business is not always strong enough.
• The European Union Energy Efficiency Directive proposed that 80% of consumers in the member
states need to be equipped with smart meters by 2020, assuming a favorable cost-benefit analysis.
• While this has been negative in some key states, Germany, being the most important, has led many
countries to plan and implement rollout programs.
• It is expected that Norway, Denmark, Estonia, Spain, Ireland, and the Netherlands would achieve
80% by 2020, with significant progress also recorded in Austria, France, and the United Kingdom.
• In markets where there is no smart meter rollout or supportive legislation, utilities are still prepared to
install smart meters in areas of their distribution networks, where losses are high.
• Bulgaria has no plans for a smart meter rollout, and low electricity prices make it unattractive for
major utilities; yet to prevent simple theft, it is installing meters in one million households that are
assessed as having the highest rates of electricity loss.

DEMAND FOR SUSTAINABLE UTILITY SUPPLY FOR ALL END-USERS
• With more than 700 million people, across 43 countries, suffering from water • Utility companies, such as Water-link, which provide water management
scarcity and the increase in wastewater generation, the need for sustainable water to 624,000 customers across Antwerp, Belgium, have realized significant
supply across various industries is continuously on the rise. time and cost savings by switching to smart water meters.
• On an average, high-income countries treat about 70% of the municipal and • In the Australian state of Queensland, Townsville City Council filed a
industrial wastewater they generate. This ratio drops to 38% in upper-middle- proposal with the state government to install smart water meters. These
income countries and 28% in lower-middle-income countries. Thus, there arises a meters will enable the city to improve management of its water
need to adopt smart water meters, to control water flow at various steps in its distribution infrastructure and reduce non-revenue water, by receiving
treatment. notifications in the event of water leaks.
• Smart meters allow utilities to understand where the water is going and the • Thus, the sustainable management and making the appropriate
quantity of used. This helps utilities to drive down Non-Revenue Utility, by availability of existing water to people across the world are the major
providing more resources in stressed areas and cater to greater populations, by drivers of market growth.
better managing the resource usage.
• Smart meters can also be an integral part of a strategy to preserve supplies,

increase connected populations, and ensure equitable access and charging for
customers. This technology allows utilities to address resource availability
concerns from the bottom up as opposed to the traditional top-down.

4.3 MARKET RESTRAINTS 21
HIGH COSTS AND SECURITY CONCERNS
• The most prominent limitation in the smart metering market is the availability of capital funding. Smart systems
are comparatively expensive than the regular metering equipment employed by most of the service providers
and users.
• These systems utilize digital components and connectivity systems that enable them to operate and transmit
data. This increases the cost of metering equipment.
• Moreover, different smart meters are designed with various parameters, based on the operational requirements
and consumer requirements, thus, driving the costs. Further, smart meters are complicated equipment that need
skilled labor for handling and installation. All these factors drive the overall cost of the systems, making them
expensive than regular metering systems employed.
• Most of the nations around the world have limited budgets allocated for the deployment of smart systems. Therefore, most of the companies are either opting for different systems
or the cost of installing the systems is being passed on to the consumer. Thus, many users are opting out of the employment of smart meters.
• Additionally, security concerns related to user data is one of the factors contributing to the slow growth of smart metering systems. Many users in European nations have been
considering opting out of smart metering systems.
• Remote access, data protection, and other concerns are resulting in paranoia among the users. Security remains the primary issue with users and companies. Recent data
breaches and increasing threats from hacking organizations are affecting the employment of these systems. Thus, high costs and security concerns are restraining the growth of
this market.

INTEGRATION DIFFICULTIES WITH SMART METERS
• Integration challenges involved with employment of smart metering systems are restraining the adoption
of these systems. Smart meters face difficulties in integration in the existing environments.
• Most of the power grids, gas mains, and water supply systems around the world are primitive tech
supported, and have been established decades ago. These existing systems need additional
upgradation to be able to be integrated with smart meters, as there is no supportive infrastructure for
interruption-free operations.
• Additionally, most of the upgrading operations are pushed to the consumer’s end, driving the user to
invest in upgrading the technology. With many consumers being unaware of the systems and
techniques, the implementation has become a challenging task.
• Access to information has to be restricted to authorized utility personnel, who need the data to satisfy
business functions, such as improvements in billing and customer service.
• Consumers have to be encouraged to take time to get to know their electricity provider’s privacy policy and their commitment to keeping client data safe. Even with
the assurance, it can still be a challenge to earn the trust of the consumers, who play an essential role in the process of modernizing the grid systems.
• The security integration with the central grid systems, integration challenges from the existing infrastructure, and general awareness are restraining the growth of
this market.

LACK OF CAPITAL INVESTMENT FOR INFRASTRUCTURE INSTALLATION AND LACK OF ROI
• Lack of availability of capital funding remains a major challenge affecting the • Most of the nations around the world have limited budgets allocated for the
adoption of smart meters. deployment of smart systems. Therefore, most of the companies are either
opting for different systems or the cost of installing the systems is being
• The operating costs associated with smart metering are also high. Many
passed on to the consumer.
utilities are not flush with cash and spend much of their budget on making
network repairs, just to maintain the status quo. • Thus, many users are opting out of the employment of smart meters. Some
utilities are more ready to act on smart water meters, as they know it will
• The smart meters, unlike conventional meters, use digital components and
help to keep status quo easier in the long-run.
connectivity systems that enable them to operate and transmit data. This
increases the cost of smart metering equipment. • While smart meters have a great deal to offer on direct benefits, one of the
key reasons to selling smart meters is in promoting the benefits of wider
• Furthermore, different smart meters are designed with different parameters,
integration, and its role as a necessary building block in any smart network.
based on the operational requirements and consumer requirements, thus,
increasing their costs.
• To either squeeze budgets or find financing elsewhere is a challenge when

investing in new technology, and the return on investment needs to be clear.
• The current economic climate does not make it easy to secure investment in
many regions.

UTILITY SUPPLIER SWITCHING COSTS
• The one of the most prominent limitations in the smart metering market is the cost associated with switching the utility supplier by customers. These systems
utilize digital components and connectivity systems that enable them to operate and transmit data. The technological developments make them obsoletes for use
for other supplier.
• The user interface for each of the utility provider varies from one another, thus making it very difficult to using smart meters installed by one service provider to
another one. The lack of standardization in interface developments escalates the issue.
• There has been some initiation in this segment of developing mobile-based application usable by various service providers, by integrating the interface which
communicates and displays information on a common platform.
• The third-party involved providing the communication platform for smart meters, also opens up the risks of data theft, and this is used as a motive for offering
differential pricing for different customers.

4.4 PORTER’S FIVE FORCES ANALYSIS 25
BARGAINING POWER OF SUPPLIERS
• The supplier switching cost is low, as the components are basic electronic equipment
with multiple suppliers. However, the integration of communication protocol requires Supplier switching
costs
long-term collaboration, thus improving the bargaining power of the suppliers to some
10
extent.
8
• The impact of inputs on cost or differentiation is not significant, further reducing the Supplier
6
competition: the
Impact of inputs
supplier's bargaining power. The conventional components operate at similar power ability to forward 4
on cost or
vertically integrate
consumption levels for comparable operations. 2 differentiation
and cut out the
• The procurement of these components is done in bulk, requiring no major distribution buyer 0
channel, while their availability from various manufacturers and reduces the
bargaining power.
• The standardization of specifications related to these smart meters does improve the Strength of
Product
distribution
standing of suppliers, primarily when operating at a regional level, in the absence of Standardization
channel
replacements from global players.
• Furthermore, due to the integration capabilities of readily available technologies, the

Bargaining Power of Suppliers is Moderate and Diminishing.
supplier competition with the ability to cut out the buyer, by the development of end
product, also exists. This availability significantly improves the bargaining power of Source: Mordor Intelligence Analysis
suppliers.

BARGAINING POWER OF BUYERS/CONSUMERS
• In the smart meters industry, with primary customers being utility providers and organizations, the
degree of dependency upon existing channels of distribution is low, which gives them a higher Degree of
bargaining power. dependency upon
existing channels
• Moreover, as all the systems do not require interoperability at a national level, utility providers can of distribution
10
deploy separate systems in different areas and localities. They have higher bargaining leverage, 8 Bargaining
Differential
which further increases their bargain power. leverage,
advantage 6
particularly in
(uniqueness) of 4
• The buyer information availability in this industry is also high, with companies providing explicit industries with
industry products
2 high fixed costs
product specification and designs to facilitate decision making. This availability of information is
0
increasing the bargaining power of consumers in the market studied.
• The governmental mandates are pushing these systems into the market, but their deployment is Buyer price Buyer information
primarily for achieving efficiency and not on the need basis. Therefore, this factor does not have a sensitivity availability
significant negative effect on the bargaining power, although a favorable CBA is expected to help in
a few countries and regions. Availability of
existing substitute
• The bargaining power is not increasing much due to the price sensitivity, as the primary employers products
are large-scale organizations, governments, or utility providers with significant purchasing power.
Bargaining Power of Buyers is High and Increasing.
• However, the low differential advantage among vendors operating in the market studied is
Source: Mordor Intelligence Analysis
increasing the available options and in conjunction, the bargaining power of buyers.

THREAT OF NEW ENTRANTS
• The threat of new entrants in the market studied is affected by government policies, where the Government
increasing mandate and rollouts, along with the investment in supporting infrastructure are policies
10
helping the vendors. However, the differences in regional requirements are making it difficult to
8
operate in multiple regions, especially for a new entrant. Industry
6 Capital
profitability
• The threat from product differentiation is low, as the scope regarding technological differentiation 4 requirements
(Market CAGR)
is limited and the companies primarily compete over price and services. In these terms, 2
0
companies are increasing their focus to provide secure and reliable data transfer and have
proprietary communication systems.
Access to Product
• Furthermore, the high switching or sunk cost associated with this industry, due to large-scale
distribution differentiation
investment in product development and manufacturing, is also dissuading new entrants to some
extent.
Switching costs
• The ability to deploy smart metering systems, in collaboration with utility providers, eliminates or sunk costs
the need for developing large-scale distribution channels, which is adding to the ease of entering
the market studied and thereby increasing the threat.
Threat of New Entrants is Relatively Moderate and
• Although the market has been witnessing sluggish growth in terms of unit shipments, there is a
Increasing.
significant annual demand, indicating a substantial industry profitability, which results in the
growing threat of new entrants.

THREAT OF SUBSTITUTE PRODUCTS AND SERVICES
• In this industry, substitute products are the conventional meters or smart extensions that can
be integrated with the existing systems. The threat due to buyer’s propensity to substitute is Buyer propensity to
high, as the awareness related to smart meters is very low, when compared to the reach of substitute
10
conventional meters.
8
Relative price
• However, the positive cost-based analysis (CBA) for major countries, along with further Availability of close 6
performance of
substitute 4
improving technology and connectivity, is expected to result in a diminishing threat. substitute
2
• The relative price performance of substitute products does not increase the threat, as smart 0
meters provide various functional, financial, and environmental benefits for the added cost. Number of substitute
products available in Buyer switching costs
• The inability of smart extensions to bring utility providers into the loop further adds to this
the market
factor. However, the high switching costs associated with large-scale deployment increases
the threat of substitution, which implies an inclination toward existing conventional systems. Perceived level of
product/service
• The awareness related to smart meters is increasing, with governments pushing for higher differentiation
efficiency and lower environmental impact, thus improving the perceived level of product
differentiation and reducing the threat of substitutes.
• In addition, the number of substitutes available is also low, with conventional-low priced Threat of Substitutes is Moderate and Diminishing.
meters posing a considerable threat. Source: Mordor Intelligence Analysis

COMPETITIVE RIVALRY IN THE INDUSTRY
• While the level of penetration is not high, the scope of parallel operations is limited, as Sustainable
competitive
the industry operates primarily on a contract basis, with one company accounting for advantage through
innovation
the entire market share of one region. 10
8 Levels of Market
• The receding market in China increases this competitive intensity at a global level, Degree of
Penetration (Scope
transparency 6
while the roll outs in Europe and replacement projects in the United States open up of Opertaion)
4
opportunities for the market vendors.
2
• The involvement of large-scale investment also increases the barriers to exit for the 0
existing players, thus pushing the industry toward improved competition. Firm concentration
Barriers to Exit
ratio
• As the product selection is primarily made by technical experts, based on detailed cost
and performance analysis, brand identity does not provide much help in reducing the
XX
Powerful BARGAINING
scale of competition.
competitive Brand Identity
strategy
POWER OF THE
• Additionally, firm concentration ratio is too high, further increasing with the Chinese CUSTOMERS
manufacturers entering the foreign markets. Competitive Rivalry in the Industry is High and Increasing.

4.5 INDUSTRY VALUE CHAIN ANALYSIS 30
Components and Smart

Product Design Network
and Regulatory Manufacturing Distribution Deployment End Users Electric
Equipment Channel Services Metering
Analysis Assembly Services
Industry Value Chain Analysis

• Based on the end-user application (residential, commercial, and industrial) and the regulatory constraints, the smart meter manufacturers design various smart
meters with several modular capabilities. Based on the application and product type, manufacturers offer their products with wired and wireless communications.
• The entire infrastructure framework with end points, standardized communication technologies, which are scalable for different network sizes, will be taken care of by
manufacturers. After the completion of product design and assembly of network equipment, smart meters are manufactured. These manufactured smart meters are
then deployed at their respective end-user locations.
• Major vendors have the ability to plan and deploy smart meters. These vendors offer planning, logistics, and installation services for their customers. The major
vendors own their distribution channels, through which the deployments and related services to the end users are taken care of.
• Various after-sales smart metering services are being offered by the vendors, including intelligent handling of the actionable information, seamless integration with
customer enterprise management systems, interoperability with multiple head-end systems, business process optimization, and other services.
• Owing to the introduction of new forms of pricing models and distribution channels, smart metering service is emerging as a viable segment within the market
studied.

4.5 INDUSTRY VALUE CHAIN ANALYSIS 31
Companies Providing
Communication Control and
Monitoring Hardware Software Providers
Companies Automation Providers
Solutions

32
5.1 Smart Electricity Meter
5. MARKET SEGMENTATION - BY TYPE 5.2 Smart Gas Meter
5.3 Smart Water Meter

5. SEGMENTATION BY TYPE 33
Smart Meter Market: Unit Shipment in million, by Type, Global, 2017-2023 Smart Meter Market: Unit Shipment Share (%),
by Type, Global, 2017
Type 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Smart Electricity
93.1 86.3 81.4 79.6 82.2 82.8 81.4 -1.2 10.1%
Meter
Smart Gas Meter 11.4 14.9 18.6 21.8 23.2 23.4 23.9 9.9 9.8%
Smart Water Meter 11.8 13.4 15.1 16.6 18.3 20.1 22.1 10.4
80.1%
Smart Electricity Meter Smart Gas Meter Smart Water Meter

34
5.1.1 Region
5.1 SEGMENTATION - BY SMART ELECTRICITY METER
5.1.2 End User

35
5.1.1.1 North America
5.1.1.2 Europe
5.1.1 SEGMENTATION - BY REGION 5.1.1.3 Asia-Pacific
5.1.1.4 Latin America
5.1.1.5 Middle East & Africa

5.1.1 SEGMENTATION - BY REGION 36
Smart Meter Market: Unit Shipment in million, by Smart Electricity Meter, Global, 2017-2023 Smart Meter Market: Unit Shipment Share (%),
by Smart Electricity Meter, Global, 2017
0.6%
Region 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
1.6% 7.3%
North America 6.8 6.0 6.1 6.5 7.0 7.3 7.4 4.3
13.7%
Europe 12.7 16.2 18.1 19.6 21.3 22.6 25.5 9.5
Asia-Pacific 71.5 61.5 53.9 49.2 48.5 45.7 40.8 -7.9
Latin America 1.5 1.9 2.3 3.1 3.8 4.6 5.1 22.3
Middle East &

0.5 0.7 0.9 1.2 1.7 2.7 2.7 29.9
Africa
76.8%
North America Europe
Asia-Pacific Latin America
Source: Mordor Intelligence Analysis Middle East & Africa

5.1.1.1 NORTH AMERICA 37
Smart Meter Market: Unit Shipment Share (%),
Smart Meter Market: Unit Shipment in million, by Smart Electricity Meter, North America, 2017-2023 by Smart Electricity Meter, North America, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Canada 0.7 0.6 0.5 0.5 0.4 0.4 0.3 -10.8 10.3%
United States 6.1 5.4 5.6 6.0 6.5 6.9 7.1 5.5
89.7%
Canada United States

• The automatic meter reading solutions market is reaching maturity in the United States,
Smart Meter Market: Unit Shipment in million, by Smart Electricity
resulting in sluggish growth. The project sizes are now decreasing from millions to a
Meter, North America, 2017-2023
small multiple of 10,000s.
• However, the replacement of first-generation meters and the shift to advanced metering 8
7.4
infrastructure (with higher capabilities and improved technology) are expected to revive 7.3
7.0
the smart electricity meter segment of the market studied, over the forecast period. 7 6.8
6.5
• Canada has witnessed a large-scale incorporation of smart electricity meters, after a 6.1
6.0
governmental mandate was introduced over five years ago, with the prime motive of 6
reducing peak time loads. Different peak and non-peak time rates were added, with
smart meters enabling real-time billing. 5
• The Canadian investment of USD 2 billion in the smart metering systems has not been

4
effective, as the initiative dissuaded conservative factions in the government. Further,
the apparent non-feasibility of these solutions in less densely populated areas is adding
3
to the challenge.
• The largest driver of the smart electricity meter segment, in conjunction with the 2
deployment of smart electricity meter infrastructure, has been the American Recovery
and Reinvestment Act (ARRA) of 2009, which included funding for the Smart Grid 1
Investment Grant (SGIG) program.
• More than 50% of the USD 7.9 billion in the SGIG (USD 3.4 billion from ARRA and 0
2017 2018 2019 2020 2021 2022 2023
USD 4.5 billion in matched funds from the private sector) was designated for advanced
Source: Mordor Intelligence Analysis Year
metering infrastructure.

• The top five smart meter manufacturers (Elster, GE Energy, Itron, Landis+Gyr, and Sensus) received a significant amount of more than USD 30 million in ARRA
funds or matching funds. These factors are driving the direct growth of the US segment of smart electricity meters.
• The majority of demand in the United States is in the residential sector, as the commercial and industrial sectors are already using smart electric meter solutions. In
these sectors, smart meters are employed to optimize energy consumption.
• The Canadian segment of smart electricity meters is reaching a saturation state, in addition to facing challenges related to the implementation of technologies.
• A case in point is that of Ontario, Canada, which currently has about 5 million smart meters. However, the electricity transmission and distribution utility operating in
this Canadian province, Hydro One, is facing various problems, with nearly 9700 complaints of over-billing and 5,400 meters replaced due to fire hazard risks.
• The company has also decided to not include smart meters in nearly 36,000 rural connections, due to the unreliability of connections. These factors are expected to
result in a negative growth in the annual demand of smart electricity meters in Canada over the study period. On the other hand, in the United States, the residential
sector is dependent on government support and initiatives by utility providers. The United States’ imports of smart electricity meters have been steadily decreasing
since 2011, indicating the growth of the domestic market.

5.1.1.2 EUROPE 40

Smart Meter Market: Unit Shipment in million, by Smart Electricity Meter, Europe, 2017-2023
by Smart Electricity Meter, Europe, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
France 4.6 6.0 6.6 6.8 7.3 7.6 8.4 7.0

22.7%
Germany 0.6 1.8 2.3 3.0 3.7 4.2 5.0 23.1

35.7%
Spain 3.7 2.9 2.0 1.6 1.0 0.9 1.0 -19.7
7.8%
United Kingdom 1.0 1.6 2.0 2.1 2.3 2.3 2.9 11.9
Rest of Europe 2.9 3.9 5.2 6.1 7.1 7.5 8.1 16.0
4.7%
29.0%
France
Germany
Spain
United Kingdom
Rest of Europe

5.1.1.2 EUROPE 41
• The steady growth of the UK market can be attributed to the increasing environmental
Smart Meter Market: Unit Shipment in million, by Smart Electricity
concerns and favorable governmental policies and initiatives.
Meter, Europe, 2017-2023
• The United Kingdom has a clear rollout strategy, led by the Department of Energy and
30
Industrial policy, and is projected to complete the installation process by 2020. This
installation is expected to translate into a substantial growth of the market until 2020,
25.5
followed by a sluggish growth rate till 2022. Additionally, due to a high population
25
density and high connectivity, the country has a favorable CBA, further adding to the 22.6
growth. 21.3
19.6
• These influencing factors are expected to drive the demand of smart electricity meters 20
18.1
in the country, where the better awareness among citizens is likely to augment this
16.2
trend.

15
• In Germany, the law on the digitization of the energy transition was passed in July 2016 12.7
and is expected to be significantly boost the demand for smart electricity meters. The
renewable energy sector in the country is vast, as currently, it can meet about 78% of 10
its energy requirements through renewable sources. This ability of renewable energy as
a source is pushing individuals to incorporate smart electricity meters to benefit from
5
advanced systems, like net metering, in the future.
• Higher awareness among citizens and the ability to produce renewable, de-centralized
0
electricity is the primary driver of the regional smart meter segment. 2017 2018 2019 2020 2021 2022 2023

5.1.1.2 EUROPE 42
• Électricité de France SA (EDF) is handling the entire process of smart • The market conditions in other countries vary considerably, depending on the
electricity meter rollout in France. About 10% of smart electric meters are regional conditions and governmental policies.
exported to China and exports approximately 5% of smart electric meters to
• However, the market is challenged by the sluggish growth in Portugal, due to
South Korea. Canada is one of the major importers, accounting for about
lack of government mandates and a negative cost-benefit analysis in countries
25% of the total electric meter imports.
like Belgium and the Czech Republic. The demand for smart electricity meters
• The Spanish macro-economic environment encounters several crucial in countries with neutral CBA, such as Austria and Poland, are also expected to
challenges. The economic position of global markets, uncertainty in the be mainly dependent on governmental policies.
countries of the Eurozone, and difficulties specific to the domestic sector are
hindering the growth of the national economy. • The shift of European countries toward renewable energy sources is also
bolstering the demand for smart electricity meters. For instance, Sweden has
• Spain is already completing the rollout and the smart electricity meter completely shifted to renewable energy sources. Therefore, owing to their
segment has achieved nearly 75% penetration in the country. This
ability to provide ‘net metering’, smart meters are gaining importance.
penetration is expected to significantly reduce the demand for new smart
meters during the forecast period, resulting in a negative CAGR. • Furthermore, factors, such as prevention of theft and losses, are augmenting
the usage of smart meters. For instance, Bulgaria, with no governmental
• Italy, Sweden, Finland, and Denmark were pioneers to roll out mandates mandate and low electricity rates, is also installing 1 million smart meters to
related to smart meters. After the EU energy legislation in the third energy prevent non-technical losses.
package, the member states are required to implement smart metering
solutions with a target of 80% penetration in the electricity sector, by 2020.

5.1.1.3 ASIA-PACIFIC 43
Smart Meter Market: Unit Shipment in million, by Smart Electricity Meter, Asia-Pacific, 2017-2023 Smart Meter Market: Unit Shipment Share (%),
by Smart Electricity Meter, Asia-Pacific, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
China 56.1 44.7 38.2 34.2 33.8 31.6 27.0 -9.6 4.6%1.1%
14.1%
India 1.2 1.4 1.7 1.8 2.0 2.3 2.3 9.7
Japan 10.1 11.1 10.2 9.5 8.3 7.6 7.5 -7.5 1.7%
South Korea 3.3 3.5 2.8 2.5 2.4 2.2 2.0 -10.7
Rest of Asia-Pacific 0.8 0.9 1.0 1.3 1.8 2.1 2.1 17.6
Source: Mordor Intelligence Analysis 78.5%
China India Japan South Korea Rest of Asia-Pacific

• China is currently the leading segment in Asia-Pacific, with the rollout at its peak, due
Smart Meter Market : Unit Shipment in million, by Smart Electricity
to strict mandates by the government. South China and State Grid, the only two grid
Meter, Asia-Pacific, 2017-2023
companies in the country, drive the process. However, the gradual end of the rollout is
resulting in a significant reduction of annual demand. 80
71.5
• However, even after the end of the rollout, there is expected to be an annual demand
70
for 31.58 million units, which is a significant volume. This demand is primarily because
61.5
the Chinese meters are manufactured at very low costs, due to intense competition
60
and have a shorter lifetime, thereby creating a need for replacement. 53.9
49.2 48.5
• China is a major manufacturer of smart electricity meters, with a strong presence of 50
45.7
local companies. Therefore, it is nearly impossible for non-Chinese companies to 40.8

compete in the country. 40
• The utility providers in Japan are aggressively incorporating smart electricity meters,
30
with the current presence of nearly 10 million smart meters in the country.
• The installation of smart electricity meters is expected to reach its peak in 2018, after 20
which, the market is expected to reach a saturation stage, resulting in a significant

reduction in the annual demand for these systems. 10
• Tokyo Electric Power Co. (TEPCO), the most significant electric business in Japan, is
0
expected to deploy 27 million residential smart meters within its service region, before 2017 2018 2019 2020 2021 2022 2023
the Olympic Games 2020 are held. Source: Mordor Intelligence Analysis Year

• The Japanese government has also shifted its focus on demand-side • South Korea has initiated the rollout of smart electricity meters, with current
management and an increased emphasis on energy security and resiliency, volume in the country of about 3 million units. However, the complete
through smart grid and energy efficiency technologies. implementation of this technology is expected to create the demand for
nearly 20 million units of smart electricity meters, during the forecast period.
• The high population density and availability of cheap labor in India has reduced
• The rapid industrialization and high living standards have bolstered the focus
the demand for advanced features, such as remote meter reading, terminating the
on the environmental impact of emissions from fossil-fuel-based power
connection, and identifying issues from the central station itself.
stations.
• This reduced demand affects the net revenue of the Indian smart electricity meter
• Australia and New Zealand are the prominent segments of rest of Asia-
segment, which is expected to be considerably lower than that of other markets
Pacific smart electricity meter segment. New Zealand has already installed
with smaller volumes.
more than a million smart electricity meters and is expected to install nearly
• Energy Efficiency Services Ltd (EESL), a government firm managed by the
800,000 more by 2020.
Ministry of Power, assigned Larsen & Toubro (L&T) to deploy 50 lakh million smart
• The Australian state of Victoria has rolled out the incorporation on nearly 3
meters in Uttar Pradesh and Haryana.
million smart meters, while other states are expected to follow.
• India is expected to invest USD 44.9 billion in smart metering, distributing,
• The Association of South East Asian Nations (ASEAN) is expected to record
automating, and other smart grid sectors, over the next decade. This investment is
a significant growth in terms of the volume of smart electricity meters during
expected to reduce the country’s high transmission and distribution loss rate of
the forecast period.
around 22.7%.
• Malaysia and Singapore are the major segments of this group, with Malaysia
• UDAY program, a government initiative, directs distribution companies to deploy
planning a national rollout of nearly 8 million smart electricity meters during
smart meters by December 2019, whose electricity consumption is more
substantial than 200 kilowatt-hours (kWh) per month. There are around 35 million
customers who consume more than 200 kWh per month.

5.1.1.4 LATIN AMERICA 46

Smart Meter Market: Unit Shipment in million, by Electricity, Latin America, 2017-2023 by Electricity, Latin America, 2017
By Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Brazil 0.7 0.8 1.0 1.2 1.6 2.1 2.2 23.0 12.5%
Mexico 0.7 0.8 1.0 1.2 1.3 1.5 1.6 13.7
Others 0.2 0.2 0.4 0.7 0.8 1.0 1.3 40.2 43.8%
43.8%
Brazil Mexico Others

• In Latin America, Brazil, with the presence of leading utility providers, like Endesa, is a prominent
market. The vast consumer base of nearly 5.7 million provides a substantial size of a potential Smart Meter Market: Unit Shipment in million, by Electricity, Latin
market. America, 2017-2023
• The country is planning significant rollouts of smart electricity meters after the positive results as 6
recorded in Italy and Spain. Many utilities providers have shown an inclination toward using smart
metering systems. The implementation of these systems is expected to take place in multiple 5.1
5
stages, consuming a significant amount of time. 4.6
• The lack of explicit technical specification also delays the process. Brazil has stringent regulatory
policies, which has made the market highly consolidated. Landis+Gyr and Elster are a few 4 3.8
significant players in the country, with high barriers for new entrants.
3.1
• Minimizing non-technical losses is the primary driver for the smart electricity meter market in

3
Mexico, which is undergoing a reform in the energy market. Chile has a national rollout planned,
which is likely to boost the smart electricity meter market in the country; whereas the incorporation 2.3
of these systems in Ecuador is expected to be fueled by the need for reducing non-technical losses. 2 1.9
• However, the market progress in these countries is quite slow. The region at large suffers a lack in 1.5
terms of funds, therefore, any prospect for short-term market growth is minimal.
1
• In the long run, gradual investments in smart grids and the need for reducing non-technical losses
are expected to help the market growth. The number of installed meters is expected to increase
during the forecast period.. Endesa Columbia is the primary utility provider of this nation. 0
2017 2018 2019 2020 2021 2022 2023
• Other countries in the region are expected to have small-scale pilot projects during the forecast
period.
5.1.1.5 MIDDLE EAST & AFRICA 48

by Electricity, Middle East & Africa, 2017
Smart Meter Market: Unit Shipment in million, by Electricity, Middle East & Africa, 2017-2023
Middle East &

2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Africa
Gulf Countries 0.3 0.3 0.4 0.4 0.6 1.0 0.7 16.1
33.3%
Africa 0.1 0.1 0.2 0.2 0.4 0.5 0.6 39.3
Others 0.2 0.3 0.4 0.5 0.8 1.2 1.4 38.0 50.0%
16.7%
Gulf Countries Africa Others

• In the Middle East & Africa, Saudi Arabia and UAE are expected to lead the regional
Smart Meter Market: Unit Shipment in million, by Electricity, Middle
market, owing to the improving economies and increasing incorporation of technology.
East & Africa, 2017-2023
The increasing per capita consumption of electricity is pushing the need for smart metes,
3
however, the absence of clear governmental policy is dissuading investments in the
sector. 2.7 2.7
• Bahrain and Qatar have also witnessed an inclination toward the incorporation of smart 2.5
meters, but the market sizes of these nations are small. The combined demand expected
to come from these countries is for about 500,000 meters, over the forecast period.
2
• Saudi Arabia is a promising market; however, it is performing under its potential. The 1.7
demand for smart electricity meters in the country is projected to be below 400,000,

during the forecast period. 1.5
• According to a recent study by the IFPRI, the population of the South-Saharan countries 1.2
is expected to grow 2.5 times by 2050. This growth in population, coupled with the rise in 0.9
1
income levels, is expected to increase the demand for construction activities in the 0.7
region.
0.5
0.5
• The growing South African GDP, electrification programs, and increasing deployments of
prepaid metering are expected to affect the market.
• The US government's Power Africa initiative has agreed over USD 7 billion in funding for 0
2017 2018 2019 2020 2021 2022 2023
electricity projects, with additional private sector funding.

• Increasing access to electricity is still a major priority. The rate of penetration

• Other nations in Africa are facing several challenges while incorporating this
of even basic meters is shallow (often in single digit) in the region. The
technology and, therefore, lack any prominent prospects.
traditional electronic metering still dominates a major portion of the current
• Although the massive losses, due to non-payment of bill, create a case for
African market.
smart electricity meters, the implementation is restrained by the lack of
• The South African market is expected to witness a strong growth during the infrastructure and connectivity.
forecast period, as the major cities of the region are planning to incorporate
• Financing such project is also a major issue, where countries like Angola,
smart electricity meters. However, the implementation of the same is
Nigeria, and Algeria are heavily dependent on oil and gas revenues, which
expected to get slightly delayed, due to the slow rate of investment. The
are shrinking due to decreasing prices.
country also witnesses a considerable demand for pre-payment meters
• Egypt and Kenya are anticipated to be the key markets in the region, but the
among customers.
growth is expected to be slow during the forecast period.
• Iran and Egypt are projected to witness significant growth rates, owing to the
improving economic conditions. With a projected rollout of over 3.4 million
smart electricity meters, starting in 2019, Israel is a prominent country among
others in the Middle East & Africa,.
• The exposure to advanced technologies and availability of better

infrastructure are expected to support the incorporation these systems.
• Iran also has a considerable potential in terms of market size, however, the
implementation is likely to be depend upon the political stability in the
country. The reducing oil prices have also increased the economic pressure
on the nation, further delaying the shift.
51
Commercial
5.1.2 SEGMENTATION-BY END USER Industrial
Residential

5.1.2 SEGMENTATION-BY END USER 52
Smart Meter Market: Unit Shipment in million, by Electricity, by End User, Global, 2017-2023 Smart Meter Market: Unit Shipment Share (%),
by Electricity, by End User, Global, 2017
Region 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Commercial 75.5 69.3 64.7 62.6 63.9 64.6 62.5 -2.0 6.3%
Industrial 11.7 11.2 11.0 11.1 11.9 12.4 12.6 2.3 12.5%
Residential 5.9 5.8 5.8 5.9 6.3 5.8 6.3 1.7
81.2%
Commercial Industrial Residential

5.1.2 END USER 53
• Smart electric meter plays a significant role in the industrial, residential, • The continually evolving government framework and policies are increasing
manufacturing, and commercial sectors, as this meter measures the the rate of installations in the residential, commercial, and industrial sectors.
energy consumed by the consumers. The increasing smart grid Countries, such as China and the United States, have witnessed a high-scale
investments and the surge in the rate of integration of renewable sources deployment of smart meters, mainly due to the continuous support from the
of power generation to the existing grids, along with increasing T&D respective governments.
refurbishment activities in developed economies, are expected to support
• Residential applications of a smart meter include standalone autonomous
the growth of the global smart electric meter market.
houses and suburban/urban apartments. These applications are expected to
• Increasing investments for the construction of commercial facilities, such grow, gradually, due to the factors, like a regulatory, administrative
as banking institutions, educational institutions in the developed and framework, along with the rise in awareness concerning the reduction of
developing economies, have fueled the growth of the commercial segment energy consumption and aligned expenses.
of the market.
• The other significant factor, which is increasing the rate of adoption of smart
• The meter measures the electricity consumption and communicates this to meters in the commercial sector, includes the timely exchange of data,
the central utility system. Globally, installations of these devices in the which enhances an organization's ability to control the energy usage while
residential sector help in the reduction of CO2 emissions, owing to the reducing the operating costs.
increased consumer's inclination toward peak time savings of energy.
• The increasing residential construction activities and government

mandates, like EU 20-20-20 policy aiming to convert over 80% of the
installed meter base to a smart one, have ensured growth prospects in the
demand for smart electric meters.

5.1.2 END USER 54
Smart Meter System -

Benefits
Based on Stakeholders
Transmission and External

Utility Customers Customer Service & Marketing & Load Utility General
Distribution Stakeholders
Field Operations Forecasting
Revenue Cycle
Services - Billing, Reduce regulatory Improve
Better access and Accounting, Improved transformer complaints
data to manage Reduced costs for environmental
Reduced cost of Revenue Protection load management
energy use collecting load benefits
metering reading Early detection of research data
meter tampering
and theft
• With the rising energy prices and environmental concerns, regarding power generation and distribution, industries are seeking new time-efficient and cost-effective
measures to manage power generation and distribution, all over the world. Growing demand for energy, coming from the manufacturing sector, and fluctuating
supplies and energy costs are a few factors impacting the energy expenditures in these industries. In the industrial sector, the adoption of a smart meter is helping the
major players in the manufacturing segment, to optimize energy consumption levels, as a smart meter can facilitate a greater control by users over the energy usage.
• Energy theft, which is a predominant factor affecting the energy expenses of industries, especially in developing countries, can be controlled to a large extent by the
use of a smart meter. Smart meters help industries in monitoring and optimizing the energy consumption patterns, by shifting the use of energy to non-peak hours
where cost per unit is lesser when compared to peak hours. This shift may lower the demand for electricity in peak hours, by which the industries can cut down the
capital expenditure on power generation to meet the excess demand for energy during peak hours.
• The majority of this process is being adopted by industries in North America and China. Incentives offered to industries for the use of smart grids and smart meters in
European nations are propelling the rate of adoption of smart meters. Budgetary constraints of industries and the lengthy period for realizing the benefits of smart
meters have been the deterrents for the adoption of smart meters in developing nations.

55
5.2.1 Region
5.2 SEGMENTATION-BY SMART GAS METER
5.2.2 End User

56
5.2.1.2 Europe
5.2 SEGMENTATION-BY REGION 5.2.1.3 Asia-Pacific

5.2.1 SEGMENTATION-BY REGION 57
Smart Gas Meter Market: Unit Shipment in million, by Region, Global, 2017-2023 Smart Gas Meter Market: Unit Shipment Share
(%), by Region, Global, 2017
1.7%
Region 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
0.6%
14.0%
North America 1.6 1.6 1.7 1.7 1.7 1.8 1.7 1.2% 15.7%
Europe 7.8 10.1 11.7 12.0 11.4 10.5 10.6 0.9%
Asia-Pacific 1.8 2.9 4.8 7.6 9.5 10.5 11.0 30.9%
Latin America 0.1 0.1 0.1 0.1 0.1 0.1 0.1 7.8%
Middle East &

0.2 0.3 0.3 0.4 0.5 0.5 0.5 14.1%
Africa
68.0%
Source: Mordor Intelligence Analysis Middle East & Africa

Smart Gas Meters Market: Unit Shipments
Smart Gas Meter Market: Unit Shipment in million, by Region, North America, 2017-2023 Share (%), by Region, North America, 2017
North America 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
9.6%
United States 1.4 1.5 1.5 1.5 1.5 1.6 1.5 0.7%
Canada 0.2 0.2 0.2 0.2 0.2 0.2 0.2 5.1%
90.4%
United States Canada

• Currently, around 50%-60% of the installed gas meter base in the United States are Smart Gas Meter Market: Unit Shipment in million, by Region, North
automated reading devices. In 2016, approximately 52% of all the new meters sold were America, 2017-2023
AMI or AMR solutions. This share percentage is predicted to increase during the forecast
1.80
period.
• Advanced metering infrastructure includes meters that record and measure electricity 1.8
usage at hourly intervals and provide data to, both, the customer and utility department at 1.75 1.7
least once a day. 1.7

1.7
• Automated reading devices occupy the major market in Canada. No static meter roll-out 1.70
could be expected in residential areas, as utilities are not quite eager to replace their 1.7
mechanical metering infrastructure.

1.65
• Nevertheless, many existing residential meters are being equipped with communication
1.6
clip-on, in order to allow automated meter reading. A nationwide roll-out of static meters
1.60 1.6
may require around an estimated 8-10 years.
• In Canada, natural gas is a regulated utility, thus, all gas meters used for tenant billing are
sealed to measurement based on Canadian standards. 1.55
• With Canadian standards showing static meters at a disadvantage due to their shorter
lifespan when compared to mechanical meters, the introduction of stringent regulations to
1.50
meet the Canadian regulatory standards is aiding the market. 2017 2018 2019 2020 2021 2022 2023

5.2.1.2 EUROPE 60
Smart Gas Meter Market: Unit Shipment Share

Smart Gas Meter Market: Unit Shipment in million, by Region, Europe, 2017-2023
(%), by Region, Europe, 2017
Europe 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
United Kingdom 1.7 2.2 2.6 2.7 2.5 2.3 2.3 1.1%
22.1%
Italy 1.5 1.9 2.2 2.2 2.1 2.0 2.0 0.4%
France 0.8 1.0 1.2 1.3 1.3 1.3 1.2 3.4%

48.1%
Others 3.7 4.9 5.7 5.7 5.4 5.0 5.1 0.6%
19.8%
10.1%
United Kingdom Italy France Others

5.2.1.2 EUROPE 61
• At present, in Europe, the United Kingdom accounts for the most significant single
Smart Gas Meter Market : Unit Shipment in million, by Region,
country share, due to the simultaneous roll-out of energy meters, supported by current
Europe, 2017-2023
infrastructure.
14.0
• Along with this, the government plans to complete the smart meter roll-out in the
country by 2020, which is projected to get delayed beyond 2022, with demand peaking
12.0
12.0 11.7
near 2020, due to the deployment of large-scale projects. 11.4
10.5 10.6
• The entire smart meter roll-out is led by the Department for Energy and Industrial 10.1
10.0
Strategy, which is to include smart meters and in-home displays (IHD).
• Italy has defined deployment plans for smart gas meters and is expected to achieve
8.0 7.8
about 80% coverage of these systems by 2021, while the completion of the roll-out is

expected to stretch beyond the forecast period.
6.0
• Clear guidelines have been published by the Italian authority of Electricity, Gas, and
Water, within the scope of resolution 87/2016.
4.0
• These guidelines cover the data communication within Home Area Network (HAN),
which define the specification requirement for these systems and, therefore, setting up
2.0
clear industrial standards.
• France accounted for a share of about 11.7% of the smart gas meter shipments in
0.0
2017. The French market is expected to witness a continuous growth throughout the 2017 2018 2019 2020 2021 2022 2023
forecast period, with a gradual increase in its market share. Source: Mordor Intelligence Analysis Year

5.2.1.2 EUROPE 62
• The improvement in the supporting infrastructure, with a large-scale roll-out of smart electricity meters, is expected to significantly facilitate the incorporation of smart
gas meters in the long run.
• The country had a successful completion of initial smart gas meters pilot, carried out by GrDF, by installing around 18,500 smart meters. This installation is expected
to be followed by a large-scale rollout of Gazpar, smart gas meters which were scheduled to commence in 2017.
• The ‘others’ segment includes the countries of the Netherlands, Luxemburg, Germany, Spain, Russia, and Turkey. The cost efficiency of the simultaneous roll-out,
due to infrastructural support, has led to a significant growth of the smart gas meter market in multiple other nations.
• For instance, Luxembourg is currently conducting a dual-fuel roll-out. Other dual-fuel roll-outs are also planned in Germany, Austria, Ireland, and Belgium, who have
already undergone a successful pilot phase. However, Germany still lacks any significant legislation regarding the deployment.
• The EU has continuously pushed for the smart gas meters market, primarily due to a higher standard of service that can be achieved by more cross-border trade,
however, this can act as a restraining factor for the smart gas meter market in the ten member states, including Spain, Portugal, Sweden, and Greece.

Smart Gas Meter Market: Unit Shipment in million, by Region, Asia-Pacific, 2017-2023 Smart Gas Meter Market: Unit Shipment Share
(%), by Region, Asia-Pacific, 2017
Asia-Pacific 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
China 0.38 0.50 0.71 1.10 1.62 2.31 2.53 38.5% 1.8%
2.1%
14.8% 21.1%
Japan 1.08 1.92 3.42 5.54 6.70 6.94 7.19 30.2%
South Korea 0.27 0.36 0.54 0.81 1.00 1.09 1.09 24.5%
Australia 0.04 0.05 0.06 0.08 0.10 0.13 0.15 26.8%
Others 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.4%
60.2%
China Japan South Korea Australia Others

• The market in China is rapidly shifting toward the commodification of nature, where Smart Gas Meter Market : Unit Shipment in million, by Region, Asia-
technological differences are limited, this, coupled with the increasing number of Pacific, 2017-2023
regional players, has increased the competitive intensity in the market, substantially.
12.0
• While the preference for premium brands in industrial and commercial applications 11.0
10.5
has helped global players to grab larger market shares, lower price point and different
10.0
specification requirements have majorly kept away the competition from these 9.5
companies in a large-scale deployment of the residential sector.
• Manufacturers in China are targeting foreign markets with their low-cost products, 8.0 7.6
which is projected to increase the competitiveness at the global scale, significantly.

The per-unit costs are expected to reduce due to this factor, as these prices were

6.0
substantially higher in the earlier roll-out.
4.8
• However, the lack of standard protocol has made it nearly impossible for
4.0
manufacturers to operate globally.
2.9
• Japan is expected to witness the most robust growth, although the roll-out of smart
2.0 1.8
gas meters planned by the Japanese government is expected to be delayed beyond
• The country is incorporating new improved AMI solutions that consist of ultrasonic gas 0.0
2017 2018 2019 2020 2021 2022 2023
meters with U-Bus technology, which is expected to boost the market growth.

• Aichi Tokei Denki and Yasaki are the primary providers of smart gas meters in • In addition, New South Wales is also implementing these systems. However,
the country. While many global players are trying to enter the market through the deployment in other states is most likely to be dependent upon the roll-
collaborations, no successful effort has yet been identified as of now. out and success of smart electric meters in those regions.
• Moreover, in 2017, the Japanese government liberalized the gas market in the • The market for smart gas meters is very small in the countries, like India and
country, in order to dismantle the final barrier to cross-ownership for an energy other nations of Southeast Asia.
sector, which is also expected to favor the gas companies in the state.
• India lacks the large-scale infrastructure for piped natural gas and LPG
• South Korea is the third-largest market for smart gas meters in Asia-Pacific, cylinders. Small-scale pipelines and industrial deployment create a minimal
after Japan and China, which is primarily due to the high awareness regarding market opportunity.
technology among the citizens and more than 85% penetration of internet.
• Investment of Japanese companies, such as Jera Co., in the Indian natural
• South Korean utility provider S.K E&S and telecom firm S.K telecom have gas sector, in order to increase their footprint in the country, is expected to
entered into a deal with Semtech to deploy Advanced Metering Infrastructure favor the demand for gas meters, as these companies plan adopt advanced
systems in the provinces of Busan, Seoul, and Gangwon. technological devices, such as smart gas meters.
• Further, technological advancements, like LTE connectivity, improved coverage • The cost-benefit analysis of smart gas metering systems results in a little
of about 15-30 miles, and improved battery life are also expected to drive the benefit for this region when compared to the actual cost of deployment,
market growth, during the later stages of the forecast period. which is especially true for the demotic households.
• The roll-out of smart gas meters has started in the state of Victoria, in • This factor inhibits a large-scale deployment of these smart gas meter
conjunction with the smart electric meters deployment, due to the availability of systems in other countries of Asia-Pacific.
infrastructure.
• In addition, the concerns related to data security and the ability of user
control are adding up to the restraints for the market.


Smart Gas Meter Market: Unit Shipment in million, by Region, Latin America, 2017-2023
(%), by Region, Latin America, 2017
Latin America 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Brazil 0.02 0.03 0.03 0.04 0.04 0.04 0.04 5.4% 12.6%
5.3%
Mexico 0.03 0.05 0.06 0.07 0.07 0.07 0.07 9.3% 32.4%
Argentina 0.004 0.005 0.005 0.006 0.006 0.006 0.005 3.2%
Others 0.01 0.01 0.01 0.01 0.02 0.02 0.02 8.6%
49.8%
Brazil Mexico Argentina Others

• The Brazilian government has planned a funding, worth USD 200 million, for the development of Smart Gas Meter Market : Unit Shipment in million, by Region, Latin
smart grids and to equip smart meters in the country by 2021. This factor, coupled with the
America, 2017-2023
importance of renewable energy generation in Brazil, may act as a driving factor for the Brazilian
0.140
smart meter market. 0.1
0.1 0.1
• Mexico has started the process of picking vendors for an estimated 30.2 million smart meter 0.1
0.120
deployment, for the target set for the period during 2015-2025. Mexico is the most significant
0.1
consumer of the smart grid technology in Latin America. The case for smart grid infrastructure
investment in Mexico is comparatively stable. Electricity losses can spread over 20% in some 0.100
parts of the country, due to high non-technical losses. 0.1
• The Argentine government intends to include smart grids in its national plan for science, 0.080
technology, and innovation by 2020. Argentina has witnessed a steady growth its population over 0.1

the last few years, resulting in more gas consumption.
0.060
• Additionally, the financial situation in Argentine households is average. With the aid of smart gas
meters, they can digitally send meter readings to the energy supplier. This can ensure more
0.040
accurate and precise energy bills.
• In the ‘others’ segment, regions, like Colombia and Chile, have been highly dependent on the
0.020
traditional gas meters due to various reasons, of which financial constraints is one among them.
• Currently, there are no local smart meter manufacturers in the region. This is not likely to change
0.000
soon, as Chile and Columbia are expected to remain niche markets for smart gas metering 2017 2018 2019 2020 2021 2022 2023
solutions, during the forecast period. Source: Mordor Intelligence Analysis Year

Smart Gas Meter Market: Unit Shipment in million, by Region, Middle East & Africa, 2017-2023 (%), by Region, Middle East & Africa, 2017
Middle East &

2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Africa
6.5%
Middle East 0.18 0.24 0.31 0.39 0.44 0.46 0.47 14.7%
Africa 0.01 0.02 0.02 0.02 0.03 0.03 0.02 4.5%
93.5%
Middle East Africa

Smart Gas Meter Market : Unit Shipment in million, by Region,

• The exploitation of natural gas is expected to fuel the demand in countries, such as
Middle East & Africa, 2017-2023
Tunisia, Egypt, Algeria, Kuwait, and Saudi Arabia. Further, with the lifting of the civil
embargo, Iran is expected to witness a demand for the same after 2019. 0.60
• In Sub-Saharan Africa, Angola and Nigeria are witnessing a decrease in demand for the
same, due to the decline in the oil price. 0.50 0.5 0.5
0.5
• Future markets are Mozambique and Tanzania, both of which are planning to take
0.4
advantage of new gas sources and construct national gas grids.
0.40
• Smart gas meters are being installed in countries, like Dubai, to ensure more accurate
0.3
readings, which are expected to benefit consumers from a financial point of view.

0.30
• Moreover, Dubai Electricity and Water Authority (DEWA) plans to install over a million 0.3
smart meters by 2020 across Dubai, by replacing existing mechanical and electro-
0.2
mechanical meters. 0.20
• Following these initiatives, Qatar has also passed regulation to General Electricity and
Water Corporation in order to launch a smart meter program. 0.10
• With the growth in the residential sector, moderate growth opportunities are expected to
show up for gas metering in South Africa.
0.00
2017 2018 2019 2020 2021 2022 2023

70
5.2.2 SEGMENTATION — BY END USER

5.2.2 SEGMENTATION BY END USER 71
Smart Gas Meters Market: Unit Shipment

Share(%), by Smart Gas Meter, Global, 2017
Smart Meter Market: Unit Shipment in million, by Smart Gas Meter, Global, 2017-2023
12.6%
End User 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Commercial 8.2 10.8 13.5 16.0 17.0 17.3 17.8 10.6

15.7%
Industrial 1.8 2.3 2.9 3.3 3.5 3.5 3.5 8.9
Residential 1.4 1.8 2.2 2.5 2.6 2.6 2.6 7.0
71.8%

5.2.2 END USER 72
• Globally, many countries are compelled to implement various measures for the conservation of energy, due to the rising scarcity of fossil fuels. Governments are
pushing multiple end-user sectors, such as residential, to install gas meters as the installation of gas meters aid in the reduction of the wastage of gas.
• To achieve this, many governments are imposing mandate regulations in using smart gas meters across their regions. For instance, in 2017, the national wide rollout
in the United Kingdom of smart meters increased to more than one million smart meters in six months.
• Almost 1.2 million advanced and smart meters were installed in the United Kingdom by large energy suppliers in 2017, including roughly 665,000 electricity meters
and 516,000 gas meters, representing a 15% increase on the previous year.
• No static meter roll-out can be expected in the residential areas specifically in developing countries, as utilities are not eager to replace their mechanical metering
infrastructure. However, many of the existing residential meters are being retrofitted with communication clip-on to enable automated meter reading.
• The introduction of a next-generation smart meter in the developed countries, such as the United States, Germany, and United Kingdom is expected to aid the
installation of these devices in both, commercial and residential sectors.
• Moreover, the mandate to use smart gas meters in major industrialized countries, such as China, Germany, and Japan is also expected to aid the adoption of gas
meters in both, commercial and industrial sectors in these regions.

73
5.3.1 Region
5.3 SEGMENTATION — BY SMART WATER METERS
5.3.2 End User

74
5.3.1.2 Europe
5.3.1 SEGMENTATION — BY REGION 5.3.1.3 Asia-Pacific

5.3.1 SEGMENTATION BY REGION 75
Smart Meter Market: Unit Shipment in million, by Smart Water Meter, Global, 2017-2023 Smart Meter Market: Unit Shipment Share(%),
by Smart Water Meter, Global, 2017
Region 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
0.9%
2.2%
North America 6.0 6.4 6.8 7.1 7.4 7.9 8.0 4.5
11.9%
Europe 4.0 4.5 5.2 5.7 6.4 7.2 7.9 11.9
Asia-Pacific 1.4 2.0 2.6 3.1 3.7 4.1 5.2 20.5

50.9%
Latin America 0.3 0.3 0.4 0.4 0.5 0.5 0.6 13.5
34.1%
Middle East &
0.1 0.1 0.2 0.2 0.3 0.3 0.4 22.9
Africa
Middle East & Africa

Smart Meter Market: Unit Shipment Share(%),
Smart Meter Market: Unit Shipment in million, by Smart Water Meter, North America, 2017-2023 by Smart Water Meter, North America, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
9.0%
United States 5.5 5.9 6.2 6.4 6.6 7.1 7.2 4.1
Canada 0.5 0.6 0.7 0.7 0.8 0.8 0.9 8.4
91.0%
United States Canada

• Water scarcity in the West, along with the ageing infrastructure in the regions of Midwest and
Smart Meter Market : Unit Shipment in million, by Smart Water
East, has helped reinforce the requirement for efficient remote meter reading that can help
Meter, North America, 2017-2023
improve revenue generation and consumer service.
9
• Further, the reduced leakage and efficient use of water are also major drivers of smart water
meters. As North America is a more developed market, the utility base is dependent on the 7.9 8.0
8
smart meter technology and is starting to take on advanced data solutions. 7.4
7.1
• The market finds a sturdy base in this country, due to smart water metering’s ability to help 7 6.8
6.4
overcome environmental, financial, organizational, and technological challenges faced by 6.0
6
water utilities.
• The Canadian utility, Halifax Water, secured an approval from the Nova Scotia Utility and 5

Review Board (NSUARB) to upgrade the region’s water meters. The water distribution and
treatment firm announced plans to replace the existing analogue water meters with automated 4
smart water metering systems from early 2017. The new system will gather real-time
3
information on the way consumers use water, allowing them to practice sustainable water
usage and reduce their bills.
2
• Additionally, IT companies will have the opportunity to team up with infrastructure companies
and cities to help advance smart city/smart infrastructure systems and technologies in Canada. 1
These smart cities can make use of smart water meters, as consumers anticipate to
0
modernize their water distribution network. The smart water meters can help address the issue 2017 2018 2019 2020 2021 2022 2023
of non-revenue water through detection of water leakages within the distribution network Year
system. Source: Mordor Intelligence Analysis

5.3.1.2 EUROPE 78

Smart Meter Market: Unit Shipment in million, by Smart Water Meter, Europe, 2017-2023
by Smart Water Meter, Europe, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
United Kingdom 1.2 1.4 1.6 1.6 1.9 2.0 2.1 8.7 16.9%
Germany 1.2 1.3 1.6 1.7 1.8 2.1 2.3 11.4 30.5%
France 0.9 1.1 1.1 1.3 1.5 2.0 2.1 14.4
Others 0.7 0.7 0.9 1.1 1.2 1.2 1.5 14.4

23.3%
29.3%
United Kingdom Germany France Others

5.3.1.2 EUROPE 79
Smart Meter Market: Unit Shipment in million, by Smart Water Meter,

• Although the population growth in this region has slowed down gradually over the last few
Europe, 2017-2023
decades, the number of single households continues to witness a steep rise, thereby
creating significant spike in the demand of water. This, coupled, with climate change, is 9.0
impacting the water resource. 7.9

8.0
• The United Kingdom has been one of the forerunners in the terms of promoting the 7.2
adoption of smart water meters. Thames Water Utilities Limited, one of the leading 7.0
6.4
vendors, has started to offer free home visits to help customers save water, energy, and
6.0 5.7
finances.
5.2
• Additionally, consumers are considering this modern technology to help borough residents 5.0
4.5

take complete control of water use and detect leaks with the help of smart meters. 4.0
4.0
• On the other hand, the Federal Council of Germany permitted the implementation of a new
law to support the country’s nationwide rollout of smart water meters. The new policy is 3.0
based on the EU legislative Third Internal Market Package, which states that all the
2.0
European Union member states equip 80% of their consumers with smart meters, by 2020.
• The law was intended to open the German energy market to digitization while guaranteeing 1.0
a high standard regarding ICT and data protection.

0.0
2017 2018 2019 2020 2021 2022 2023

5.3.1.2 EUROPE 80
• The law includes the Smart Meters Operation Act, which conditions that the
• The smart network has also developed the quality control of the city’s water and
operation, ownership, and maintenance of the smart meters will be carried
presented remote meter readings. Since its inception, the European innovation
out by grid operators. Thus, the removal of condition for individual consumer
project called SmartWater4Europe, established by ACCIONA Agua in Burgos,
acceptance is expected to greatly boost the smart water meters’ market.
Spain, has transformed the city into an innovator in the world, with a smart water
• France has the highest penetration rate of smart water meters when supply network.
compared to other countries. France, has an 8-10-year investment programs
• American smart metering company WAVIOT announced the conclusion of its
to install at least 1-way communicating meters in households.
AMI project with Russian property management firm, Solnechniy Gorod. As per
• The 2006 French water law (published by the Journal Officiel de la the contract, WAVIOT installed 3 base stations and 15,000 smart water meters
Republique Francaise, JORF in 2006) shifted to decentralized management in Solnechniy Gorod apartments in Pen City, Russia.
of collective withdrawals from centralized management of individual
• Solnechniy Gorod has since recorded multiple profits, such as reductions in
withdrawals.
manual meter reading costs and non-revenue water, fast leak detections, and
• The France 2006 water law depends on collective management of automation of data processing. WAVIOT’s smart metering offers a low-power
groundwater with smart water meters as a mechanism to allow flexibility in wide area network (LPWAN) solution for smart water meters, permitting the
allocating scarce resources, while maintaining fairness among users. monitoring of water consumption online.
• Spain, in its first year of smart networking, implemented by ACCIONA Agua

allowed the early detection and resolution for unusually high consumption of
water, leaks, and faults.

Smart Meter Market: Unit Shipment in million, by Smart Water Meter, Asia-Pacific, 2017-2023 Smart Meter Market: Unit Shipment Share(%),
by Smart Water Meter, Asia-Pacific, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
China 0.5 0.8 1.0 1.3 1.8 2.0 2.6 25.5 6.4%
Japan 0.1 0.1 0.1 0.1 0.1 0.2 0.2 23.9

19.9%
India 0.4 0.6 0.7 0.8 0.8 0.8 0.9 6.6 38.3%
Australia 0.3 0.4 0.6 0.8 0.9 0.9 1.3 24.3
Others 0.1 0.1 0.1 0.2 0.2 0.3 0.3 24.1
4.3%
31.2%
China Japan India Australia Others

• China has made the implementation of smart electricity metering a priority. However, for gas
and water metering, the country had largely chosen to go ahead with the conventional
Meter, Asia-Pacific, 2017-2023
options. China has a low water accessibility per capita (2,138m3/person/year) and low water
6.0
rates (USD 0.65/m3).
• While the demand is rising due to higher rates and living standards, it is not set to rise, partly 5.2
because of intense industrial pressure. 5.0
• The Chinese government has set ambitious targets on water connection rates and water
4.1
efficiency in the country. Under the 12th Five-Year Plan, the country dedicated itself to
4.0 3.7
reducing water consumption by around 30% per unit of its gross domestic product. However,
for now, the country is largely relying on conventional metering. 3.1

3.0
• Japan is continuously incorporating smart metering systems in all major sectors, along with
2.6
the development of smart grids. While the smart water meters’ sector lacks large scale
deployment and major government support, it is expected to witness a steady growth during 2.0
2.0
the forecast period, due to the functional and efficiency improvements offered by these
1.4
systems.
1.0
• Around 97% of properties have already been installed with traditional meters, on which the
reading is taken every two months.
• This established system eliminates the need for any imminent change, when the new 0.0
2017 2018 2019 2020 2021 2022 2023
installation would also involve large initial costs. Therefore, the market is not expected to
show any major shifts till 2020.
• The main driver for increase in adoption will be the systems’ ability to make
• As water scarcity influences utilities operations in India, the sector is facing
capital expenditure more resourceful on asset upgrades and rollouts.
a massive challenge of cutting losses due to ageing infrastructure and theft.
• Countries like South Korea, Philippines, and Indonesia, despite being
• India is observing a drive toward Public Private Partnerships (PPP) for
developed economies, have been slow in the adoption of advanced smart
national water operations. For example - Veolia Water India Pvt Ltd’s
water metering. In South Korea, fresh water makes up of 3% of the total
effective bids for several projects in the country, including a complete
South Korean territory, just under 100,000 square kilometers. Access to
takeover of water operations in Nagpur, resulting in the formation of Orange
improved water sources, as well as to improved sanitation, is universal in
City Water Ltd.
South Korea.
• PPP in India may bring technological advancements much more quickly
• The Korea Water Resources Corp. (K-Water), which is run by the state, has
than anticipated. Smart water meters will help bill customers based on
developed and deployed a wide variety of smart water management
usage, driving down illegal tapping, and reducing non-revenue water, which
technologies that control Korea’s advanced ICT infrastructure to optimize
are all crucial factors for private operators.
performance and minimize loss across the entire water cycle. K-Water is
• Australia is more mature in the Asia-Pacific market, wherein advanced now effectively exporting these solutions to other countries.
technology has been mixed with elevated levels of water scarcity, indirectly
• Philippines wastewater and public water company Manila Water Services
effecting the growth of the smart water meter market.
declared that it has allocated USD 11.9 million to upgrade the countries
• Currently, Automated Meter Reading (AMR) systems are leading the metering system. Followed by this, Wi-SUN Alliance has stated its support of
country's main rollouts. The demand for utilities to implement urbane two- added wireless frequency bands in Southeast Asia, which will improve
way communication aided advanced metering infrastructure is still limited. performance, data rates, robustness and security for smart city, smart grid,
and IoT deployments across the region.


Smart Meter Market: Unit Shipment in million, by Smart Water Meter, Latin America, 2017-2023
by Smart Water Meter, Latin America, 2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Brazil 0.1 0.2 0.2 0.2 0.2 0.2 0.3 10.8
26.3%
Mexico 0.1 0.1 0.1 0.1 0.1 0.2 0.2 21.3
Others 0.1 0.1 0.1 0.1 0.1 0.1 0.1 10.7

51.1%
22.6%
Brazil Mexico Others

• Elester and Arad are the major players in this region with together accounting for more
than 75% of the total market.
Meter, Latin America, 2017-2023
• The market for smart water meters is in a nascent stage in the region, lacking any
0.70
large-scale deployments. However, the water scarcity in some nations has led to the
initiation of trial phases.
0.60 0.6
• Lack of regulations and funding are key issues which severely restrain the market
0.5
growth.
0.50
0.5
• However, water scarcity in parts of the region is acting as a major driver for the utilities
department to start running trial projects. If water scarcity continues, it could accelerate 0.4
0.40
smart meter deployments. 0.4

0.3
• Brazil’s utility holding company AEGEA will aid its subsidiary utility Nascentos do Xingu 0.30
0.3
to deploy event management solutions.
• This technology will be used to better understand water usage patterns for the 0.20
development of tailored water efficiency initiatives.

0.10
• This also can be used to modernize the country’s distribution system to meet the
growing demands of smart water due to a rapid increase in its customer base.
0.00
2017 2018 2019 2020 2021 2022 2023

• This increase in population has caused an increase in the consumption of water. Currently, agriculture accounts for 77% of water consumption; domestic uses
account for 13% and industry for 10%.
• As a direct consequence of the 1980 economic crisis, the irrigation infrastructure in Mexico suffered with neglect and underinvestment.
• With considerable economic activities and an increasing population, the Mexican residents of northwest, semi-arid, arid north, and central regions use an average of
75 gallons of water a day, which is more than that of a US resident.
• To overcome this issue, the Mexican utilities department is planning to introduce smart water meters to measure the amount of water being consumed and check the
behavioral patterns of consumers from a water consumption point of view.
• Non-smart metering is dominating the market in South American countries like Argentina, Colombia, and Chile.
• The penetration of smart water metering is quite low in these regions owing to the high initial costs and regulations.
• Lack of funding and regulation are the key issues which are severely restraining the market. However, an increasing population, coupled with water scarcity in parts
of the region, is acting as a driver for the utilities department to start running trial projects.
• If water scarcity continues to be a major challenge, it could accelerate smart water meter deployments.


Smart Meter Market: Unit Shipment in million, by Smart Water Meter, Middle East & Africa, 2017-2023 by Smart Water Meter, Middle East & Africa,
2017
Country 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Middle East 0.07 0.10 0.13 0.17 0.20 0.25 0.30 25.0
31.3%
Africa 0.03 0.04 0.05 0.06 0.07 0.08 0.09 17.2
68.7%
Middle East Africa


• Water scarcity is the primary driver of this market in the region, but the lack of basic
Meter, Middle East & Africa, 2017-2023
infrastructure has challenged the growth of advanced systems like smart water meters.
0.45
• However, United Arab Emirates and Saudi Arabia are undergoing major developments
with significant economic growth, which can drive investments into these sectors in the 0.4
0.40
future.
• The supply of water in the UAE is low. The United Arab Emirates is one of the top 10 0.35 0.3
most water-scarce countries in the world, and has one of the highest per capita water
0.30
usages, globally. 0.3
• In response to overcome water scarcity, the DEWA (Dubai Electricity and Water 0.25
0.2

Authority) has begun installing smart meters across the Emirates, allowing consumers
to receive valuable information about water consumption. 0.20 0.2
• This will allow user to monitor consumption, understand and manage the financial 0.1
0.15
aspects involved.
0.1
• One of the main challenges in Saudi Arabia is water scarcity. To overcome this issue, 0.10
considerable investments have been taken in seawater water distribution, desalination,

0.05
sewerage, and wastewater treatment.
• Saudi Government has started taxing water to try and address the mounting cost of 0.00
2017 2018 2019 2020 2021 2022 2023
debt as oil revenues continue to decline.

• Groundwater in Gulf countries is running out as they have some of the highest levels of water consumption, per capita, in the world,. Smart Water meters are being
touted as a possible solution to overcome this issue.
• In 2016, South Africa was facing a major water crisis with the worst drought in 30 years. Added to this, the country had water losses of 38% amounting a ZAR 7
billion (USD 435 million) reduction in utility revenue.
• Klaus Gruebl, the South African country manager at Sensus, predicts that if the existing development trends in South Africa continue, the country might have a 2.7
billion m³ water shortage by 2030.
• To overcome this, the company rolled out its smart water solutions along with iPERL smart water meters and drive-by/walk-by metering solutions using fixed radio
network solutions.
• Beyond South Africa, the Sensus country office oversees Eastern and Southern Africa. Other African regions are served by the US-based company's offices in
Algeria, Morocco, and France.
• In Tanzania, Botswana, and Zambia the company had positive discussions regarding smart water solutions. To provide the increasing population water is one of the
major challenges for the future.

90
5.3.2 SEGMENTATION — BY END USER

5.3.2 SEGMENTATION - BY END USER 91

Smart Meter Market: Unit Shipment in million, by Smart Water Meter, Global, 2017-2023
by Smart Water Meter, Global, 2017
End User 2017 2018 2019 2020 2021 2022 2023 CAGR (%)
Commercial 3.8 4.2 4.7 5.2 5.7 6.2 6.8 9.9
Industrial 3.2 3.7 4.1 4.5 5.0 5.5 6.0 10.5 31.7%
41.1%
Residential 4.9 5.5 6.3 6.9 7.6 8.4 9.3 10.8
27.2%

5.3.2 END USER 92
• The residential segment accounted for the most largest market share, in terms of Unit Shipment in 2016, followed by the commercial and residential segments.
• In the water-stressed residential and commercial areas, the primary strategy was to impose watering restrictions and conservation measures.
• These are necessary, but are not completely sufficient, mainly because of the drier conditions and hotter temperatures as climate change advances.
• The utility industry is undergoing a global transformation into information based industry on the assumption that consumers and utilities will gain advantage from
collecting and distributing granular, real-time information, especially the water and wastewater treatment plants.
• Smart water meters in industries are useful in handling the heating and cooling systems that have substantial energy requirements, when compared to other
equipment.
• As various end users deploy AMI across their distribution grids, the customer-related data can be remotely monitored, allowing major industries and commercial
buildings to adjust their water usage accordingly.
• Smart water meters also enable two-way communication between the meter and central system, which are employed by the utilities for streamlining their business
process.
• However, end users face challenges to provide power to the wireless sensors while deploying water meters. Therefore, an efficient battery-based low power sensor
design is required, which is expected with technological advancements shortly.

93
6.1 AEM 6.15 Kamstrup A/S
6.2 Aichi Tokei Denki 6.16 Landis+ GYR Group AG
6.3 Apator SA 6.17 Meter Italia
6.4 Arad Group 6.18 Mueller Systems LLC
6.5 Azbil Kimmon Co. Ltd 6.19 Nanjing Xinlian Electronics Co. Ltd
6.6 Badger Meter Inc. 6.20 Neptune Technology Group Inc.

6. COMPETITIVE INTELLIGENCE
6.7 Chongqing Smart Water Meter Group 6.21 Ningbo Sanxing Electric Co. Ltd
6.8 Diehl Stiftung & Co. KG 6.22 Pietro Fiorentini
6.9 Elster Group GmbH (Honeywell International Inc.) 6.23 Sagemcom SAS
6.10 General Electric company 6.24 Sensus USA Inc. (Xylem Inc.)
6.11 Hexing Electric company Ltd 6.25 Shenzhen Hemei Group Co. Ltd
6.12 Holley Technology Ltd 6.26 Wasion Group Holdings
6.13 Itron Inc. 6.27 Yazaki Corporation
6.14 Jiangsu Linyang Energy Co. Ltd 6.28 Zenner International GmbH & Co. KG

6.1 AEM - OVERVIEW 94
• AEM is a manufacturer of smart metering devices for electricity, gas, AMR, and AMM systems, for the
management of electricity and gas.
• The company is continuously increasing its product portfolio, adding to the concept of integrated solution,
adapted for specific needs of the client, thus, facilitating new external market penetration.
• Moreover, flexibility and the prompt implementation of modern solutions into the manufacturing processes
has led to an increased role for AEM in the production and supply of solutions for smart metering, globally. Founded in 1970
Timis, Romania HQ
• Additionally, it is an integrated company and controls the entire production process, from design to
development of products to packaging. Hence, the integration of the manufacturing process is currently at
+40-256-222200
100%.
http://aem.ro/en/
• The company has a presence in Europe, Asia, South America, and Africa. It aims to be a flexible company
that understands the variances in each country, and delivers products to high standards, suitable for any
market.

6.1 AEM - PRODUCTS AND STRATEGIES 95
Products & Services
• G4EUS
Strategies
• GNM G4J
• GN G4 TCT
• GNM G42l • AEM aims to work with the global market of energy metering
devices.
• GNM G4 TE T
• Due to the high level of process integration and latest generation
• GAS METERS TYPE G6T
equipment, it chooses a range of products according to the
• GNM G4E T
performance and quality standards required by the customers
and the markets in which it operates.
Competition • Also, the company is mainly strategizes innovation.
• Yazaki Corporation
• Meter Italia
• Zenner International GmbH & Co KG
• Aichi Tokei Denki

6.1 AEM - SWOT ANALYSIS 96
Strengths Weaknesses
• Strong product portfolio of smart meters helps the company
achieve a distinguished position in the market.
• Lack of diversity in the products offered (it does not offers
• Completely integrated product manufacturing reduces dependence other products apart from smart meters).
on other companies.
• The company, with its 40 years of expertise, majorly focuses on the
R&D of new products with latest technologies, thus, differentiating
from other suppliers.
Opportunities Threats
• A decrease in the demand from the smart meter market can have
• The outlook of the smart meter market is strong due to the
a negative impact on the company’s financial performance.
increasing adoption in households and industries.

6.2 AICHI TOKEI DENKI - OVERVIEW 97
• Aichi Tokei Denki is engaged in the manufacturing and sale of measurement instruments. It offers water meters and
related equipment, gas meters and related equipment, private-demand flow sensors and systems, including housing
and building equipment and systems, instrumentations and precision machining dies, and other parts.
• It operates in Japan, China, and Vietnam.
• It offers solutions for safety and security, energy conservation, various installation conditions, higher durability, and Founded in 1898
integration with equipment.

Nagoya, Japan HQ
• The growth of the gas meters business by the company is as follows:

https://www.aichitokei.net/
• 1950: Began manufacturing gas meters
• 1983: Launched intelligent gas meters Revenue in USD million,

2015-2017
• 2006: Began manufacturing ultrasonic gas meters
42.00
USD 42 million
Revenue 1728 USD 21million
Employees Net Profit 39.00 39.00
2015 2016 2017

6.2 AICHI TOKEI DENKI - PRODUCTS AND STRATEGIES 98
Products & Services
• TRX/TRZ
• TRZ
• TRX
Strategy
• AS
• TBX/TBZ
• Roots • The company pursues corporate activities to ensure good and
• UX sustainable development of its businesses in cooperation with its

group of companies, based on the corporate philosophies of
Competition 'reliability, creativity, service'.
• The company forms its strategies by understanding the
• Yazaki Corporation constantly changing needs of its customers and business flexibly.
• Meter Italia
• AEM
• Zenner International GmbH & Co. KG
• OVAL Corporation
• FDK Corp.
• Amita Corp.

6.2 AICHI TOKEI DENKI - SWOT ANALYSIS 99
• Broad product portfolio for liquid and gas applications facilitates • The company is dependent on gas meters for almost half of
the reduction of business risks and balances revenue streams. its revenues.
• Dealing in only sensors and meters for end users further
strengthens its position in the market.
• The company can expand its gas meters business to the markets • Due to dependency, a decline in the demand from the gas
of developing countries, such as, India. meters business can be drastic for the company.
• Increasing competition in the segments in which the company

operates poses a threat for future growth.

6.2 AICHI TOKEI DENKI - RECENT DEVELOPMENTS 100
At the Hannover Messe 2017, the company displayed ultrasonic flow

meters for compressor air: TRX and TRZ. They are designed to meet
I
the potential needs for energy saving in industrial facilities, around
the world.
Feb 2016
M I E P
Mergers & Product Expansion Partnership

Acquisitions Innovation

6.3 APATOR SA - OVERVIEW 101
• Apator SA engages in the development and provision of power metering equipment. The company is a Polish capital
group, and currently includes 15 companies: 9 Polish and 6 foreign.
• The company operates through the two business segments: Metering segment and Switchgear segment.
Founded in 1949
• The Metering segment offers metering equipment for all utilities, including prepayment and post-payment electrical energy
meters, heat meters, gas meters, water meters, and temperature sensors. Torun, Poland HQ
• The Switchgear segment develops systems enabling energy usage metering, remote reading, teletransmission, and
www.apator.com
visualization of data.
Total Revenue
in USD thousand, 2015-2017
USD 64.9 USD 4.4 million 81%

Net Profit
million, Revenue ,2017 Metering Segment 64.9
58.2
57.6
15 Companies
USD 9.73
million
+ 2,600 EBITDA ,2017
Employees
2015 2016 2017

6.3 APATOR SA - PRODUCTS AND STRATEGIES 102
Products & Services Strategies
• UNIFLOW Series
• The company focuses on product innovations and technologies, in order to
• UNISMART Technologies
significantly improve product quality and productivity. Innovations in the
metering equipment such as the multi integrator and data read out systems
Major Clients
of the consumption of electricity, water, heat and gas are being developed.
• Gas Companies • The company aims to enhance its business processes, through the
integration of information technology. In addition, the company aims to
• Institutional Customers
improve safety and conserve resources in the electric and gas sectors.
Competition
• PumLandis-GYR Group AG
• The company focuses on geographic expansion, particularly in key Acquisitions
• Hangzhou Beta Gas Meters Co. Ltd markets, in Eastern and Central Europe, Russia and Balkan Countries,
• Manas Energy Management Inc. extended by Germany, Benelux, and United Kingdom.
• Zenner International GmbH & Co. KG • The company’s acquisitions are aimed at accelerating the growth and
market penetration into new areas and sectors of operation, and
domestic markets as well.

6.3 APATOR SA – BUSINESS SEGMENT ANALYSIS 103
Revenue Breakdown (%), by Business Revenue Breakdown (%), by Region, 2017

Segments, 2017
• Pursuant to the data of Central Statistical Office, the production of gas meters sold in
3.8%
IQ 2017 increased by approximately 29% when compared to IQ 2016. In the gas
14.9%
metering line, the Polish market, in which Apator Group has established its position,
Metering Segment is still an important sales market.
Grid Automation • Although being consistently implemented, Smart Metering in Europe is still slowed
Segment
down mainly by the lack of the technical standardization and cautious attitude toward
Non-Core Segment
new technologies susceptible to vendor lock-in.
81.3%
• In the Apator Group, the metering segment was the major contributor of its 42.6%
Home (Domestic Market)
revenues, in 2017 (81.3%). The demand for these products in the domestic
region has been the key driver. 43.6%
European Union
Export
13.8%

6.3 APATOR SA - SWOT ANALYSIS 104
• Strong organic growth, driven by the strong public utility, industrial, and
• High dependence on the domestic market in Europe, particularly Poland.
commercial end-markets in western Europe, (particularly in the United
• Low geographical expansion has hindered the company from acquiring a
Kingdom)
larger market share in this sector.
• Strong portfolio of smart meters and smart metering systems.
• The Poland government’s development strategy project assumes
the introduction of smart meters by 2020, for the reduction of • Strong competition from the local players in the region, as well
CO2. Further, the European Union efforts to efficiently and as international players.
effectively utilize resources is expected to buoy the renewable

energy and energy meter markets.
• Addressable markets of Middle East and America are expected to

create robust growth prospects.

6.3 APATOR SA - RECENT DEVELOPMENTS 105
In 2017, the Apator Group was preparing to start the production of its own water
meters that have perfect metering parameters, and are furnished with many
patented technological and structural solutions, e.g. with the original method of I
ultrasonic measurement. During the world leading trade show in Frankfurt, ISH,
the company presented the technical capabilities of the ultrasonic cold water
meter, Ultrimis, which was very well received. Currently, the company is
preparing to start the series production of this water meter and to extend its
ultrasonic offer by producing heat meters, volume parts, and hot water meters.
Apator Powogaz SA, a subsidiary of Apator SA, acquired
Mar 2017
all the shares of a Danish company Miitors ApS, for EUR
6.2 million. Miitors designs and develops ultrasonic
technology in water and heat metering.
M Mar 2015
M I E P
Mergers & Product Expansions Partnerships

Acquisitions Innovations

6.4 ARAD GROUP - OVERVIEW 106
• Arad Metering Technologies develops and manufactures wireless automatic meter reading systems.
• The company deals with the global market for Automatic Meter Reading (AMR) and Advanced Metering
Infrastructure (AMI) technologies, offering Arad’s customers full control over efficient water management.
• Additionally, it has developed Arad Group’s integrated AMR register, a complete AMR unit integrated within the
meter, preventing any attempts at tampering, sabotage, or theft.
• It offers implemented, comprehensive remote meter reading solutions for walk-by, drive-by, and fixed-base systems,
which require no physical access or visual inspection of meters.
• Moreover, to improve customer satisfaction, utility clients can even be alerted to problems, such as water loss or pipe Founded in 1941
breakage, the moment they occur. Dalia, Israel HQ
+972-4-9897911
http://arad.co.il/
Products
• Residential Meters
• Bulk Meters
• Agricultural Meters

6.4 ARAD GROUP - SWOT ANALYSIS 107
• Broad product portfolio for various end users, such as • As the company products comprises of only meters, it is
residential and agriculture, reduces business risks and dependent on the segment for the revenues.
balances revenue streams.
• Services and solutions apart from meter facilitates the
company in achieving a distinguished place in the market.
• As the company is merging various technologies in its water • A decrease in the demand for the water metering products can
meters for better transmission, it can utilize the benefit and affect the financial performance of the company.
incorporate IoT technology.

6.5 AZBIL KIMMON CO. LTD - OVERVIEW 108
• Azbil Kimmon Co. Ltd was formerly known as Kimmon Manufacturing Co. Ltd. The name was changed in April 2012. The
company operates a subsidiary of the AZBIL Corporation.
• The company offers electromagnetic flow meters, water meters, hot water meters/cumulative calorimeters, other
diaphragm gas meters, flow meters, and regulators. It also manufactures, leases, sells, and maintains gas meters and Founded in 1904
relevant equipment for the supply of gas.
Tokyo, Japan HQ
• It also offers hot water meters, water meters, and relevant equipment for the supply of hot water and water, calorie meters,
and related equipment for the supply of oil meters, cooling/heating plants, electric/electronic instruments, air conditioning
www. ak.azbil.com
equipment, pressure gauges and high pressure equipment, general machineries and their spare parts, and pollution
control equipment.
Revenue in USD million,
2015-2017
2367.2
USD
USD 849.96 USD 97.23 2,387
+175 Countries
million million
million Sales
100 Production
Gross Profit R&D Expenses
Units
2,367
2,364
USD 187.15
+ 9290
+15 Employees million
Locations in Japan Operating Income
2015 2016 2017

6.5 AZBIL KIMMON CO. LTD - BUSINESS SEGMENTS (FINANCIALS OF PARENT ORGANIZATION) 109
Revenue Breakdown (%), by Business Revenue Breakdown (%), by Region, 2017

Segments, 2017
1.6% 3.3%
• The revenue in the advanced automation segment declined due to the 1.1%
3.4%
sluggish capital investment.
• Due to the construction and redevelopment in the Tokyo metropolitan
Japan
area ahead of the Tokyo 2020 Olympics and the increased demand for
7.7% Asia
refurbishment services the building automation segment has
witnessed a robust growth. China
North America
Europe
83.0% Others
17.2%
Life Automation
45.5%
Advanced Automation • Sales in the domestic market itself contributed for a significant portion
of the company's revenues. accounting for about 83%.
Buidling Automation
37.3% • After Japan (domestic market), the Asia region which had the highest
share of revenue in 2017.

6.5 AZBIL KIMMON CO. LTD - PRODUCTS AND STRATEGIES 110
Products & Services

Strategies
• Battery Operated Electromagnetic Water Technology

• The company is focused on upgrading its production facilities in order to achieve
Meter
greater efficiency and quality in production.
• Electronic Water Meter
• Water Meter with Pulse Transmitter • Azbil aims to continue to adapt to technological changes, such as Big Data and IoT,
• Direct Reading Water Meter and develop advanced products, catering to specific customer requirements
• The company aims to achieve long-term partnerships with their existing Acquisitions and
Major Competitors clients, while also entering into the emerging markets. Expansions
• The company focuses on its geographical expansion by capturing new

• Azbil Kimmon Co. Ltd
regions with a diverse customer base to offer both technologies and
• Badger Meter Inc.
products.
• Mueller Systems LLC
• Wuhan San Fran Electronics LTD
• Chongqing Smart Water Meter Group

6.5 AZBIL KIMMON CO. LTD - SWOT ANALYSIS 111
Strengths Weakness
• Regulated market with long-tenured customers and high growth • Limited geographical presence and High dependency on the
product categories. domestic market for revenue with about 80% of the company’s
• Technologically-advanced product offerings, tailored to customer sales derived from domestic operations in 2016.
requirements.
• The revenue is subject to risk as certain businesses are
• The outlook for water and energy management market is
subject to industry cycles, such as the industrial and energy
robust, and the company is well positioned to capitalize on the
markets.
growing end markets to enhance its revenues and market
• High competition in the Building Automation segment which is
share.
a major revenue generator for the company from the domestic
• The major growth prospects in the addressable non-domestic
as well as international players.
geographies of Asia, Europe, and North America.

6.5 AZBIL KIMMON CO. LTD - RECENT DEVELOPMENTS 112
Azbil Kimmon participated in practical water and LP gas meter reading

experiments in Hokkiaido are utilizing low power wide ared (LPWA)
network.
May 2017
I Abzil Kimmon Co Ltd, began preparing for the introduction and practical
application of an automatic water-meter reading system using SIGFOX on
remote island communities in cooperation with the Himeji City Waterworks
Bereau. Abzil Kimmon is working together with DK Corporation, KDDI
Corportaion and KYOCERA Communication Systems Co. Ltd on the project.
Mar 2017
The Azbil Corporation agreed on a 10-year extension of the joint venture
contract for Shanghai Azbil Automation Co. Ltd, a joint venture company
established with Shanghai Petrochemical Investment & Development P
Co. Ltd
May 2016
M I E P


6.6 BADGER METER INC. - OVERVIEW 113
• Badger Meter serves a wide range of commercial and industrial markets, including energy and petroleum, food and beverage,
chemical, pharmaceutical, HVAC, wastewater, process, automotive and aerospace.
• The company offers an end-to-end solution that supports water utilities generate needed revenue, monitor, conserve resources,
and supports them to serve their valued water customers better. Its municipal water solutions comprise of a comprehensive
Founded in 1905
mechanical and electronic metering line, AMR/AMI technology, and the analytics tools for thousands of water utilities.
• Flow instrumentation solutions comprise of meters and valves sold globally to control and measure materials flowing through a Wisconsin, United States HQ
pipe or pipeline including air, steam, water, oil, and other gasses and liquids. These products are used to manage, control, and
optimize applications across a variety of industries. The company meters specific flow measurement and control applications www.badgermeter.com
and technologies serve the flow measurement market.
Total Revenue in USD thousand.

2015-2017
USD
USD 49.8 25.7% 402
402.4 million Growth in Net Sales
million Cash from operations

394
Revenue
USD 10.6 11.5% 378

Increase in Operating
1,632 million Earnings in 2017
Employees,2017)
R&D expenditure (2017)
2015 2016 2017

6.6 BADGER METER INC. - BUSINESS SEGMENTS 114
Revenue Breakdown (%), by Operating Segment, 2017

Revenue Breakdown (%), by Region, 2017
0.9% 1.2%
3.9% 0.7%
2.6%
23.5% 2.3%
Flow Instrumentation
United States
Asia
Municipal Water
Canada
Europe
Mexico
76.5%
Middle East
88.4% Other
• Due to the increased price of oil and the renewed activity in the related
energy market, the company is expected to witness a greater demand in flow
• International sales increased by 1.5% to USD46.7 million, in 2017, from
instrumentation sales in 2017.
USD 45.9 million in 2016. Higher sales in most parts of the world were
• Flow instrumentation sales represented 23.7% of sales in 2017. These sales offset by the low sales in Canada and the Middle East, the latter of which
increased to USD 95.5 million from USD89.3 million in 2016. The increase in tends to be sporadic.
sales was primarily due to a rebound in the oil and gas market and the
strengthening of industrial markets in general, as the company continues to
broaden its distribution channels.

6.6 BADGER METER INC. - PRODUCTS AND STRATEGIES 115
Strategies
Products & Services
• The company’s revenue is driven by providing leading technology, as
technologies have a major impact on the sales to water utility customers. This is
• E-Series Ultrasonic Meters
Technology
represented by the increase in sales from 7.6% from 2015 to 2016. With sales
• U500w Ultrasonic Meters of the company’s E-Series Ultrasonic meters and ORION Cellular radios
• Advanced Metering Analytics increasing over 20% in 2016.
• The company focuses on new product development to meet changing customer
Major End-user Markets needs, including newer versions of their E-Series meters and ORION Cellular
radios for water metering. For instance, in 2016, Badger added a new line of
vortex meters in the flow instrumentation area.
• Oil & Gas
• Water & Wastewater Treatment Innovation and
• Chemical, Refining, and Petrochemical • The company focuses on consolidating its distribution network in the
Expansion
• Irrigation North American water meter markets, and was expected to complete
one or two more small acquisitions during 2017.
• The acquisitions are aimed at strengthening its relationships with their

current customers and efficiently develop a new customer base.

6.6 BADGER METER INC. - SWOT ANALYSIS 116
• Lacks prominence in high demand markets with strong
• Offers a broad and expanding portfolio of solutions, including
manufacturing facilities, particularly in Asia and Europe.
industry-leading technologies in the municipal water market.
• Catering to various industrial sectors through continuous
product innovations and utilization of advanced technologies.
• Capitalize on developing wastewater treatment projects in • Intense competition from international and domestic market
Asia, as well as other regions of Europe and the Americas. players in the metering segment is mainly subject to various
• Capture a greater customer base and market share through technological changes. The company requires to be quick to
strategic acquisitions. cater to these changes.

6.6 BADGER METER INC. - RECENT DEVELOPMENTS 117
Badger Meter signed an agreement to acquire the assets of Carolina

Meter & Supply, based in Wilmington, North Carolina, as well as to hire M
the company’s five employees. Carolina Meter distributes Badger Meter
products to municipal water utility customers in North Carolina, South
Badger Meter announced the introduction of the Dynasonics iSonic 4000
Carolina, and Virginia. The acquisition of Carolina Meter is the third in the
flow meter, an economical solution for a wide range of open channel flow
company’s ongoing strategies to enhance Badger Meter’s sales channels.
I measurement applications. Typical applications for the iSonic 4000 are
Nov 2017
found in industries, such as wastewater effluent, storm water systems,
The company signed a definitive agreement to acquire D-Flow agriculture irrigation, general process, and industrial discharge.
Technology AB of Luleå, Sweden. The acquisition was decided with the Sep 2017
expectation that D-Flow Technology will strengthen their position in
ultrasonic flow measurement by enabling the enhancement of their
existing E-Series® Ultrasonic product line, lowering production costs, Badger Meter, Inc. announced that it has signed an agreement to acquire
M
and providing a platform for the continuing advancement of the Innovative Metering Solutions (IMS), based in Tampa, Florida.
company’s ultrasonic capabilities. Apr 2017
May 2017
Badger Meter, announced the introduction of two new vortex flow

meters: VN2000 Hot Tap and VN2000 Compact insertion vortex flow M I E P
meters. I Mergers & Product Expansion Partnership

Jan 2017 Acquisitions Innovation

6.7 CHONGQING SMART WATER METER GROUP - OVERVIEW 118
Founded in 1932
HQ
Chongqing, China
86 - 023 - 89809043
• Chongqing Smart Meter Group Ltd originated in 1932 from the Chongqing Water Supply company.
https://swmeter.en.ec21.com/comp
any_info.html
• The company has become one the largest water meter production bases in China. It is a major supplier of different
types of water meters to various water companies, both at home and abroad, including traditional mechanical water
meter and latest smart water meter in different diameters.
Products
• The company has been conferred with the ISO9001 International Quality Management certificate.
• Smart Water Meter

• The company supplies to the Sino-France Water Investment company, a subsidiary joint venture of Suez
Environment.
• As of 2013, it has 3.5 million smart water meters installed, and are under stable performance.

6.7 CHONGQING SMART WATER METER GROUP - SWOT ANALYSIS 119
• The company has established itself as a prominent supplier of • As the company deals in only water meters, the product
water meters. portfolio lacks diversity.
• Further opportunities for the company are to expand its market • A decrease in demand for the smart meter products can have a
in the Indian Subcontinent. negative impact for the company, as its revenue are dependent
• As the company only deals in smart water meters, it can invest on it.
in the field of smart meters.

6.8 DIEHL STIFTUNG & CO. KG (DIEHL VERWALTUNGS-STIFTUNG) - OVERVIEW 120
• Diehl Stiftung & Co. KG develops, manufactures, and markets product for the metal, control, defense, aerosystem, and
metering markets. The company operates as a subsidiary of Diehl Verwaltungs-Stiftung.
• The company operates through the following business segments: Metall, Controls, Defence, Aerosystems, and Founded in 1902
Metering
Nuremberg, Germany HQ
• The company’s production sites and locations are present in Germany and also internationally.
www.diehl.com
• The metering segment by the company offers water, thermal energy, gas, electricity meters, and metering systems. The
company has increasingly shifted their focus in development activities from meter technology to the improvement of
data transmission options.
Total Revenue in EUR million,
2014-2016
EUR 260.3 million EUR 105.4 million 3410.0
Net Income
EUR 3410 million EBITDA
Revenue
3108.0
10.1% of 3039
Revenue
Metering Segment
16,985 EUR 245.9

Employees million EUR 116.4 2014 2015 2016
R&D expenditure (2016)
Investments

6.8 DIEHL STIFTUNG & CO. KG (DIEHL VERWALTUNGS-STIFTUNG) - BUSINESS SEGMENTS 121
Revenue Breakdown (%), by Operating Segment, 2016
0.4%
• Due to the growing competitive nature of the market, the metering business
24.3%
38.8%
Metal segment witnessed a dip in growth in 2016.
Controls
• While the markets in the Caribbean and the Middle East registered an increased
Metering demand, the demand fell in key customers markets such as Great Britain and
Defence France.
15.2% Aerosystems
• Among the various segments of metering, the water segment registered a good
Others
growth, while the thermal metering segment witnessed a reduced demand. Due
12.8% 8.6%
to a major project in 2016 in France, the gas segment also witnessed a robust
growth.

6.8 DIEHL STIFTUNG & CO. KG - PRODUCTS AND STRATEGIES 122
• AERIUS - Microthermal Gas Meter Technology • The company focuses on product innovations and technologies such as
• General Gas Metering ultrasonic meters, integrated radio technology meters as well as integration of
. IoT in order to capture greater market potentials.
• The companies development is also focused on the improvement of data

Competition transmission methods, higher-quality mechanical meters, test technology as
well as the expansion of the radio system and software offered.
• Landis-GYR Group AG
• Hangzhou Beta Gas Meters Co. Ltd
• The company aims to expand its product line to potential markets. For
• Apator SA Innovations and
instance, Diehl Metering founded a new subsidiary in the USA (Diehl
• Manas Energy Management Inc. Expansions
Metering LLC) in Chicago in order to introduce the Diehl Metering
product line to the North American market.
• To cater to the increasing demand in the metering Business Segments,

the company has set up new product lines in its locations at France
and Germany.

6.8 DIEHL STIFTUNG & CO. KG (DIEHL VERWALTUNGS-STIFTUNG) - SWOT ANALYSIS 123
• The company caters to an extensive product portfolio in the • The Aerosystems segments accounts for a major stream of the
Defense & Aerosystems segment, offering both services and company’s revenue that are driven by government spending and
products, which has enabled it to strengthen it’s market position. contracts. This spending is subject to postponement, cancellation
• Diversified product portfolio and balanced revenue streams enables or termination, due to any change in the government/defense
the company to cater to a larger customer base, which, in turn, priorities, which will have a direct impact on the company’s
helps to reduce business risks. revenue.
• With intense competition from the international and domestic
• Positive outlook of global defense expenditure is expected to offer market players, the Metering segment is mainly subject to various
robust growth prospects for the company technological changes. The company requires to be quick to cater
• The growing awareness of the green revolution and increasing to these changes.
adoption of technologies to monitor energy usage is expected to • Risks due to the high pricing pressures and consolidations among
positively contribute to the company’s Metering segment. international manufacturers, particularly in the Controls business
segment, is expected to challenge the company’s growth.

6.8 DIEHL STIFTUNG & CO. KG (DIEHL VERWALTUNGS-STIFTUNG) - RECENT DEVELOPMENTS 124
The company introduced, HYDRUS, which is certified according to OMS I

4.0.2. It is a water meter with a future-proofed safety concept. It is
Diehl Metering and Abunayyan Holdings signed a strategic cooperation
compatible with the Smart Meter Gateway of the German Federal Office
agreement, including a state of the art assembly line in Saudi Arabia for
for Information Security (BSI) for maximum data security, and can meet
Ultrasonic Water Meter Technology in October 2017. They were able to
100% of the strict data protection requirements.
supply over 700,000 HYDRUS ultrasonic water meters to Saudi Arabia.
Feb 2018
Jan 2018
Diehl Metering is the first company to integrate metering systems with P

NEC CCOC platform. The collaboration of both partners(NEC & Diehl)
aims to support the operator's day-to-day decision-making by automating The company introduced Smart OMS meters with open communication
tasks and facilitating the correct choice of strategic decisions in the long standards for measuring the consumption of electricity, gas, water, and
term. heating.
Nov 2017 Sep 2016

I
M I E P


6.9 ELSTER GROUP GMBH (HONEYWELL INTENATIONAL INC.) - OVERVIEW 125
• Elster is a leading global provider of gas, electricity, and water meters and related communications, networking and
software solutions. It became a subsidiary of Honeywell International Corporation in 2016.
• It sells its products and solutions to utilities, distributors, and industrial customers across gas, water, electricity, and
multi-utility organizations, for use in residential and commercial and industrial settings. Founded in 1836
Essen, Germany HQ
• From smart meters and other grid sensors, to advanced metering infrastructure (AMI), meter data management (MDM),
network communications, data analytics, and pre-integrated, partner-based solutions for sophisticated grid 49 06134 6050
management, the company provides the vital connections that utilities need to unlock the full value of their meter data.
http://www.elster.com
By transforming meter data into meaningful grid performance information, Elster helps utilities improve system reliability,
enhance operational efficiency, foster better customer service, and achieve environmental sustainability goals.
Total Revenue in USD million,
2014-2016
USD 39,302 37% of Revenue
40306.0
39302.0
Aerospace
million Revenue
USD 4,809 million
Net Income
35851.0
1,00,000+
Employees
USD 2143 80% of Revenue

Products and Systems 2014 2015 2016
million
39 Countries R&D Expenditure
Segment
(2016)

6.9 ELSTER GROUP GMBH (HONEYWELL INTENATIONAL INC.) - BUSINESS SEGMENTS 126
Revenue Share (%), by Business Segment, 2016 Revenue Share (%), by Geography, 2016
• The company continues to enhance its software capabilities, through the
11.8% Aerospace creation of a software center in the United States, to staff more than 730
full-time product software engineers. Of 131,000 employees, around
23.6% 37.5% 45,000 are located in the United States.
Home & Building
Technologies
Performance Materials &

Technologies
17.0%
27.1% Safety & Productivity
Solutions
United States
• Commercial Original Equipment sales decreased by 13%, primarily Europe

25.4% 57.6%
due to higher OEM incentives. There was a decline in defense and Other International
space sales by 7%, due to decline in the US space and international
defense programs and a decrease in transportation system sales.
• Despite these challenges, the aerospace segment generated the

maximum profit of USD 2,991 million.

6.9 ELSTER GROUP GMBH (HONEYWELL INTENATIONAL INC.) - PRODUCTS AND STRATEGIES 127
Products & Services
• Elster Instromet Strategies
• Elster Meter
• The company focuses on executing its strategy to become a software-
• Elster Thermal Solutions
industrial company, which translates to products and services that facilitate
Technology the connected plane, home, building, and factories.

Major Customers
• The company aims to increase the availability of capital through strong
cash flow conversion, from effective working capital management and
• Duke Energy
proactively managing debt levels. This is to enable the company to smartly
• Sembcorp Bournemouth
deploy capital for strategic acquisitions, dividends, share repurchases, and
capital expenditures.
Competition
• BI Group PLC
Acquisitions
• Emerson Electric Co. • The parent company is into various acquisitions. The Elster Group was
acquired by Honeywell in 2016. With the parent company, Elster can
• eQ-3 AG
start acquiring companies, thus broadening the portfolio.
• Landis+Gyr AG
• Iskraemeco GmbH

6.9 ELSTER GROUP GMBH (HONEYWELL INTENATIONAL INC.) - SWOT ANALYSIS 128
Strengths
• Elster has a broad presence across Asia-Pacific, North America, Weaknesses
Europe, and South America.
• The inability of acquired businesses by the parent company to
• Moreover, Honeywell is in the early phase of a cyber revolution that meet or exceed expected returns, including the risk of impairment,
will transform businesses, and with it’s strong technical expertise and is expected to weaken the company’s financial performance.
extensive portfolio in automation and control, sensing, and data
capture, it is expected to be successful.
• Strong R&D capabilities are expected to aid in strengthening the

company’s position.
• The company has been facing exceptional opportunities after • There are chances of company being dependent on the parent
getting acquired by Honeywell, to enhance its customer base and company, which might affect its revenue if the parent company
expand its scope, due to Honeywell’s global image. undergoes a loss.

6.9 ELSTER GROUP GMBH (HONEYWELL INTENATIONAL INC.) - RECENT DEVELOPMENTS 129
Elster was selected by Enexis for a five-year contract, to deliver more

than 1 million smart electricity meters in the Netherlands, as part of
P
the country’s efforts to meet European Union’s energy efficiency
goals. The awarded project builds on previous Honeywell Elster
successes with Enexis, including the installation of 900,000 smart gas
meters, in 2015.
Mar 2016
Memphis Light, Gas and Water selected Honeywell for a five-year

project worth more than USD 200 million, to fully deploy Honeywell's
Elster EnergyAxis AMI advanced metering technology, throughout
P MLGW's service territory.
Feb 2016
M I E P


6.10 GENERAL ELECTRIC COMPANY - OVERVIEW 130
• General Electric Co. is a technology and financial services company that develops and manufactures products for the
generation, transmission, distribution, control, and utilization of electricity.
• Its products and services include - aircraft engines, power generation, water processing, security technology, medical
imaging, business and consumer financing, media content, and industrial products.
Founded in 1892
• The company operates through eight segments: Power, Oil & Gas, Aviation, Healthcare, Transportation, Appliances &
Massachusetts, United States HQ
Lighting, and GE Capital.
• The company’s Energy Connections revenues increased, primarily due to higher sales at Grid Solutions, driven by the www.ge.com
effects of the Alstom acquisition, and a gain on the sale of a meters business, partially offset by the impact of a stronger
US Dollar and lower volume of Industrial Solutions.
Total Revenue in USD billion,
2015-2017
USD 122.10
billion Revenue
17515.2
+ USD billion
Countries USD 10.3 billion 117.40
123.70 122.10
Net Income R&D and Gross Capital Expenditure
+ 70,000 100 Production

Units
Employees
14.3% of
USD 341.3 Revenue
+120 Countries Industrial Margin
billion
+ 400 Partners Backlog
2015 2016 2017

6.10 GENERAL ELECTRIC COMPANY - BUSINESS SEGMENTS 131
Revenue Share (%), by Geography, 2017 Revenue Share (%), by Business Segment, 2017
1.8%
• The increase in non-US revenues in 2017 was primarily due to the 3.8%
growth of 12% in Europe (primarily due to Baker Hughes), about 10% Power
in Latin America, and 7% in the Middle East & Africa. 17.4%
32.3% Renewable Energy
Oil & Gas
Aviation
15.6% Healthcare
20.1%
United States Transportation
9.2%
37.9% Lightning
9.7% Europe 15.4%
Asia
• The revenues from the Industrial segment increased by USD 3.3 billion, or 3%, as growth
America of the Oil & Gas, Renewable Energy, Aviation, and Healthcare segments were partially
18.3%
Middle East & offset by the decline of the Power, Transportation, and Lighting verticals. Excluding the
Africa effects of acquisitions, dispositions, and translational currency exchange, the organic
18.5%
revenues of the industrial segment increased by USD 0.1 billion.
• In 2017, the company recorded a gain of USD 1.9 billion from the sale of Water business,
in addition to the charges associated with businesses classified as ‘held for sale’ including
the substantial majority of Lighting segment for USD 0.8 billion and two nonstrategic
Aviation businesses for USD 0.6 billion.
6.10 GENERAL ELECTRIC COMPANY - PRODUCTS AND STRATEGIES 132
Technology • The company focuses on technological competence and innovation, excellence in

design, high product performance, quality of services and competitive pricing to
• Dresser - Gas Meter Testing Equipment
sustain in the competitive environment.
• Dresser - Industrial and Residential
• The company created GE Digital, a transformative move that brings together all of
Diaphragm Gas Meters
the digital capabilities from across the company. GE aims to integrate GE’s
Software Center, the expertise of GE’s global IT and commercial software teams,
and the industrial security strength of Wurldtech. With this alignment, the company
Major Clients is expected to be able to accelerate its efforts to build GE’s digital strength and win
in the Industrial Internet.
• Songas Limited (Tanzania)
• Suncor Energy
• The company has been focusing on the inorganic growth strategy and GE Acquisitions
• NRGreen Power
has been able to successfully expand its product offering, to better cater to
• Petronas
the evolving requirements of its customers in the marketplace. This, in turn,
• Wuhan Iron and Steel (Group) Company supports the company in further diversifying its revenue base and
maintaining competitive advantage over its peers.

6.10 GENERAL ELECTRIC COMPANY - SWOT ANALYSIS 133
Strengths Weakness
es
• The company's broad product portfolio and revenue streams reduce the
• GE is reliant on third-party suppliers, contract manufacturers, and service
business risks and provide cross-selling opportunities, which in turn enables
providers and commodity markets, to secure its raw materials, parts,
the company to tap opportunities in both new and existing markets.
components and sub-systems used in its products. This reliance exposes
• GE has successfully adopted inorganic strategy to further enhance its overall
GE to volatility in the prices and availability of these materials, parts,
competitiveness in the marketplace, including its acquisitions of LM Wind
components, systems, and services
Power, ServiceMax, and Arcam AB, among others
• The outlook of the global renewable energy market is bright and
• Currency conversion fluctuations – As a significant portion of the
the company is well positioned to capitalize on the growing end company's revenues are generated outside the domestic areas, currency
markets, to enhance its revenues and market shares. risk is an extremely important factor for the company’s earnings.
• GE is entering the new digital industrial world, by harnessing the • The firm faces intense competition from international and domestic market
company’s horizontal capabilities, including Predix, software players, including 3M, Hitachi, Honeywell International, Mitsubishi,
design, fulfillment and product management, while also executing Siemens, Textron, and United Technologies, among others.
critical outcomes for its customers.

6.10 GENERAL ELECTRIC COMPANY- RECENT DEVELOPMENTS 134
A consortium of PT Hutama Karya, General Electric, and Marubeni

secured a contract from PT Indonesia Power, to build Tambak Lorok P
combined cycle power plant block 3 in Central Java, Indonesia. • The company and Eni entered a cooperation agreement with the
Jul 2017 Minister of Energy of Kazakhstan, Kanat Bozumbayev, to promote the
development of renewable energy projects in the country.
• The company and SK Group signed an MoU to jointly develop US shale
gas.
P Jun 2017
Schindler Holding and GE Digital entered a strategic alliance to use

the potential of the industrial internet for digital innovations in
P
elevators, escalators, and smart buildings.
Jun 2017
M I E P


6.11 HEXING ELECTRIC COMPANY LTD - OVERVIEW 135
• Hexing Electrical Co. Ltd (Hexing) is a provider of micro-grid and smart grid solutions. The company manufactures a
wide range of conventional meters, smart meters, smart cluster metering cabinet, network products, and meter test
equipment.
• The company provides EPC services to substations and undertakes smart metering EPC projects.
• It offers operational and maintenance services to power plant, substation, and IT system in utilities. It also provides Founded in 1992
third-party billing services.

Hangzhou, China HQ
• The company caters to clients through manufacturing facilities in Brazil, China, Indonesia, Iran, Pakistan, and Tunisia,
in addition to sales offices in Peru and South Africa. http://www.hxgroup.cn/en/
USD 476.66 USD 89.39 million Total Revenue in USD million,

million Revenue Net Income 63.9% 2015-2017
Smart Electricity Products
476.7
Segment
315.9 343.2
+1240 33.6% of Revenue

Employees China
2015 2016 2017

6.11 HEXING ELECTRIC COMPANY LTD - BUSINESS SEGMENTS 136
1.1%
• The company derives the majority of its sales from the international
0.3% Smart Meter
market and contributed around 67% to the revenue of the company
6.3% 1.5%
in 2017.
System Solution
12.2% • The Chinese region generated more than a quarter of the total sales
With Electrical Terminal during 2017. The sales in this region increased when compared to
the previous year, while the international sales witnessed a negligible
High Voltage Electrical Appliances increase.
and Other
Operation and Maintenance

78.6%
33.6%
Other Business Revenue
China
International Sales
• The Smart Electricity Products segment accounts for majority of the 66.4%
revenue. This segment has been witnessing growth in the recent times.
• Another major segment, Power Distribution Solutions, also witnessed
growth in sales, while the revenues of the Power Cloud Services
segment decreased, when compared to the previous year.

6.11 HEXING ELECTRIC COMPANY LTD - PRODUCTS AND STRATEGIES 137

• AMI Meter
• Smart Prepayment Meter
Technology
• Grid Meter • The company is investing in R&D, which will help provide
• TMS innovative products.
• ATC&C/ Boundary metering
• The company is focused on delivering advanced energy solutions
• C&I
with innovative technologies and products, to its customers.
Major End Users • The company is aiming to strengthen its position and attain
sustainable business development.
• Energy and Utilities
• Industrial Goods and Machinery
• Although the company did not acquire any business in Acquisitions
2017, Hexing electric is keenly focusing on its deal from
Competition 2011.
• Zhejiang Chint Instrument & Meter Co. Ltd • The company is focusing on the Asia-Pacific region, to
• Wasion Group Holdings Limited enhance its business.
• Shenzhen Haoningda Meters Co. Ltd

• Ningbo Sanxing Electric Co. Ltd
• Jiangsu Linyang Electronics Co. Ltd

6.11 HEXING ELECTRIC COMPANY LTD - SWOT ANALYSIS 138
STRENGTHS WEAKNESSES
 The firm’s broad range of products helps it to cater to the
• Limited management layers places the company at a
diversified metering needs of its customers.
disadvantage over its competitors.
 Quality Certifications and Patents (120) - Steady growth in the
number of patents indicates that the company provides impetus to
innovation, which is important for the survival of the company, as
its offerings are susceptible to rapid technological changes.
OPPORTUNITIES THREATS
• Hexing Electrical is exposed to competition from alternative
• Hexing Electrical could benefit from the significant growth
products and various industry players.
potential of Advanced Metering Infrastructure (AMI). This
• The fluctuations in the electricity prices could increase the cost
could offer good business prospects for the company.
of operation of Hexing Electrical, thereby affecting its financial
• With robust economic development in China, the demand
performance.
for electricity is further expected to increase. Increasing
• The company's offerings are characterized by rapid
power demand would bolster the demand for the
technological changes, which may affect its business
company’s products.
operations.

6.12 HOLLEY TECHNOLOGY LTD - OVERVIEW 139
• Holley Metering Limited recently changed its name to Holley technology Limited. It is a part of the Holley Group, which is
one of the leading providers of smart meters in the Chinese market.
• The company has grown into a multi-business and hi-tech business. It has also become more internationally involved, by
exporting to about 40 countries throughout the world.
• The company produces water meters, gas meters, heat meters, electro-mechanical meters, and pre-payment energy
meter products. Holley Metering sells its products domestically and internationally.
Founded in 1970
Products & Services Clients
Hangzhou, China HQ
• Uzbek Energy Corporation
• DDSD285-IC1 en.holleytech.cn
• Tashkent City Electric Power Bureau
• DDSY283SR-IS1
• Thailand Marvin
• DTSY545-IS1
• Provincial Electricity Authority of
Thailand

6.12 HOLLEY TECHNOLOGY LTD - SWOT ANALYSIS 140
• Lack of diverse product portfolio that serves a limited

 The company has been involved in various joint ventures,
consumer base.
such as the establishment of Housfan Park, which
• Low activity in mergers and acquisitions has hampered the
secures the financial income of the company.
growth of the company.
 The company has a strong R&D structure, to fuel further
innovations.
• Lack of proper aggregation of collaborative projects could lead to
• Expansion of product portfolio can broaden the consumer
wastage of resources.
spectrum, which can drive the revenue of the company.
• Increasing presence in other markets can lead to higher
revenue, owing to product exposure.

6.12 HOLLEY TECHNOLOGY LTD - RECENT DEVELOPMENTS 141
Holly group has entered a contract with Bangladesh Rural

Electrification Board (BREB), to supply 1.66 million single-phase
meters. This is the biggest order the company has ever had from
P
the overseas.
May 2017
Housfan Industrial Park has been developed as a joint venture by
both Hofusan Real Estate Co., Holley Group, Futong Group, of
which, Holley Group holds 51% of the share. This provides an
opportunity for the expansion of US smart meter market.
E
Mar 2017
M I E P
Mergers & Product

Acquisitions Innovation Expansion Partnership

6.13 ITRON INC. - OVERVIEW 142
• Itron Inc. is a technology and services company, which is dedicated to the resourceful use of electricity, natural gas, and
water. It provides comprehensive solutions that measure, manage, and analyze energy and water use.
• The company’s solutions include - standard meters and next-generation smart metering products, metering systems, and
services, which ultimately empower and benefit consumers. It operates through the following segments: Electricity, Gas,
Founded in 1977
and Water.
Washington, United States HQ
• The company offers licensing meter data management and analytics software, managed services, software-as-a-service,
1 509 924 9900
licensing hardware technology, technical support, and consulting services. Itron sells its offerings directly and also through
a network of indirect sales channels, such as partners, sales representatives, distributors, and meter manufacturer http://www.itron.com/
representatives.
• The electricity segment comprises of standard electricity meters, smart metering solutions, such as smart electricity Total Revenue in USD million,
2015-2017
meters, smart electricity communication modules, etc.
• Smart gas meters; smart gas communication modules; prepayment systems, including smart key, keypad, and smart
2,018.
cardUSD 2018.2
communication technologies
million make up the Gas segment. 2013.2 20
• The Revenue
water segment comprises of water and heat meters; smart metering solutions that include smart water meters and
56% of Revenue
United States and Canada
communication modules; smart heat meters; smart systems including handheld, mobile, and fixed network collection
technologies.
7,000+ 1883.5
Employees USD 675.15 million 51% of Revenue
Gross Profit
Electricity
100 Countries 2015 2016 2017

6.13 ITRON INC. - BUSINESS SEGMENTS 143
10.3%
22.9%
Electricity
United States and Canada
50.7% Gas
33.3% 56.3%
Water EMEA
26.4%
Other
• The electricity segment comprises of standard electricity meters, smart metering • Meter and Communication Module Summary: Revenues increased by USD
solutions, such as smart electricity meters, smart electricity communication 5.0 million in 2017, compared to 2016. Product revenues decreased by USD
modules, etc. 16.1 million in 2017 primarily in North America and Europe, Middle East, and
• Revenues of the Electricity vertical increased by USD 84.6 million in 2017, or 9%, Africa (EMEA) regions.
compared to 2016. This was a result of increased smart metering revenues in North • Changes in currency exchange rates favorably impacted revenues by USD
America and EMEA, higher volumes of prepaid smart metering solutions in Asia- 11.6 million in 2017.
Pacific, and improved service revenues in North America. • The United States and Canada accounted for the maximum share with
• This also included product revenues of USD 12.8 million and service revenues of activities, such as expansion, taking place in this region and the majority of
USD 19.6 million associated with Comverge. These improvements were partially the workforce of the company working here.
offset by a decline in service revenues in EMEA, and a decline in product revenues
in Latin America.

6.13 ITRON INC. - PRODUCTS AND STRATEGIES 144
• Smart Residential Metering

• The company aims at product development and is focused on both improving
• Advanced Residential Metering Technology
existing technologies and developing innovative technologies for electricity,
• Smart Commercial + Industrial Metering
natural gas, water, and heat meters, sensing and control devices, data
• Advanced Commercial + Industrial Metering
collection software, communication technologies, data warehousing, and
software applications.
Competition
• Landis+Gyr AG • The company can complete acquisitions or invest in the future,

• Sensus USA Inc. both within and outside of the United States. To finance future
• Elster Group acquisitions, it needs to raise additional funds through public or
• Diehl Stiftung & Co. KG private financings, and there are no assurances that such
Acquisitions
• Badger Meter Inc. financing would be available at acceptable terms.
• Itron acquired demand response provider Comverge for USD 100

million. The deal will allow Itron, a leading provider of advanced
metering and smart grid technologies, to enhance offerings around
the integration of distributed energy resources for utilities.

6.13 ITRON INC. - SWOT ANALYSIS 145
• The company derives the majority of its revenues from the sales
 With the availability of skilled workforce and technically of products and services to utilities. Purchases of their products
innovative products, the company is registering healthy growth. may be deferred as a result of various factors, including economic
 Salzburg AG (Salzburg) extended smart grid contract with downturns, slowdowns in new residential and commercial
Itron, to upgrade Salzburg’s OpenWay smart grid solution with construction, customers’ access to capital upon acceptable terms,
Itron Riva edge intelligence technology, which also serves as the timing and availability of government subsidies or other
the major strength for the company’s revenue. incentives, utility-specific financial circumstances, mergers &
acquisitions, regulatory decisions, weather conditions, and
fluctuating interest rates.
• International sales and operations may be subjected to risks, such
• The investment in innovation to support the continued adoption as the imposition of government controls, government expropriation
of smart technology by utilities and municipalities provides of facilities, lack of a well-established system of laws and
substantial opportunities for growth, beyond traditional smart enforcement of those laws, access to a legal system free of undue
grid applications. influence or corruption, political instability, terrorist activities,

restrictions on the import or export of critical technology, currency
exchange rate fluctuations, and adverse tax burdens.

6.13 ITRON INC. - RECENT DEVELOPMENTS 146
Itron has completed the acquisition of silver spring networks.

Integrating Silver Spring Networks' solutions into Itron's broad
portfolio, industry knowledge, financial stability, and service
offerings will create additional value and enhance the company’s Itron acquired demand response provider Comverge for USD 100 million.
ability to support customers.
M
The deal will allow Itron, a leading provider of advanced metering and smart
Jan 2018 grid technologies, to enhance offerings around the integration of distributed
energy resources for utilities. The company strengthened its portfolio of grid
solutions with the acquisition of Comverge, in June 2017. Comverge’s
industry-leading demand response, energy efficiency, and customer
engagement solutions complement Itron’s strategy to provide more value to
utilities and customers. The acquisition also paves the way for gam-
M
changing distributed energy management applications using Itron’s
OpenWay Riva solution.
Jun 2017
M I E P


6.14 JIANGSU LINYANG ENERGY CO. LTD - OVERVIEW 147
• Jiangsu Linyang Energy Co. Ltd is a China-based company principally engaged in the research and development,
manufacture, and sales of electrical meters.
• Its electrical meters include - three-phase smart power meters, collectors, concentrators, power selling terminals, and
bidirectional converters, among others.
• The company is also engaged in the development, investment, construction, and operation of photovoltaic power stations,
Founded in 1995
the research, development, manufacture, and sales of mono-crystal photovoltaic modules, energy performance
contracting, and the research, development, production, and sales of liquid emitting diode (LED) products. Qidong, China HQ
• The company operates its businesses in both domestic and overseas markets.
http://www.linyang.com
Total Revenue in USD million,

USD 491.38 USD 75.28 million
million Revenue Net Income 14% 2014-2016
491
sales Growth
431
347
97.1% of Revenue
USD 18.41
+3,807 China
Employees million
R&D Expenditure (2016)
2014 2015 2016

6.14 JIANGSU LINYANG ENERGY CO. LTD - BUSINESS SEGMENTS 148
• The company derived almost all of its revenues in its home

3.0%
10.0% Electronic Energy Meter market of China, in 2016.
• In 2016, the sales in other foreign countries were up at a rate
Other Products
16.2% that was much higher than the company as a whole (about
47.7%
Photovoltaic Power Generation 87.1%)
Solar cell Components

23.1% 2.9%
Electricity Information
China
International
• The Electronic Energy Meter segment continues to be a major
contributor to the company’s sales (Capacity to produce 20 million units
of smart electric energy meters). 97.1%
• The Photovoltaic Power Generation segment generated about a
quarter of the firm’s total revenues.

6.14 JIANGSU LINYANG ENERGY CO. LTD- PRODUCTS AND STRATEGIES 149
• Three-phase Standard Transfer Specification

Technology
(STS) Smart Prepayment Energy Meter
• Three-phase Smart Energy Meter
• The company is entering strategic collaborations to expand its base
• Single-phase STS Smart Prepayment Energy
outside China. The company is also planning to open its regional
Meter
offices in Asia-Pacific, in collaboration with Chinese Solar firm GCL
• Single-phase Smart Energy Meter
New Energy and Hover Energy.
Competition
Acquisitions
• Montnets Rongxin Technology Group Co. Ltd • The collaborations are also aimed at expanding the company’s global
• Genimous Technology Co. Ltd capabilities and accelerate its localization strategy, while expanding
• Hexing Electrical Co. Ltd the end market reach.

6.14 JIANGSU LINYANG ENERGY CO. LTD - SWOT ANALYSIS 150
• The company has long-term debts, which could affect its

 Strong presence in China with year-on-year growth.
profit margin.
 Specialized in research, sales, and production of smart
• The company is subject to seasonality in terms of sales.
energy meters and power management products.
For instance, four of the previous five years, sales were
the highest during the fourth quarter.
• The company could capture a larger share and widen its • Intense competition could arise from local or long-term
customer base through global expansion. participants.
• The rising demand for smart cites is anticipated to boost • The expected reduction in demand from the Chinese market is
the demand for smart electric meters expected to impact the company’s revenues over the forecast
period.

6.14 JIANGSU LINYANG ENERGY CO. LTD - RECENT DEVELOPMENTS 151
P The company signed an MOU (memorandum of understanding) with Sunseap

Group Co., to develop renewable energy and energy efficiency management
solutions.
Dec 2017
Jiangsu Linyang, along with Chinese solar firm, GCL New Energy
and US-based wind turbine technology company Hover Energy, is
poised to expand its sales, operations, finance, treasury, and other
management functions, with a new office (Singapore) in Asia-Pacific.
E
Oct 2017
M I E P


6.15 KAMSTRUP A/S - OVERVIEW 152
• Kamstrup A/S Group develops, produces, and sells electric meters for reading energy and water consumption and
relating reading systems and data analysis tools, to utilities and other users worldwide.
• Generally, Kamstrup develops all its products and manufacturers them on its highly automated factories in the Nordic
Founded in 1946
countries.
Skanderborg, Denmark HQ
• At a global level, Kamstrup has set up branches in Dubai, Estonia, Finland, France, the Netherlands, India, China,
Norway, Poland, Romania, Russia, Switzerland, Spain, Great Britain, Sweden, South Africa, Czech Republic, Turkey, +45 89 93 10 00
Germany, the United States, and Austria.
www.kamstrup.com
345.67
USD USD 52.95 million Total Revenue in USD million,
2015-2017
million Revenue Operating Profit 345.67
85% of Revenue 251.41

287.04
From Europe
36% of Revenue from

Service and System Component
1,066
Employees
2015 2016 2017

6.15 KAMSTRUP A/S - BUSINESS SEGMENTS 153
• Most of the business operations of the company are concentrated in

37.0% Europe. The company has many subsidiaries, which have been primarily
System & Service located in and around Europe.
63.0% Component
15.0%
• This segment includes the income from the services offered, such as smart Europe
grid modification.
• The components part includes water meters and heat meters provided. Other
• In 2017, the electricity and heat meter markets have experienced moderate
growth in the sales of intelligent meters.
85.0%
• The water meter market has experienced a robust and global growth, where
North America and Europe were at the core of the company’s growth in
2017.
• The company maintained a healthy position in the heat meter market, and
garnered shares in the water and electricity markets.
6.15 KAMSTRUP A/S - PRODUCTS AND STRATEGIES 154
• Kamstrup plans to continuously invest intensively in new

• MULTICAL® 21 / flowIQ® 21xx
product development and production-related development,
• flowIQ® 3100
during the coming years.
• MULTICAL® 62
• In addition to continued new sales, it is focusing on
delivering large orders that were signed in the recent years.
Major Clients Competition • Product launches are one of the primary strategies for
development for the company, as these products have
strengthened the competitiveness of the company.
• Västerbergslagens Elnät AB • Landis+Gyr
• eMeter
• Estonia Waterworks
• General Electric
• Water-link Water Utility
• Strib Water Company
• Water Company Warndt

6.15 KAMSTRUP A/S - SWOT ANALYSIS (for COMET HOLDINGS AG) 155
• The company has a widespread geographical presence. • Low activities pertaining to mergers and acquisitions have
• The company has high financial strength. The creditworthiness of the made the country vulnerable to the pace of the growing
company is high, which enables it to generate money at the time of smart meter market.
need.
• The financial sensitivity of the company to various economic
scenarios is also relatively high.
• The company can expand its product portfolio, to enhance its
• With the ongoing technology developments, Kamstrup can be lacking
consumer base.
in the ace to compete with the pace of developments.
• The company is headquartered in Denmark. Moving to prime
• Loss of customers to various competitors can be a large threat facing
locations can aid the growth of the company.
the company.

6.15 KAMSTRUP A/S - RECENT DEVELOPMENTS 156
Kamstrup announced plans to open a new water meter production

facility in the United States. While companies across all
manufacturing sectors are offshoring production, Kamstrup is
bringing in production and jobs to the United States. The company’s Kamstrup signed a contract of two new pilot projects with Iranian
US-based production will enable close proximity between customers, company Iran Ensheab Co. The contract was signed in connection to
production, and development, to facilitate rapid innovation. By adding a visit in Iran, with a delegation from the Danish water sector. With
E
an additional manufacturing capacity, Kamstrup will be able to meet this contract, the company expanded its business in the Middle East.
the high demand for the company’s smart metering solutions. Nov 2017
Feb 2018
Kamstrup has invested in the narrow band internet of things (NB- Kamstrup introduced a new water meter with Sigfox communication,
IoT), to fuel innovations in electricity meters. Pilot tests are which has a sale of about 1.5 million. The meter delivers the same
planned for spring 2018 and a commercial solution is expected to proven benefits as that of the company’s acclaimed existing smart
be available over the next 12-18 months. meters, while providing a competitive option for water utilities looking for
I
Oct 2017 a maintenance-free infrastructure.
Oct 2017
M I E P
Mergers & Product


6.16 LANDIS+GYR GROUP AG – OVERVIEW 157
• Landis+Gyr is a leading global provider of integrated energy-management products that are tailored to energy company
needs, and is unique in its ability to deliver accurate end-to-end advanced metering solutions.
• The company offers the broadest portfolio of products and services to the electricity metering industry, and is developing
the next generation of the Smart Grid. Founded in 1896
• The company delivers comprehensive solutions for the foundation of a smarter grid, including Smart Metering, distribution Theilerstrasse, Switzerland HQ
network sensing, and automation tools, load control, analytics, and energy storage.
41 41 9356000
• The company’s Advanced Metering Infrastructure (AMI) solutions enable utilities and consumers to monitor, track, and
share information, enhancing the understanding and responsiveness of the power delivery system. http://landisgyr.com/
USD 1659.2million Total Revenue in USD million,

Revenue 2014-2016
USD 150.8 million 1659.2

EBITDA
56.1% of
6,000+ Revenue
Engineered Systems Segment
1569.4
Employees
1519.4
USD 162.8
million
31 Countries R&D expenditure (2016)
2014 2015 2016

6.16 LANDIS+GYR GROUP AG – BUSINESS SEGMENTS 158
Sales, by Region, 2016-2017
• In the financial year, 2016-17, the transformation of the American energy sector
continued, driven by new business opportunities, adoption of digital
technologies, and the increasing growth of renewable energy sources.
8.4%
• In Europe, the market gained momentum in the financial year 2016-17, primarily
Americas (except the United States) as a result of the EU energy legislation aimed at increasing AMI penetration in
its member states.
35.4% EMEA
56.1%
• The European Union reaffirmed its objective of replacing at least 80% of
Asia-Pacific installed electricity meters with smart meters by 2020, focusing on energy
efficiency and the integration of renewable energies and transparency.
• In the financial year 2016-17, Landis+Gyr’s Asia-Pacific teams achieved

significant accomplishments in important markets and laid the groundwork for
future growth. IntelliHUB, the services subsidiary serving retail energy
customers in Australia and New Zealand, gained traction.

6.16 LANDIS+GYR GROUP AG – PRODUCTS AND STRATEGIES 159
Products & Services

Strategies
• G370 Gas Meters
• Libra 100 Gas Meters

• The strategic vision of the company is focused on identifying and developing
• Libra 200 Gas Meters
solutions aimed at increasing IoT enablement and leveraging the use of Big
• Libra 310 Gas Meters Data and analytics, to improve forecasting, network modeling, management
Technology
strategies, and system reliability.
Major Customers
• Also, the company aims at the realignment of its regional organization structure
to optimize its manufacturing strategy. The new customer segment-oriented
structure enables the business to strengthen its customer and market focus and
meet the needs of the many utilities requesting value-added products better,
while maintaining its highest-quality standards and innovative spirit.
Competition
Acquisitions
• By continuing to serve the needs of utilities, the management has identified
• Itron
further potential in the expansion of software and services activities, and is
• Elster
continuously evaluating strategic acquisitions that would allow the group to
• Pietro Fiorentini enter other product categories or new geographic markets.
• Sensus

6.16 LANDIS+GYR GROUP AG – SWOT ANALYSIS 160
• The company is one of the prominent global supplier of integrated
energy management solutions for the utility sector. Its global
• The company faces inconsistency in sales in certain regions such as
recognition helps the company’s revenues.
decline in the sales in Asia Pacific in 2016. The APAC sales fell from
• Moreover, the company’s ability to successfully execute the new
USD 141 million in 2015-2016 to USD 140 million in 2016-2017.
large contracts, mainly in the United States and Europe is the
company’s major strength.
• The energy landscape will change drastically in the wake of various • The company is vulnerable to the currency fluctuation risks.
megatrends that are shaping future expectations and needs of
• The company is focusing on taking large contracts that may also
consumers requiring utilities, governments and regulatory bodies to
be risks, if not completed appropriately.
adapt. This opens up attractive opportunities for Landis+Gyr which
is capable of helping society to better manage energy.

6.16 LANDIS+GYR GROUP AG – RECENT DEVELOPMENTS 161
The company expanded its distributor sensor product portfolio by

launching a cellular communication option to its existing S610 Line E
Sensor, which detects and locates faults, thereby improving grid
Landis+Gyr delivered power line communication (PLC) smart
reliability.
meters to an energy consortium consisting of Energie
Nov 2017
Steiermark, Energie Graz, Feistritzwerke Steweag, and the service
company, Energy Services, which represents 26 small and medium-
sized energy utilities in Austria. The order for the smart meters
came after the consortium had signed a cooperation agreement for
E
the delivery, support, training, and maintenance of smart metering
Landis+Gyr, with its smart grid solutions, has secured one of the largest to the region of Styria in 2016.
smart metering contracts yet awarded in India, with Tata Power Delhi Nov 2016
Distribution Ltd. Encompassing 200,000 single phase and three phase
smart meters, the project was a follow up to the contract for India’s first
Advanced Metering Infrastructure (AMI) with Radio Frequency (RF)
Canopy, comprising 500,000 endpoints, which Tata Power-DDL awarded
to Landis+Gyr, in early 2017. P
Sep 2017
M I E P


6.17 METER ITALIA – OVERVIEW 162
• As of July 2017, Sagemcom had a 100% share in Meter Italia SpA through its subsidiary, Sagemcom Energy &
Telecom SAS. Meter Italia has joined the Sagemcom group and has changed its name to Sagemcom Italia SpA.
• Sagemcom is a European group in the high added-value communicating terminals market (set-top boxes, internet
Modena, Italy HQ
boxes, electricity meters, etc.). Its turnover totals EUR 1.5 billion, with the headcount of 4,000 employees who work in
more than 40 countries. Sagemcom designs, manufactures, and ships more than 22 million terminals worldwide every +39.075.85.26.070
year.
http://www.meteritalia.com/en/
• Sagemcom group is present in more than 40 countries, with more than sixty branches and offices.
• It offers a range of smart meters, both industrial and domestic, designed to be flexible, and robust. The innovations
introduced by Meter Italia are the industrial meter and the modular domestic meter.
• The innovative approaches incorporated by the company in the design of the meters has led to products that can be
equipped, even after the installation, with a radio card for data communication and a modular domestic meter (which
can be installed without a radio card). Thus,, the meters can be adjusted with the communication device as per the
need.
6.17 METER ITALIA – PRODUCTS AND STRATEGIES 163
Products & Services
• EF4EVO
• EG4EVO
Strategies
• EG6
• EG4
• Five values has been defined within the corporate
• EF4
strategy for the business process-
• EG10/16/25
• Agility
• Team Power
Competition • Efficiency
• Creativity
• Yazaki Coporation • Client Centric
• AEM

6.17 METER ITALIA – SWOT ANALYSIS 164
• Broad product portfolio for home and industrial applications • The company is dependent on France for a significant
reduces business risks and balances revenue streams. portion of its revenue.
• Robust R&D operations of Sagemcom that helps the company in

increasing its competitiveness in the marketplace.
• Due to the increasing adoption across all end-user industries, the
• Due to the dependency on France, a decline in demand can be
outlook for IoT market is positive.
affect the company revenues.
• Increasing competition in the segments in which the company

conducts its business poses threat for future.

6.17 METER ITALIA – RECENT DEVELOPMENTS 165
Smart Meter Gateway SMARTY IQ can now successfully be integrated into

the gateway administration software of Robotron Datenbank-Software GmbH.
Having the SMGw connected with the GWA software offers a measurement
data reception, which is compatible with the requirements of the German
I
Federal Office for Information Security (BSI).
Dec 2017
M I E P


6.18 MUELLER SYSTEMS LLC – OVERVIEW 166
• Mueller Water Products Inc. is a manufacturer and marketer of products and services used in the transmission, distribution,
and measurement of water in North America.
• Its product and service portfolio includes engineered valves, fire hydrants, metering products and systems, leak detection, and
pipe condition assessment. HQ
Cleveland, United States
• Further, it helps municipalities in enhancing operational efficiencies, customer service, and prioritize capital spending.
(704) 278-2221
• Mueller Water Products Inc. operates their business through two segments, Infrastructure, formerly referred to as Mueller http://muellersystems.com/
Co., and Technologies, formerly referred to as Mueller Technologies. The technologies segment is comprised of the Mueller
Systems and Echologics businesses. Net Sales in USD million, 2015-
2017
826.0
USD 826 million Net Sales, USD 63.9 million
Mueller Water Products, 2017 Net Income
800.6
63% of Revenue 793.4
Mueller Co.
3,900+ USD 12.1 million

Employees R&D expenditure (2017)
2015 2016 2017

6.18 MUELLER SYSTEMS LLC – BUSINESS SEGMENTS 167
Revenue in USD million, by Business Segment, 2017 Revenue Breakdown (%) in USD million, by Geography, 2017
4%
7%
10.4%
Infrastructure United States

Canada
Others
Technologies
89.6% 89%
• In the technologies segment the net sales for 2017 increased to USD 86.1
• Region wise, the US market contributed the most toward to the revenue of
million from USD 84.9 million in 2016, primarily due to higher shipment
the Mueller Water Products, Inc., with a share of almost 89% in 2017. The
volumes.
revenue increased from USD 716.5 million in 2017 to USD 732 million.
• Sales of water metering products and systems accounted for 83% of
• In 2017, Canada witnessed an increase of 9.1%, from 2016, which was
technologies segment in 2017.
valued at USD 62.3 million.
• Infrastructure Net sales for 2017 increased 3.4% to USD739.9 million from
USD 715.7 million in 2016, primarily due to higher shipment volumes of
Singer Valve, which was acquired in February 2017.

6.18 MUELLER SYSTEMS LLC – PRODUCTS AND STRATEGIES 168
Products & Services
• Residential Meters
• Light Commercial Meters Strategies
• Commercial/Industrial Meters
• Fire Service Meters
Its business strategy is to capitalize on the large, attractive, and
growing water infrastructure markets. Moreover, it aims to:
• Maintain the leadership positions with customers and end users by
leveraging its brands, large installed base, leading specification
Competition
positions, and extensive distribution network.
• Develop, acquire, and invest in businesses and technologies that
• Chongqing Smart Water Meter Group expand its existing portfolio of businesses or allows to enter new
• Arad Technologies Ltd markets, including international markets.
• Badger Meter Inc.

6.18 MUELLER SYSTEMS LLC – SWOT ANALYSIS 169
• Broad product portfolio for various end-users reduces business • The company is almost dependent on the United States for
risks and balances revenue streams. its revenues (90%).
• Strong R&D operations helps the company in increasing its • Its exposure to currency exchange risk has affected its
competitiveness in the marketplace. business performance over the years.
• After establishing its business in North America, the company • Further, fluctuations in the foreign currencies can be a
can further aim toward emerging markets in the Asia-pacific challenge for the company.
region. • A decrease in demand from the United States for its products
• The company is planning to incorporate IoT in its meter can have a major impact on the revenues.
business, strong market outlook for IoT presents further
opportunities.

6.18 MUELLER SYSTEMS LLC – RECENT DEVELOPMENTS 170
Mueller Systems has collaborated with Senet to deliver metering

infrastructure to water utilities across North America. Senet is the
P first and a growing North American provider of public, low-power,

wide-area networks (LPWANS) for the long-range Internet of
Things (IoT).
Jun 2017
M I E P


6.19 NANJING XINLIAN ELECTRONICS CO. LTD – OVERVIEW 171
• Nanjing Xinlian Electronics Co. Ltd is located in the national smart grid industry base of China-Nanjing Jiangning
Economic Development Zone.
• After 20 years of rapid development, the company is focusing on electricity information collection, intelligent energy
cloud services, smart power distribution equipment and systems, low-voltage sets, power communications testing,
power companies, and business users, and other business areas to provide energy integrated services and solutions.
Nanjing, Jiangning, China HQ
• The company built the provincial power collection system master station, with 10 million collections of information
processing equipment capacity. The power consumption of a full range of products collected by the State Grid system 400-881-8170
for many years is among the best bid. www.xldz.com
Total Revenue in USD

millions, 2014-2016
USD 92.75million USD 9.21 millions 123.4
Revenue Operating Income
92.11 92.75
USD 9.80 million

1,389 R&D investment USD 53.68 million
Employees Cost of goods
2014 2015 2016

6.19 NANJING XINLIAN ELECTRONICS CO. LTD – SWOT ANALYSIS 172
• Lack of brand value is hampering the sales of the

 Strong R&D of the company. For instance, the company
company.
has launched intelligent energy cloud service which is
• Lack of high investments is restraining the growth of the
expected to fuel growth of the company.
company.
 The company has a high cash balance. Its cash and short
• The company has 78 days of inventory which could be
term investments were 1.74 billion which provides high
reduced to decrease lead time on orders
liquidity for the company.
• The company can expand into other geographical markets for • Limited presence in the global backdrop hampers the future
diversification, which can help in the growth of revenue. growth for the company.
• Attracting more investors can lead to growth of the company. • Lack of proper aggregation of collaborative projects leads to loss
• Mergers and acquisitions in the field can lead to increase in of resources.
revenues.

6.19 NANJING XINLIAN ELECTRONICS CO. LTD – PRODUCTS AND STRATEGIES 173
• DJGZ23-XLJI01
• DJGZ33-XLJI07
• The company has been experiencing seasonality in demand as the
sales in the third quarter is more than the other two quarters, and
the sales in the second quarter was more in 2017.
Competition
• The company has been implementing strategies to deal with this
• Jiangsu linyang seasonality in sales.
• Elefirst Science & Tech Co. Ltd
• The EBITDA margin is also declining, and the company aims to
• Ningbo Ligong Environment and
improve this by cutting down costs of manufacturing income taxes,
Energy Technology Co. Ltd
etc.
• Qingdao Eastsoft Communication
Technology Co. Ltd

6.19 NANJING XINLIAN ELECTRONICS CO. LTD – RECENT DEVELOPMENTS 174
Three modules, which are part of Integrated Miniature Smart

Power Collection Module, have been authorized by the national
patents office.
I
Nov 2017
The company has two of its modules, namely Control Method of

Ordered Power Consumption of Central Air Conditioner Based on
Load Relationship and Method of Controlling Multi-Carrier and Multi-
Modulation Digital Base Station for Wireless Private Network
I
Communication System, approved by national invention patent.
Jun 2017
M I E P
Mergers & Product


6.20 NEPTUNE TECHNOLOGY GROUP INC. – OVERVIEW 175
• Neptune Technology Group Inc. operates as a subsidiary of Roper Technologies Inc. The company sells and
manufactures water meters to utility customers across North America. Neptune offers an array of products related to
endpoints/MIUs, data collectors, registers, and water meters.
• The parent organization, Roper Technologies, designs and develops software (both license and Software-as-a-Service) Founded in 1886
and engineered products and solutions for a variety of niche end markets.
Tallassee, United States HQ
• Roper operates through the following segments: Medical & Scientific Imaging, RF Technology, Industrial Technology, and
Energy Systems & Controls. The Water Meter and AMR Products and Systems, under the Industrial Technology division,
www.neptunetg.com
manufactures and distributes water meter products, serving the residential, commercial, and industrial water
management markets.
USD 4607 million USD 195 Total Revenue in USD million

Revenue USD 1742 million 2015-2017
+175
4,607
(Roper Technologies,2017) Gross Profit Countries
million
( Roper Technologies) 3,789
+ 14,150 100 Production R&D Spending
(Roper Technologies,2016)
3,582
Units
Employees
(Roper
Technologies)
+30 million
+ 3500 USD 928 million Installed Water Meters-
Neptune
Utility customers- Outside United States
(Roper Technologies) 2015 2016 2017
Neptune

6.20 NEPTUNE TECHNOLOGY GROUP INC. – BUSINESS SEGMENTS (FINANCIALS OF PARENT ORGANIZATION) 176
Roper Technologies, Revenue Breakdown (%), by Business Roper Technologies, Revenue Breakdown (%), by Region, 2017
Segment, 2017
• Neptune Technologies belongs to the Industrial Technology segment of the

Roper Technology Group. 20.1%
• Revenues of the Industrial technology segment increased 16% y-o-y to
USD 207 million. United States
• Orders in this segment increased by 25% y-o-y, which accounted to USD
220 million in 2017.
International
79.9%
12.0%
RF Technology
17.0% 40.4% Medical and Scientific

Imaging
Industrial Technology
• Sales to customers located outside the United States accounted for a
Energy Systems & significant 80% portion of the company's revenues in 2017.
Controls
• Europe accounted for the largest share of revenue, offset by the
30.6% demand for water metering systems.

6.20 NEPTUNE TECHNOLOGY GROUP INC. – PRODUCTS AND STRATEGIES 177
• The company competes primarily on the basis of product quality, performance,

• MACH 10 Ultrasonic meter
innovation, technology, price, applications expertise, system and service flexibility,
• T-10 Residential Meter Technology distribution channel access, and established customer service capabilities. The
• Double Deck T-10 Meter
company is focused on the expansion on engineered content for niche markets.
• Aquity Meter
• TRU/FLO Compound Meter • The company has focused on larger businesses with new technologies. An
• High Performance Meter instance is the acquisition of the Neptune Technology Group (using radio frequency
• Metering Systems for remote meter reading) and TransCore, that complemented the Roper’s freight
businesses and was the company’s first venture into Software as-a-Service (SaaS).
Major End Market
• The company leverages the prospects for newly acquired businesses to

• Commercial
be integrated and contribute to future growth, and seeks additional
• Industrial
acquisition opportunities, to expand into new markets and enhance the Acquisitions
• Residential
company’s position in existing markets.
• Fire Service
. • The company continues to allocate the majority of their capital to new
acquisitions. In 2016, Roper deployed USD 3.7 billion, adding to the USD
1.8 billion deployed the previous year. These acquisitions were also
aimed at capturing new technologies in new markets

6.20 NEPTUNE TECHNOLOGY GROUP INC. – SWOT ANALYSIS 178
 The company's broad product portfolio and diversified revenue
• The company’s total debt was USD 6.2 billion by December
streams reduce the business risks.
31, 2016, representing 51.8% of total capital compared to USD
 The company has successfully adopted inorganic strategy to
3.3 billion in December 31, 2015. The increasing debt is a
further enhance its overall competitiveness and capture new
major hindrance to the company’s cash flow and profit.
markets, as well as complement its present product portfolio,
such as its acquisitions of Deltek and ConstructConnect among
others .
• The company derives a significant share of its revenue from large
• The outlook for water management market is robust and the
customers, which include government entities. The loss or
company is well positioned to capitalize on the growing end markets
reduction of any significant contracts from any of these customers
to enhance its revenues and market share.
directly effects the company’s revenue and cash flows.
• The major growth prospects in the addressable geographies of
• The revenue is subject to risk as certain businesses are affected
America and Asia are expected to buoy the company’s revenue.
by industry cycles, including but not limited to, the industrial and
energy markets.

6.20 NEPTUNE TECHNOLOGY GROUP INC. – RECENT DEVELOPMENTS 179
The company entered into a partnership with Senet, a leading global

provider of cloud-based software and services platforms to enable P
network connectivity build-out and management for the Internet of
Things (IoT). The partnership is aimed at implementing wireless
Network-as-a-Service (NaaS) infrastructure technology for water
metering applications throughout North America.
Sep 2017
Neptune Technology Group announced the launch of Toronto’s

MyWaterToronto, which was based on Neptune's N_SIGHT IQ Intelligent
Data and Analytics platform and utilizes Neptune's Connected Utility
I Partnership Program (CUPP) interfaces.

Jul 2017
M I E P


6.21 NINGBO SANXING ELECTRIC CO. LTD – OVERVIEW 180
• Ningbo Sanxing Medical Electric Co. Ltd is a China-based company principally engaged in intelligent power distribution
and medical service businesses.
• The company operates through two segments, namely, The Intelligent Power Distribution and the Medical Service
segment. The Intelligent Power Distribution segment is mainly engaged in the production, R&D, and sales of smart
electric meters, power distribution terminals, power metering boxes, transformers, switches, among others.
Founded in 2007
• Medical Service segment is mainly engaged in the construction, operation, investment and acquisition of hospitals, the
Ningbo, China HQ
finance leasing of hospitals, among others.
• The company operates businesses in the domestic and overseas markets. http://www.sanxing.com/
Total Revenue in CNY million,

2014-2016
CNY 4887million CNY 794 million
Revenue Net Income 80.4% 4,887
intelligent Power distribution 4,134
and consumption segment.
3287
+5247 91% of Revenue

Employees China
2014 2015 2016

6.21 NINGBO SANXING ELECTRIC CO. LTD – BUSINESS SEGMENTS 181
Revenue Breakdown (%), by Business Segment, 2016 Revenue Breakdown (%), by Region, 2016
• The company generates majority of its sales from the Chinese

6.9%
mmarket. The sales in this region increased by 12% in 2016
12.7% Intelligent Power distribution when compared to 2015.
and Consumption
• The International sales witnessed a steep growth when
Medical Services compared to the previous year (143% increase) .
Financial Leasing and 9.0%

80.4%
consulting services
China
• Majority of the company’s revenues are derived from intelligent power International Sales
distribution and consumption segment.
• The company witnessed a 16% increase compared to previous year
(2015).
91.0%

6.21 NINGBO SANXING ELECTRIC CO. LTD – PRODUCTS AND STRATEGIES 182
• Single Phase Multifunction Meter

• Three Phase Multi-Function Meters Technology
• Single Phase Prepayment Meters • The company is investing heavily in R&D to optimize its
• Three Phase Prepayment Meters procedures, by combining existing system to intelligent systems.
• Single Phase Smart Meters

• The company is focused to provide innovative products to its
• Three Phase Smart Meters
customers.
Competition
• The company is focused to provide machinery to replace R&D

• Jiangsu Linyang Energy Co. Ltd
human. The company is a keen promoter of automation.
• Montnets Rongxin Technology Group Co. Ltd
• Genimous Technology Co. Ltd • Sanxing is focused on extending its capabilities to
manufacture products and transport to warehouses,
automatically.

6.21 NINGBO SANXING ELECTRIC CO. LTD – SWOT ANALYSIS 183
Strengths Weakness
 The company has a broad product portfolio which helps the es
company to cater to the diversified needs of its customers. • The company is focused to a particular region (China-
 The company is one of the leading producer of energy meters in 91% revenue) and has a poor global presence.
China with almost 25 million units being produced yearly.

 The company's dedicated team of 500 employees for R&D and
steady investment of USD 16 million is expected strengthen the
product portfolio of the company.
• Growing smart grid market will provide the company with
• Sanxing offerings are characterized by rapid technological
opportunities to drive revenues.
changes, which might affect its business operations.
• Smart China 2025 initiation will provide the company with
• Economic and political conditions in China could hamper
greater growth opportunities.
company’s growthh.

6.22 PIETRO FIORENTINI SpA – OVERVIEW 184
• Pietro Fiorentini SpA designs, manufactures, and sells components and systems for the regulation and metering of
natural gas to customers in Italy and also, internationally.
• The company’s portfolio of gas metering products, include smart meters, diaphragm meters, industrial metering
products, volume converters, orifice fittings, and metering systems. It also offers calibration, plants management and
maintenance, professional training courses, gas odorisation, gas smart metering, and remote management systems
services.
• The company provides new generation electronic modules, with operating capabilities of up to 500 mbar. Additionally,
the company focuses on developing standard size of the advanced meters, which allows it to easily replace conventional
counterparts in the existing infrastructure. Also, the company is committed toward providing user-friendly interface for Founded in 1940
ease of use, while the ability of remote firmware updates has ensured their usability in the future.
Arcugnano, Italy HQ
Products & Services www.fiorentini.com
• HyMeter G10-G16-G25
• Smart Meters RSE/2001 (G4) & RSE/2,4 (G6)

6.22 PIETRO FIORENTINI SpA – SWOT ANALYSIS 185
• The company offers a broad portfolio for gas metering which includes, • It is highly dependent on the gas meter market for revenue. Thus, it
equipment solutions and services. lacks diversification in solutions and products offered, can be a
weakness of the company.
• The company is specialized with 70 years of expertise in the production of
advanced services for natural gas distribution and exploitation. • Dependency on industrial spending, which is a major end market
for the company, can be listed as anther weakness.
• Intense competition from international and domestic market
• Increasing natural gas and renewable energy projects in Europe, can players, including new entrants, can pose a threat for the
be an opportunity for the growth of the company. company.
• Expanding addressable geographies, with increasing demand from • Fluctuating prices of the oil and gas industry may affect the
Asia-Pacific and Europe, can also create opportunities of the company’s revenue, as the industrial end-market is a major
company. revenue generator can also be considered as a threat for the

company’s growth.

6.22 PIETRO FIORENTINI SpA – RECENT DEVELOPMENTS 186
Pietro Fiorentini announces the first NB-IoT Smart Gas Meter to

comply with EU Directives for Commercial Use. Pietro Fiorentini Pietro Fiorentini is among the protagonists of the Sochi agreements
stated that its RSE model Smart Gas Meter, with 3GPP NB-IoT between Putin and Gentiloni. The state energy major, Rosneft, has
enabled connectivity, has met European Union approvals. It is the opened to the industrial cooperation with Pietro Fiorentini for the
first Smart Gas Meter with NB-IoT connectivity on the market to production and sale of multiphase meters, which in perspective, will
have the EU’s RED (Radio Emission Directive), MID (Measuring lead to the creation of Italian-Russian joint-ventures, for on-site
Instrument Directive), and ATEX (Installations in Explosive production.
atmosphere) approvals. May 2017
Mar 2018
After partially acquiring Terranova Software, Tecnosystem Group in

2013, Pietro has completely acquired the Tecnosystem’s pipeline
M cathodic protection data management in 2016.
Feb 2016
M I E P
Mergers & Product Expansions Partnerships

Acquisitions Innovations

6.23 SAGEMCOM SAS – OVERVIEW 187
• Sagemcom is a European company which provides products in various high value-added communicating terminals
market. These products include set-top boxes, internet boxes, electricity meters, etc.
• The group has a total turnover of around EUR 1.5 billion, and employs a total of 4000 people in 40 countries to carry its
services. Of the total employees, about 30% are stationed in France. Founded in 2009
• The company also has excellent research ventures. About 600 research engineers have been employed by the Rueil-Malmaison, France HQ
company to fuel further product innovations.

33 1 57 61 10 00
• The company offers set-top boxes, residential gateways, Internet routers, and multimedia terminals, data www.sagemcom.com
concentrators, modems and gateways, electricity meters, and meter data management solutions for telecommunication
and energy infrastructures, multi-energy (gas and water) markets, and electricity sectors.
• Many devices are provided by the company to aid smart meters, such as gateway managers for smart meters and
remote data reading hardware services, apart from others.
Products & Services Competition

• OFDM Single-phase Meter CX1000-6S
• OFDM Three-phase Meter CX2000-9 • Jiangsu Linyang
• Single-phase Static Meter CX1000-3 • Aclara Technologies LLC
• Three-phase Static Meter CX2000-4 • Shenzhen Hemei Group Co. Ltd
• CX2500-9 (CT connected)

• Industrial Three-Phase Smart Meter CX3500

6.23 SAGEMCOM SAS – SWOT ANALYSIS 188
STRENGTHS Weaknesses
• Low emphasis on diversifying product portfolio has led to

 The company is flexible and has been integrating its
loss of consumer base which ultimately lead to loss of
software with various other companies, such as Robotron
revenues.
Datenbank-Software GmbH, which enables in the ease of
use of its hardware.
 Strong R&D structure with about 600 dedicated research
workforce helps in many product innovations.
OPPORTUNITIES
• Presence is as many as 40 countries subjects the company to a
• The company can expand into other geographic regions.
number of regulations and currency risk of those countries.
• More effort on product differentiation can lead to establishment
• Presence of major players in the market subject can lead to
of the brand.
reduced margins reducing profitability.

6.23 SAGEMCOM SAS – RECENT DEVELOPMENTS 189
IBM and Sagemcom won the contract of Flemish energy meters.

Eandis and Infrax opt for the French Sagemcom and IBM Belgium
to develop the smart energy meters. They are expected to replace P
the analog meters in the next 15 years. Sagemcom does the
In collaboration with Sagemcom, Ooredoo has launched the first
development, production, and supply of the meters and the digital
Tunisian Internet of Things base on LoRa technology. This IoT
metering system.
network is expected to drive growth for IoT.
February, 2018
Dec 2017
Sagemcom has acquired Meter Italia SpA. Meter Italia has a

portfolio of traditional and smart residential gas meters. M
Jul 2017
M I E P
Mergers & Product


6.24 SENSUS USA INC. (XYLEM INC.) - OVERVIEW 190
• Sensus is a Xylem brand and helps a wide range of public service providers, from utilities to cities to industrial
complexes and campuses, to do more with their infrastructure to improve quality of life in their communities.
• The company was acquired by Xylem, Inc. in 2016. Xylem is engaged in design, manufacture, and service of highly
engineered solutions ranging across a wide variety of critical applications. Founded in 1870
• The Sensus segment delivers communications, smart metering, measurement and control technologies, and services Washington, United States HQ
that enable customers to more effectively use their distribution networks for the delivery of critical resources, such as
1 509 924 9900
water, electricity, and natural gas.
http://www.sensus.com/
• The company enables its customers to reach farther through the application of technology and data-driven insights that
deliver efficiency and responsiveness. It partners with its customers to anticipate and respond to evolving business Total Revenue (2014-2016) (in USD
needs with innovation in sensing and communications technologies, data analytics, and services. million) for the parent company
USD 3771.1 million 59.6% of

3916
Revenue
Revenue
Water Infrastructure 3771
3653
USD 260million
Net Income
41.7% of Revenue
30+ Countries United States
2014 2015 2016

6.24 SENSUS USA INC. (XYLEM INC.) - BUSINESS SEGMENTS 191
Revenue (%), by Segment, 2016 Revenue (%), by Geography, 2016
3.5% Water Infrastructure 12.8%

United States
36.9% 13.7% 41.7%

Applied Water Europe
59.6%
Asia Pacific
Sensus
Other
31.7%
• Applied Water segment’s revenue decreased in 2016, compared to 2015.
This decline on a constant currency basis was entirely attributable to
• In addition to the traditional markets of the United States and
organic revenue decline, which was driven by declines in the United
Europe, opportunities in emerging markets within Asia-Pacific,
States, partially offset by growth in western Europe and, to a lesser
Eastern Europe, Latin America, and other countries are
extent, the emerging markets.
growing. Revenue derived from emerging markets comprised
• The Sensus segment, which was acquired in the fourth quarter of 2016,
21% of the company’s revenue, y-o-y, the last three years.
generated USD 132 million revenue during the final two months of the
year. Over 70% of the Sensus revenue was generated in the United
States with additional revenue, primarily, from western Europe and
China.

6.24 SENSUS USA INC. (XYLEM INC.) - PRODUCTS AND STRATEGIES 192
Products & Services Provided Strategies
• Aclara I-210+c™ Electricity Meter

• Elster A3 ALPHA® Electricity Meter Technology
• The company’s strategy is to enhance shareholder value by providing unique
• iConAPX™ Electricity Meter
solutions for customers, to improve water productivity, quality, and resilience
• iConA™ Electricity Meters
challenges, enabling it to generate revenue, organically and through strategic
• Stratus® Electricity Meter
acquisitions, as the company streamlines its cost structure.
Competition • The significant areas of focus of the company are innovation and technology,
mergers & acquisitions, tapping emerging markets and simplifying its
• Itron commercial processes.
• Badger Meter
• Landys & Gyr
• Neptune (Roper)
• Elster (Honeywell). • Xylem looks forward to acquisitions, especially for expanding its Acquisitions
gas and electricity sectors. Through the acquisition of Sensus, the
company has started providing solutions to enhance efficiency,
improve safety, and conserve resources to customers in the
electric and gas sectors.

6.24 SENSUS USA INC. (XYLEM INC.) - SWOT ANALYSIS 193
 Sensus-branded meters are well positioned in the smart
metering sector, the fastest-growing sector of the global meter • Failure to retain its existing senior management, engineering,
industry. With this, Xylem set itself apart in the industry by sales, and other key personnel or the inability to attract and
focusing on new product development and service offerings retain new qualified personnel could negatively impact its
that are driving tangible savings of non-revenue water through ability to operate or grow its business.
improved meter accuracy, reduced theft, and identification of

leaks.
• International sales and operations may be subjected to risks, such
• Emerging markets within Asia-Pacific, along with Eastern as the imposition of government controls, government
Europe and Latin America, are anticipated to offer immense expropriation of facilities, lack of a well-established system of laws
growth opportunities. Revenue derived from these areas and enforcement of those laws, access to a legal system (free of
comprised 21% of the revenue in each of the last three years. undue influence or corruption), political instability, terrorist
activities, restrictions on the import or export of critical technology,
currency exchange rate fluctuations, and adverse tax burdens.

6.24 SENSUS USA INC. (XYLEM INC.) - RECENT DEVELOPMENTS 194
More than ever, utilities are seeking to conserve water and empower
their customers to make smarter decisions about water usage. The I
Sensus iPERL smart water meter provides water flow data down to
0.11 gallons per minute, which means accurate, timely water usage
data that helps to detect leaks and improve operational efficiencies Sensus, a Xylem brand, has been selected by Nicor Gas, the largest
for utilities. natural gas distribution company in Illinois, as the technology provider for
Mar 2018 its Meter Modernization program. Nicor Gas serves 2.2 million customers
P
in a service territory that encompasses most of the northern third of
Illinois, excluding the city of Chicago.
Sensus FlexNet EasyLink Mobile Communications is a new solution
Mar 2018
for utilities that will increase read rates and decrease drive time. The
portable, radio-based device easily acquires data from electric, gas
and water meters. It is a simple, cost-effective way to
simultaneously read Sensus SmartPoint modules and ERT radios.
Whether utilities want to continue drive-by, automated reading
I
solutions or have flexible migration paths to advanced metering
infrastructure (AMI), Easylink is a perfect solution.
Jan 2018
R M I E P
Recognition Mergers & Product Expansion Partnership


6.25 SHENZHEN HEMEI GROUP CO. LTD - OVERVIEW 195
• Shenzhen Hemei Group Co. Ltd is engaged in the development, production, and sale of electrotechnical instruments and
meters, microelectronics and electronic elements.
• Its primary products are single- and three-phase electronic energy meters, instrument transformers, management
system, wireless electric measuring automation system and remote meter reading system
• The majority of the company’s business is from China. The company also exported its products to many countries in
Founded in 1994
Asia, Africa, South America, and Europe, such as Mongolia, Afghanistan, Vietnam, Bangladesh, Thailand, Nigeria,
Gambia, Russia, the United Kingdom, and Australia. Shenzhen, China HQ
www.szhnd.com/
CNY 2079million CNY 139million

Revenue Net Income 20.7% Total Revenue (2014-2016) (in
Meter’s Segment CNY million)
2,079
1,225
99.9% of Revenue
+3,102 China
765
Employees
2014 2015 2016

*Source: Factiva

6.25 SHENZHEN HEMEI GROUP CO. LTD - BUSINESS SEGMENTS 196
Revenue Breakdown (%), by Operating Segment, 2016 Revenue Breakdown (%), by Geography, 2016
0.9% • The revenues from China increased by more than 68%
Diamond Jewelry compared to its previous year

1.3%
• High demand from China and geographical advantage is the
19.1%
Meter major reason for deriving revenues from this region.
Financial Services
58.0% 0.1%
20.7% Power Management
Terminal
Electronic Equipment
China
Foreign
• The Meter segment witnessed a growth in its revenue by more than
32% in 2016, when compared to the previous year (2015), owing to the
demand.
• The sales of all the segments increased during 2016 when compared 99.9%
to 2015.
*Source: Factiva
*Source: Factiva

6.25 SHENZHEN HEMEI GROUP CO., LTD - PRODUCTS AND STRATEGIES 197
Products & Services Provided Strategies
• Static Single-Phase Electronic Energy Meter

Technology
• Three-Phase Smart Watt hour meter • The company is making strategic collaborations and acquisitions to
expand its base in China and worldwide
• The company is aiming to take the opportunities of government
policies, which could accelerate the promotion and upgrade the
consumption sector in China
Competition
• Hexing Electrical Co. Ltd

• Genimous Technology Co. Ltd
• The company is looking to make the most of its brand identity and
Acquisitions
marketing capabilities to drive revenue growth
• Shenzhen Topband Company Limited
• Shenzhen Hemei is strategizing to enhance its presence in the global
market, especially in the Asian Market. It is looking to export its products
and establish itself in the Asian Market.

6.25 SHENZHEN HEMEI GROUP CO. LTD - SWOT ANALYSIS 198
WEAKNESSES
STRENGTHS
• The company is focused on the Chinese region. The
 The company is growing exponentially. The revenues revenues generated from this region are about 99.9%,
generated in 2016 were much higher when compared to which is limiting its market share
its previous year. (net profit up by 32.9%)
• The company can capture a greater market share by
expanding globally, which would also help in generating • Economic and political conditions could hamper the growth of
higher revenues the company as it is dependent on a single region (China)
• The rising demand and Shenzhen’s stance in IoT and

internet technology products will help the company to
drive revenue growth

6.25 SHENZHEN HEMEI GROUP CO. LTD - RECENT DEVELOPMENTS 199
M
Electronic instrument manufacturer and tourism firm Hemei
Group announced that its wholly-controlled subsidiary Hemei
Tourism plans to acquire a 60% stake in Shanghai Xintu with a
capital injection of RMB 80 million.
Mar 2017
Shenzhen Hemei Group formed a strategic alliance with Bluebell

Group, a Hong Kong-based branding company, and investment firm
Orion Partners, to tap the consumer goods market in China.
The three have formed a new company that will find and nurture
P
indigenous designer jewelry brands, as well as overseas ones.
Aug 2016
M I E P


6.26 WASION GROUP HOLDINGS - OVERVIEW 200
• Wasion Group Limited is a core subsidiary of Wasion Group Holdings Limited, which is a leading total solution provider of
advanced metering, advanced distribution, and energy efficiency management in China, and is committed to becoming
an “Energy Metering and Energy Saving Expert” in China and across the world.
• Wasion Group has long been focusing on R&D, production and sales of total solutions relating to energy metering and
Founded in 2000
energy efficiency management. The products and services of these areas have been extensively applied in energy supply
Hunan, China HQ
industries for electricity, water, gas and heat, and large energy-consuming units of large-scale public infrastructure,
petroleum and chemical, transportation, machine manufacturing, metallurgical and chemical fields and residents. 86 73188619697
• The advanced smart metering business of the Group mainly comprises of comprehensive smart meters, smart water http://www.wasion.cn
meters, smart gas meters and ultrasonic calorimeters; various meters and power quality monitoring devices.
Total Revenue (2014-2016)

(in RMB million)
RMB 2607.5 million 61% of Revenue 2969.0

Power advanced metering
Revenue
infrastructure
2811.9
4,000+ 2607.5
Employees
84.8% of
RMB 816.7million Revenue
Gross Profit PRC
2014 2015 2016

6.26 WASION GROUP HOLDINGS - BUSINESS SEGMENTS 201
Revenue Breakdown (%), by Segment, 2016 Revenue Breakdown (%), by Geography, 2016
• China accounted for the maximum share of 84.8% in the market, owing to
20.0% Power advanced the significant demand held in the country.
metering infrastructure
• In case of overseas markets, the group has maintained the leading position
Communication and fluid in the markets of Tanzania, Bangladesh, Egypt, etc., with outstanding
advanced metering
infrastructure performances in self-support market under its competitiveness and brand.
19.0% 61.0%
Advanced distribution The access to emerging markets of Mexico, South Africa, Brazil, etc., has
operations
been obtained as well, through the cooperation with Siemens.
• The Power Advanced Metering Infrastructure segment includes

1.9%
development, manufacturing, and sale of standardized and non- 13.3%
standardized smart meter products, each of which is considered as a PRC
separate operating segment.

Africa
• Communication and Fluid Advanced Metering Infrastructure segment is
Other Overseas
engaged in the development, manufacture, and sale of communication Countries
terminals and water, gas, and heat metering products.
84.8%
• Advanced Distribution Operations segment engages in the manufacture and
sale of smart power distribution devices and providing smart power
distribution solution and energy efficiency solution services.
6.26 WASION GROUP HOLDINGS - PRODUCTS AND STRATEGIES 202
Products & Services Provided
Strategies
• CG-L Smart IC Card Gas Meter
• ZG-D-Y Smart Gas Meter with Cable Communication

Technology
• ZG-D-W Wireless Remote Smart Gas Meter
• The group’s innovative business will focus on the research and application
of energy storage technology and inverter technology. In respect to energy
storage technology, the company will continue to deepen its R&D of liquid
metal batteries and implement research on power battery cascade
Competition
utilization and Battery Management System (BMS).
• V Technology Company Limited

• The company is engaged in continuous acquisition activities. It
Acquisitions
• Montnets Rongxin Technology Group Co. Ltd
made three major acquisitions in 2017. The company makes
acquisitions in order to expand its presence and customer base.

6.26 WASION GROUP HOLDINGS - SWOT ANALYSIS 203
Strengths Weakness
• Wasion Group for several years has been focusing on the R&D, production • As a large portion of its sales is from the state-owned grids, es
there
and sales of total solutions relating to energy metering and energy efficiency arises a chance of risk of customer concentration.
management. The products and services of these energy metering and
• The company is subjected to the unexpected shrinking of the
efficiency management have been extensively applied in energy supply
tender size and the slowdown of delivery schedule by the key
industries for electricity, water, gas and heat, and large energy-consuming
client State Grid, the significant increase in amortisation of
units of large-scale public infrastructure, petroleum and chemical,
transportation, machine manufacturing, metallurgical and chemical fields intangible assets and finance costs, as well as the decrease in
and residents. government subsidies.
• The company has been actively participating in the pilot project of electricity
market reform to explore new businesses, including electricity sales, • The company faces currency fluctuation risks as it mainly
operation and maintenance services and comprehensive energy services. operates in the PRC, with most of the transactions denominated
At the same time, the company can seize the investment opportunities in and settled in RMB, the functional currency of the relevant group
the constructions of the distribution grid, rail transit and distributed energy
entities. Certain entities in the group have foreign currency
and the industrial energy conservation and emission reduction.
transactions and borrowings which expose the company to
• Its JV with Siemens would enable it to enter the US and EU markets. foreign currency risk.

6.26 WASION GROUP HOLDINGS - RECENT DEVELOPMENTS 204
The company was awarded a contract in the framework tender of

Guangxi Power Grid Company with an expected contract value of
over RMB 70 million. With the win of this tender, the company’s R
technology capabilities and its brand influence in the smart power grid
market were showcased, laying a solid foundation for its future
market promotion.
Aug 2017 The company was awarded a contract in the framework tender of
Guangzhou Power Supply Co. Ltd, with an expected contract value of
approximately RMB 82 million. The parent company, China Southern
P
Grid, together with its subsidiaries, has constantly been increasing
investment in upgrading smart grid construction, aiming at providing a
strong and safe power environment for Southern China. This enables the
Wasion Group to make contribution to local grid construction.
Wasion Group Holdings Limited, one of the leading energy metering Mar 2017
and energy management experts in China, announced the focus on
deepening the cooperation with Itron, by embedding its high-quality
E
metering products into Itron’s OpenWayRiva IoT Solution.
Jan 2017
R M I E P
Recognition Mergers & Product Expansion Partnership


6.27 YAZAKI CORPORATION - OVERVIEW 205
• Yazaki is engaged in the manufacture and development of a range of automotive components. The company offers
electronic products, wire harnesses, and meters to the automotive industry.
Founded in 1963
• Yazaki is also involved in the production of air conditioning equipment, solar equipment, electric wires and cables, and
gas equipment. Susono City, Japan HQ
• Other businesses include paper recycling, glass recycling, food recycling, as well as agribusiness, nursing care business
https://www.yazaki-group.com/global/
and food business.
• The company operates in Asia-Pacific, the United States, Europe, and Africa. In the smart meter segment, it offers
ultrasonic gas meters for households. Total Revenue in JPY billion,
2014-2016
1740.0
1715.0
JPY 1715.3B + 258,000 36% of Revenue

Revenue Employees Japan
1626.0
2014 2015 2016

6.27 YAZAKI CORPORATION - BUSINESS SEGMENTS 206
Revenue Breakdown (%), by Geography, 2016
18.0% 16.0%
Europe • The market share of Japan increased from 34% in 2015 to 36% in
Japan 2016, as the demand increased for electric wires due to the
Americas
redevelopment of Tokyo metropolitan area, aging of infrastructure, and
Asia & Oceania
30.0% preparations for the Tokyo Olympic and Paralympic Games in 2020.
36.0%

6.27 YAZAKI CORPORATION - PRODUCTS & STRATEGIES 207
• Ultrasonic Gas Meter
Strategies
• In the upcoming years, the company aims to continue building
Competition strategic global partnerships with suppliers aiming for

coexistence and co-prosperity, and product manufacturing that is
responsive to changes in the business environment.
• Meter Italia
• AEM
• Zenner International Gmbh & Co. KG

6.27 YAZAKI CORPORATION - SWOT ANALYSIS 208
Strengths Weakness
es
• The country is overly dependent on Japan for one third portion of
• Broad product portfolio for various end-users reduces business
its revenue. Due to the dependency, a decline in demand from
risks and balances revenue streams.
Japan and the Americas can be drastic for the company.
• The company has 350+ sites in 60+ countries for the
• The group had witnessed a steep decline of 7.0% in their revenue
manufacturing processes.
in FY 2016, which further poses a challenge to its performance.
• New product launches in the gas equipment segment could
• Growing competition in the segments in which the company does
enhance the competitiveness.
business possess threat for future.
• Growing demand for gas equipment and in vehicle safety
systems present opportunities for the company.

6.27 YAZAKI CORPORATION - RECENT DEVELOPMENTS 209
Yazaki Corporation announced that its subsidiary in Samoa, Yazaki

EDS Samoa, closed its production operations. This announcement
has been communicated with the employees, as well as the Samoan
and Japanese government.
Oct 2017 O
O M I E P
Others Mergers & Product Expansion Partnership


6.28 ZENNER INTERNATIONAL GMBH & CO. KG - OVERVIEW 210
• ZENNER International develops, produces, and sells measurement technology for the global market. Founded in 1903
• The product line includes apartment, residential, and bulk-water meters and modern system technologies, Saarland, Germany HQ
such as radio-systems (wireless-bus, LPWAN for the Internet of Things, GSM) and M-Bus systems.
+ 49 681 99 676 - 30
• Its clients include power suppliers and public utilities, industrial companies, wholesalers and measurement
service providers. https://www.zenner.com/
• It has production facilities in Europe, Asia, and the United States, and is globally present with 20 local sites.
• Due to its international subsidiaries and partners, the company is recognized across the globe. Furthermore, it
supplies water meters, heat meters, and systems technologies in over 90 countries.

6.28 ZENNER INTERNATIONAL GMBH & CO. KG - PRODUCTS & STRATEGIES 211
• Atmos - Diaphragm Gas Meter
• Rotary Gas Meter

Strategies
• AMR Technology for Gas Meters
• Gas Detectors
• Over the years, the company has followed a step-by-step
strategy to enter into the continental market.
• The company entered into the other Latin American countries
Competition after opening a facility in Brazil in 2011.
• It is now migrating to a full-service energy metering provider
for the utility industry.
• Yazaki Coporation
• Moreover, the company aims to establish a joint venture with
• Meter Italia
a regional player before entering a particular region.
• Sensus
• AEM

6.28 ZENNER INTERNATIONAL GMBH & CO KG - SWOT ANALYSIS 212
Strengths Weaknese
ss
• A diversified customer base insulates the company from negative impact of • The company is entirely dependent on only smart meters for its
a downturn in any particular sector. revenues. Less diversification of products would weaken the
company’s presence in the utilities sector.
• Zenner has its operations spreads over different geographies across the
globe namely Americas, Europe, and Middle East & Africa.
• A decrease in the demand from the smart meter market can be

• The outlook for smart meter market is strong, owing to increasing
drastic for the company’s financial performance.
adoption in households, as well as industries.
• The company can expand its presence in countries, like China and India,
which are expected to have a strong future for smart meters.

6.28 ZENNER INTERNATIONAL GMBH & CO KG - RECENT DEVELOPMENTS 213
ZENNER had taken over Alfa Centauri S.P.A. Further expanding its
position in the international smart meter market. The new company
will be registered in the future as ZENNER Gas S.R.L. and will move
the headquarters from Fara Filiorum Petri in Italy to Pescara.
Dec 2017
M
ZENNER invested in BK IoT Solutions GmbH, which will operate under
the name ZENNER IoT Solutions. The new venture will develop smart
applications and software solutions for municipal utilities, municipalities,
I and industrial companies.
May 2017
M I E P


214
7.1 Vendor Market Share Analysis (Smart Electricity Meters)
7. VENDOR MARKET SHARE ANALYSIS 7.2 Vendor Market Share Analysis (Smart Gas Meters)
7.3 Vendor Market Share Analysis (Smart Water Meters)

7.1 VENDOR MARKET SHARE 215
Smart Electricity Meter Market: Unit Shipments Share (%), by

• The global smart electric meters market is highly fragmented. As the Chinese
Vendor, Global, 2017
smart electricity market is very dominant, Chinese players have found place
Landis+Gyr in the list of major market players with most substantial market shares.
Itron • The demand for smart electricity meters in China is mainly handled by the
6.6% 3.8%
Waison
domestic players, like Waison, Hexing, Shenzhen Kaifa, Sanxing, Holley,
Sagemcom
3.8% Xinlian, Haoningda, etc. With a significant presence in the Americas and
Shenzhen Kafia
Europe, Landis+Gyr continued to be the market leader, while, with a
3.6% EDMI
Mitsubishi substantial presence in North America and Asia-Pacific, Itron followed
3.5%
Hexing Landis+Gyr concerning overall market share.
46.6% 3.4% Holley
• Landis+Gyr and Itron, together, held more than 60% of the North American
3.4% Sanxing
market. However, Sagemcom has emerged as the most significant market
Jiangsu Linyang
3.2% player in Europe, followed by Landis+Gyr. As Sagemcom and Ziv are the
Xinlian
Haoningda major suppliers of the extensive Spanish rollout, they are expected to hold
2.8%
Elster their market share in the near future in the European region.
2.8% GE Fuji
2.7% • Chinese players, such as Hexing and Waison, are gaining more market in
ZIV
2.6% African region, as well as Russian markets. Japanese and Korean market
LSIS
1.2% 2.2% 2.6%
Aclara players, such as EDMI, Mitsubishi, GE Fuji, LSIS, Toshiba, Panasonic, and
1.6%
1.5% others, are dominating the Asia-Pacific market. The major international
2.1% Others
brands are continuing to struggle in penetrating these markets.

7.2 VENDOR MARKET SHARE ANALYSIS 216
• The global smart gas meter market is being dominated by Landis+Gyr, Itron, and
Smart Gas Meter Market: Unit Shipments
Elster, together, holding around 61% of the worldwide market. With growing
Share(%), by Vendor, Global, 2017
emphasis on smart gas meters in European and the Middle East & African
regions, Landis+Gyr has emerged as the leading market player in the global
Landis+Gyr
market.
12.3% Itron
1.6% • In the Americas, the smart gas market is dominated by Itron, Elster, and Sensus,
1.8% 22.3% Elster
1.9%
together holding more than 90%, which is the primary reason behind their
Pietro Fiorentini
2.1% presence in the list of global leading market players.
Meter Italia
2.5% • However, these major vendors in western countries are not very successful in
Sensus
2.5% penetrating the Asia-Pacific (excluding China) market. Japanese and South
2.9% AEM Korean manufacturers are dominating the Asia-Pacific market.
3.8% Achi Tokei Denki

• Achi Tokei Denki, Yazaki, Toyo Gas, Daesung are few of the major players in the
20.4%
Diehl Asia-Pacific (excluding China) market. There has been an increasing sale for
7.0%
Secure South Korean manufacturers, which is resulting in slight declines for the
Japanese vendors.
Zenner/Fato
18.9%
Yazaki • The Chinese smart gas meter demand is majorly being handled by Elster, Itron,
Diehl, GE and Zenner/Fato. With growing interest in pre-payment metering
Others
solutions, domestic manufacturers are expected to be benefited with the potential
rollouts in the country during the forecast period.

7.3 VENDOR MARKET SHARE ANALYSIS 217
• Sensus, Neptune, Itron, and Badger are the clear market leaders of the
Smart Water Meters Market: Unit Shipments global smart water meters market, together holding around 61% of the
Share, by Vendor, Global, 2017 overall share.
• The closure of Elster’s water business in the North American region, and
decreasing priority in other regions have resulted in the decline of its
14.5% overall market share. Sensus and Neptune are competing for the top
19.3% Sensus position in the market, with Sensus emerging as the market leader in 2016.
Neptune
2.5% • However, Neptune has been successful in holding on to its top position in
Itron the North American market. Itron has continued to be the market leader in
3.6%
Badger the European and the MEA smart water meter market.
5.0%
Elster • With increasing growth prospects for smart water metering in the region,
17.1% Master/Arad Itron is expected to gain more market share during the forecast period.
5.9%
Itron also emerged as the largest player in Asia-Pacific.
Diehl
6.9% Mueller • With the Chinese market alone, Itron is expected to hold around 45%
market share. Asia-Pacific smart water market is a mix of domestic and
Kamstrup
international brands.
11.8% 13.4% Others
• However, the tremendous growth by the Indian and Chinese market
participants might result in declining market share in APAC market for the
international brands.
218
8.1 Future of the Market - Electricity
8. FUTURE OF THE MARKET 8.2 Future of the Market - Gas
8.3 Future of the Market - Water

8.1 FUTURE OF THE MARKET - ELECTRICITY 219
• The residential and industrial sectors’ markets are expected to be the primary areas for growth. This growth is mainly due to an increased demand for energy
sustainability and rising electrical appliances and gadgets. The comparatively recent convention of smart grids in the market has also led to a gradual approach
toward increasing the investment into the development of a centralized and controlled environment across European and North American countries.
• This rise in investment by developed economies in the development of smart grids and emphasizing on the energy monitoring has led to the path to ensure
sustainable growth of the smart electric meter market.
• Smart metering as a service will increase as meter manufacturers look for ways of attracting investment from utilities that lack the financial resources to implement a
capex-led rollout.
• Although the technical infancy, utility optimization, and high-cost structure of electrical grids are limiting their application in niche markets, many governments around
the world are expanding their electrical infrastructure to remote and rural areas to provide constant electricity.
• Also, innovations and growth in supporting markets, such as solar grids, battery walls, and domestic solar roof systems, are driving the need for smart meters. Along
with these, many large organizations in the energy industry are also looking into this technology to explore the opportunities.
• There is also growing awareness among the population about the renewable sources and increasing concern to reduce the carbon footprint. These factors are
driving interest of public toward smart electrical appliances systems, and these aspects might boost the smart meter technology market in the residential sector.
• In developing regions, people are more concerned about the rising electricity prices, and there has been a significant increase in prices for a few years, which are
estimated to increase further. With smart meters having the ability to manage the consumption rate and derive the statics on a real-time basis, they can serve as
intelligent data management systems and help to reduce the electricity bills.
• Moreover, the decrease in production of oil and gas will impact the electricity generation, globally. This decline will lead to an increase in electricity prices, which will
lead to more use of smart meters for energy management.
• The smart meter also helps in community energy management, which will monitor the energy consumption of the whole community rather than individual buildings.

8.2 FUTURE OF THE MARKET - GAS 220
• Over the forecast period, government mandates in developed and developing countries, such as China, are expected to
remain as the primary driver for the smart gas meter deployments.
• For instance, in Iran, the National Iranian Gas Company launched a ‘smart gas meter’ project, which makes use of NB-IoT
technology for installing 5,000 smart gas meters in the shrine city of Mashhad.
• Without nation-wide mandates, gas utilities are expected to introduce smart gas meters only for commercial and industrial
customers with an annual consumption of more than 1,500,000 kWh.
• Advancements in technology are also expected to influence the market in developed regions, such as Europe. For instance,
in 2017, a variety of communication technologies were in use for the rollouts, including mobile networks, fixed RF networks,
and local interfaces to master gas meters.
• With the availability of next-generation IoT-optimized 4G/5G mobile technologies, it is expected that there will be a shift
from legacy RF platforms to emerging standards, like NB-IoT, in smart gas meters.
• To leverage the opportunity, major companies, such as Sensirion, are launching next-generation gas meters, like SGM6200
series, with competitive prices and ultra-low current consumption.
• Furthermore, the market for ‘metering-as-a-service’ and energy management solutions is expected to grow, as meter
manufacturers are opting for ways to leverage their expertise and attract investment from utilities that lack the financial
resources to implement a CAPEX-led rollout.

8.3 FUTURE OF THE MARKET - WATER 221
• The water and wastewater industries are currently undergoing a process of • Kamstrup Water Metering is shaking up the water industry again, this
transformation through the use of ICT and real-time data generation. The purpose time with its latest meter reading system. The new system, Kamstrup
is to increase operational and management efficiencies, to reduce expenditures AMI, is an automated metering infrastructure that achieves a high
and carbon footprints through smart water metering. reading performance with minimal hardware investment.
• The United States is leading in terms of smart water meters’ adoption. The Texas
Water Development Board, for instance, approved financial assistance in
December 2017, to the city of Abilene, for planning, designing, and constructing a
water meter replacement project. The aid is being provided by the Clean Water
State Revolving Fund, which is totaling USD 18.37 million. The city is expected to
save over USD 2.5 million over the life of the loan by using the fund.
• The city is expected to replace around 43,500 water meters with automated
readers that include leak detection capabilities. The new meters will also allow the
city’s customers to view their water account information and will enable the city to
better track water resources. The government anticipates saving approximately
65 million gallon of water per year from the new meter installation.
• Millions of households are being forced to have smart meters that monitor water
usage by the hour. Thames Water Utilities Ltd is telling families they must have a
digital meter installed, which can snoop on exactly how much water they use and
when they use it.

8.3 FUTURE OF THE MARKET - WATER 222
• India is another country with severe water shortage issues. In Bangalore, water shortage is
expected to be one of the significant concerns in the summer period. In order to overcome this
issue, a home automation company, Smart Homes, designed a smart water meter, WaterOn,
which not only measures water consumption but also sends details to a mobile app so that
residents can use water judiciously.
• With advancements in technology, major players are investing significantly in the R&D of better
and more connected smart meters. Texas Instruments launched a new integrated ultrasonic-
sensing MCU, which can deliver more accurate measurement for smart water meters.
• Multiple cities across the United States have also begun implementing intelligent meters that
utilize the data collected and can share it across multiple devices. This is necessary as it
creates a constant stream of water consumption information, through which, trends related to
water use can be analyzed and help the municipality by detecting leaks and faulty pipes.
• Water scarcity has become a significant concern in today's world. It is estimated that some 1.1
billion people worldwide lack access to water, and a total of 2.7 billion find water scarce for at
least one month in a year.
• As more people put ever-increasing demands on limited supplies, the cost and effort to build or
even maintain access to water will increase. Smart water meters are seen as a possible way to
overcome such situations in the future.

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1

GLOBAL SMART METER MARKET

This Report Offers:

Base Year: 2017

2. Research Approach and Methodology

7. Vendor Market Share Analysis

8. Future of the Market

Report Global Smart Meter Market

1.1 Study Deliverables

Report Global Smart Meter Market

AIM AND OBJECTIVE OF THE STUDY

FORECAST PERIOD BASE YEAR COMPANIES PROFILED

GEOGRAPHICAL SCOPE SEGMENTS COVERED

PORTER’S FIVE FORCES ANALYSIS

SEGMENT & SUB-SEGMENT

Report Global Smart Meter Market

Report Global Smart Meter Market

2.1 Analysis Methodology

Report Global Smart Meter Market

Market Definitions Segmentation

Key Countries and Regions Mapping of Key Players

Data Extraction Process

Data Corroboration Process

Infographic and Comprehensive Presentation of

Market Share Market Sizing Competitive Landscape

Market Structure Company Profiles Porter’s Five Forces Analysis

Report Global Smart Meter Market

• Company Annual Reports • Sales Managers • Industry Experts

SECONDARY DISCUSSION PRIMARY ECONOMETRIC EXPERT DATA REPORT

• Revalidation of Numbers from Secondary

Report Global Smart Meter Market

3. EXECUTIVE SUMMARY 3.1 Executive Summary

Report Global Smart Meter Market

Report Global Smart Meter Market

4.1 Market Overview

4.2 Market Drivers

4. MARKET DYNAMICS 4.3 Market Restraints

4.4 Industry Attractiveness - Porter's Five Forces Analysis

4.5 Industry Value Chain Analysis

Report Global Smart Meter Market

Report Global Smart Meter Market

• The market is primarily driven by national roll-outs for large-scale incorporations.

Report Global Smart Meter Market

Report Global Smart Meter Market

Need for improvement in

Increase in billing Growth in smart city Demand for sustainable utility

revenue and Supportive government supply for all end users

Utility supplier switching

Integration difficulties with costs

NEED FOR IMPROVEMENT IN UTILITY EFFICIENCY

Report Global Smart Meter Market

INCREASE IN BILLING REVENUE AND ACCURACY

Report Global Smart Meter Market

GROWTH IN SMART CITY DEPLOYMENT

• Smart cities can be defined as the integration of smart technologies, such as

Report Global Smart Meter Market

SUPPORTIVE GOVERNMENT REGULATIONS IN KEY REGIONS

Report Global Smart Meter Market

DEMAND FOR SUSTAINABLE UTILITY SUPPLY FOR ALL END-USERS

• Smart meters can also be an integral part of a strategy to preserve supplies,

Report Global Smart Meter Market

HIGH COSTS AND SECURITY CONCERNS

Report Global Smart Meter Market