North America will Remain the Key Market through to 2020

Tuesday 21 February 2012, Amsterdam

The report provides information related to market sizing, market analysis, and competitive landscape analysis for the smart meter wireless communication module industry at the global level and by countries that are considered as key markets for it. The report provides a technical overview of smart meter wireless communication module and its types. The report describes the key drivers and restraints impacting the market for smart meter wireless communication module and related pricing dynamics. The report assesses the competitive scenario in the smart meter wireless communication modules industry and provides analytics, such as market share analysis of key players.

North America will Remain the Key Market through to 2020

The market for smart meter wireless communication modules in North America is expected to remain larger than its global counterparts until at least 2020. It consists of the two largest markets, the US and Canada. Some 85% of smart meters installed in the region use wireless communication technology for transmitting data to the utility centers. Cellular modules are not widely used in the US, and the technology’s presence is absent from the Canadian market.

The market will witness steady growth through to 2020 supported by new installations and the emergence of replacement market from 2016

The Future of Wireless Communication Modules is Uncertain in Europe

The future of the wireless communication market in Europe will remain uncertain in the coming years as the market is dominated by the presence of Power Line Communication (PLC) technology, which facilitates communication between utilities and smart meters. PLC has greater prominence in European countries as it is more economical than both cellular and RF communication modules. However, the scope for wireless communication modules cannot be ruled out completely, as countries such as Ireland, the UK and Sweden are expected to begin deploying smart meters enabled with wireless communication modules.

Pricing of Wireless Communication Modules will Witness Minor Change through to 2020

The prices of wireless communication modules are unlikely to change in a major way in the coming years. The price for cellular smart meter communication modules are expected to remain around $50 through to 2020, whilst the price of RF smart meter communication modules will be around $30 for the same period. Any drastic lowering of price will negatively affect the profits of manufacturers.

See figure: Cellular Smart Meter Communication Modules Market, Global, Annual Revenues, ($m), 2008-2020

Financial Benefits Associated with RF Communication Modules are Higher when Compared with Cellular Communication Modules

The long-term financial benefits of RF communication modules for smart meters have been found to be higher than those of cellular. In Ireland, the Net Present Value (NPV) of RF communication modules, combined with other technology such as PLC, was found to be much higher than the combination of cellular and PLC technology. The result has been similar in some other countries, such as Australia, as well.