Cellular smart meter market to climb... and climb

We asked readers recently if cellular-equipped smart meters had reached a tipping point. At least one research firm says that's a yes. A new report from market research and consultancy firm IMS Research forecasts dramatic growth in the cellular smart electric meter market – from 2.6 million shipments annually as of 2010 to 9.5 million in 2016. IMS also says the largest volumes are expected in the US and the UK.

Report author Roland Campos said "The US and UK are forecast to experience the largest volumes of cellular shipments through 2016 for distinct reasons. In the US, telecoms have reduced the cost of data plans for meters significantly to about $1 (or less) per meter, per month. Utilities that wish to reduce up front capital expenditures by over 40% and reduce operating expenses are finally realizing the benefits of using public cellular providers."

The lower operating costs are the result of cutting back or eliminating networking and communications staff required to maintain a metering network. Campos added that the most opportunities for new smart meter deployments in the US probably will come from smaller utilities that have geographically widespread populations with varied geographies.

And, smaller utilities generally have less money to spend and frequently don't get the tax write-offs that are available to large fixed-capital investment projects. He also observed that as telecoms lower the total cost of cellular-based smart meter systems, smaller utilities will migrate to the cellular option – and that larger utilities in the US and elsewhere may investigate collaborating with local telecoms "to make cellular a more viable option."