Report on the North American Smart Metering Market: A Catalyst for Sustainable Development

Introduction: Smart Metering as a Foundation for a Sustainable Future

The deployment of smart metering technology in North America is a critical enabler for the development of modern smart grids. This infrastructure is fundamental to achieving several United Nations Sustainable Development Goals (SDGs), particularly those related to energy, infrastructure, and climate action. This report analyzes the current status, forecasts, and technological trends in the North American smart meter market, with a significant focus on its contributions to a sustainable future.

Market Status and Projections

Current Deployment and Growth Forecast

North America ranks as the third-largest market for smart metering, following Asia-Pacific and Europe. The region is experiencing a significant transition as early adopters prepare for second-wave deployments, driven by advancements in technology and new smart energy applications. This continued investment underscores a commitment to modernizing energy infrastructure in line with SDG 9 (Industry, Innovation, and Infrastructure).

• The installed base of smart electricity meters in North America is projected to grow from 152.4 million in 2024 to 180.9 million by 2030, representing a compound annual growth rate (CAGR) of 2.9%.
• In 2024, the installed base stood at 136.9 million in the United States and 15.5 million in Canada.
• Second-wave rollouts are expected to constitute nearly 75% of annual shipment volumes by 2030.

Regional Penetration Rates

The widespread adoption of smart meters is a key performance indicator for progress towards SDG 7 (Affordable and Clean Energy). High penetration rates facilitate greater grid efficiency and consumer engagement in energy conservation.

• The overall smart electricity meter penetration in North America is forecasted to increase from 82% in 2024 to 91% by 2030.
• By 2030, Canada is expected to achieve a penetration rate of 97%, with the United States reaching 91%.

Alignment with Sustainable Development Goals (SDGs)

SDG 7: Affordable and Clean Energy

Smart meters are instrumental in creating a more efficient, reliable, and clean energy system. They provide the data necessary for managing variable renewable energy sources, such as solar and wind, thereby facilitating their integration into the grid. This capability directly supports the global transition to cleaner energy sources.

SDG 11: Sustainable Cities and Communities

As a foundational component of smart cities, intelligent metering infrastructure enhances the resilience and reliability of urban energy supplies. By enabling better load balancing and faster outage detection, smart meters contribute to more sustainable and livable urban environments.

SDG 9: Industry, Innovation, and Infrastructure

The shift to smart metering represents a significant upgrade to critical national infrastructure. The deployment of advanced communication networks and data analytics platforms fosters innovation and builds a resilient energy grid capable of supporting future economic growth and technological advancement.

SDG 13: Climate Action

By improving grid efficiency, reducing transmission losses, and enabling the large-scale adoption of renewable energy, the smart metering ecosystem plays a direct role in mitigating climate change. It empowers both utilities and consumers to reduce their carbon footprint through optimized energy consumption.

Technological Landscape and Innovation

Communication Technologies

The technological choices in North America reflect a mature and advanced market focused on reliability and performance, driving innovation in line with SDG 9.

• Wireless RF: Proprietary and standards-based (Wi-SUN) RF mesh and star networks operating in the 915 MHz band are the dominant communication technologies.
• Cellular Communications: While historically limited due to cost and longevity concerns, interest in cellular technology is growing, particularly with the advent of private cellular networks that offer enhanced security and reliability for grid operations.
• Power Line Communication (PLC): PLC has seen limited adoption in North America due to grid characteristics that make it less cost-effective compared to RF solutions.

Expanded Smart Grid Applications

The established Advanced Metering Infrastructure (AMI) is now being leveraged for applications beyond billing, creating synergistic value and advancing sustainability goals.

• Distribution Automation
• Management of Distributed Energy Resources (DERs)
• Electric Vehicle (EV) Charging Infrastructure
• Smart Streetlighting

Competitive Analysis

Market Leaders

The North American market is consolidated among a few key players who are driving the technological innovation essential for achieving sustainability targets.

• Itron: Holds a 35% market share of the installed meter base and a dominant 64% share of network endpoints.
• Landis+Gyr: Accounts for 32% of the installed meter base and 25% of network endpoints.
• Aclara: Ranks third with a 21% share of the installed meter base.
• Other significant players include Honeywell and Sensus.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   • The article focuses on smart metering, which is described as the “cornerstone for future smart grids.” This technology is fundamental to modernizing energy services and improving energy efficiency, which are central themes of SDG 7. The text mentions improving the “reliability and resilience of energy supply,” directly aligning with the goal of providing reliable energy.

2. SDG 9: Industry, Innovation, and Infrastructure

   • The deployment of smart meters represents a significant upgrade to energy infrastructure. The article discusses the technological evolution from traditional meters to AMR and now to advanced smart meters using RF and cellular technologies. This focus on building “resilient infrastructure,” promoting technological upgrades, and fostering innovation is a core component of SDG 9. The text highlights “investments in areas such as distribution automation” and the development of “intelligent grids.”

3. SDG 11: Sustainable Cities and Communities

   • The article explicitly states that “intelligent grids are becoming an integral part of the development of smart cities.” This connection shows that the infrastructure being discussed is a key enabler for creating more sustainable, technologically advanced, and efficient urban environments, which is the primary focus of SDG 11.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.1: Ensure universal access to affordable, reliable and modern energy services

   • The article’s discussion of improving the “reliability and resilience of energy supply” through smart meters directly addresses this target. The large-scale rollout aims to modernize the energy grid for millions of consumers in North America.

2. Target 7.3: Double the global rate of improvement in energy efficiency

   • Smart meters are a key technology for enabling energy efficiency. The article mentions that the drive for second-wave deployments is based on “new smart meter functionalities and smart energy use-cases,” which facilitate better energy management for both utilities and consumers, thus contributing to efficiency improvements.

3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure

   • The entire article is about the development and deployment of advanced metering infrastructure. It describes how smart meters and intelligent grids “improve the reliability and resilience of energy supply,” which is the essence of building resilient infrastructure as outlined in this target.

4. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable

   • The move from traditional meters to first- and second-generation smart meters is a direct example of upgrading infrastructure. The article notes that “a second-wave of deployments is on the horizon for the early adopters,” indicating a continuous process of retrofitting and upgrading the energy infrastructure with more advanced and efficient technology.

5. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning

   • The article links the development of smart grids directly to the “development of smart cities.” This infrastructure serves as a foundation for integrated urban planning, connecting energy systems with other smart city applications like “EV charging infrastructure and smart streetlighting,” thereby strengthening regional development.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator: Penetration rate of smart meters

   • This is a direct measure of access to modern energy infrastructure (Target 7.1 and 9.1). The article provides specific data: “The penetration of smart electricity meters in the region was around 82 percent in 2024 and is expected to increase to over 91% in 2030.” It also gives country-specific forecasts for 2030: “97% [in Canada] and 91% [in the US].”

2. Indicator: Installed base of smart meters

   • This indicator quantifies the scale of the infrastructure upgrade (Target 9.1 and 9.4). The article forecasts that the installed base “will grow… from 152.4 million in 2024 to a total of 180.9 million in 2030.”

3. Indicator: Growth rate of smart meter installation

   • This measures the pace of infrastructure development. The article states the installed base will “grow at a compound annual growth rate of 2.9% throughout the forecast period.”

4. Indicator: Adoption of advanced communication technologies

   • This measures the technological sophistication and sustainability of the new infrastructure (Target 9.4). The article details the use of “Wireless RF technologies,” “Wi-SUN-based mesh networks,” and the improving prospects for “cellular communications,” which indicates progress in adopting more efficient technologies.

5. Indicator: Integration with other smart grid applications

   • This is an implied indicator for progress towards smart cities (Target 11.a). The article mentions growing interest in leveraging the installed network for applications “beyond smart metering,” including “distribution automation, distributed energy resources (DERs), electric vehicle (EV) charging infrastructure and smart streetlighting.”

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: markets.financialcontent.com