Global revenue from electric submeters is expected to reach $2.5 billion by 2024, suggesting strong industry growth, according to a new report from Navigant Research. Global revenue from electric submeters is expected to reach $949.7 million in 2015, with investments in North America and Europe continuing to lead the market.
Commercial and industrial building owners are increasingly turning to energy efficiency as a mechanism for realizing impactful cost savings. Submetering is a crucial component for attaining the granular energy consumption data that enables energy management software to drive facility and organizational changes.
The emergence of building energy management systems (BEMS) and ongoing energy management service models are helping to accelerate the adoption of submeters to a broader set of building owners and managers. Submeters are now appealing to the midmarket of smaller facilities, as well as to a wider audience than the traditional model driven by the need for disaggregating electricity bills.
Technology trends such as the Internet of Things (IoT), cloud computing and the adoption of mobile devices are enabling the energy management and optimization offerings that are expanding the business case for investment in submeter hardware.
While revenue associated with services application is projected to continue leading revenue in the global market through the forecast period, there is substantial opportunity for growth driven by the more sophisticated energy management applications. The market share for the energy management category is expected to expand from 31 percent in 2015 to 42 percent in 2024.
Installation has been a significant barrier due to power outages during installation and specialized labor costs. As a result, a growing array of alternative metering devices that utilize wireless communications and new form factors has the potential to transform the submeter market.