Electricity metering is undergoing its greatest transformation since the first meter was installed more than 120 years ago. Smart Metering, integrating advanced communications with energy measurement, is on the front lines of Smart Grid deployments, promising major energy savings by changing how and when customers use electricity. Major utilities worldwide, enticed by savings and prodded by governments, are embarking on wholesale replacement of over 45% of the North American and European installed base by 2015, breaking the traditional 15-20 year meter replacement cycle. This represents an unprecedented — and time limited — opportunity for meter and communications suppliers as a projected $19.5 billion of smart meters are deployed worldwide between 2010 and 2015.

While smart metering energy, climate, and operating benefits may be common around the world, the communications technologies, standards, and regulatory environments are not. Multiple proprietary and semi-standard solutions exist for a “network of networks” linking smart meters and consumers’ in-home devices into a cohesive energy infrastructure, but vendors, utilities, governments, industry associations, and standards bodies are all exerting different influences in each region. Pike Research forecasts that the worldwide smart meter market will experience an aggressive 19% CAGR through 2015, but underneath regional waves of growth, peaks and valleys will likely have disproportionate impacts on industry players.

This Pike Research report examines global and regional Smart Meter trends, explores neighborhood-area and home-area communications technologies and standards, defines “basic” versus “advanced” meter capabilities, and provides detailed market forecasts by technology and world region. Key vendors, standards, and deployments are profiled, offering a comprehensive window into the dynamic market for smart metering..

Key questions addressed:

• What are Smart Meters, the different types, and how and when will they be deployed?

• What are the key Smart Meter communications technologies, and how will they evolve?

• How will Smart Meter deployment technologies and timing differ around the world?

• How, when, and which Home Area Network technologies be deployed in Smart Meters?

• What are the key policy, technology, and economic risks impacting the Smart Meter market evolution?

Who needs this report?

• Advanced Metering Infrastructure hardware and software vendors

• Utilities considering Smart Meter adoption

• Traditional networking and telecommunications vendors

• In-home energy management and automation vendors

• Meter and communications components suppliers

• Clean technology and communications investors

• Government and energy policy makers

• Standards development organizations

1.     Executive Summary

2.     Market Issues

2.1   Metering Market Overview

2.1.1       Meter Types

2.1.2       Business Structures

2.1.3       Market Environment

2.2   Smart Meters ­– What and Why?

2.2.1       Why Smart Meters: Operating Efficiencies

2.2.2       Why Smart Meters: Smart Grid Enablement

2.2.2.1    Energy Use Reduction

2.2.2.2    Peak Demand Shifting

2.2.2.3    Net Metering and Local Generation

2.2.2.4    Support for Electric Vehicles

2.3   Industry Growth Drivers

2.3.1       Economic Drivers

2.3.2       Legislative and Regulatory Drivers

2.3.2.1    North America

2.3.2.2    Europe

2.3.2.3    Asia

2.3.2.4    Latin America, Middle East, and Africa

2.4   Industry Dynamics

2.4.1       Meter and Communications ‘Co-operation’

2.4.2       Vendor Consolidation

2.4.3       New Market Entrants

2.5   Market Challenges

3.     Technology Issues

3.1   Smart Meter Components Overview

3.1.1       Smart Meter Requirements

3.2   Meter Technology

3.3   Neighborhood Area Communications Technologies

3.3.1       Why a Utility NAN at All?

3.3.2       RF Mesh Networks

3.3.2.1    Physical and Link Layer Protocols

3.3.2.2    Network Layer Protocols

3.3.2.3    Performance Characteristics

3.3.2.4    RF Mesh Vendor Examples

3.3.3       RF Point-to-Point Networks

3.3.3.1    Private RF Point-to-Point Systems

3.3.3.2    Cellular-Based Systems

3.3.3.3    Performance Characteristics

3.3.4       Power Line Communications

3.3.4.1    Low Speed Power Line Communications

3.3.4.2    Narrowband Power Line Carrier (NPL)

3.3.4.3    Broadband-over-Power Line (BPL)

3.3.4.4    Performance Characteristics

3.4   Home Area Network Technology

3.4.1       HAN Requirements

3.4.2       RF Home Area Networks

3.4.2.1    ZigBee

3.4.2.1.1         ZigBee Smart Energy Profile

3.4.2.1.2         ZigBee Evolution

3.4.2.2    Other RF HAN Technologies

3.4.3       Power Line Carriers

3.4.3.1    HomePlug

3.4.3.2    HomeGrid/ITU G.hn

3.4.4       Separate HAN Gateways

3.4.5       In Home Devices without a HAN

3.4.6       Considerations for HAN Gateway Models

3.5   Key Technical Issues

3.5.1       Requirements for IP-Based Networks

3.5.2       Integrated System Security

3.5.3       Future-Proofing

4.     Standards Bodies and Industry Consortia

4.1   Introduction to Standards Issues

4.2   Who Sets Metering Standards?

4.3   “Standard Set of Standards” Efforts

4.3.1       NIST (National Institute of Standards and Technology)

4.3.2       European OPEN meter Project

4.3.3       Utility-Driven Standardization

4.4   An Example Standards Evolution: ZigBee Smart Energy Profile

4.5   Standards Evolution Implications

5.      Key Industry Players

5.1   Smart Meter and Communications Vendors

5.1.1       Aclara (ESCO Technologies Inc)

5.1.2       Ambient

5.1.3       Echelon

5.1.4       Elster Group

5.1.5       General Electric – GE Energy

5.1.6       Grid Net

5.1.7       Holley Metering Ltd.

5.1.8       Iskraemeco

5.1.9       Itron

5.1.10     Landis+Gyr

5.1.11     Nuri Telecom

5.1.12     PRI Ltd

5.1.13     Sensus

5.1.14     Silver Spring Networks

5.1.15     SmartSynch

5.1.16     Trilliant Inc.

5.2   Traditional Networking Vendors and Service Providers

5.2.1       AT&T

5.2.2       Cisco Systems

5.3   Selected In-Home Device Vendors

5.3.1       Tendril

5.3.2       OpenPeak

5.4   Selected Technology Suppliers

5.4.1       Ember Corporation (Silicon and Software)

5.4.2       Texas Instruments (Silicon)

5.4.3       Certicom

5.4.4       Grid2Home

6.     Leading Smart Meter Pilots and Deployments

6.1   Southern California Edison

6.2   Duke Energy

6.3   Sweden

6.3.1       Vattenfall

6.3.2       Gutenberg Energi

7.      Market Forecasts

7.1   Total Electrical Meter Market

7.2   Smart Electrical Meter Market

7.2.1       Smart Meter Installed Base

7.2.2       Smart Meter Forecast by Type

7.2.3       Advanced Smart Meter Shipment Forecast

7.2.4       Smart Meter Shipments by NAN Technology

7.2.4.1    Advanced Smart Meters by NAN Technology

7.2.5       Advanced Smart Meter Forecast by HAN Technology

7.3   Smart Meter Revenues and ASPs

7.4   Contracted North America Smart Meter Award Vendor Shares

8.     Company Directory

9.     Acronym and Abbreviation List

10.   Table of Contents

11.   Table of Figures

12.   Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

• Smart Meter Shipments by Region, World Markets:  2008-2015

• EPRI “Prism Analysis” For Carbon Emissions Reduction (2009 Update)

• Google PowerMeter, Example Interface

• Projected U.S. Peak Electricity Demand By Scenario

• Smart Metering / Advanced Metering Infrastructure Architecture

• PG&E SmartMeter Program Business Case

• Recent Significant Smart meter Mergers and Acquisitions

• Example Smart Meter Form Factors

• Mesh Network Configurations

• Example RF Mesh NAN Systems

• Star Network Configuration

• Categories of Power Line Communications

• Example ZigBee Mesh Network Topology

• ZigBee Smart Energy

• Example of Select Standards and Standards Bodies for Revenue Metering

• NIST Smart Grid Framework 1.0

• Select Smart Meter Related Standards Inclluded in Draft NIST 1.0 Roadmap

• OPEN meter Project Scope

• Example OpenHAN Architectural Scenario

• SCE View of HAN Connectivity

• SCE Technology Vendor Map

• Duke Energy’s “Utility of the Future” Concepts

• Gutenburg Energi Smart Meter System

• Electrical Meter Installed Base, World Markets:  2008-2015

• Smart Meter Penetration Rate of All Electrical Meters by Region, World Markets:  2008-2015

• Electrical Meter Installed Base by Region, World Markets:  2008-2015

• Electrical Meter Unit Shipments by Region, World Markets:  2008-2015

• Smart Meter Unit Shipments by Region, World Markets: 2008-2015

• Smart Meter Unit Shipments and Installed Base Penetration, United States:  2008-2015

• Smart Meter Unit Shipments and Installed Base Penetration, Canada:  2008-2015

• Smart Meter Installed Base by Region, World Markets:  2008-2015

• Smart Meter Installed Base Penetration Rate (of All Electrical Meters) by Region, World Markets:  2008-2015

• Total Electrical Meter Shipments with % Smart Meter Shipments by Region, World Markets:  2008-2015

• Smart Meter Forecast Segmented by Basic and Advanced Meters, World Markets:  2008-2015

• Advanced Smart Meter Shipments as % of All Smart Meters by Region:  2008-2015

• Advanced Smart Meter Unit Shipments by Region, World Markets:  2008-2015

• Advanced Smart Meter Installed Base Penetration Rate by Region, World Markets:  2008-2015

• Smart Meter Units by NAN Technology, World Markets:  2008-2015

• Smart Meter Units by NAN Technology, North America:  2008-2015

• Smart Meter Units by NAN Technology, Europe:  2008-2015

• Advanced Smart Meter Unit Shipments by NAN Technology, World Markets:  2008-2015

• Advanced Smart Meter HAN Interface Unit Shipments, World Markets:  2008-2015

• Basic and Advanced Smart Meter Revenue and ASPs, World Markets:  2008-2015

• Smart Meter Revenue and Average Selling Price, World Markets:  2008-2015

• Advanced Smart Meter Revenue by Component, World Markets:  2008-2015

• Smart Meter Manufacturer Market Share of Contracts Awarded, United States:  September 2009

• Communications Vendor Market Share of Contracts Awarded, United Sates:  September 2009

List of Tables

• All Electrical Meter Shipments by Region, World Markets:  2008-2015

• Electrical Meters Installed Base by Region, World Markets:  2008-2015

• Smart Meters Installed base and Penetration Rates by Region, World Markets:  2008-2015

• Advanced Smart Meters Installed Base and Penetration Rates by Region, World Markets:  2008-2015

• Smart Meter Unit Shipments, Average Selling Price, and Revenue by Region, World Markets:  2008-2015

• Smart Meter Shipments as a Percentage of All Electrical Meter Shipments by Region, World Markets:  2008-2015

• Smart Meter Shipments by NAN Technology, by Region, World Markets:  2008-2015

• Basic Smart Meter Unit Shipments, Average Selling Price, and Revenue by Region, World Markets:  2008-2015

• Basic Smart Meter Shipments by NAN Technology, by Region, World Markets:  2008-2015

• Advanced Smart Meter Unit Shipments, Average Selling Price, and Revenue by Region, World Markets:  2008-2015

• Advanced Smart Meter Component Unit Shipments, Average Selling Price, and Revenue, World Markets:  2008-2015

• Basic Smart Meter Shipments by NAN Technology, by Region, World Markets:  2008-2015

• Advanced Smart Meter Shipments by HAN Technology, by Region, World Markets:  2008-2015

• Electrical Meter Shipments, North America:  2008-2015

• Electrical Meter Installed Base, North America:  2008-2015

• Smart Meter Installed Base, North America:  2008-2015

• Smart Meter Shipments, North America:  2008-2015

• Basic Smart Meter Shipments, North America:  2008-2015

• Advanced Smart Meter Shipments, North America:  2008-2015