The Heat Meter Market is estimated to be valued at Us$ 1.30 Bn in 2023 and is expected to exhibit a CAGR Of 7.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The heat meter market comprises products such as mechanical heat meters and static heat meters that are used to measure the consumption of heat or hot water supplied to buildings from a district heating system or central plant. They are mainly used for billing purposes to determine the exact heat consumption in commercial as well as residential sectors. Mechanical heat meters are the traditional type of meters that use displacement measurement techniques to determine heat consumption. Static heat meters use ultrasonic or electromagnetic sensing to determine parameters like flow rate and temperature of water or steam.
Market Dynamics:
The growth of the heat meter market is majorly driven by increasing adoption of energy efficiency projects across industrial and residential sectors to reduce carbon emissions. Governments in various countries are introducing stringent regulations and policies to promote energy saving. For example, the revised Energy Efficiency Directive (EED) in the EU has set an indicative target of reducing primary and final energy consumption by 32.5% and 32.5% respectively by 2030 as compared to the projected levels.
Another major driver is increasing district heating network connections worldwide. District heating providers are actively installing sub-metering systems like heat meters at consumer premises to bill them accurately based on actual heat consumption. Additionally, digital heat meters with advanced connectivity features are gaining traction as they enable remote monitoring of consumption data by utilities.
SWOT Analysis
Strength:
- Heat meters have high accuracy and are able to precisely measure the heat consumption. This helps in fair billing and cost savings.
- Modern heat meters are equipped with communication interfaces that enable remote reading and monitoring. This reduces maintenance costs.
- Heat meters have a long operational lifetime of over 15 years and require minimal servicing. This leads to low total cost of ownership.
Weakness:
- Initial investment cost of installing a heat metering system can be high for building owners and utilities.
- Older heat meter technologies have limited functionalities and require physical reading of meters.
Opportunity:
- Growing adoption of smart grid and smart home technologies provides an opportunity for advanced heat meters with IoT and web connectivity.
- Regulations and policies in many countries mandate installation of individual heat metering systems. This drives huge replacement and new installation opportunities.
Threats:
- Emergence of open source and low-cost heat metering solutions from new entrants can disrupt the market.
- Economic slowdowns and reduced infrastructure spending may decrease new installations of heat metering systems.
Key Takeaways
The Global Heat Meter Market Size is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing regulatory mandates for installation of individual heat metering systems across countries.
Regional analysis:
Europe dominates the global heat meter market currently, accounting for over 35% share. Germany and U.K. are the fastest growing markets in the region due to strong policy push for renewable heating and individual metering. Asia Pacific is expected to witness the highest growth, exhibiting a CAGR of around 9%, led by China, India and Southeast Asian countries.
Key players operating in the heat meter market are Kamstrup, Danfoss, Qundis, Itron, Zenner, Engelman, Ista, Landis+Gyr, Diehl, Sontex, Brunata, Apator, Techem, Techno-Trade, GWF MessSysteme, Weihai Ploumeter, Axioma Metering, Zhifang Huaxu, Sensus Metering Systems, Emerson.
