Managed Smart Metering Drives Utility Value from Smart Grid Investments

Managed Smart Metering Drives Utility Value from Smart Grid Investments

Berg Insight reports that the European smart electricity and gas meter installed base reached 168.3 million units in 2019. Forecasts show an 8.9% compound annual growth rate, pushing the total to 280.4 million by 2025.

New deployments will be concentrated in France, Italy, and the UK, with Austria and the Netherlands also contributing significantly in the coming years. In the EU27+3, smart electricity meters penetrated 45% of the market in 2019, while smart gas meters reached 28%.

“With large‑scale European smart metering projects largely complete or in the rollout phase, utilities are now focused on extracting maximum value from their metering infrastructure by enabling a suite of new applications and services beyond the traditional meter‑to‑cash model,” says Levi Ostling, IoT Analyst at Berg Insight.

Utilities that have yet to launch extensive rollouts are also eyeing future‑proofing opportunities to capture economies of scope. Key drivers include the rise of electric vehicles, micro‑generation systems, and smart‑city initiatives. Ostling notes, “From a procurement standpoint, long‑term priorities will shift from the specific metering hardware to the overall functionality it delivers.”

Consequently, service‑oriented smart metering solutions—ranging from standalone software subscriptions to end‑to‑end managed services—are gaining traction across Europe. Managed services, in particular, are expected to grow rapidly in markets dominated by small and mid‑size utilities.

High upfront costs and a shortage of relevant technical expertise remain the primary barriers for utilities that have not yet adopted smart metering. Managed services offer a pathway to convert these hesitant operators into enthusiastic adopters throughout the 2020s.

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The author is Levi Ostling, IoT Analyst, Berg Insight.