Market Insight

Growth Returns to Global Heat Utility Measurement Market

February 13, 2017

Claudia Portugal Analyst, Smart Utilities Infrastructure
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Highlights

• After a notable market decline in 2014, the global market for heat meters regained market growth in 2015 and 2016. Growth will remain strong until 2020, when it is expected to stabilize – IHS Markit predicts.

• The global heat meter market should reach roughly seven million unit shipments annually by 2020, IHS Markit says.

• Newfound growth will be driven mainly by heighten legislation in Western Europe, as governments there continue to look to reduce carbon emissions, increase consumer awareness around energy, and develop a renewable energy-driven future.

Insights

• Initially, industry experts, suppliers and the analyst team at IHS Markit expected the market to remain flat, or continue its trajectory of contraction in 2015 and 2016. However, this is proving not to be the case. In Europe, Germany remained the biggest heat meter market in terms of revenues, accounting for an estimated 29 percent of global revenues in 2015. A higher-than-expected rise in new construction in Germany was one of the primary reasons.

• Additionally, Russia, a market expected to dramatically contract, actually remained relatively stable. The modernization of central heating systems in Russia supported this growth. Furthermore, other markets in Europe also showed higher than expected growth in 2015, including Italy, Austria and Switzerland.

Last year’s market upswing

• In 2016, major events continued to support market growth. In Europe last year-- following the European Union Energy Efficiency Directive of 2012 -- regulation mandating the use of heat meters and heat cost allocators for individual apartment billing was published in France and Italy.

• In addition to the European contribution, in Asia, Chinese authorities last year implemented a new heat meter standard confirming the interest of the government in improving the quality of the meters for measurement and control purposes. In 2016, heat meter shipments in China represented almost 40% of the total heat meter shipments worldwide.

New heating systems and devices on tap

• The promotion of energy efficiency measures in the Europe alongside government initiatives in China will continue to be the main market drivers over the next five years.

• Alongside these dominant trends is the continued advances in regions like Eastern Europe, where new heating systems as well as new heat measurement devices (on existing systems) are being installed.

• Heat meters shipments are forecast to reach almost 8 million units annually by 2022, IHS Markit predicts.

IHS Markit Smart Utility Meter Intelligence Service explores the latest trends and challenges affecting the current and future market for electricity, gas, water and heat metering. For more information, contact the sales department at IHS Markit in the Americas at +1 844 301 7334 or AmericasLeads@ihsmarkit.com; in Europe, Middle East and Africa (EMEA) at +44 1344 328 300 or technology_emea@ihsmarkit.com; or Asia-Pacific (APAC) at +604 291 3600 or technology_APAC@ihsmarkit.com.

About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and expertise for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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