Heat meter shipments grew by over 150 thousand units in 2017, as the market showed strong growth over 2016. The latest analysis in the IHS Markit Heat Meters Report predicts this growth to continue as the market exceeds $700 million in revenues in 2020, with roughly $480 million coming from the Europe, Middle East and Africa market.
Heat meter markets in EU member states are leading the strong growth
In particular, much of the expected growth will be locally driven by European countries in 2018 and 2019. “This situation will mainly be the continued effect of national legislation based on the Energy Efficiency Directive (EED) 2012 published in several EU member states,” explains Claudia Portugal, analyst at IHS Markit. “In addition to this, district heating infrastructure projects will take place in some countries in order to comply with EU standards”.
The two main drivers of legislation and district heating infrastructure are long-standing influences in the European market. The EU member states are mandated to have national regulation based on the EED 2012, which implies the installation of measurement devices for individual apartment billing. In addition, heat meter devices will be included within several projects for new construction and renovation of district heating networks complying with EU standards in the short-term future, with France, Denmark and Poland providing some of the largest volumes for heat meter shipments.
A new cooling meter market is rising
Due to the rising temperatures in Europe, the use of hydronics in district cooling systems is currently attracting increased attention, where the efficiency of such networks could represent an optimal solution in European markets. Moreover, some Asia-Pacific countries are starting to consider district cooling systems as an alternative to the use of air conditioning. Most projects are currently related to central cooling systems but IHS Markit expects the development of district cooling networks in the midterm future. Therefore, the cooling meter market is expected to speed up in the coming years, driving further growth for heat meter manufacturers since the devices are largely the same in basic design.
This insight is from the IHS Markit Smart Utilities team, covering the smart heat meter market with data citations from the latest publication on the global heat meters market. IHS Markit produces global data for the entire smart metering market in our Smart Utility Meter Intelligence Service.