Smart Meter Market Size, Share, Growth, Trends, and Global Industry Analysis: By Meter Type (Electricity, Gas, Water, and Heat), By Communication Technology (PLC, Mesh, Cellular, and LoRaWAN), By End User (Residential, Commercial, and Industrial), By Component (Hardware, Software, and Services) and Region Forecast 2020-2031

Smart Meter Market size was valued at US$ 27,438.2 million in 2024 and is projected to reach US$ 50,805.9 million by 2031 at a CAGR of 9.2% from 2025-2031. Smart meters are digital meters that record and communicate electricity, gas, or water usage in real time to consumers and utilities, enabling efficient management of resources and billing.

The market is expanding at a rapid pace with grid modernization and energy transformation programs racing in every part of the world. Utilities and regulators are mandating next-generation metering infrastructure to improve billing accuracy, enable demand-side management, and enable integration of renewables. Real-time usage information encourages customers to adopt energy-conserving practices, and utilities employ analytics to optimize grid performance, reduce outages, and monitor loads. But deployment remains an issue. The initial investment in hardware, installation, and communications infrastructure strains budgets in emerging markets. Data security and privacy issues create additional complexity, with calls for robust encryption and compliance measures. Interoperability and integration with aging utility grids and scaling to heterogeneous geographies can introduce delays and interoperability issues. Over against such challenges, the operational efficiencies, regulatory validation, and consumer empowerment that smart meters offer are still strong drivers for international adoption.

Facts & Figures

• DTE Energy eliminated 76,000 truck rolls and saved $1 million annually after smart grid deployment
• Tamper detection and real-time analytics helped emerging-market utilities reduce non-technical losses by over 40%
• Smart electricity meters made up 53.7% of total smart meter deployments

Key Developments

• In May 2025, Itron introduced a water-energy integrated smart meter supporting both utilities through a unified communication module, improving billing efficiency for multi-utility providers.
• In April 2025, Landis+Gyr launched a new cellular-based smart electricity meter compatible with 5G-enabled smart city deployments, offering enhanced security and remote configuration capabilities.
• In March 2025, Kamstrup unveiled a new ultrasonic water meter with embedded NB IoT connectivity and battery life extension features tailored for remote deployments.
• In February 2025, Sensus rolled out firmware updates to enhance cybersecurity posture and introduce mesh-network self-healing technology for improved outage resilience.

Smart Gas Meter Market Segmentation

Based on the meter type

• Electricity
• Gas
• Water
• Heat

Electricity smart meters lead market revenue as they sit at the heart of grid management and consumer energy interaction. They measure energy flow reliably, can provide time-of-use tariffs, and are tariff-switchable without manual reading. Smart grid integration provides utilities with the ability to balance load, respond more quickly to faults, and minimize losses. Real-time consumption data provides consumers with the ability to view their usage in real-time using web portals and mobile applications, fostering energy-saving habits. In dynamic pricing regions, electricity smart meters are the primary consumer interface by conveying price signals directly. With increasing renewable and distributed generation, they also enable bi-directional metering, making them an essential part of contemporary energy systems.

Based on the communication technology

• PLC
• RF Mesh
• Cellular (3G/4G/5G)
• LoRaWAN / NB?IoT

Cell smart meter communication is picking up strong pace with its extensive coverage, scalability, and instant data transmission. 3G, 4G, or newer 5G embedded meters can directly communicate with utility servers without needing extra infrastructure. Deployment becomes quicker in urban or semi-urban locations where mobile networks already exist. Cellular connectivity enables on-demand reads, remote disconnect/reconnect, and real-time notifications—improving both consumer service and grid responsiveness. With more emphasis on data-driven operations, utilities prefer cellular meters for their capacity to accommodate firmware over-the-air (FOTA) downloads, security updates, and predictive diagnostics. Integration of narrowband IoT (NB-IoT) is also streamlining power consumption and cost savings, particularly for gas and water meters. With more telecom operators offering IoT-oriented plans, the cellular segment is emerging as the go-to option for smart metering of smart cities and utility digitalization initiatives.

Based on the end user

• Residential
• Commercial
• Industrial

Residential customers account for the largest share of deployment in the market. Homes have visibility over patterns of energy and water use, enabling them to change behavior and lower bills. They enjoy accurate usage-based billing and access to mobile or web-based dashboards monitoring real-time consumption. Smart meters also enable dynamic tariff take-up—such as weekend or peak pricing—offering transparent cost signals. Home installations are usually required by governments or utilities, allowing mass roll-out. Also, smart home integration, energy-saving kits, and in-home displays increase user interaction. For utilities, domestic meter data are useful for balancing local supply, forecasting peaks, and identifying theft or outages.

Based on the component

• Hardware (meters, modules)
• Software & Analytics
• Services (installation, maintenance)

Hardware constitutes the physical infrastructure of the smart meter industry, including the actual metering devices, communication modules, and processing chips. These are constructed to be able to survive varied environmental conditions while being highly accurate and lasting for a long time. Electric, gas, water, and heat meters come with sensors and digital displays to capture and feed back data. As grid modernization continues, hardware is growing more modular, easily upgradable or connectable to communications networks such as 5G and LoRaWAN. Numerous meters incorporate tamper alerts, surge protection, and durable batteries for remote or off-grid applications. Advancements in miniaturization and manufacturing economies have decreased costs and allowed deployment to speed up. With increased demand for interoperability and remote configuration, the hardware sector keeps growing as a central facilitator of digital utility disruption.