Increased Natural Gas Consumption in the Industrial Sector Will Drive the Global Gas Meter Market Through 2020, Reports Technavio

Technavio analysts forecast the global gas meter market to grow at a CAGR of about 10.5% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global gas meter market for 2016-2020. To estimate the market size of gas meters, the reports tales into consideration the demand for gas meters from the end-user segments, namely residential, commercial, and industrial sectors. The demand for gas meters across all geographies, including the Americas, EMEA, and APAC, has been included in market size calculation.

Technavio heavy industry analysts highlight the following three factors that are contributing to the growth of the global gas meter market:

• Benefits of new smart meters
• Increased natural gas consumption in the industrial sector
• Government regulations and initiatives

Benefits of new smart meters

According to Gaurav Mohindru, a lead analyst at Technavio for tools and components research, “Smart meters and smart energy monitors allow customers keep track of their energy use in real time, and help them make better choices regarding prudent gas use, thus enabling monetary savings. Power utilities roll out and install these devices in residential premises as well as commercial and industrial facilities that use natural gas.”

The smart meter along with its smart features and applications offers the following benefits:

• Better management of energy use: in a smart meter, the smart energy monitor displays the natural gas consumption rates in real time.
• Personalized reports: The smart meter generates smart and personalized reports that give valuable insights to the customer about the gas usage as well as the cost of usage.
• Accurate billing: Smart gas meters provide accurate readings, eliminating the possibility of human error while taking the readings from the meter; thus, the utility can bill the customer appropriately according to the exact consumption.

Increased natural gas consumption in the industrial sector

During the early 2000s, the global consumption of natural gas in the industrial sector declined tremendously after a period of rising price of natural gas accompanied by occasional price spikes. The consumption levels dropped by almost 30% between 1997 and 2009. However, factors like increasing natural gas prices and low-interest rates attracted investments in the upstream sector, especially in the shale gas sector, resulting in increased production and oversupply. This pushed down the price of natural gas after 2009, especially in 2012, thus its demand increased in the industrial sector.

A survey conducted by the US Energy Information Administration (EIA) in 2010 indicated that the manufacturing sector consumed the maximum amount of natural gas, accounting for almost 80% of the total industrial gas demand. The rest 20% is consumed by sectors such as agriculture, mining, and construction.

Government regulations and initiatives

Various countries are progressively undertaking initiatives to install gas meters across different sectors. The growing shortage of energy has compelled countries to implement measures for energy conservation. Installing gas meters helps in reducing the wastage of gas across end-user segments. Several countries are promoting and regulating the use of energy-efficient systems. For the past ten years, the European Union has been encouraging end-users to adopt processes that help in conserving energy. The market for smart gas meters is likely to witness a significant increase in Europe because of the implementation of regulatory mandates that require the adoption of smart gas meters.

“Other major countries, especially the emerging economies, are also expected to intervene in this field and provide legislation regarding efficient energy usage,” says Gaurav.

Browse Related Reports:

• Global Fire and Gas Detection System Market 2016-2020
• Global Specialty Gas Market 2015-2019
• Global Gas Detection Equipment Market 2015-2019

Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform.

About Technavio

Technaviois a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160530005077/en/