Smart metering and smart grid
As a natural match for connected technologies, the utilities sector has been reshaped in recent years by the growth of the IoT. Connectivity has allowed utility companies to move past inefficient, centralized practices and to adopt improved automated systems that operate close to the point of need. Demand for new smart metering and smart grid technologies is high as utility companies strive to streamline operations and enhance the customer experience.
Meanwhile, IoT designers must provide connected devices that typically operate in remote or deep locations. Devices also usually need to function with minimal power and maintenance. Worldwide, utilities account for a significant number of IoT endpoints, totalling just below 20% of all IoT devices. Additionally, there is substantial room for growth as advancements, such as to LPWA technologies like NB-IoT or LTE Cat-M, or to other technologies, such as 4G LTE, are made.
$151.6bn
IoT in utilities market size by 2035
3.4bn
Smart meters worldwide by 2033
91%
Smart electricity meter penetration in North America market by 2030
IoT devices in the utilities sector benefit consumers by lowering costs, providing greater control, and enhancing the overall customer experience. Smart meters and sensors provide real-time insights into energy and water use. In turn, this enables households to manage consumption, reduce waste, detect faults early, and improve comfort. IoT also promotes sustainability through renewable energy integration and demand-response programs. Utilities companies can also offer dynamic pricing and tailored service options while reducing on-site visits to minimize disruption for customers.
Utilities companies can also improve operations with connected smart metering and smart grid technologies. For example, IoT devices make it possible to improve generation efficiency by providing more accurate predictions of demand. Furthermore, service reliability and resilience improve as utility companies identify and resolve issues more quickly. Beyond this, companies can use connected technologies for other purposes, such as to monitor quality or even improve workplace safety.
At a time of rising urban populations and ambitious sustainability targets, and as new energy sources come into wider use, the scope of IoT’s application in utilities is extensive. As a result, IoT adoption in utilities will accelerate over the next decade. By 2030, utility applications are predicted to account for 31% of enterprise IoT device deployments. Overall, the IoT in utilities market is also projected to grow from $43.5 billion in 2025 to $151.6 billion by 2035, expanding at a CAGR of 13.3%.
At a time of rising urban populations and ambitious sustainability targets, and as new energy sources come into wider use, the scope of IoT’s application in utilities is truly global.
The main factor driving the growth of IoT in utilities is the worldwide adoption of smart meters, which will exceed 3.4 billion total units by the end of 2033. Asia is currently the largest market, with 37% of the global market in 2024. The region will also increase demand at the fastest rate, growing at a CAGR of over 11% from 2025 to 2030. With demand driven by rapid urbanization, industrialization, and government mandates promoting energy efficiency and grid modernization.
Growth in smart metering usage in developed regions has already been substantial. In the coming years, smart meter use will become normalized. In North America, forecasts predict that the installed base of smart electricity meters will grow from 152.4 million in 2024 to a total of 180.9 million in 2030. This represents a compound annual growth rate of 2.9%. Overall, North America is expected to achieve a 91% smart electricity meter penetration rate by 2030. Similarly, the EU is projected to reach 91.57% penetration by 2030, with a total aggregated investment of €40.7 billion.
Worldwide, estimates put the global smart meter market size at $27.7 billion in 2024. Going forward, forecasts also predict it will reach $49.6 billion by 2030, growing at a CAGR of 9.9% from 2025 to 2030.
Now is a great time for those considering entry or expansion in this market to invest. Importantly, consumers and civic authorities continue to insist on energy efficiency in the face of climate change. As a result, there are abundant opportunities for smart utility solutions designers to deliver the devices that promote sustainability. Beyond this, improved customer experience and operational efficiency also drive significant growth in the market.
Smart metering and smart grid solutions must achieve reliable connectivity over long periods, often in remote, harsh and hard-to-reach locations – our modules provide:
Battery lives of 15-20 years in the latest LPWA models
Secure over-the-air updates to avoid unnecessary field visits
Deep penetration and extended range for reliable connectivity
Wide temperature range to ensure durability in harsh environments
Quectel is a global supplier of IoT modules and antennas. We actively support the development of IoT in utilities technology with wireless connectivity that is reliable in harsh conditions and remote or deep locations. Our products operate for years at a time without additional power or maintenance to ensure secure, mission-critical data performance. We are proud of the role our modules and antennas play in the development of a sustainable, efficient, and user-friendly utilities sector, and we look forward to working with all others who plan to contribute too.
