Acquired Electronics360

Semiconductors and Components

150 Million Smart Meter Semiconductors to be Shipped by 2019

19 August 2015

The global market for semiconductors used in smart meters is expected to rise in the next few years as demand for precise energy measurement and communications increases from utility vendors, according to a new report from IHS.

Shipments of communicating meters used for two-way communications between smart meters and utilities are forecast to rise to 150 million units by 2019, up from 132 million units in 2015, IHS says. Meanwhile, global revenues for semiconductors used in water, gas and electric meters reached $1.2 billion in 2014 and has a five-year compound annual growth rate (CAGR) of 8%. The average semiconductor cost in two-way meters was approximately $11 in 2014, but IHS sees this average selling price (ASP) increasing in the next few years for 32-bit microcontrollers, memory chips, single system-on-chips (SoCs) and other components used in energy meters.

Revenues for microcomponent ICs are expected to increase steadily through 2019 in smart meters. Source: IHS. Revenues for microcomponent ICs are expected to increase steadily through 2019 in smart meters. Source: IHS. The increase in pricing is the result of the rise in demand for precise energy measurement and communication chips that is increasing the penetration of micro-component ICs along with analog semiconductors. IHS says two-thirds of meter semiconductor revenues comes from microcontrollers and analog components.

Robbie Galoso, associate director of semiconductor market shares and industrial electronics at IHS, says the semiconductor industry for electric meters is moving toward a single-chip solution—an important industry trend to watch. “Water and gas meters require fewer semiconductor components; however, they need extra semiconductors for sensing and battery management,” he says.

IHS says meters installed in the latter half of the decade will require a greater application complexity, better security, improved communication ability, enhanced remote control ability and higher resolution. What this means is increased memory and SoC solutions with greater capabilities in a smaller package than in the past.

Questions or comments on this story? Contact engineering360editors@ihs.com

Related links:

Industrial Semiconductor Market Tracker

IHS Industrial Communciations

News articles:

The Utility Crossover: Where Cellular Technology Meets Smart Water Meters

Global Smart Meter Market Returns to High Growth

Smart Clothing Could Become the Next Generation of Wearables

Smart Water Meter Revenue to Double by 2019

Microchip Unveils Power Management IC



Powered by CR4, the Engineering Community

Discussion – 0 comments

By posting a comment you confirm that you have read and accept our Posting Rules and Terms of Use.
Engineering Newsletter Signup
Get the Engineering360
Stay up to date on:
Features the top stories, latest news, charts, insights and more on the end-to-end electronics value chain.
Advertisement
Weekly Newsletter
Get news, research, and analysis
on the Electronics industry in your
inbox every week - for FREE
Sign up for our FREE eNewsletter
Advertisement

CALENDAR OF EVENTS

Date Event Location
30 Nov-01 Dec 2017 Helsinki, Finland
23-27 Apr 2018 Oklahoma City, Oklahoma
18-22 Jun 2018 Honolulu, Hawaii
Find Free Electronics Datasheets
Advertisement