Latin America Smart Metering Market Research Report: Forecast (2023-2028)

Market Definition

A smart meter is an essential part of knowing the status of the electricity grid, which allows for improving the performance and quality of services for customers. It refers to the use of advanced technology to measure, collect, and communicate data related to energy consumption in real time. These systems are equipped with electronic components that enable them to record the total amount of energy consumed and the time at which the consumption occurred. It offers various benefits such as improved billing accuracy, real-time monitoring, demand response capabilities, and enhanced energy efficiency management.

Market Insights & Analysis: Latin America Smart Metering Market (2023-28)

The Latin America Smart Metering Market size is valued at around USD 10.88 million units in 2024 and is projected to grow at a CAGR of around 8.16% during the forecast period, i.e., 2023-28. The market has grown at a consistent rate as the government has been keen on rolling out smart metering solutions, especially within the residential sector to ensure optimum utilization of the energy. In addition, the high rate of demand and supply electricity gaps on account of the poor condition of the grid infrastructure across the region. Thus, the implementation of smart metering systems to addresses the immediate challenge of electricity supply-demand is anticipated to enhance the market growth in the coming years.

According to United Nations, in 2022, around 17 million people in the Latin American region do not have access to electricity. The governments in the Latin America region including Brazil, Argentina, Chile, etc. have been deploying smart grids across the region which has been surging the demand for smart metering. For instance, in 2021, the US Trade & Development Authority collaborated with the Brazilian Association of Electricity & Distributors to expand smart grid penetration in the country, thereby positively impacting the market growth.

Further, the expansion of the commercial sector in the region is another important factor that has been generating higher demand for smart metering solutions. The government of Brazil, Argentina, Chile, is continuously involved in making a large number of investments in the commercial development of its economy to improve telecommunication, thus supporting economic growth.

According to the government of Brazil, in 2021, the commercial sector consumed nearly 25% of the total electricity produced in the country, and as the commercial sector in the country is constantly rising it is further increasing the energy consumption in that sector. For instance, in August 2022 electricity consumption in the commercial sector grew by nearly 8.1% in comparison to August 2021.  Thus it has been supporting the adoption of smart meters as it allows for forecasting of energy consumption, early diagnosis of fault lines, etc., which is further expected to enhance the market size during 2023-2028.

Latin America Smart Metering Market Driver:

Installation of Smart Meter in Residential Sector to Monitor Electricity Usage - Countries in Latin America have been installing smart metering systems for efficient management of electricity usage and monitoring the energy consumption of its residential sector. These smart meters are installed with advanced technology and are ideal for predictive analysis, which allows the government and the distribution companies to identify transmission and distribution (T&D) losses. For instance, in 2021, as per the Brazilian Electricity Regulatory Agency, the estimated overall energy losses in the T&D networks were around 17%.  As a result, the use of smart meters enables them to control & ration electricity usage in the residential sector at the time of energy crisis.

Along with it, the residential sector is one of the major energy-consuming sectors in the Latin America region. For instance, in 2021, Chile and Uruguay announced their plans to roll out smart grids and installation of smart meters in the residential sector. Therefore, to optimize the electricity use the government has been encouraging the adoption of smart metering solutions in the region, positively impacting the demand for smart meters across the region, which further will enhance the market share during 2023-2028.

Latin America Smart Metering Market Growth Opportunity:

Upsurge in the Development of Reliable Energy Infrastructure in Remote Areas- The development of reliable energy infrastructure in remote areas aims to bridge the energy access gap, ensuring the most distant communities have access to electricity in the coming years. As, smart metering systems play a key role in monitoring energy consumption and enabling equitable and accurate billing for these consumers. In addition, Latin America is one of the most diversified region in the world in terms of its topography containing a huge range of mountains, forests, rivers, etc.

These characteristics of the region create geographical barriers such as rugged terrain, and isolated locations in setting up transmission lines for the extension of grid connections in remote areas. Thus, the government has been fulfilling the electricity demand of remote communities in countries such as Chile, Columbia, etc. by establishing microgrids systems, which further provides a flourishing opportunity for the major companies that are providing smart metering system across Latin America region during 2023-2028.  

Latin America Smart Metering Market Possible Restraint:

Lack of Communication Infrastructure Affecting the Integration of Smart Meter– Limited communication infrastructure across the Latin America region lead to data transmission delays or interruptions between smart meters and utility systems. This compromise the real-time data exchange essential for effective energy management. In addition, the region encompasses diverse geographical landscapes, including rural and remote areas where establishing communication infrastructure could be challenging due to logistical & cost constraints. which further results in hampers the market size during 2023-2028.

Latin America Smart Metering Market Trend:

Deployment of Advanced Metering Infrastructure to Foster the Market Growth- In recent years, the distribution of advanced metering infrastructure, to amplify the digitization, energy efficiency, and sustainability across the Latin American region is a key trend in the market. The integration of advanced technologies, including smart meters, communication networks, and data management systems, to enable real-time data collection, analysis, and two-way communication between utility providers and consumers led to enhance the market size during 2022. As, these systems provide accurate and granular data on energy consumption patterns, enabling consumers to make informed decisions.

In addition, it helps to improve the customer engagement and load management by communicating with smart appliances or adjusting energy supply during peak demand periods. In recent years, Latin America holds considerable share in the renewable energy sources, which further facilitates the integration of distributed energy resources (DERs) like solar panels and wind turbines. Therefore, with the growing need for effective management of energy flow between the grid and these sources to facilitate real-time data exchange, the demand for smart metering systems is projected to rise during 2023-2028.

Latin America Smart Metering Market (2023-28): Segmentation Analysis

The Latin America Smart Metering Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment. It includes predictions for the period 2023–2028 at the regional level. Based on the analysis, the market has been further classified as:

Based on Type of Meter:

• Smart Electric Meter
• Smart Gas Meter
• Smart Water Meter

Among the types of smart meters, smart electric meters hold a significant share in the market mainly due to their higher applicability across several areas including commercial, industrial, and residential sectors. The region suffers from extensive transmission and distribution losses which are as high as 15% due to the use of obsolete transmission lines. This has been pushing the governments in the region to upgrade the existing power grid with smart technology to ensure the optimal utilization of energy. For instance, in 2021 in Chile, Celeo and APG announced their proposal to operate the country’s first HDVC smart power grid line. Such developments have been increasing the demand for smart electric meters, thereby leading to the growth of the market.

Based on End User:

• Residential
• Commercial
• Industrial

The industrial sector which includes ports, power & utility, and manufacturing establishments registered a noteworthy smart meter’s adoption rate during the historical years. The industrial sector has been one of the major end-users of smart meters across the region, owing to the amplifying government inclination toward the production of renewable energy. In 2018, the Brazilian government joined the International Renewable Energy Agency intending to enhance renewable energy production in the country.

Further, in 2019, renewable energy accounted for around 46% share of the total energy consumption across the country, which reached about 50% in 2021. This consistent growth of the renewable energy is due to the growing awareness of environmental issues, such as climate change and air pollution, has prompted governments and industries in Latin America to seek cleaner energy alternatives. This has resulted in the government’s constant focus on the establishment of new renewable energy plants & creating the demand for smart metering systems across these industrial units. Consequently, Smart metering systems enable real-time monitoring of energy generation from renewables, allowing grid operators and consumers to better anticipate energy availability across the region.

Latin America Smart Metering Market: Regional Projections

Geographically, the market expands across:

• Mexico
• Brazil
• Argentina
• Columbia
• Chile
• Peru
• Rest of Latin America

The Smart Metering Market in Mexico is poised for significant growth during the historical years. The factors responsible for the market growth are rising regulatory initiatives, energy efficiency goals and the integration of renewable energy across the country. In addition, the adoption of smart meters supports the country's energy modernization efforts and empowers consumers in managing their energy consumption, resulted in enhance the market size. For instance,

• In 2021, the Mexican government’s energy development plan reported power generation in Mexico accounted for 328,597.98 GWh, of which 29.5% was generated with clean energy sources, including wind, solar photovoltaic, and others.

Moreover, in the upcoming years country continues to integrate more renewable energy sources into its grid necessitates precise monitoring and management system to provide the critical real-time data to efficiently balance energy supply and demand. Hence, owing to such factors, the requirement for smart metering system is expected to increase in the country which positively enhance the market share in the Mexico during 2023-2028.

Gain a Competitive Edge with Our Latin America Smart Metering Market Report

1. Latin America Smart Metering Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Latin America Smart Metering Market Report aids in assessing & mitigating risks associated with entry level or operating level in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.