April 22, 2024

The Growing Demand For Heat Meters Market Is Revolving Around Improved Energy Efficiency

Heat meters play a vital role in distributed heating, cooling, and hot water systems by measuring the heat consumption of individual units such as apartments. They help utilities and property managers to apportion heating expenses according to actual consumption rather than on an average/estimated basis. Heat meters also empower customers to track their energy usage in real-time and make informed decisions to optimize usage.

The Global Heat Meter Market Size is estimated to be valued at US$ 1.5 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.

Heat meters are electromechanical or electronic devices used to measure the heat or thermal energy delivered to a building or industrial process in terms of kilowatt-hours (kWh) of heat. They help in the billing and monitoring of heat use, which aids in demand-side management and conservation of energy. Rising adoption of district heating systems and the need for transparent and fair billing is driving the demand for heat meters globally.

Key Takeaways
Key players operating in the Heat Meter Market are Nasco, Simulaids Inc., Simulab Corporation, Mentice AB, Limbs & Things, Kyoto Kagaku Co. Ltd., Laerdal, Canadian Aviation Electronics, 3D Systems, Gaumard Scientific Company Inc., among others. The increasing number of smart city projects around the world focusing on sustainable energy solutions is propelling the demand for heat meters. Many countries in Europe have mandated the installation of individual heat cost allocators for residential and commercial buildings to promote energy efficiency. The heat meter market is expanding across regions due to supportive government policies and regulations for conservation of resources.

Market Key Trends

The growing popularity of remote heat meter reading technology is one of the major trends in the heat meter market. Remote heat meter reading facilitates the collection of consumption data without physically accessing the meter location, thereby streamlining billing and monitoring processes. It helps utility providers and building managers to gather heat consumption information online without dispatching personnel for on-site meter reading. This improves operational efficiency while reducing service costs. The remote reading technology is advancing with the integration of communication protocols like LoRaWAN, 5G, and 4G/LTE to enable real-time data transmission over long distances.

Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale in manufacturing act as entry barriers.

Bargaining power of buyers: Buyers have moderate bargaining power. However, customized products increase switching costs.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute components.

Threat of new substitutes: Substitutes are present but require high conversion costs. Switching to new technologies is a challenge.

Competitive rivalry: The market is highly fragmented with the presence of local and global players. Players compete based on product quality, pricing and innovation.

Geographical Regions
Europe accounts for the largest share in the heat meter market in terms value. The region has stringent energy efficiency mandates boosting adoption.

Asia Pacific is expected to grow at the fastest pace during the forecast period. Rapid urbanization and rising living standards drive the use of heat meters in countries such as China and India.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it