The Heat Meter Market Is Estimated To Witness High Growth Owing To Trends Rising Demand For Energy Conservation
Heat Meter Market
The Heat Meter Market is estimated to be valued at Us$ 1.30 Bn in 2023 and is expected to exhibit a CAGR Of 7.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Heat meters are devices used to measure the amount of heat or thermal energy transferred to a building or structure from a district heating system or central heating system. They play a vital role in buildings for accurate measurement and billing of energy consumption. Heat meters have advantages such as high accuracy, low maintenance, remote reading, and energy conservation compliance.
Market key trends:
One of the key trends driving growth of the heat meter market is rising demand for energy conservation. Heat meters enable monitoring of heat consumption in buildings and help in identifying areas where heat is being wasted. This allows implementation of measures to conserve energy and reduce bills. According to International Energy Agency, buildings account for around 40% of global energy consumption and heat meters play a significant role in improving energy efficiency of buildings. Stringent government regulations regarding energy efficiency and carbon emissions are also fueling adoption of heat meters across countries. For example, the European Union mandates installation of heat meters in all new and renovated buildings to comply with Energy Efficiency Directive.
Porter's Analysis
Threat of new entrants: The heat meter market already has major well established players operating at global level posing high entry barriers for new players. However, increasing demand driven by government mandates across regions provides opportunities.
Bargaining power of buyers: Due to presence of large player buyers have moderate bargaining power to negotiate on pricing. However, need for accurate billing and monitoring drives demand.
Bargaining power of suppliers: The suppliers of components used in heat meters have moderate bargaining power due presence of substitutes and differentiated products offered by vendors.
Threat of new substitutes: Mechanical heat meters have limited substitution threat from digital meters due to improved functionality and connectivity of latter. However, smart meters offer substitutes.
Competitive rivalry: The heat meter market witnesses high competition due to large global players competing on product performance.
SWOT Analysis
Strength: Heat meters provide accurate energy accounting and billing. Digital meters offer advanced connectivity and data monitoring opportunities.
Weakness: High initial installation cost. Retrofitting existing infrastructure requires additional investments.
Opportunity: Government mandates on energy metering and billing across regions will drive replacements and new installations. Growth in district heating systems boosts opportunities.
Threats: Substitutes like smart meters offer integrated functionalities. Economic slowdowns impact new projects and installations.
Key Takeaways
The Global Heat Meter Market Size is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing mandates for efficient energy metering across regions. The market size for heat meter is estimated to reach US$ 2.30 Bn by 2030.
Regional analysis for Europe dominates currently holding over 45% share due to widespread district heating networks and metering policies. The Asia Pacific region is estimated to witness fastest growth due to initiatives in China, India and Southeast Asian countries promoting efficient billing.
Key players operating in the heat meter market are Kamstrup, Danfoss, Qundis, Itron, Zenner, Engelman, Ista, Landis+Gyr, Diehl, Sontex, Brunata, Apator, Techem, Techno-Trade, GWF MessSysteme, Weihai Ploumeter, Axioma Metering, Zhifang Huaxu, Sensus Metering Systems, Emerson. Major players are focused on integrating connectivity and smart functionalities in their product offerings.
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