New technology standards pave the way for the development of smart meters in China

According to IHS iSuppli ’s China Research Service, a series of new technology standards aimed at improving the quality management and control of smart meters will come into effect in August, and will help the Chinese smart meter market grow 9% this year, with shipments expected to exceed 100 million Mark.

In 2012, China's total shipments of electric meters were 110.6 million, of which 98.5 million were smart meters. China's electricity meter output is expected to grow to 118.4 million this year, of which 107.7 million will be smart meters. In the next few years, China's smart meter market will continue to grow, with an average compound annual growth rate of 9.5%, as shown in the figure.

Figure: Forecast of China's electricity meter output, broken down by structure (in thousands)

New technology standards pave the way for the development of smart meters in China

Naturally, as the replacement speed accelerates, the output of ordinary electric meters will decline rapidly, and will close to death by 2016.

In 2012, the State Grid Corporation of China organized four bids for smart meter purchases, purchasing approximately 78.3 million meters, including 76 million smart meters. At the same time, China Southern Power Grid purchased nearly 5.9 million meters, 20% of which were smart meters. In 2013, the bidding and procurement targets of the two major power grid companies are expected to be the same as in 2012.

This year's meter bidding procurement process has been announced, bringing changes to the market. The more significant change is that the purchase price of electricity meters has been reduced. The price of electricity data collection systems is also declining rapidly, posing a challenge to manufacturers of such products.

Ammeter chip market reshuffle

As predicted in the fourth quarter of 2012, the Chinese ammeter semiconductor market began to reshuffle. IHS believes that it will be a win-win process from the perspective of cooperation in China's meter microcontroller unit (mcu), metering chip and power line communication (PLC).

With the emergence of new technological trends, the competitive landscape will continue to change in the near future. In addition, the restrictions on the development of System-on-Chip (SoC) are also gradually being relaxed.

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