An increase in smart meter deployments will see the global market for wireless communication modules about double in value over the coming years, jumping from $532 million in 2012 to $1.3 billion in 2020, at a compound annual growth rate (CAGR) of 12 percent, according to a new report from GlobalData.
According to the report, North America, currently the dominant player in the global wireless communication modules market for smart meters, will be a key driver behind the leap, with its own market revenue expected to climb steadily from $379 million in 2012 to $433.7 million in 2020.
Europe will also continue to account for a considerable share of the global market, thanks to a number of pilot-scale projects getting underway across the region. The uptake of wireless communication modules in the U.K., Denmark and Ireland in particular looks promising, according to GlobalData, and these countries are predicted to occupy an even larger share of Europe’s wireless smart meter communication market by the end of 2020.
Cellular and radio frequency (RF) communication modules are the two key technologies used in smart meters for two-way data transmission. RF modules account for an 85 percent share of the North American market, thanks to their low cost, high bandwidth and efficient performance in industrial areas.
However, while the outlook for the wireless communication modules market is largely positive, a number of challenges remain that will prevent any further growth in global revenue.