Market Overview

The Smart Gas Market was valued at USD 10.95 billion in 2019 and is expected to reach USD 21.73 billion by 2025, at a CAGR of 12.09% over the forecast period (2020 - 2025). Rising concerns about greenhouse gas emissions and the increasing need to reduce carbon footprint resulted in the increased use of natural gas, hence, driving the market. Also, Smart grids play a crucial role in smart city deployment and are the primary consumers of smart electricity meters, alike gas meters. Hence, the deployment of smart gas solutions is increasing significantly.

  • Additionally, the growing demand to reduce energy losses and the need to increase energy security are also considered as major drivers for the growth of the market. Due to the increased number of end-users, the effort of collating the data with no irregularities remains a challenge to this market.
  • The increase in the adoption of gas and numerous regulatory policies rolled out in many regions should be perceived as a growth opportunity for the market. In the recent past, Brazil has also rolled out smart gas meters to prevent energy theft providing a positive outlook to the vendors.
  • However, the high costs of installation associated with smart systems are expected to hinder the market growth. Smart systems are comparatively expensive than the regular equipment deployed by most of the service providers and users, as these systems utilize digital components and connectivity systems that enable them to operate and transmit data, hence, increasing the cost of the solutions like the metering equipment, sensors, and analyzers, etc.
  • Also, integration challenges involved with the deployment of smart gas solutions are restraining the adoption of these systems. These systems face difficulties in integration in the existing environments.

Scope of the Report

The smart gas devices are very helpful in monitoring solutions for gas utility deals remotely. These devices play a very important role in tracking asset performance which provides real-time data during gas operations. The smart meters help in capturing, storing, and transmitting meter data to the main server. The growing demand for energy demand globally, rapid urbanization and technological advancements are driving the market for global smart gas. Smart Gas Solutions comprise Analytics and Data Management, Asset Management, Remote Monitoring, Geographic Information System (GIS), Network and Application Security, Network Management, Mobile Workforce Management, Outage Management, Billing, and Customer Information Systems.

Key Market Trends

The Commercial and Industrial Application to Increase Significantly

  • The commercial end-users in the smart gas market are small businesses whose gas consumption requires gas flows and pressure similar to that of the residential segment. The prices for the gases might vary according to the location of the commercial spaces and the availability.
  • The cost of the gases for commercial use is generally higher than that for domestic use, which further motivates the businesses to adopt smart gas solutions like smart gas meters. The adoption is also supported by the fact that commercial enterprises are preferably located in areas that have better communication and network infrastructure suited for smart meters installation.
  • Industries generally have a high volume of gas consumption, where the applications may vary from its use for power generation, an essential component of the manufacturing process. Industries, such as chemical and fertilizer plants have gases used as core raw materials for the production.
  • Hence, monitoring and control features in these industries are present through PLC and SCADA interface features. With the industries slowly transitioning toward industry 4.0 and IIoT the smart gas market is expected to have a positive growth over the forecast period. Industries with high energy cost and gas consumption are supposed to be the early adopters in the market.

Europe Expected to Hold a Significant Share

  • Europe is expected to show significant growth during the forecast period, owing to the various regulatory policies in Europe that led to the positive development of the smart gas market. The United Kingdom currently accounts for the most significant single country share in Europe due to the simultaneous roll-out of energy meters, supported by current infrastructure.
  • Along with this, the government plans to complete the smart meter roll-out in the country by 2020, which is projected to get delayed beyond 2022, with demand peaking near 2020, owing to the deployment of large-scale projects.
  • In November 2019, The largest natural-gas infrastructure firm in Europe has launched a new hydrogen business and increased its financing for low-carbon projects. Snam, which runs the Italian gas grid and is active in France, Greece and the U.K., has pledged to direct 20% of its annual investments into sustainable projects by 2023 via its SnamTec arm.

Competitive Landscape

The Smart Gas Market is moderately competitive and consists of a few major players. In terms of market share, some of the major players currently dominate the market. However, with the advancement in analytics across the industry, new players are increasing their market presence thereby expanding their business footprint across the emerging economies.

  • February 2019 - Tata Communications’ IoT network ignites the launch of Indraprastha Gas Limited’s pre-paid smart gas metering system. It is one of the world’s largest LoRaWAN network underpins India’s leading natural gas distribution company strategy to boost efficiencies and enhance customer experience.
  • March 2018 - Pietro Fiorentini, a pioneer in NB-IoT for Smart Meters, said it’s RSE model Smart Gas Meter with 3GPP NB-IoT enabled connectivity has met European Union approvals. It becomes the first Smart Gas Meter with NB-IoT connectivity on the market to bear the EU’s RED (Radio Emission Directive), MID (Measuring Instrument Directive) and ATEX (Installations in Explosive atmosphere) approvals.

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