Smart meter export market growth China procurement activity recovery

According to IHSi Suppli’s China Research Service, due to its active exposure to foreign markets, China’s smart metering companies’ exports in 2012 will increase by nearly 15% to 28.3 million.

The strong growth continues the gratifying momentum in recent years. The global development of smart grids requires the use of new electricity meters to provide opportunities for Chinese companies.

Smart meter exports will continue to rise in the coming years, reaching 32.8 million in 2013, reaching 37.9 million in 2014, reaching 43.8 million in 2015, and 48.20 million in 2016. Although exports will grow at a faster rate, the domestic market will continue to dominate, with shipments expected to reach 9780,000 in 2016.

China's smart meter manufacturers are attracted by the export market because their gross margin is higher than the domestic market. Higher profits are worth the manufacturers to pay more efforts and costs to meet the higher quality inspection standards of the export market.

Smart meters are a key part of smart grid construction. Therefore, its shipment growth rate is much faster than traditional meter.

Judging from the export destination of smart meters, Southeast Asia and the Middle East have been very hot in recent years. However, South America will be the fastest growing region in 2012.

As the demand for smart meters increased greatly in the previous two years, many leading meter manufacturers expanded their production capacity. It is expected that these products will be put into production in 2012. Therefore, manufacturers must accelerate the development of export markets to maintain capacity utilization.

Tender procurement activity picked up

The export market has grown rapidly, and domestic tendering and purchasing activities for smart meters are also picking up. After the State Grid Corporation of China successfully completed the restructuring, China's procurement activities recovered.

In the first procurement of State Grid Corporation of China in 2012, the power data acquisition system shipments increased by 81% compared to 2011. IHSiSuppli Corporation predicts that the growth rate of shipments of collector/concentrator equipment will be faster than previous forecasts, and that it will become another bright spot for growth in the second half of 2012.

With the procurement activities of power data acquisition equipment in full swing, the State Grid Corporation of China put forward new requirements for the functions of smart meters and collectors/concentrators. It requires the use of more advanced microcontrollers in smart meters. This change in microcontroller requirements led to a reshuffle of semiconductor suppliers in the second half of 2012.