Upward trend seen for prepaid electricity metering

According to clean technology market consultancy Pike Research, the adoption of smart meter technology will accelerate the growth of the market for prepaid electricity metering in the United States and globally. "Hardware, software and service vendors are seeing increasing opportunities, as utilities worldwide are preparing to launch new prepaid programs or expand their existing prepaid services to a larger customer base," the consultancy said.

In a report entitled Hardware, Software, and Services for Prepaid Metering: Opportunities, Challenges, the Competitive Landscape, and Global Market Forecasts, Pike Research estimated that the installed base of prepaid electricity meters was over 20 million worldwide in 2011, and expects over 3 million more to be installed globally by the end of 2012. Pike Research forecasts that number to surpass 33 million by 2017.

By the end of 2012, the global prepaid meter device market will reach $1.2 billion, with the prepaid services market making up $263 million in revenues while the prepaid software market will account for about $210 million, according to the firm. "As utilities increasingly take advantage of prepaid programs in the coming years, they will have a growing need for software and services to support their prepaid systems," the consultancy said.

Pike Research noted that electricity prepayment programs are not widespread in the United States, but that such services are commonplace in many other countries, including the United Kingdom, Ireland, South Africa, New Zealand, India and Argentina, as well as many developing nations. With the new metering and wireless communication technology available, U.S. utilities are increasingly interested in offering prepaid electric services, the consultancy said.

Pike Research also recognizes the advantages that such services hold for consumers. "The prepaid option offers many benefits to consumers – most importantly, it allows them to choose when they pay, how they pay and what they pay," said Marianne Hedin, Senior Analyst at Pike Research.

An executive summary of the report is available for free download on the firm's website at www.pikeresearch.com .

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