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DOMESTIC METERING: THE MARKET IN EUROPE
SUMMARY
This newsletter examines the prospects for
semiconductor consumption in electronic domestic
meters used for measuring electricity, gas, and
water in Europe. In it, we will discuss the main
factors that will affect the rate of substitution of
these meters over mechanical rivals and forecast
the demand for semiconductors during the next five
years. Dataquest forecasts that the total market will
increase from an estimated $18 million in 1989 to
$83 million by 1994, showing an overall 35 percent
compound annual growth rate (CAGR).
Figure 1 shows our estimation of the demand
among electricity, water, and gas applicadons for
1994. Electricity meters and teleswitches should
account for the lion's share—90 percent—of this
market, with consumption for meter applicadons
forecast to grow at a heady 54 percent CAGR
between 1989 and 1994.
ELECTRONIC METERS BRING
NEW FEATURES
Although electronic meters cannot exactly
match mechanical products point for point on cost,
they do offer features that oraditional meters cannot
provide. Table 1 summarizes these feamres, which
are the "back doors" to the meter market.
Electronic meters allow multiple rate tariffs to
be administered according to the season, day of the
FIGURE 1
European Semiconductor Revenue Forecast by Domestic Metering Application (1994)
Total Revenue = $83.1 Million
Water
$6.2 Million
7.5%
Gas
$2.2 Million
2.6%
0005070-1 Source: Dataquest
October 1989