China's Smart Metering Market Overview

China's smart metering industry has demonstrated sustained growth. As a crucial component of smart city development, smart meters encompass multiple segments, including electricity, water, and gas meters, and are widely used in energy management, urban infrastructure monitoring, and residential services. By 2024, with the deepening implementation of the new urbanization strategy and the continued implementation of the dual carbon goals, the smart metering industry will achieve technological upgrades and market expansion across multiple application scenarios.

From a market perspective, smart meters will maintain their leading position, driven by the intelligent transformation of the power system. In 2024, smart meter shipments will reach 128 million units, a year-on-year increase of 9.3%. State Grid Corporation of China and China Southern Power Grid continue to increase their smart grid investments, driving smart meter coverage to 98.6%, providing solid data support for power dispatching and energy consumption management. Smart water meters have performed exceptionally well in the digital upgrade of municipal water supply systems, with shipments reaching 46 million units in 2024, a year-on-year increase of 14.2%. With increasing demand for leakage control and refined water metering management, the penetration of smart water meters in new residential buildings and renovations of older residential communities continues to rise.

Smart gas meters, benefiting from strengthened urban gas safety regulations, will achieve shipments of 32 million units in 2024, a year-on-year increase of 17.5%. Especially for residential users, smart gas meters with remote meter reading, abnormality alarms, and automatic valve shutoff functions are becoming standard features. With the maturity of IoT technology and the decline in communication costs, NB-IoT (Narrowband Internet of Things) technology is becoming increasingly widely used in smart metering. In 2024, smart meter shipments using NB-IoT communication technology will account for over 62% of all shipments, an increase of 8 percentage points from 2023, significantly improving data collection stability and operational efficiency.

In terms of regional markets, East China and South China continue to lead due to their high urbanization levels and strong demand for infrastructure upgrades. In 2024, smart meter shipments in these two regions will account for a combined 48.3% of the national total. Driven by new urbanization initiatives and policies to address infrastructure shortcomings, the central and western regions will see significant growth, with annual shipments increasing by 16.8% year-on-year, becoming a key driver of industry growth.

In terms of product mix, the proportion of mid- to high-end smart meters continues to rise. In 2024, multifunctional smart meters with remote communication, data analysis, and fault warning capabilities will account for 57.4% of sales, a 4.2 percentage point increase from 2023, reflecting growing market demand for intelligent and integrated products. With advances in domestic chip and sensor technology, the localization rate of smart meters is also increasing, significantly enhancing the independent control capabilities of core components. From the perspective of the competitive landscape, industry concentration continues to rise, with leading companies further consolidating their market position through technological accumulation and economies of scale. Companies such as State Grid Corporation of China's State Grid Information and Communication Industry Group, Wasion Information Technology Co., Ltd., and Linyang Energy, which are subsidiaries of State Grid Corporation of China, dominate the smart meter sector, with a combined market share exceeding 65% in 2024. In the smart water and gas meter sector, companies like Jinka Smart and Xintian Technology continue to expand their market influence through product innovation and channel advantages.

Analysts predict that the smart metering industry will maintain steady growth through 2025, with the further implementation of the "14th Five-Year Plan"'s goals for smart city and digital infrastructure development. Smart electricity meter shipments are projected to reach 138 million units in 2025, a year-on-year increase of 7.8%; smart water meter shipments are expected to exceed 52 million units, a year-on-year increase of 13.0%; and smart gas meter shipments are expected to reach 36.5 million units, a year-on-year increase of 14.1%. With the integration of new technologies such as 5G and edge computing, the functionality of smart metering products will be further expanded, extending into multiple dimensions such as energy management, environmental monitoring, and safety warnings, driving the industry towards higher levels of intelligence and platform-based development.