Energy Measurement ICs Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2031)

Based on the Type :

Based on the type, the market is bifurcated into single phase and polyphase. The polyphase segment accounted for the largest revenue share in the year 2022. Polyphase energy measurement ICs are capable of measuring current and voltage in three phases simultaneously while providing precise measurements of energy consumption. Moreover, these polyphase offer a range of benefits including more accurate measurements, improved load balancing, power quality monitoring, real-time data on energy consumption, and others. The aforementioned benefits of polyphase are driving its utilization for measurements of energy consumption in commercial and industrial sectors among others.

For instance, Analog Devices Inc. is a manufacturer of these ICs that offers ADE7754 model of polyphase energy measurement IC in its product portfolio. The polyphase energy measurement IC is integrated with a serial interface and a pulse output that provides various solutions for measuring active and apparent energy from the six analog input. Thus, rising innovation associated with polyphase energy measurement ICs is among the prime factors driving the market.

The single phase segment is anticipated to register the fastest CAGR during the forecast period. Single phase energy measurement ICs are primarily designed for use in electrical meters intended for measuring the power consumption in a single-phase power supply. Moreover, single phase materials provide several benefits including lower cost, simple installation and operations, and versatility among others. Additionally, they are mostly integrated in energy meters installed in residential buildings among others.

For instance, STMicroelectronics offers STPM01 model of single phase energy measurement ICs that is optimized for reliable measurement of reactive, active, and apparent energy in a power line system. The single phase energy measurement IC features ripple free active energy pulsed output, tamper detection, and multiple other features. Therefore, the rising advancements related to these materials are anticipated to boost the industry during the forecast period.

Based on the Sales Channel :

Based on the sales channel, the market is segregated into direct sales and distributor sales. The distributor sales segment accounted for the largest revenue share in the year 2022. The distributor sales channel of these devices comprises of both offline and online modes. As per the analysis, in the online mode, these devices are bought from e-commerce websites such as Alibaba, eBay, Indiamart, and others. The offline mode includes the distribution of these devices through specialist stores, regional distributors, and others. In addition, buying from a distributor also benefits the consumer to select the best product available in the market.

For instance, Microchip Technology Inc. and STMicroelectronics are among few of these ICs manufacturers that offers a range of single phase and polyphase energy measurement ICs through several regional distributors including DigiKey Corporation, Premier Farnell Limited, and others. Therefore, the increasing availability of these devices in distributor sales channel is a prime factor proliferating the segment.

The direct sales channel segment is anticipated to register fastest CAGR during the forecast period. In direct sales channel, products are sold directly to customers. Moreover, based on the analysis, the direct sales channel also comprises of online mode, in which the manufacturers sell the products through company owned websites. Additionally, purchasing these devices from direct sales channel offers various benefits such as faster response time, higher product quality, competitive pricing, competitive pricing, and higher return on investments, which are primary factors increasing the purchase of these devices from direct sales channel.

For instance, Texas Instruments Incorporated is among few of these ICs manufacturers that offer a broad range of these ICs for direct purchase through company website. Thus, the availability of these devices in direct sales channels, attributing to its above benefits, is a key factor projected to drive the demand of the segment during the forecast period.

Based on the Application :

Based on the application, the market is segregated into smart plugs, smart appliances, smart meters, EV charging, and others. The smart meters segment accounted for the largest revenue share in the year 2022. Factors including rising demand and trend for smart city projects, improved energy efficiency, and increasing government initiatives for installation of smart meters are driving the smart meter segment.

For instance, the government of India recently launched Smart Metering National Project in which approx. 1.57 million smart power meters have been installed across India as of February 2022 to promote the deployment of smart metering infrastructure in the country. These ICs are primarily integrated in smart meters for measuring consumption of electric energy, current, voltage levels, power factor, and other relevant information. Thus, the rising adoption of smart meters is driving the segment.

Smart appliances segment is expected to witness fastest CAGR during the forecast period. The expansion of smart appliances segment is primarily driven by multiple factors including increasing purchasing power of consumers, changing consumer lifestyle, and growing demand for energy-efficient household appliance among others.

For instance, in September 2023, Samsung introduced its new A-40% washing machine. The A-40% smart washing machine is integrated with AI Wash that provides advanced sensing capabilities of the laundry to improve washing performance while minimizing waste. The smart washing machine is capable of optimizing the amount of detergent and water and constantly adjusting the soaking, rinsing, and spinning times to attain the best results efficiently and quickly. Further, energy measurements ICs are often integrated in electricity meter that is used for measuring consumption of an individual household appliance. Therefore, the rising innovation associated with smart appliances is projected to drive the smart appliances segment during the forecast period.

Based on the End-User :

Based on the end-user, the market is segregated into residential, commercial, and industrial. The residential segment accounted for the largest energy measurement ICs market share of 47.21% in the year 2022. Factors including the rising disposable income, growing investments and government policies including subsidies, rebates, and tax incentives for residential construction are driving the residential segment.

For instance, according to CoreLogic Inc., the overall sales of multi-family residential property in the United States observed a substantial rise of 26% during the second quarter of 2021 in comparison to 2019. Therefore, the expansion of residential sector is driving the utilization of these devices for measuring and monitoring a building's energy consumption, in turn fostering the energy measurement ICs market growth and trend of the market.

Commercial segment is expected to witness fastest CAGR during the forecast period. The expansion of commercial segment is primarily driven by multiple factors including the rising pace of urbanization, increasing commercial construction, and rising government initiatives for the installation of smart metering systems among others.

For instance, according to the UK Office for National Statistics, the total private commercial construction orders in the United Kingdom was valued at USD 4,295.1 million in fourth quarter of 2022, demonstrating an incline of 5.5% as compared to fourth quarter of 2019. Therefore, the rise in commercial construction is projected to drive the adoption of these devices for integration in smart metering solutions installed within commercial buildings to determine the amount of energy consumption, in turn fueling the market during the forecast period.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America is estimated to reach over USD 3,402.21 Million by 2031 from a value of USD 1,843.39 Million in 2022 and is projected to grow by USD 1,934.53 Million in 2023.

The market growth for these devices in North America is primarily driven by multiple factors including increasing demand and investments in building and construction projects and rising installation of smart meters for energy measurement and monitoring in residential and commercial buildings in the region. For instance, according to Statistics Canada, investments in the building & construction sector was valued at USD 20.4 billion in January 2023, depicting an incline of 1.5% in contrast to the previous year. Additionally, investments in the residential sector in Canada increased by 1.9% to USD 14.9 billion, while the non-residential sector increased by 0.5% to USD 5.6 billion in January 2023. The aforementioned factors are projected to drive the adoption of energy measurement ICs trends in residential and commercial buildings for measuring and monitoring a building's energy consumption and improving energy efficiency, in turn driving the market growth in North America during the forecast period.

Asia-Pacific is expected to grow with the highest CAGR growth of 7.5% and is estimated to reach over USD 2,173.79 Million by 2031 from a value of USD 1,158.66 Million in 2022 and is projected to grow by USD 1,217.64 Million in 2023. In addition, in the region, the China accounted for the maximum revenue share of 31.60% in the same year.

The rapid pace of urbanization, industrialization, and development is promoting lucrative growth aspects for market growth in the region. Moreover, the rising government initiatives for the development of smart cities are contributing to the market growth for this device in the Asia-Pacific region.

For instance, the government of China introduced several initiatives such as China's 14th five-year Development Plan (2021 to 2025), National New-type Urbanization Plan, and smart cities projects that intends to facilitate the development of smart homes in the country. Furthermore, multiple factors including the increasing commercial and industrial construction along with rising need for smart metering solutions are projected to drive the energy measurement ICs market demand and trend in the Asia-Pacific region during the forecast period.