May 23, 2012 – Electricity submetering technology has “long provided a way for savvy energy managers concerned with the untapped efficiency potential of buildings and factories to understand energy use and identify areas for improvement”, says Pike Research. This market is starting to grow significantly as building professionals tie the technology into broader energy management solutions for property owners and managers.

According to a new report from Pike, the worldwide market for submetering technology and services will grow from $771 million in 2012 to $1.58 billion in 2020, with a compound annual growth rate (CAGR) of 9.4%. In addition to the submeter hardware itself, that total will include energy management software, installation costs, customer training and other services.

“Many firms have made major acquisitions of submeter vendors in recent years to round out their energy efficiency platforms, while others are implementing software and services platforms that provide building owners with actionable insights that save money and make facility management easier.”

“To address the growing demand for submetering capabilities, traditional leaders in the building controls and equipment industry have worked to integrate submetering technology into their energy efficiency solutions and platforms,” says senior analyst Eric Bloom. “Many firms have made major acquisitions of submeter vendors in recent years to round out their energy efficiency platforms, while others are implementing software and services platforms that provide building owners with actionable insights that save money and make facility management easier.”

Bloom adds that, while a number of major building efficiency solutions providers (e.g. Schneider Electric and Honeywell) lead the submeter technology and services market globally, pure-play vendors play an important role at the national and regional levels, “offering high-quality products that often fill important niches”.

North America, Western Europe and Asia-Pacific collectively amount to 85% of the global market, with the remaining 15% spread between the Middle East, Latin America, Eastern Europe and Africa. This split will remain consistent over the next eight years as demand for submeters and their associated services surges in the largest three regions.

Pike Research’s report, “Electricity Submeters”, provides a overview of the submeter technology and services market worldwide, including submeter hardware (basic and advanced submeters), other hardware, submetering energy management software, installation costs, customer training services, and other submeter services. An Executive Summary is available for free download on the firm’s website.