A recent report from the IHS Smart Utilities Infrastructure Research Group forecasts that the heat measurement market will exceed $1 billion in 2018. Key drivers fueling this growth will be increasing demand from Russia, Turkey and China, along with expected legislation derived from the European Energy Efficiency Directive of 2012 (EED), which is expected to drive growth in several countries.
The report, “Heat Meters Report 2014,” predicts that Europe, the Middle East and Africa (EMEA) will account for 70% of revenues for heat measurement devices in 2018. Asia (almost entirely China) is forecast to account for the other 30%. Revenue growth in Europe is forecast to be driven primarily from passager of the EED, which recommends the measurement of all billing heat connections.
IHS says that Germany is currently the only country which has mandated the installation of heat measurement. Similar legislation is expected when countries such as France, Italy and the UK start implementing their own legislation on the heels of the EED. IHS expects this to happen by 2016. Revenues from the sale of heat measurement devices from these three countries alone are forecast to increase from $60 million in 2013 to $130 million in 2016.
Industry expectations are that these three countries will be the pioneers in implementing heat measurement laws, IHS says. Regulation is already in place for electricity and gas metering in these countries and it’s only a matter of time that heat measurement will get the same attention, says Fizza Arshad, an analyst in the IHS Smart Utilities Infrastructure Research Group.
New policies in China are forecast to help it account for 30% of the $1 billion total market for heat measurement devices. Although most of this growth is forecast for heat meters, the market for HCAs is predicted to rise with China’s pending heat measurement mandates. This is forecast to drive the Chinese market for heat measurement to more than $315 million in 2020.
International heat meter manufacturers are looking to gain market share in China as this market continues to expand, with heat meter revenues increasing by 60% from 2014 to 2020. IHS expects the Chinese market for HCAs to see high growth starting in 2016 as new policies are predicted to take effect and older buildings will need to be retrofitted.