NOVEMBER 20249ENERGY SECTOR DIGITIZATION AND RENEWABLES EVOKE DEMAND FOR ENERGY METERSAUTOMOTIVE SALES DROUGHT EASES SLIGHTLY WITH BOOST IN RURAL REGIONThe energy meters market has shown strong growth in recent years, with the market size reaching $18.11 billion in 2023 and expected to grow to $19.71 billion in 2024, at a compound annual growth rate (CAGR) of 8.9 percent. This growth has been driven by several factors, including the expansion of electric vehicles, the rise of renewable energy sources, the increasing need for monitoring energy consumption, the digitalization of the energy sector, and the increasing demand for electricity.Looking ahead, the energy meters market is projected to grow further, reaching $27.82 billion by 2028, with a CAGR of 9%. This growth can be attributed to growing consumer awareness of energy conservation, increasing industrialization, rising energy costs, rapid urbanization, and growing environmental concerns. Key trends driving the market in the forecast period include technological advancements, the rise of smart grid technology, the adoption of smart meters, the growth of the internet of things (IoT), and the increasing use of data analytics.A major driver of this market growth is the rising demand for renewable energy sources. Renewable energy sources, such as solar, wind, hydroelectric, geothermal, and biomass, are increasingly sought after due to concerns about climate change, the push for energy independence, and the decreasing costs of renewable technologies. Energy meters play a critical role in renewable energy systems by providing real-time data on energy production and usage, which helps users optimize their energy consumption and better integrate renewable technologies into their systems. According to GreenMatch, in 2022, renewable energy accounted for 13.1 percent of the total primary energy consumption in the U.S. and about 21.5 percent of electricity generation from utility-scale sources. By 2023, wind and solar energy are expected to contribute 16 percent to total electricity generation, up from 14 percent in 2022. This rising demand for renewable energy sources is expected to significantly drive the energy meters market forward. A revival in the rural market has played a key role in halting the decline in sales of entry-level small cars, which saw a 10 percent growth in retail sales in October, according to top officials of Maruti Suzuki India (MSI). The company, which recently launched the all-new version of its compact sedan Dzire, priced between 6.79 lakh and 10.14 lakh (ex-showroom Delhi), remains optimistic about increasing its share in the sedans category despite the rapid growth of SUVs. Maruti Suzuki asserts that it will continue to cater to all vehicle segments to maintain its high market share in the domestic market.While the SUV segment has been growing at a fast pace, other segments, including compact sedans, remain crucial for MSI to maintain its market dominance. Hisashi Takeuchi, MSI MD and CEO, emphasized, "The compact sedan segment is very reliable. From a business point of view, it is very good. To retain a decent market share, we need to have a presence in each customer segment".Currently, Maruti Suzuki holds over 40 percent market share in the overall domestic passenger vehicle segment, with more than 50 percent in the sedan segment. In the entry compact-sedan segment--which includes competitors like Honda Amaze and Hyundai Aura--MSI holds a commanding market share of over 61 percent for the April-September period of the fiscal year.The sedan segment currently represents 8 percent of the overall passenger vehicle volumes, while sedans account for 10 percent of MSI's total sales volumes. Partho Banerjee, MSI Senior Executive Officer for Marketing and Sales, stated that the company's strategy is to serve all customer segments, with rural markets performing better than urban areas.
< Page 8 | Page 10 >