Smart meter market may not be optimistic after 3 years

Domestic smart meter industry leader Samsung Electric will break the market on the 15th. Although on June 10th, the State Grid Corporation of China started its tender for the third batch of smart meters this year, the prospect of the industry is not optimistic for investors. Once the State Grid has come to an end with the centralized bidding for smart meters, the market demand for the industry may shrink significantly.

There are still three years of centralized tendering. On June 10th, the State Grid Corporation of China launched the third batch of smart meters for tenders this year. Domestic meter manufacturers have expressed that they will participate in the tender for the State Grid.

The State Grid plans to replace 300 million single-phase smart meters between 2010 and 2014. The bidding volume for 2010-2011 is about 100 million. Therefore, there is still 200 million market space for the smart meter market in the next three years. With the maturity of the tendering system of the State Grid and the stabilization of the market competition, listed companies will continue to benefit.

In fact, in the bidding for the second batch of projects of the State Grid Corporation of China this year, Hao Ningda won a bid of 119.904 million yuan, accounting for approximately 33.39% of the company's total operating revenue in 2010; Ke Lun electronic won a bid of 226 million yuan, accounting for the company's 2010 business turnover. 24.28% of total revenue.

Some analysts pointed out that the next three years may be the golden age of smart meters. In December 2009, the State Grid for the first time tendered 2,943,400. Subsequently, the State Grid has increased the number of tenders. In 2010, it completed four smart electricity meter tenders and accumulated 45.37 million tenders. Some analysts predict that in 2011 the State Grid plan to tender 60 million.

"This means that there will still be more space in the smart meter market in the next three years," said a brokerage researcher. However, Hao Ningda believes that the design life of ordinary electric energy meter is 8-10 years, and the long-life meter is 15-25 years. After the five-year centralized tendering of the State Grid, the first batch of purchased electric meters do not need to be replaced. The smart meter Market space will be reduced