The semiconductor industry for electric meters is moving toward a single-chip solution for measuring and communicating with the grid station. There will be an increased need for memory and system-on-chip (SoC) solutions in all those meters installed in the latter half of this decade, as stated in IHS press release. The devices will require greater application complexity, better security, improved communication ability, enhanced remote control ability and higher resolution.
The published report highlights that smartmeters that provide two-way communications between meters and utilities will continue to expand in the coming years, providing significant growth opportunities to semiconductor manufacturers. The shipments of communicating meters are forecast to reach 132 million units in 2015 and 150 million units in 2019, according to IHS insight.
Adding further, the media release also mentions, “Global revenues for semiconductors used in water, gas and electric meters reached US$ 1.2 billion in 2014, with a year-over-year growth of 11 per cent and a five-year compound annual growth rate of eight percent. The average semiconductor cost in two-way meters was approximately US$ 11 in 2014. Average selling prices (ASPs) are expected to increase over time, as industry needs increase for 32-bit MCUs, memory chips, SoC solutions and other components used in secured communications and other applications.”