Stepping up the price of hot water and leading enterprises to lay out the smart meter market early

[China Instrument Network Instrument Depth] Recently, Shandong, Liaoning, Hunan and other provinces have announced that they are about to implement the "water meter, a household, a table," the implementation of the ladder users of water prices.

In fact, the price of ladder water is not new. Since 1998, China has clearly proposed to advance the price of water in the ladder, but it has not been implemented until recently. In July 2013, the Shanghai Development and Reform Commission announced the implementation of a step-water price plan for the first time; on May 1, 2014, the Beijing Municipal Development and Reform Commission issued a circular on the implementation of a step-water price by residents in Beijing. Subsequently, Hangzhou, Harbin, Jinan, Tianjin and other cities also followed suit one after another. Until this year, more and more cities plan to implement a stepped water price policy.

With the implementation of the stepped water pricing policy, smart water meters have also followed the trend of “flooding.” Due to the fact that the water price of the ladder requires the meter to be read in real time, at regular times, successfully recorded, accurately recorded, and automatically billed, these functions require the assistance of an intelligent water meter.

According to statistics, in 2012, the annual output of China's water meters was about 65 million, and the output of smart meters was only over 8 million. In 2013, China's total output of water meters is about 70 million units, the market size is about 5.6 billion yuan, and 10.5 million smart water meters are installed. The smart meter penetration rate is 15% and the water meter market is growing at an annual rate of 10%. In 2014, some cities successively implemented stepped water prices. The annual growth rate of the smart meter market reached 15%, and the output reached 12 million units. The penetration rate of smart meter in the industry increased to 26.8%. It is not difficult to see that the large-scale implementation of stepped water prices has become an important booster for promoting the rapid development and growth of smart water-saving water meter industry.

As the saying goes, “shopping malls are like battlefields”. Whoever seizes the opportunities will be able to take the initiative and grab the first big cake. In China's water meter companies, Sanchuan’s smart forward-looking research and development produces a variety of smart water meters, and lays a smart water market. As early as 2012, the smart water meter project was started. Subsequently, in 2015, it signed a memorandum of cooperation with Huawei to jointly develop a water meter for Internet of Things based on NB-IoT technology, increase the promotion and deployment of smart water meters, especially water meters for the Internet of Things, and accelerate the marketing of smart water management systems. In 2015, the revenue of its water metering business showed a trend of growth. From January to May 2016, the sales volume of Sanchuan smart smart water meters was approximately 350,000 units, an increase of approximately 30% year-on-year. Cooperation with major regional water utilities also boosted sales of smart water meters.

In addition, the leading sinker in the field of domestic ultrasonic flow metering smart meters also aimed at the wind vane early and launched an intelligent ultrasonic water meter in 2015 to replace the traditional household mechanical water meter. According to its 2015 annual report, Huizhong's operating income in 2015 was 212 million yuan, a year-on-year growth of 5.33%. The annual report also mentioned that in 2016 Huihui will continue to optimize its product mix and vigorously develop the ultrasonic water meter business on the basis of ensuring the stable growth of ultrasonic heat meters.

Xiao Bian concludes that there is still huge space in the smart meter market. For many second and third tier cities, the popularity of ladder water prices has only just begun. In the future, intelligent water meters will certainly replace the mechanical water meters to become the mainstream of the industry. The huge potential market size of the smart meter market has also attracted numerous instrument and meter manufacturers to join the market battle. Therefore, in the face of changes in the market, companies can only gain a foothold in fierce competition by continuous technological innovation and improved product quality.

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