**The Evolution of Europe’s Smart Metering Market: From First Deployments to Second-Generation Refresh Cycles**
By Marc Kavinsky, Lead Editor at IoT Business News
*Berg Insight estimates that two thirds of electricity customers in the EU27+3 had a smart meter by the end of 2025, with further growth expected through 2031. The next phase of the market will be shaped not only by new deployments, but by replacements and communications technology choices.*
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### A Market Split Between First Deployments and Refresh Cycles
Smart metering in Europe is no longer a single deployment story. In some countries, utilities are still working through first large-scale electricity meter rollouts. In others, the discussion has already moved to second-generation devices, upgraded communications networks, and the operational lessons learned from earlier programmes.
That split is the most useful lens through which to read Berg Insight’s latest assessment of the European smart metering market. According to the research firm, the EU27+3 region had around **209 million smart electricity meters installed at the end of 2025**, equivalent to approximately **two thirds of electricity customers**. Berg Insight expects the installed base to grow at a **compound annual growth rate of 5.1 percent** and reach **85 percent penetration by 2031**.
The forecast implies continued volume for meter manufacturers, communications module suppliers, and systems integrators, but **not a uniform opportunity across Europe**. Berg Insight expects more than **131 million smart electricity meters** to be deployed in the region during **2025–2031**. A significant part of that demand will come from **first-generation projects** in countries including **Germany, the UK, Poland, and Greece**, while **replacement and second-generation activity** is set to support shipments in markets such as **Spain, France, and the Netherlands**.
> **Practical implication:** Suppliers cannot treat Europe as a homogeneous smart metering market. OEMs selling meters into lower-penetration markets may face different cost, coverage, and procurement priorities than vendors competing in mature Western European markets where utilities are upgrading established estates. System integrators, similarly, will need to support both greenfield-style deployments and migration projects where utilities are reluctant to disrupt existing back-office and communications architectures.
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### LPWA Gains Ground, But PLC Remains Part of the European Architecture
The communications layer is another important part of the story. Berg Insight reports that **standalone wireless connectivity options have gained traction** and are expected to represent **more than 50 percent of annual shipment volumes** through most of the forecast period, peaking at about **62 percent in 2028**. The firm identifies **3GPP-based LPWA technologies** as the main driver of this growth, with shipments of **LTE-M and NB-IoT electricity meters forecast to be in the range of 2.4 million to 6.1 million units during 2025–2031**.
This does not mean that Europe is moving to a single wireless model. **Powerline communications (PLC)** will remain significant, particularly in major countries preparing second-generation rollouts that are expected to build on existing communications platforms. Berg Insight notes that some of these markets may use **upgraded or hybrid PLC-based approaches** adapted to new requirements, with **Italy cited as a comparable example**.
> **The derived lesson for connectivity providers:** smart metering will continue to reward **multi-technology strategies**. Cellular LPWA offers a standards-based option that can reduce reliance on dedicated utility communications infrastructure in some deployments. PLC, however, retains value where utilities have already invested in it and where replacement programmes must preserve operational continuity. For industrial IoT vendors serving utilities, the opportunity is therefore not simply to replace PLC with cellular, but to help utilities manage mixed estates over long asset lifecycles.
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### Gas Metering: Extending the Connected Utility Infrastructure
Gas metering adds another layer to the European picture. Berg Insight expects the installed base of **smart gas meters in the EU27+3 to increase from nearly 59 million units in 2025 to around 79 million by 2031**, equivalent to **48 percent penetration**. While smaller than the electricity meter base, this forecast reinforces the broader utility trend: **connected metering infrastructure is becoming a long-term operational platform rather than a one-off compliance project**.
For enterprises and industrial energy users, broader smart meter penetration should gradually improve the availability of granular consumption data, although the impact will depend on national market rules and utility data access models. For the IoT ecosystem, the more immediate takeaway is **commercial and architectural**: Europe’s smart metering market remains large, but its growth is becoming more segmented, more regional, and more dependent on technology migration choices than the headline penetration figure alone suggests.
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## FAQ
**Q1: How many smart electricity meters were installed in the EU27+3 region by the end of 2025?**
A: Approximately **209 million** smart electricity meters were installed, representing about **two thirds of electricity customers**.
**Q2: What is the expected growth rate of the smart metering market in Europe through 2031?**
A: The installed base is expected to grow at a **compound annual growth rate (CAGR) of 5.1 percent**, reaching **85 percent penetration by 2031**.
**Q3: Which countries are primarily driving first-generation smart meter deployments?**
A: First-generation projects are prominent in **Germany, the UK, Poland, and Greece**, accounting for a significant share of cumulative shipment volumes.
**Q4: What is the forecast for second-generation smart meter activity?**
A: Second-generation replacement cycles are expected to support shipments in mature markets such as **Spain, France, and the Netherlands**, focusing on upgrades and interoperability.
**Q5: Why can’t suppliers treat Europe as a single smart metering market?**
A: Because procurement priorities, cost structures, and deployment challenges differ between early-stage and mature markets, requiring tailored approaches for OEMs and system integrators.
**Q6: What role do LPWA technologies play in European smart metering?**
A: **LTE-M and NB-IoT** are driving the growth of standalone wireless connectivity, expected to represent over **50 percent of annual shipment volumes** through most of the forecast period.
**Q7: Will PLC (Powerline Communications) disappear from European smart metering?**
A: No. PLC remains significant, especially in countries preparing second-generation rollouts, and may be used in upgraded or hybrid configurations to preserve existing investments.
**Q8: How does gas metering compare to electricity metering in Europe?**
A: The smart gas meter installed base is smaller but growing, reaching **48 percent penetration by 2031**, reinforcing the long-term transition of utility infrastructure toward connected devices.
**Q9: What should industrial IoT vendors consider when serving European utilities?**
A: They should support **multi-technology strategies** and be prepared to manage mixed metering estates over long asset lifecycles, rather than simply replacing PLC with cellular solutions.
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## Conclusion
Europe’s smart metering market is entering a new phase defined by **parallel deployment strategies** and **technology migration**. While first-generation meter rollouts continue in Eastern and Southeastern Europe, Western Europe is shifting toward **second-generation replacements** that emphasize **interoperability, system continuity, and communication flexibility**. The rise of **LPWA technologies** alongside enduring **PLC investments** highlights the need for **multi-standard approaches** across the IoT ecosystem. As smart gas metering also expands, connected metering is evolving into a **long-term utility platform** rather than a one-time compliance initiative. For enterprises and IoT providers, understanding these regional and technological nuances will be critical to capitalizing on the evolving opportunities in European smart metering.
