In its report – Prepaid Electric Metering – Pike anticipates the number of prepaid electricity meters shipped worldwide will grow from just over 23 million in 2012 to 33.5 million in 2017. But they say the market will contract over time as utilities shift away from more expensive prepaid meters with a disconnect collar to increasingly rely on less costly smart meters with embedded prepay functionality.

“A number of market forces are contributing to a growing demand for prepaid electric services across the globe,” says Pike senior research analyst Marianne Hedin. “They include recognition of the significant benefits of prepaid programs to consumers and utilities, improved energy efficiency, and technology advances, particularly the advent of smart grid technology and the rollout of Advanced Metering Infrastructure (AMI) and smart meters. Those advances will lead to significant cost reductions for prepaid meters.”

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