New research from Scottsdale, Arizona-based In-Stat (News - Alert) finds that, worldwide, smart meter revenues will eclipse $12 billion by 2016, the vast majority ZigBee-enabled. However, the research firm stated, while installations will increase globally during the next five years, the number of smart meters deployed in the United States per year will decrease after peaking in 2011.

There are two types of communications technology that smart meters employ:

1)      Home area networking (HAN) technology, used to send usage information into the home for monitoring and potential control, and

2)      Backhaul technology, which sends meter usage information back to the utility, so the customer can be billed.

According to the report,Getting Smart on Worldwide Smart Meter Communication Technology, currently ZigBee Smart Energy is the world's leading standard for interoperable products that monitor, control, inform, and automate the delivery and use of energy and water.

“ZigBee has been considered the front-running short range connectivity option for smart grid since its inception, and has maintained its position so far. While the number of ZigBee clients in homes to date is relatively small, In-Stat believes that ZigBee will maintain its dominance,” said Research Director Allen Nogee.

“Although Wi-Fi is pervasive, it has not been a viable choice for the smart grid because the application layers have never existed for Wi-Fi that explain exactly how Wi-Fi devices interact,” he opined  “That will all change with the passage of the IP-based Smart Energy Profile 2.0, expected late in 2012.”

HomePlug Powerline Alliance  is the clear leader in backhaul connectivity from the meter to the utility.  “However,” according to In-Stat, “We are seeing an increasing number of wireless solutions including cellular, white space, and proprietary methods that would use unlicensed and operate in mesh configuration. “

In addition to an analysis of current interoperability standards for HANs and backhaul, the report includes a smart meter five-year forecast, case studies of recent projects, and profiles of smart meter/smart grid companies.