Global Advanced Metering Infrastructure Market - 2023-2030

Overview

Global Advanced Metering Infrastructure Market reached US$ 21.4 billion in 2022 and is expected to reach US$ 54.1 billion by 2030, growing with a CAGR of 12.4% during the forecast period 2023-2030.

Advanced metering infrastructure is expected to be driven by growing new advancements and innovations, cutting-edge technologies are reshaping the way energy is generated, consumed and managed across the grid, contributing to the ongoing transition towards net-zero energy systems. Technologies like AMI 2.0 systems feature smart devices equipped with edge-computing capabilities, allowing real-time monitoring of energy generation and consumption.

Smart meters collect power measurements and communicate via networks like cellular networks or powerline communications, with software systems processing and delivering data as actionable insights. Companies like Landis + Gyr are introducing IoT-enabled meters that offer advanced metering and edge intelligence, supporting grid maintenance and efficiency. Other companies like Itron are incorporating next-generation meters and analytics capable of providing unprecedented visibility and control in the grid.

North America is the largest region in the advanced metering infrastructure market as the countries witnessing major growth in advanced metering infrastructure installations which reflects the increasing adoption of smart meters in the energy sector. The U.S. electric utilities have made significant strides in the deployment of AMI technologies, contributing to a more efficient and data-driven energy system.

According to a report by the Environmental Protection Agency, many water utilities in U.S. are currently transitioning to complete Advanced Metering Infrastructure deployment. The technology offers the capability to provide nearly real-time consumption data and personalized feedback to consumers. As a result, AMI holds the potential to assist consumers in achieving substantial water conservation.

Dynamics

AMI Market Driven by Smart Technology: Providing Energy Efficiency

The advanced metering infrastructure market is expected to be driven by growing demand for energy efficiency worldwide as smart technology enables utilities to optimize energy consumption, enhance grid management and achieve significant cost savings. Advanced meters enable consumers to monitor their energy usage in real time through online portals or mobile apps. The engagement fosters awareness and encourages consumers to adopt energy-efficient practices, further contributing to reduced energy consumption.

Honeywell has launched a carbon and energy management solution aimed at tracking building emissions and optimizing energy usage. Developed by Honeywell engineers in India, this cloud-based service is part of the Honeywell Forge platform for data, analytics and IoT capabilities. It enables building owners to account for carbon emissions down to a device level and achieve greater sustainability across their enterprises. The system utilizes smart meters, sensors and utility data to analyze energy consumption and emissions By Technology of utility. It considers factors such as occupancy, weather and real-time utility rates to provide insights into energy use and carbon footprint.

Government Initiatives Drive Advanced Metering Infrastructure Adoption

The advanced metering infrastructure market is expected to be driven by government efforts, regulatory frameworks, incentives and long-term energy strategies to promote the adoption of advanced metering infrastructure. Many countries have introduced regulatory mandates that require utilities to integrate smart meters to a certain percentage of their customers within a specified timeframe. These mandates often come with specific targets for AMI penetration and are backed by penalties for non-compliance.

The Indian government launched initiatives such as the "Smart Meter National Programme" to accelerate the implementation of smart meters all across the country. The program aims to replace conventional meters with smart meters in a phased manner, with the goal of improving billing accuracy, reducing losses and enabling demand-side management. Also, European Union's Third Energy Package requires member states to implement smart metering and sets a target of 80% market penetration for electricity by 2020 transforming Europe's advanced metering infrastructure.

Cost Challenges in AMI Deployment Impact Market Growth

High cost of installation, configuration and customization of AMI metering and communications systems incur significant impacting the advanced metering infrastructure market. Ameren Illinois estimates that the capital costs incurred due to full AMI deployment within an 8-year timeframe would amount to approximately $129 million over a 20-year period. The initial investment required for deployment can be a deterrent, especially for smaller utilities or those with limited budgets.

Installing AMI meters is a complex process involving various steps which makes it a high-cost project. The high installation costs can lead to a slower rate of adoption of AMI systems. The high costs of AMI deployment can potentially lead to increased utility bills for consumers, as these costs might be passed on to them. The consumer impact could create resistance to AMI adoption, especially if the perceived benefits aren't communicated effectively.

Segment Analysis

The global advanced metering infrastructure market is segmented based on technology, service, end-user and region.

Smart Electricity Meters Drive Global Smart Grid Expansion

Smart electricity meters hold the largest market share and experiencing significant growth worldwide as countries embrace the implementation of smart grids. The expansion of smart electricity metering infrastructure is evident through initiatives undertaken by various countries and organizations. The global push towards smart grids and AMI technology has led to a surge in smart meter installations. Many countries worldwide are working to connect households, factories, production plants and other end-users to smart grids, resulting in an increased demand for suitable hardware like smart meters.

GMR Power Corporation Limited, a subsidiary of GMR Infrastructure, is set to deploy smart meters across multiple locations in Uttar Pradesh, India. The initiative is aimed to enhance the accuracy of meter readings, optimize energy distribution and enable consumers to better understand and manage their energy consumption. The project is expected to improve the overall efficiency of the electricity distribution system in Uttar Pradesh by enabling real-time data collection and communication between consumers and utilities.

Geographical Penetration

North America's Leading Role in Advanced Metering Infrastructure

North America is the largest region in the advanced metering infrastructure market, witnessed a significant increase in AMI installations driven by the adoption of smart meters, advanced technologies and policies promoting grid modernization. The growth of AMI installations is getting support from state policies and initiatives that promote the adoption of smart meters and grid modernization. The efforts significantly lead to the implementation of AMI technologies in residential sectors and also in commercial and industrial sectors.

Furthermore, The U.S. Energy Information Administration reported that there were approximately 111 million AMI installations in U.S. in 2021, accounting for about 69% of total electric meter installations. It indicates a substantial shift towards AMI technology adoption. Notably, residential customers played a significant role in driving this growth, constituting about 88% of the total AMI installations.

Competitive Landscape

The major global players in the market include: Itron, Inc., Landis + Gyr, Sensus (Xylem Inc.), Elster Group (owned by Honeywell), Siemens AG, Kamstrup, Badger Meter, Inc., Schneider Electric, Aclara Technologies and Trilliant.

COVID-19 Impact Analysis

COVID-19 made a significant impact on advanced metering infrastructure market as utilities faced disruptions as commercial and industrial operations shut down and load patterns changed. AMI played a crucial role in helping utilities maintain a steady revenue stream. With its ability to facilitate meter-to-cash transactions and over-the-air reads for billing, AMI reduced the need for physical contact between utility employees and customers.

As lockdowns and social distancing measures were enforced to mitigate the spread of the virus, the traditional meter reading process faced limitations due to the restricted access to premises and the need to minimize physical contact. In this context, AMI technology played a vital role by enabling utilities to remotely collect consumption data, ensuring accurate and timely billing without the need for in-person interactions.

Russia-Ukraine War Impact

The Russia-Ukraine war made a significant impact on advanced metering infrastructure market with disruptions in supply chains, economic uncertainties leading to delayed investment decisions by utility companies considering AMI implementations and possible resource diversion away from technology projects due to shifting priorities caused by the conflict. While the conflict's direct impact remains limited, escalating tensions might lead to further economic uncertainties affecting technology investment decisions in the utility sector.

The market has been affected by geopolitical tension and changes in international collaborations mainly in Europe which is due to strained diplomatic relations and indirectly influences AMI technology development and implementation. Also, any significant shifts in energy supplies and infrastructure could indirectly alter the priorities and operations of utility companies, including their approach to AMI projects.

By Technology

• Smart Electricity Meters
• Smart Water Meters
• Smart Gas Meters
• Data Concentrators
• Others

By Service

• System Integration
• Meter Deployment
• Program Management and Consulting

By End-User

• Residential
• Industrial
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In July 2022, Trilliant announced the initiation of its manufacturing operations in Malaysia, which marked a strategic move to enhance its presence and capabilities in the region. In collaboration with SAMART, aimed at deploying Advanced Metering Infrastructure (AMI) solutions for the Provincial Electricity Authority of Thailand (PEA). The partnership was set to bring advanced metering technology to Thailand's energy sector, contributing to improved efficiency and better management of electricity distribution.
• In March 2023, IntelliSmart Infrastructure, a joint venture between Energy Efficiency Services and the government-backed National Infrastructure Investment Fund, introduced INSTINCT 3.0, an initiative aimed at fostering innovation within the smart metering sector. The initiative sought to encourage collaboration among various stakeholders in order to commercialize innovative ideas that could collectively enhance the smart metering industry and the broader power sector.
• In July 2023, Indian smart metering leader Genus Power & Infrastructures announced a significant development in collaboration with Gem View Investment, an affiliate of Singapore-based GIC. Together, they unveiled a joint venture agreement to establish a funding platform dedicated to smart meter projects. The platform is expected to have an initial pipeline worth $2 billion.

Why Purchase the Report?

• To visualize the global advanced metering infrastructure market segmentation based on technology, service, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of cement market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global advanced metering infrastructure market report would provide approximately 53 tables, 50 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies