Advanced Metering Infrastructure (AMI) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 17.46 Billion |
| Market Size (2029) | USD 31.82 Billion |
| CAGR (2024 - 2029) | 12.76 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Advanced Metering Infrastructure (AMI) Market Analysis
The Advanced Metering Infrastructure Market size is estimated at USD 17.46 billion in 2024, and is expected to reach USD 31.82 billion by 2029, growing at a CAGR of 12.76% during the forecast period (2024-2029).
Smart meters represent a transformative technology for the utility industry. These technologically advanced meters provide greater insight into the usage of energy. Smart meters have been employed as a part of advanced metering infrastructure development initiatives around the world.
- Developing an integrated and IT-enabled power grid and other support software to analyze the patterns provides significant benefits to the user. Such a grid, known as a "smart grid," supports the expansion of distributed production, lowers costs, promotes energy efficiency, and improves the reliability and security of the entire production, transmission, and distribution system. AMI is a vital part of any smart grid initiative. Government agencies and utilities are turning toward AMI systems as part of larger "smart grid" initiatives.
- Smart meter pilot projects are also being launched in European nations like France and the U.K. In the EU, approximately 225 million smart meters for electricity and 51 million for gas will be installed by 2024, according to a study by the European Commission. By 2024, it is anticipated that 44% of European consumers will have smart gas meters, and 77% of them will have smart electric meters.
- The COVID-19 outbreak, on the other hand, had a positive impact on market growth because the energy and utility sectors provide essential services that have forced the sector to rethink how their operations are carried out and how they engage with both their employees and their customers. While the COVID-19 pandemic affected nearly every other aspect, the need to maintain a secure grid remains at the forefront of priorities for utilities. AMI has helped utilities maintain their revenue flow and manage various remote operations during the pandemic.
- Expanding, modernizing, and decentralizing the electricity infrastructure to make it more reliable, as well as planned investments from groups like the World Economic Forum, which has set aside USD 7.6 trillion for smart grids over the next 25 years, are expected to change the way many markets work around the world.
- For the global energy sector to achieve net-zero carbon emissions by 2050, it is estimated that investment in electricity grids must average about USD 600 billion annually through 2030. Therefore, innovation will involve a variety of public and private organizations working together to advance common energy goals. This vision is currently being implemented in Europe. Eight major electric utility providers have formed the Edge for Smart Secondary Substation Alliance (E4S), a partnership with which Intel and other businesses are collaborating to create a smart grid.
- Moreover, Advanced Metering Infrastructure (AMI) communications networks are driven by the need for low-bandwidth, low-cost, delay-insensitive metering. Both the network and the communications module in each meter must be as low-cost as possible. In the early days of AMI, narrow-band power-line communication (PLC) and RF-mesh were the main communication technologies that pushed the use of AMI. As communication technology has developed, newer technologies, like broadband PLC and low-power wide-area networks (LPWAN), have become bigger trends.
- Although AMI has many advantages, implementing it is difficult due to standardization, high upfront costs, and integration with other grid systems. This raises the price of smart metering hardware. Additionally, based on operational needs and consumer demands, various smart meters are designed with additional parameters, which raises their cost. While investing in new technology, managing budgets or securing additional funding is difficult, and the ROI must be precise.
Advanced Metering Infrastructure (AMI) Market Trends
This section covers the major market trends shaping the Advanced Metering Infrastructure Market according to our research experts:
Smart Metering Devices Will have the Significant Market Share
- Smart metering solutions include meters or modules with communication capabilities (either unidirectional or bidirectional) embedded within the meter or attached to the meter. Smart meters are becoming more popular because they allow two-way communication between the meter and the central system used by utilities. This is because the main concern is that people are using more energy.
- Smart meters are increasingly being adopted for multiple deployments, such as gas, electricity, and water, due to their two-way communication feature, which enables real-time monitoring of utility usage by both the utility supplier and consumer and also encourages the start, reading, and cutting off of supply remotely by the supplier. Smart meter deployment also enables the implementation of a home energy management system (HEMS) or building energy management system (BEMS) that allows visualization of the electric power usage in individual homes or entire buildings.
- To increase the effectiveness of power networks, governments worldwide are investing billions of dollars in installing smart grids and smart meters. Additionally, numerous fresh smart city initiatives are continuously being introduced globally. Such factors will raise the demand for smart meters globally.
- In order to create a cleaner and more effective energy system, nations like China and India are constantly installing smart meters in residential and commercial structures. Governments are starting a number of new initiatives to promote the use of smart meters. For instance, the Revamped Distribution Sector Scheme (RDSS), which was introduced by the Indian government in 2021, calls for the deployment of 25 crore smart prepaid meters by the end of March 2025. Asian countries are positioning themselves to move forward with the adoption of smart meters.
- Additionally, according to Mercom Capital, the state of Uttar Pradesh in India had the most smart meters installed nationwide in January 2022, with over 1.15 million of them. Bihar and Rajasthan came after this. Energy Efficiency Services Limited, a joint venture company established by various public power distribution companies in the nation, took on the installation of smart meters. Such a rapid pace for the installation of smart meters across the Asian region will boost market growth.
In the future, developments in software and cloud computing, rising investments in digitalizing grid systems, a growing need to deal with energy waste, and more people using the internet of things are all expected to help the market grow.
North America Region is Expected to Grow at Significant Pace
- North America is expected to hold a prominent share in the Advanced Metering Infrastructure (AMI) market due to the rapid adoption of smart metering in the region. Favorable government initiatives and increasing government investments in smart meter deployment across regions drive market growth.The United States is the key country in the region, driving the smart meter market through the American Recovery and Reinvestment Act (ARRA) and the Smart Grid Investment Grant (SGIG) program.
- In the United States, the number of houses represents the market potential for gas-enabled utilities. As more new houses are built, a growing proportion of homes will have smart meters installed as part of the AMI program, which continues its widespread adoption. According to the US Energy Information Administration (EIA), over 111 million advanced meters were installed in the US as of 2021. The nation has been steadily increasing the scope of its advanced metering infrastructure. It is also expected to increase in the near future.
- Further, Canada has also witnessed the large-scale incorporation of smart electricity meters after the governmental mandate was introduced more than five years ago with the prime motive of reducing peak-time loads. Thus, increasing demand and stringent regulations are stimulating the adoption of smart meters among end users.
- Along with leveraging smart electric meters for energy efficiency, targeted programs for end users are likely to benefit.As per the American Council for an Energy-Efficient Economy (ACEEE), Pacific Gas & Electric in the United States reported that AMI targeting for a home retrofit program delivered 3.5 times more energy savings in the targeted homes. Additionally, the integration of smart electric meters with technologies such as data analytics is expected to further foster the growth of the market in the region.
- Moreover, in April 2021, Aclara Technologies LLC, US, announced that Austin Utilities would implement an end-to-end advanced metering infrastructure solution based on the Aclara RF network to serve its electric, gas, and water customers. The point-to-multipoint AMI network replaces a manual meter-reading system and supports 12,000 electric, 9,500 water, and 11,000 gas meters for the combination utility.
- Also in 2021, Calaveras County Water District partnered with Mueller Systems for the deployment of an advanced metering infrastructure (AMI) network. It will cover 1,000 square miles with 13,000 AMI endpoints. The project replaces most of the district's meters and adds communication capabilities to all meters. Calaveras County Water District provides water service to over 13,000 municipal, residential, and commercial customers in six service areas throughout the county.
Advanced Metering Infrastructure (AMI) Industry Overview
The advanced metering infrastructure market is highly fragmented. The development of integrated and IT-enabled power grids and other support software to analyze the patterns, the increase in the use of smart meters and water metering solutions, and digitization initiatives across regions provide lucrative opportunities in the advanced metering infrastructure market. Overall, the competitive rivalry among existing competitors is high.
In December 2022, Siemens will be awarded a new contract to establish a distribution management system and advanced metering infrastructure for North Delta Electricity Distribution Company. Additionally, the control centers aim to enhance the efficiency, quality, and stability of the power supply by implementing the most advanced IT applications and intelligent systems to ensure smart grid management.
In December 2022, ESB Networks will choose Trilliant Networks Operations (UK) Ltd., a division of the leading global provider of solutions for advanced metering infrastructure (AMI), the smart grid, smart cities, and the Internet of Things (IIoT), as one of the suppliers to provide smart meters in support of the implementation of Ireland's National Smart Metering Programme. Customers will find it simpler to manage their energy use, save money, and reduce their carbon footprint thanks to the program.
Advanced Metering Infrastructure (AMI) Market Leaders
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Itron Inc.
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IBM Corporation
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Siemens AG
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Schneider Electric SE
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Honeywell International Inc.
*Disclaimer: Major Players sorted in no particular order
Advanced Metering Infrastructure (AMI) Market News
- November 2022: Renesas Electronics Corp., a provider of smart meter solutions, has begun utilizing NanoLock Security, a solution that provides zero-trust meter-level cyber security protection for smart meter products. With the help of this new solution, Renesas' clients, especially those smart meter manufacturers, can quickly develop a product that is safe from all attack vectors, including insider manipulation and human error, without delaying the time to market or meter operations.
- October 2022: The Linux Foundation (LF) Energy has announced the Super Advanced Meter (SAM), which focuses on a widely applicable smart meter data gateway. The new software is expected to hasten both the energy transition and the transformation of the meter into a reliable virtual node in the energy grid. The main objective of the project is a broadly applicable smart meter data gateway. It is aimed at the central device, which serves as the edge device to deliver services to customers worldwide.
Advanced Metering Infrastructure (AMI) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porters Five Forces Analysis
- 4.2.1 Threat of New Entrants
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Bargaining Power of Suppliers
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Impact of COVID-19 on the market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Shift Toward Energy Efficient/Saving Alternatives
- 5.1.2 Favorable Governmental Initiatives Driving Adoption
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5.2 Market Challenges
- 5.2.1 High Initial Costs
6. MARKET SEGMENTATION
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6.1 Type
- 6.1.1 Smart Metering Devices (Electricity, Water, and Gas)
- 6.1.2 Solution
- 6.1.2.1 Meter Communication Infrastructure (Solution)
- 6.1.2.2 Software
- 6.1.2.2.1 Meter Data Management
- 6.1.2.2.2 Meter Data Analytics
- 6.1.2.2.3 Other Software Types
- 6.1.3 Services (Professional - Program Management, Deployment and Consulting and Managed)
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6.2 End-user
- 6.2.1 Residential
- 6.2.2 Commercial
- 6.2.3 Industrial
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6.3 Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Itron Inc.
- 7.1.2 IBM Corporation
- 7.1.3 Landis+Gyr
- 7.1.4 Sensus Solutions
- 7.1.5 Siemens AG
- 7.1.6 Tieto Corporation
- 7.1.7 Aclara Technologies LLC
- 7.1.8 Cisco Systems Inc.
- 7.1.9 Mueller Systems LLC
- 7.1.10 Trilliant Inc.
- 7.1.11 Schneider Electric SE
- 7.1.12 Honeywell International Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Advanced Metering Infrastructure (AMI) Industry Segmentation
Advanced Metering Infrastructure (AMI) helps with two-way communications and provides system operators with an IT-enabled interface with residential and commercial consumers. Curtailing energy theft is another strong motivator for adopting smart grid technology and AMI. AMI offers a variety of devices and services, including smart meters, meter communication infrastructure, and data management, which are used in the residential, commercial, and industrial sectors.
The advanced metering infrastructure market is segmented by type (smart metering devices, solutions, and services), end-user (residential, commercial, and industrial), and geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| Type | Smart Metering Devices (Electricity, Water, and Gas) | ||
| Solution | Meter Communication Infrastructure (Solution) | ||
| Software | Meter Data Management | ||
| Meter Data Analytics | |||
| Other Software Types | |||
| Services (Professional - Program Management, Deployment and Consulting and Managed) | |||
| End-user | Residential | ||
| Commercial | |||
| Industrial | |||
| Geography | North America | ||
| Europe | |||
| Asia Pacific | |||
| Latin America | |||
| Middle East and Africa |
Advanced Metering Infrastructure (AMI) Market Research FAQs
How big is the Advanced Metering Infrastructure Market?
The Advanced Metering Infrastructure Market size is expected to reach USD 17.46 billion in 2024 and grow at a CAGR of 12.76% to reach USD 31.82 billion by 2029.
What is the current Advanced Metering Infrastructure Market size?
In 2024, the Advanced Metering Infrastructure Market size is expected to reach USD 17.46 billion.
Who are the key players in Advanced Metering Infrastructure Market?
Itron Inc., IBM Corporation, Siemens AG, Schneider Electric SE and Honeywell International Inc. are the major companies operating in the Advanced Metering Infrastructure Market.
Which is the fastest growing region in Advanced Metering Infrastructure Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Advanced Metering Infrastructure Market?
In 2024, the Asia-Pacific accounts for the largest market share in Advanced Metering Infrastructure Market.
What years does this Advanced Metering Infrastructure Market cover, and what was the market size in 2023?
In 2023, the Advanced Metering Infrastructure Market size was estimated at USD 15.48 billion. The report covers the Advanced Metering Infrastructure Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Advanced Metering Infrastructure Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Advanced Metering Infrastructure Industry Report
Statistics for the 2024 Advanced Metering Infrastructure market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Advanced Metering Infrastructure analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
