Advanced Metering Infrastructure (AMI) Market

Global Advanced Metering Infrastructure Industry Outlook (2022-2032)

The global advanced metering infrastructure (AMI) market is likely to account for a valuation of nearly US$ 7 Bn in the year 2022, expected to expand nearly 2X by the end of 2032, surging at a CAGR of approximately 9%.

Market Size (2022)	US$ 7 Bn
Value CAGR (2022-2032)	9% CAGR
Market Size (2032)	US$ 16.57 Bn
Key Companies Profiled	Aclara Technologies LLC Elster Group GmbH Schneider Electric SE Itron Inc. International Business Machines Corporation Cisco Systems Inc. Eaton Corporation Siemens AG

Advanced metering infrastructure technologies have shown to be highly successful and efficient in dealing with rising power demand, and are now becoming a fundamental element of power grid systems across the world.

Demand for Advanced Metering Infrastructure from 2017 to 2021 Vs Market Forecast from 2022 to 2032

According to Fact.MR- a market research and competitive intelligence provider- advanced metering infrastructure sales surged at a 7% CAGR from 2017 to 2021. Growth in demand can be attributed to factors such as increasing demand for power in urbanizing nations, rapid technological developments in the power industry, and requirement of solutions that adhere to changing regulations by various governments.

During the COVID-19 pandemic, prospects took a temporary backseat. Imposition of strict lockdowns to curb the spread of the novel coronavirus disease led to cessation of all major industrial activity, including power generation and distribution.

Revenue from advanced metering infrastructure is estimated to be around US$ 7 Bn in 2022, and is expected to double in value by the end of the decade. A CAGR of around 9% is anticipated across the forecast period ranging from 2022 to 2032.

Will Latest Innovations in Advanced Metering Infrastructure Benefit the Industry?

In the 21st century, everything is going digital, and the transformation to automated and AI technologies has completely changed the way we manage our tasks. Rapidly exhausting non-renewable resources of energy and rising climate concerns are major issues in the power industry.

Now that these sources are becoming scarce and are depleting, and hence, better management infrastructure is needed. Advanced metering infrastructure solutions and services deliver just that, as they make it very easy to manage, monitor, and transmit data.

Increase in demand for advanced metering infrastructure solutions and services has sped up research & development in this market. Innovations in the power equipment industry are on the rise, and demand for AMI is expected to be met by new innovative solutions that manufacturers and distributors are coming up with to maximize their revenue potential.

How is Demand for Two-way Smart Meters Shaping Up?

Deployment of advanced metering infrastructure solutions is majorly aimed at managing and monitoring energy resources and their utilization. The current AMR (advanced meter reading) technology only allows us to monitor, and comes with certain constraints. AMI-integrated meters are used in developing an effective AMI solution.

These meters are two-way smart meters, and they not only monitor but also allow us to communicate information from either ends, which facilitates real-time data transmission and automatic data collection all over the grid. Meter data management and meter communication infrastructure will also be vital in maximizing the potential of smart meters.

Adoption of smart meter technology is being researched, and many manufacturers of smart meters have been striving to create a standardized design that would comply with government regulations worldwide, so as to maximize their revenue potential in the market.

How Can AMI Aid in Reducing the Power Industry's Carbon Footprint?

The use of sophisticated metering infrastructure analytics will be critical in managing and monitoring smart grids effectively. Because these analytics will provide critical data such as customer consumption trends, identifying anomalous patterns, load forecasting, energy pattern analysis, and much more, it will become more important to use this data to improve the grid. Demand for sophisticated metering infrastructure analytics will rise as a result.

AMI's sophisticated analytical solutions may assist power stations and power plants minimize their carbon footprint by supporting energy-efficient programmes, enhanced outage solutions, effective energy conservation measures, and so on.

Country Wise Analysis

What Potential Does AMI Have in the U.S.?

Through funding received for the Smart Grid Investment Grant (SGIG) program by the American Recovery and Reinvestment Act (ARRA), the U.S. has bolstered its advanced metering infrastructure. Widespread adoption of AMI in newly built homes is expected to drive demand for smart meters in the country.

In the U.S., the number of houses represents the potential market scope for utilities providing gas, and as new homes are being built, sales of smart gas meters are also expected to rise. Manufacturers of smart gas meters in the U.S. are eyeing to cash in this potential as demand increases. A CAGR of 10% is anticipated for the market in the U.S.

Why is the AMI Industry in China Anticipated to Expand Rapidly?

The sheer size of China depicts how huge its industrial as well as residential power requirements are always increasing. The nation’s developments in smart grid technologies have been noteworthy and have made it a global leader in the power industry. Strong government support and significant investment backing have been majorly driving market growth in China.

Implementation of 5G technologies is expected to further boost growth and bolster its smart grid infrastructure. The AMI industry in China is expected to expand at an impressive CAGR of nearly 11% over the decade. As a result, demand for AMI program management and consulting is also expected to see some major growth.

Category Wise Insights

Why are Smart Electric Meters Highly Sought-after across Regions?

Popularity of smart electric meters is increasing and demand for the deployment of these meters is expected to rise rapidly as more smart grids are formed and developed. Emerging economies such as India have also increased their smart meter deployment over the past couple of years, and aim to rollout 250 Mn smart meters by the end of 2025.

With features such as meter data analytics and bi-directional communication capabilities, smart electric meters seem the perfect solution to manage the advanced power infrastructure needs of the digital world.

Why are Sales of Smart Gas Meters Gaining Momentum?

The world is moving in a new direction of digitization and sustainable solutions. Use of gas to power vehicles and for residential purposes has increased as urbanization paces in many regions. Innovative and safe solutions to monitor gas consumption are being researched by many manufacturers, and some have been very successful.

For instance, NICIGAS’ new Space Hotaru solution is a step in digitizing data collection from smart gas meters. The solution is currently being deployed in Japan, and is changing the way gas consumption is monitored in real time.

Unique solutions and increasing demand for gas has pushed manufacturers and distributors to create effective, yet easy-to-deploy smart gas meters and solutions.

Competitive Landscape

The worldwide advanced metering infrastructure market is highly fragmented. AMI's key providers spend in R&D to offer effective and efficient solutions that are consistent with rules and maximize income possibilities. Aside from that, firms are pursuing growth initiatives such as capacity expansion, collaborations, distribution agreements, and mergers in order to increase market share and sales income.

• NICIGAS is a liquefied petroleum gas (LPG), city gas, and power business. The business devised a one-of-a-kind technique for digitizing data collecting from various smart meters in Japan. A Network Controlling Unit (NCU) in Space Hotarus gives direct consumption data to the company's IoT data platform, NICIGAS Stream.

Key Segments Covered in Advanced Metering Infrastructure Industry Report

• Device

  • Smart Gas Meters
  • Smart Water Meters
  • Smart Electric Meters