Advanced metering infrastructure (AMI) is an integrated system of smart meters, communications networks, and data management systems that allows utilities and consumers to communicate in both directions. The system enables the automatic and remote measurement of power consumption, the connection and disconnection of service, the detection of tampering, the identification and isolation of outages, and the monitoring of voltage, which were previously impossible or required manual intervention. In addition to conserving energy sources and other utility stations, advanced metering infrastructure reduces their carbon footprint by supporting energy-saving programs and improving outage management services, enhancing the overall market environment.
Numerous industrialized and developing nations face energy efficiency issues. In a global assessment conducted by the American Council for an energy-efficient economy, 16 countries, which account for over 71% of global energy use, scored lower than 70. These nations are also responsible for the majority of carbon emissions. Thus, countries worldwide are concentrating on reducing their emissions by utilizing renewable energy sources and adopting smart metering systems and other technologies to increase the network's efficiency.
Using smart metering systems and smart grids gives ways to reduce energy waste in the industrial sector. Using smart metering systems at numerous grid nodes, the implementation of smart metering systems enables energy suppliers to monitor electricity consumption continuously. Hence, due to the United Nations' climate goal and related energy-saving efforts, it is anticipated that the number of smart meters will increase dramatically throughout the forecast period. Thus, the requirement to improve operational efficiency and reduce power losses is expected to generate market opportunities.
Competition is intensifying for utility firms, and as a result, intelligent decision-making is becoming vital. Hence, the market for advanced metering infrastructure (AMI) is projected to expand over the forecast period as it lets utilities react to changing customer demands, such as the widespread adoption of distributed energy and electric vehicles.
In addition, the next generation of utility networks will include AMI, powered by Edge computing, over 5G networks with scalable, elastic IoT cloud capabilities, enabling advanced streaming analytics to digest and process usage data and millions of messages in real-time to assess grid conditions. These advancements in data analytics, AI, and communications facilitate the acceleration of grid modernization, the creation of new value areas for utility operations, and transformation of the customer experience.
Asia-Pacific accounts for the largest market share and is estimated to grow at a CAGR of 14.5% over the forecast period. India is anticipated to become a significant player in the Asian market due to the recent implementation of a coordinated ASR procurement and financing process. By 2023, it is expected that the country will surpass Japan as the second-largest ASR market in Asia. The Indian government is also supporting smart grids that might provide consumers with affordability and other benefits. Implementation of Advanced Metering Infrastructure is the first step towards achieving Smart Grids (AMI). Utilizing smart meters, communication networks, meter data gathering systems, and meter data management systems are all components of the ASR. In addition, the nation is enhancing its smart grid infrastructure to combat an out-of-control electricity theft problem and increase reliability. These factors lead to the expansion of the market.
Europe is estimated to reach USD 6.4 billion by 2030, growing at a CAGR of 13.7%. Europe has the greatest working population in the world, which demands a sustainable infrastructure. Government agencies around Europe are providing regulatory requirements and legislative directions concerning the building of smart grids and the implementation of smart meters. Additionally, the regional market players are capturing several growth opportunities to expand their market presence by forming strategic partnerships or collaborations. For instance, Itron, Inc. collaborated with EDSR Limited, a global smart metering solutions provider, to develop and launch a SMETS2-compliant gas meter for the United Kingdom.
North America is the third-largest region. Favorable government initiatives and rising government investments in implementing smart meters drive the market's expansion. In conjunction with the implementation of smart meter infrastructure, the American Recovery and Reinvestment Act (ARRA), which included money for the Smart Grid Investment Grant (SGIG) program, has been the greatest driver of the smart meter market in the United States. In addition, Canada has witnessed the widespread use of smart electricity meters since the government mandate was implemented more than five years ago with the primary objective of reducing peak-time demands. Therefore, increased demand and stringent regulations encourage end-users to adopt smart meters.
Competitive Landscape
Key players in the global advanced metering infrastructure market are Itron Inc., IBM Corporation, Landis+Gyr, Sensus Solutions, Siemens AG, Tieto Corporation, Cisco Systems Inc., Mueller Systems LLC, Aclara Technologies LLC, Trilliant Inc., Schneider Electric SE, and Honeywell International Inc.