Global Advanced Metering Infrastructure Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Advanced Metering Infrastructure Market Growth

The introduction of disruptive technologies such as IoT and linked devices has expanded the scope of the advanced metering infrastructure industry. Innovative techniques to control and anticipate energy use have emerged as a result of the proliferation of linked devices such as home gateways, smart meters, and smart plugs. The increasing convergence of IoT and smart grid is expected to create significant potential for the growth of the advanced metering infrastructure market. With the integration of AMI technologies into the current system, there has been major improvements in smart grid optimisation. In addition, the grid modernisation projects, increased demand for energy saving, and the execution of regulatory obligations are all likely to have a positive influence on the market. Over the projected period, the advanced metering infrastructure industry is predicted to develop significantly.

It also increases client engagement activities through two-way communication and facilitates non-technical loss identification and operational cost reduction. Additionally, leveraging two-way radio frequency (RF) networks with high-quality services is expected to provide a boost to green technology, which is estimated to further lead to rise in the market for advanced metering infrastructure.

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Advanced Metering Infrastructure Market Trends

The increasing emphasis on resource conservation is leading to the implementation of stringent government regulations governing the use of water, electricity, and gas. In addition, the improvements in metering technology are expected to bolster the adoption rate of advanced metering infrastructure over the time period.

The necessity to reduce manual meter reading and meter reading equipment usage is a major factor affecting the demand of advanced metering infrastructure market. Furthermore, the widespread use of advanced metering infrastructure, owing to its various benefits for customers and utilities is expected to support the growth of the industry.

Recent Developments

Genus Power Infrastructures Ltd announced that its subsidiary has obtained letters of award for smart meter projects worth Rs 4,469.04 crore. The subsidiary has secured three Letters of Award (LOA) amounting to Rs 4,469.04 crore (net of taxes) for the role of Advanced Metering Infrastructure Service Providers, which can affect the advanced metering infrastructure market dynamics and trends. This includes the design of an advanced metering infrastructure (AMI) system, along with the supply, installation, and commissioning of approximately 5.59 million smart prepaid meters, system meters, and distribution transformer meters, along with the associated energy accounting, all structured on a Design-Build Finance-Own-Operate-Transfer basis.

Industry Outlook

Rising Adoption of Smart Metering Solutions.

In 2024, North America leads global smart electricity meter adoption with a 77% adoption rate. As per the advanced metering infrastructure industry analysis, this dominance indicates a mature market with widespread integration of Advanced Metering Infrastructure (AMI), driven by strong regulatory frameworks and the push for smart grid modernisation. Asia-Pacific (APAC) follows with a 49% adoption rate, reflecting the region's rapid urbanization and increasing investments in smart city initiatives.

The growth in APAC suggests a significant expansion opportunity for AMI providers, especially in emerging economies where electricity demand is rising, which can contribute to the growth of the advanced metering infrastructure industry. Europe, with a 47% adoption rate, lags slightly behind APAC. This indicates a more gradual adoption pace, possibly due to varying regulations across the continent and differing levels of infrastructure readiness. However, Europe's focus on sustainability and energy efficiency could accelerate AMI deployment in the coming years.

Moreover, Fort Worth Water's adoption of Advanced Metering Infrastructure (AMI) has resulted in a significant 90% decrease in field investigations, alongside cost savings exceeding USD 1 million, facilitated by Xylem technology. The utility has achieved near real-time data collection and secure transmission through the installation of nearly 300,000 residential and commercial meters that are compatible with Xylem’s Sensus FlexNet® communication network, which can boost the advanced metering infrastructure industry revenue. As one of the USA’s fastest growing cities, Fort Worth welcomed over 21,000 new residents in 2023, as reported by the Fort Worth Report. With the population approaching 1 million, the AMI system implemented by Fort Worth Water is essential for effectively managing the rising demand.

Regulatory Support, Improved Efficiency, and Enhanced Customer Engagement Support the Growth of the Market.

• AMI systems enable real-time monitoring and data collection, leading to enhanced operational efficiency and reduced operational costs.
• Governments globally are mandating the adoption of smart meters and AMI for better energy management and conservation.
• AMI provides detailed usage information to consumers, allowing them to manage and reduce their energy consumption, which can boost advanced metering infrastructure demand.

Technological Obsolescence, High Initial Costs, and Data Security Concerns Can Challenge Market Growth.

• Rapid advancements in technology may render existing AMI systems outdated, requiring further investment.
• The deployment of AMI involves significant capital investment in infrastructure, software, and installation.
• The vast amount of data generated by AMI systems poses risks related to data breaches and cyber-attacks.
• Different vendors may offer AMI systems that are not fully compatible with each other, creating integration challenges and impacting advanced metering infrastructure demand forecast.

Integration with Renewable Energy Systems, Rising Smart City Initiatives, and Technological Advancements Provide Opportunities to the Advanced Metering Infrastructure Market.

• AMI systems can be integrated with renewable energy sources to optimise energy distribution and usage.
• As smart city projects expand globally, the demand for AMI systems is expected to increase. 
• Innovations in AI, IoT, and data analytics can enhance the functionality and efficiency of AMI systems.

Competitive Factors in the Global Advanced Metering Infrastructure Market.

• Companies that continuously innovate in terms of smart meter technology, communication networks, and data analytics capabilities can gain a competitive edge, boosting advanced metering infrastructure demand growth.
• Firms offering cutting-edge solutions with enhanced features like real-time data processing, AI integration, and cybersecurity are better positioned to capture market share.
• Companies that can quickly adapt to regulatory changes, particularly those related to data security, privacy, and energy efficiency, have a competitive advantage. 
• Strong customer support and after-sales services, including maintenance, troubleshooting, and software updates, are key differentiators in the AMI market. 
• Forming strategic alliances with technology providers, utility companies, and government agencies can significantly enhance a company’s market position. 
• Companies with a global presence or a strong foothold in key markets (e.g., North America, Europe, Asia-Pacific) are more competitive. 
• Companies that can offer competitive pricing without compromising on quality, often through economies of scale or efficient manufacturing processes, are better positioned to win contracts and expand their customer base.
• Established companies with a strong brand reputation in the market tend to have a competitive edge, which can increase advanced metering infrastructure market revenue.
• Companies that incorporate sustainability into their business models, such as reducing the carbon footprint of their manufacturing processes or developing energy-efficient products, appeal to environmentally conscious customers and stakeholders.

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Advanced Metering Infrastructure Industry Segmentations

Advanced metering infrastructure (AMI) is a system of equipment that enables automatic, two-way communication between a smart utility meter with an IP address and a utility company. An AMI's objective is to give utility providers with real-time data on power consumption and to enable consumers to make educated decisions about energy usage based on the price at the time of use.

The major types of advanced metering infrastructure are:

• Smart Meters
• Meter Communication Infrastructure
• Data Management
• Services

The market can be broadly categorised, on the basis of end use, into:

• Residential
• Commercial
• Industrial

The EMR report looks into the regional markets of advanced metering infrastructure such as:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa

Advanced Metering Infrastructure Market Share

The demand for advanced metering infrastructure (AMI) in residential sector is expected to grow at a CAGR of 15.9% in the forecast period, increasing advanced metering infrastructure market opportunities. AMI includes smart meters that provide real-time data on electricity usage. Households can track and adjust their energy use, helping them save on utility bills and reduce environmental impact.

With AMI, utility companies can monitor energy usage remotely, detect outages faster, and manage demand more efficiently. This technology minimises the need for manual meter reading, which is a big plus for both utility providers and residents.

Competitive Landscape

The report presents a detailed analysis of the following key players in the global advanced metering infrastructure market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Itron Inc.
• IBM Corporation
• Landis+Gyr
• Sensus Solutions
• Siemens AG
• Others

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Advanced Metering Infrastructure Market Regional Insights

North America accounts for a significant advanced metering infrastructure market share with substantial investments in smart grid technologies. The US market is expected to grow at a CAGR of 12.7% in the forecast period. The U.S. and Canada have implemented numerous AMI projects to enhance energy efficiency and grid reliability. For instance, the U.S. has seen a steady increase in smart meter installations, contributing to improved energy management.

European countries are actively deploying AMI systems as part of broader smart grid initiatives. The market in countries such as the UK and Italy is expected to grow at a CAGR of  13.0% and 10.0% between 2024 and 2032. The European Union aimed to replace 80% of traditional electricity meters with smart meters by 2021.

Key Price Indicators of the Global Advanced Metering Infrastructure Market.

• The price of AMI systems is heavily influenced by the cost of key components such as smart meters, communication networks, and data management software. 
• Advancements in technology can lead to more cost-effective solutions, thereby reducing the overall price of AMI systems, which can affect advanced metering infrastructure market value.  
• The level of competition among AMI providers can drive prices down as companies vie for market share. 
• Changes in regulatory requirements, such as cybersecurity standards or data protection laws, can increase the cost of compliance, impacting the overall price of AMI systems. 
• Disruptions in the supply chain, such as shortages of key components or logistical challenges, can affect the pricing of AMI systems.