Key Market Overview:
The Advanced Metering Infrastructure Market was valued at USD 18,980.62 Million in 2022, registering a CAGR of 11.9% during the forecast period (2023-2030), and the market is projected to be worth USD 45,764.06 Million by 2030.
Advanced metering infrastructure refers to a two-way communication system capable of collecting detailed metering information associated with utility services water, gas, and electricity. Advanced metering infrastructure is automated and enables on-demand real-time interrogations with metering endpoints. Moreover, advanced metering infrastructure offers various benefits including reduced costs for meter reading and billing, faster outage response, lower utility capital expenditures and power supply expenses, and others. The aforementioned benefits of advanced metering infrastructure are key determinants for increasing its utilization in residential, commercial, and industrial sectors.
Factors including the rising residential construction and the growing need for automated and smart metering solutions in the residential sector are among the prime factors driving the adoption of advanced metering infrastructure. Additionally, the growing pace of urbanization and industrialization coupled with the increasing development of commercial and industrial buildings are among significant factors fostering the market demand for advanced metering infrastructure.
In March 2023, IntelliSmart Infra launched INSTINCT 3.0 with the aim of fostering innovation in smart metering. IntelliSmart intends to support 250 million smart meters across India. Therefore, the rising innovations associated with advanced metering infrastructure are further driving the growth of the market.
Advanced Metering Infrastructure Report Coverage:
Increasing utilization of advanced metering infrastructure in residential sector is driving the market growth
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||45,764.06 million|
|CAGR (2023-2030)||11.9 %|
|By Type||Smart Metering Devices, Solutions, and Services|
|By End User||Residential, Commercial, and Industrial|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Itron Inc., IBM Corporation, Sensus Solutions, General Electric, Siemens AG, Tieto Corporation, Aclara Technologies LLC, Mueller Systems LLC, Trilliant Inc., Schneider Electric SE, and Honeywell International Inc.|
The rise in residential construction activities is a prime factor driving the market growth. Advanced metering infrastructure is mainly employed in the residential sector for delivering automated net metering for water, gas and electricity consumption, facilitating pre-paid metering, monitoring power quality, and enabling easy access to critical utility information for enhanced visibility.
Factors such as the rise in disposable income, increasing investments, and government policies including tax incentives, subsidies, and rebates are primary factors driving the growth of the residential sector.
According to the United States Census Bureau, the new residential construction projects in the United States reached up to 1,610 thousand units in 2021, depicting an increase of 16.7% from 1,379.61 thousand units in 2020. Thus, the rise in residential construction is further driving the adoption of advanced metering infrastructure, owing to its above-mentioned benefits, in turn proliferating the market growth.
High implementation cost of advanced metering infrastructure is restraining the market growth
The integration of advanced metering infrastructure is often associated with high costs, which is a prime factor restricting market growth. For instance, according to the U.S. Department of Energy, the per-meter deployment cost of advanced metering infrastructure typically ranges from USD 130 to USD 1,895 per meter, depending upon the type of installation.
Likewise, advanced metering with customer-site costs typically ranges from USD 1,000 or more, which is higher in comparison to traditional metering infrastructure. Therefore, the high cost associated with the implementation of advanced metering infrastructure is restraining the growth of the market.
Advanced Metering Infrastructure Market Segmentation:
The type segment is divided into smart metering devices, solutions, and services.
The smart metering devices segment is anticipated to contribute to a substantial revenue share during the forecast period. Smart metering devices include modules or meters with communication capabilities that are often attached or embedded within the meter. Smart metering devices include meters for electricity, water, and gas consumption. Smart metering devices enable real-time monitoring of utility consumption by both consumer and utility supplier. Smart metering devices further allow the utility supplier to start, read, or cut off utility supply remotely.
Moreover, the government of India recently launched Smart Metering National Project in which approx. 1.57 million smart power meters have been installed across India as of February 2022 to promote the deployment of advanced metering infrastructure in the country. Thus, the rising installations of smart power meters are driving the growth of the segment.
Further, factors including rising smart city projects and increasing government initiatives for the installation of smart meters are among the key factors driving the growth of the smart metering devices segment.
Additionally, the solutions segment is expected to grow steadily during the forecast period. Advanced metering infrastructure solutions include meter data management, meter data analytics, and other related solutions. Moreover, the deployment of advanced metering infrastructure solutions helps in improving meter data management and asset efficiency, enhancing network reliability, and resolving issues faster with lower costs and smart metering. Furthermore, the rising building and construction activities, increasing adoption of smart grids, and the growing need for energy-efficient utility solutions are major factors driving the growth of the solutions segment.
By End User
The end user segment is divided into residential, commercial, and industrial.
The residential segment is accounted for a significant share in the advanced metering infrastructure market. Advanced metering infrastructure is primarily deployed in the residential sector for facilitating pre-paid metering, monitoring power quality, delivering automated net metering, and enabling easy access to critical utility information associated with electricity, gas, and water consumption. Moreover, the benefits of advanced metering infrastructure including higher operational efficiency, enhanced network efficiency, and reduced energy costs are further increasing its utilization in the residential sector.
Factors including the rising residential construction and increasing deployment of smart meters for improved energy efficiency are among the vital factors driving the growth of the residential segment.
According to the Building and Construction Authority of Singapore, the total construction demand including residential construction in the region is estimated to reach between USD 27 billion to USD 32 billion by the end of 2023, depicting a significant growth as compared to 2020. Hence, the rise in residential construction is driving the installation of advanced metering infrastructure, owing to its accurate data measurement, consistent billing, faster billing resolution, and improved operational efficiency. The above factors are anticipated to drive the growth segment during the forecast period.
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. The adoption of advanced metering infrastructure in the North American region is primarily driven by its usage in the residential and commercial sectors among others. The deployment of advanced metering infrastructure in residential and commercial sectors to facilitate pre-paid utility metering, monitor power quality, and ensure enhanced energy efficiency has been a prevailing factor for market growth in the region.
Additionally, the rising investment in building and construction projects is a significant factor driving the market demand for advanced metering infrastructure. For instance, according to Statistics Canada, the investments in institutional and government construction in Canada were valued at USD 15,284.7 million in 2021, witnessing a growth of 12.1% in comparison to USD 13,640.8 million in 2020. Further, in the second quarter of 2022, the construction of the Eight Office Tower commenced in the United States with an investment of USD 476 million. The project involves the construction of a 25-story office tower in Washington, which is scheduled to be completed in 2024.The above factors are further anticipated to drive the market demand in North America during the forecast period.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The rapid pace of urbanization, industrialization, and development in the Asia-Pacific region is creating lucrative opportunities for market growth in the region. Moreover, the rising government initiatives for the development of smart cities in the Asia-Pacific region are contributing to the market growth for advanced metering infrastructure. For instance, the government of China launched multiple initiatives such as China\'s 14th five-year Development Plan (2021 to 2025), National New-type Urbanization Plan, and smart cities projects in order to support the development of smart homes in the country. Additionally, several factors such as the rise in commercial and industrial construction and growing need for automated utility metering solutions are further driving the demand for advanced metering infrastructure in the Asia-Pacific region.
Advanced Metering Infrastructure Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Advanced Metering Infrastructure Market. Key players in the market include-
• Itron Inc.
• IBM Corporation
• Sensus Solutions
• General Electric
• Siemens AG
• Tieto Corporation
• Aclara Technologies LLC
• Mueller Systems LLC
• Trilliant Inc.
• Schneider Electric SE
• Honeywell International Inc.
• In May 2023, Itron Inc. launched AMI (advanced metering infrastructure) Essentials in New Zealand and Australia with the aim of accelerating the digital transformation of water utilities. The new solution includes a new IoT-based water meter along with a digital platform for offering advanced metering infrastructure.
• In August 2021, Siemens, in collaboration with Tata Power Delhi Distribution deployed 200,000 smart meters across North Delhi, India as a part of Tata Power\'s Advanced Metering Infrastructure Program.