Advanced Metering Infrastructure (AMI) Market

Advanced Metering Infrastructure (AMI) Market Outlook (2024 to 2034)

The global advanced metering infrastructure (AMI) market is projected to increase from a valuation of US$ 21.46 billion in 2024 to US$ 54.66 billion by the end of 2034. The market has been analyzed to expand at a CAGR of 9.8% from 2024 to 2034.

Global uptake of smart water meters is driven by increasing demand for precise billing solutions in residential areas, which is fueling market growth. This trend is bolstered by extensive freshwater conservation initiatives launched by NGOs and governments worldwide.

Remote meter reading solutions are gaining popularity, especially in remote or geographically distant locations, due to their ability to provide accurate and timely billing. Additionally, the market is expanding with the rising adoption of ultrasonic flowmeters in water and wastewater treatment industries. These meters are crucial for measuring chemical dosages, monitoring methane emissions, and assessing large volumes of fluid containing various components like suspended particulates and sludge by-products.

Leading manufacturers are introducing advanced technologies such as programmable thermostats and in-home screens. These innovations enable utilities to offer new time-based rate plans and incentives, empowering consumers to manage energy costs and usage and reduce peak demand. This, coupled with advancements in grid modernization is expected to positively influence advanced metering infrastructure market growth.

AMI's primary goal is to provide utilities with precise data on energy consumption, enabling them to manage distribution networks efficiently, reduce energy waste, and improve customer service. It also helps utilities identify energy-saving opportunities and proactively address power failures while providing consumers with real-time insights into their energy usage, enhancing their ability to manage and potentially lower energy costs.

Expanding use of Internet of Things (IoT) technologies is further driving the growth of the global advanced metering infrastructure market. Moreover, there is a growing demand for AMI communication networks that are cost-effective, low-bandwidth, and capable of handling latency-insensitive metering requirements. Early adopters relied on technologies like RF-Mesh and narrow-band power-line communication (PLC), but advancements have led to the popularity of broadband PLC and low-power wide-area networks (LPWAN).

Report Attribute	Detail
AMI Market Size (2024E)	US$ 21.46 Billion
Forecasted Market Value (2034F)	US$ 54.66 Billion
Global Market Growth Rate (2024 to 2034)	9.8% CAGR
Canada Market Growth Rate (2024 to 2034)	9.9% CAGR
China Market Value (2034F)	US$ 6 Billion
North America Market Share (2024E)	24.8%
East Asia Market Share (2034F)	23.1%
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; Renesas Electronics Corp.; Aclara Technologies LLC; Mueller Systems LLC; Schneider Electric SE; Eaton Corporation Plc.

What are the Primary Factors Driving Demand for Advanced Metering Infrastructure?

“Head-end System Data Management Becoming Useful Feature and Attracting More Customers”

Demand for advanced metering infrastructure (AMI) has been primarily propelled by its comprehensive range of services, including head-end systems, meter data management services, metering and communication systems, and others. State-of-the-art meters also offer features like remote readings, load management, and firmware upgrades. An integrated system comprising communication networks, smart meters, and data processing systems enables bidirectional interaction among customers, software platforms, and enterprises, thereby enhancing control over the electrical grid.

These smart meters represent revolutionary innovations in the utility industry due to their ability to enhance meter reading accuracy and streamline data collection processes. Over the projected period, the market's growth is expected to be further accelerated by these advantageous applications of AMI.

Many countries are establishing legal and regulatory frameworks to oversee the deployment of smart meters and smart grids.

• For instance, the European Union had set a target to replace eighty percent of traditional power meters with advanced metering infrastructure by 2021.
• Similarly, Tokyo Electric Power Company (TEPCO) plans to develop an integrated energy management platform that will integrate with smart devices in homes and businesses, alongside the installation of 27 million electric smart meters throughout Japan. This initiative is likely to drive the global market for advanced metering infrastructure throughout the forecasted period.

“Increased Adoption of Smart Meters and Digitization Trends”

The industry is set to experience significant benefits from the expanding adoption of smart meters, which will accelerate the growth rate of the AMI market in the upcoming years. Research into smart meter technology is underway, and several manufacturers are striving to develop a standardized design that complies with international regulations to enhance their product's market appeal.

There are abundant growth opportunities in the market due to the rising trend of digitization. The proliferation of smart home technologies is leading to increased utilization of IoT-based smart devices. Consequently, the upward trajectory in energy consumption, a favorable consequence of digitization, is anticipated to propel the expansion of the advanced metering infrastructure market size.

Which Factors are Restraining Market Growth to Some Extent?

“Lack of Technical Expertise and High Initial Cost”

Expansion of the advanced metering infrastructure market is being hindered by several factors. Firstly, the high costs associated with AMI systems pose a significant barrier to sector growth. Additionally, substantial installation expenses further inflate total costs. Maintenance requirements for these meters, often at high rates, present another obstacle to market expansion. Moreover, inadequate financial incentives and the need for improved customer support contribute to the challenges facing the AMI market. Consequently, the anticipated high prices of these meters are expected to constrain market growth during the forecast period.

The pace of market development is constrained by a shortage of technological expertise and skilled labor, particularly in developing and underdeveloped nations. As a result, the AMI market is projected to encounter significant challenges throughout the forecast period due to deficiencies in technical competence.

Country-wise Analysis

The market in Japan is projected to expand at a CAGR of 10.3% from 2024 to 2034. Japan is analyzed to occupy an advanced metering infrastructure market share of 29.4% in East Asia by the end of 2034.

Why is the Expanding Housing Market in the United States an Opportunity for Gas Utility Companies?

“Increasing Home Constructions Boosting Demand for Smart Gas Meters”

Attribute	United States
Market Value (2024E)	US$ 2.4 Billion
Growth Rate (2024 to 2034)	9.8% CAGR
Projected Value (2034F)	US$ 6.1 Billion

Funding secured through the Smart Grid Investment Grant (SGIG) program under the American Recovery and Reinvestment Act (ARRA) is a key advanced metering infrastructure market trend in the United States. The widespread integration of AMI in newly constructed homes is poised to stimulate demand for smart meters across the country.

In the United States, the expanding housing market represents a substantial opportunity for utilities involved in gas supply, as sales of smart gas meters are projected to rise alongside the construction of new homes. Manufacturers of smart gas meters in the United States are keen to capitalize on this growth potential as demand escalates.

How is China Strengthening its Position in the East Asia Market?

“Continuously Increasing Industrial and Residential Power Requirements”

Attribute	China
Market Value (2024E)	US$ 2.36 Billion
Growth Rate (2024 to 2034)	9.8% CAGR
Projected Value (2034F)	US$ 6 Billion

China's vast scale illustrates its continually growing industrial and residential power needs. The country's advancements in smart grid technologies have positioned it as a global leader in the power sector. Robust government backing and substantial investments have been pivotal in driving market expansion in China.

The adoption of 5G technologies is projected to further accelerate growth and strengthen China's smart grid infrastructure. The AMI sector in China is projected to achieve significant growth at a remarkable compound annual growth rate (CAGR) over the next decade. Consequently, there is expected to be substantial growth in demand for AMI program management and consulting services as well.

Category-wise Analysis

Based on product, sales of smart water meters are forecast to rise at a CAGR of 13.6% from 2024 to 2034.

Which Product Type is Becoming More Desirable in the Market?

“Digitalization of Energy Infrastructure Driving Sales of Smart Electric Meters”

Attribute	Smart Electric Meters
Segment Value (2024E)	US$ 12.88 Billion
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 30.06 Billion

The adoption of smart electric meters is gaining traction, and the development of smart grids is expected to drive a substantial increase in their implementation. Recently, there has been a growing adoption of smart meters in developing countries such as India. Smart electric meters, equipped with features like bi-directional connectivity and meter data analytics, are seen as the optimal solution for managing the complex power infrastructure needs of the digital age.

Which End-user Segment Occupies a Substantial Market Share?

“Focus on Promoting Energy Conservation Practices among Residential Users”

Attribute	Residential
Segment Value (2024E)	US$ 12.23 Billion
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 28.42 Billion

Residential consumers extensively utilize advanced metering infrastructure (AMI). Given that residential buildings have been the primary focus of AMI adoption, this technology plays a crucial role in efficient energy management and monitoring of home consumption. AMI enables homeowners to effectively monitor and manage their energy usage.

Market Competition

The market for advanced metering infrastructure is extremely fragmented globally. The main suppliers of AMI invest in research and development to produce practical, cost-effective solutions that adhere to regulations and optimize revenue opportunities.

Key players in the advanced metering infrastructure industry are seeking growth strategies to boost market share and sales revenue, such as capacity expansion, partnerships, distribution agreements, and mergers, and adapting themselves to evolving market trends such as mobile metering systems and smart meter data management.

• The Iron Engage Sales Channel Partner Program for utilities and municipalities in Asia Pacific was introduced by Itron, Inc. in July 2022. Itron Engage's growth has made it possible for reliable, knowledgeable partners to implement Iron's solutions to their clients' advantage by providing them with the resources, assistance, and training they require.
• In November 2022, Renesas Electronics Corp. started utilizing NanoLock Security, a technology that provides cyber security protection for smart meter devices at the zero-trust meter level.

Fact.MR provides detailed information about the price points of key advanced metering infrastructure product manufacturers positioned across the world, sales growth, production capacity, and speculative technological expansion in this updated market report.

Key Segments of AMI Market Research

• By Product Type :

  • Smart Metering Devices
  • Solutions
  • Services

• By Device :

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

• By End Use :

  • Residential
  • Commercial
  • Industrial

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa