Advanced Metering Infrastructure Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Advanced Metering Infrastructure (AMI) Market Size accounted for USD 20.5 Billion in 2022 and is projected to achieve a market size of USD 67.1 Billion by 2032 growing at a CAGR of 11.4% from 2023 to 2032. The advanced metering infrastructure (AMI) market is predicted to experience significant growth in the coming years due to increasing demand for accurate and efficient measurement of energy consumption, as well as the need for improved utility operations and customer service. The market is driven by factors such as government initiatives for smart metering, increasing investments in smart grid technologies, and the adoption of Internet of Things (IoT) devices.

Advanced Metering Infrastructure Market Report Key Highlights

• Global advanced metering infrastructure market revenue is projected to increase by USD 67.1 Billion by 2032, with a 11.4% CAGR from 2023 to 2032
• Europe region led with more than 40% of advanced metering infrastructure market share in 2022
• According to a report by the US Department of Energy, as of 2020, more than 90 million smart meters have been installed in the United States
• According to a study by the Electric Power Research Institute, AMI can reduce the cost of outage management by up to 40%.
• According to a survey by the Smart Grid Consumer Collaborative, 84% of customers with AMI are satisfied with their smart meter
• Energy Information Administration (EIA) estimates that the widespread deployment of AMI could result in a 2.7% reduction in energy consumption by 2035.
• Growing adoption in smart home systems, drives the advanced metering infrastructure market size

Advanced metering infrastructure (AMI) is a system of technologies and devices that are used to measure and manage energy consumption in a more precise and efficient manner. The system includes smart meters that can collect and transmit consumption data in real-time, communication networks that enable data transfer between meters and utility companies, and data management software that can analyze and interpret the data. The main objective of AMI is to provide more accurate and timely information on energy consumption to both consumers and utility companies, enabling better management of energy resources and improved customer service. AMI is a key component of the smart grid, which is aimed at creating a more reliable, secure, and sustainable energy infrastructure.

Global Advanced Metering Infrastructure Market Trends

Market Drivers

• Increasing Demand for Energy Efficiency
• Growing Demand for Renewable Energy
• Increasing adoption of smart city technologies
• Development of advanced technologies such as IoT, AI, and machine learning

Market Restraints

• High Initial Investment
• Data Security Concerns

Market Opportunities

• Government initiatives to promote energy efficiency
• Growing adoption in smart home systems, electric vehicle charging stations, and renewable energy sources

Advanced Metering Infrastructure Market Report Coverage

Increasing demand for the modernization of the grid and helpful steps taken by organizations across the globe for the replacement of traditional electronic meters accompanied by improved meters which are capable of furnishing enhanced data collection and meter reading are some of the most crucial factors driving the growth of global advanced metering infrastructure market. Moreover, the introduction of dynamic pricing mechanisms coupled with demand response schemes is the motivational factor for the use of smart metering infrastructure. Also, demand response programs are generally considered accelerators of growth in the global advanced metering infrastructure market. Advanced metering infrastructure is known as the integration of software, hardware as well as technologies that provide intelligent connections between end-to-end consumers. In addition, consumers participate in demand response programs, in turn, benefit from decreased electricity bills due to which electric distribution organizations will be able to reduce investments in new capacity infrastructures. Using bidirectional communication between the meter data management and the meter, the electrical distribution organizations will be able to manage metering mechanisms remotely and thus collect the required information in a real-time.

Recent advancements in the utility industry are anticipated to drive a vast range of systems with collections and water utilities. Several benefits of using advanced metering infrastructure technology including the facilitation of real-time energy consumption patterns and the ability to detect outages for end users are some major aspects projected to create traction in the global advanced metering infrastructure market in the foreseeable years. Other factors such as increasing demand for energy across the globe, legislative compliances and government mandates as well as demand for enhanced customer service and organizational efficiency are expected to propel the global market. Moreover, increasing integration of the internet of things with smart grid solutions is a key factor anticipated to pose bright opportunities in the global advanced metering infrastructure market value. Furthermore, the installation of smart meters as a type of advanced metering infrastructure is projected to enable the distribution of electric utilities to reduce overall operational expenses. Enhanced identification of theft of energy and outage notification are other important factors that are anticipated to boost the global advanced metering infrastructure market growth. However, the lack of interoperability standards, especially in developing economies, may hinder the growth of the advanced metering infrastructure market. Also, the declining cost of advanced metering infrastructure hardware is predicted to inhibit the growth of the global market.

Advanced Metering Infrastructure Market Segmentation

The global advanced metering infrastructure market segmentation is based on product type, end-user, and geography.

Advanced Metering Infrastructure Market By Product Type

• Smart Metering Devices
  • Water
  • Electricity
  • Gas
• Solutions
  • Meter Communication Infrastructure
  • Software
• Services
  • Deployment
  • System Integration
  • Program Consulting

According to an advanced metering infrastructure industry analysis, the smart metering devices segment will gain significant market attention in the coming few years. Smart meters are electronic devices that are used to measure energy consumption in real time and communicate the data to utility companies through the communication networks of AMI. Smart meters provide benefits such as more accurate billing, improved energy management, and reduced operational costs for utility companies. The market for smart metering devices is estimated to grow due to the increasing demand for more efficient and reliable energy infrastructure. The market is also driven by government initiatives for smart metering and the adoption of Internet of Things (IoT) devices.

Advanced Metering Infrastructure Market By End-user

• Residential
• Industrial
• Commercial

According to the advanced metering infrastructure market forecast, the residential segment is projected to expand at a tremendous rate in the coming years. This growth is due to the increasing demand for smart homes and the need for more efficient energy management. AMI systems enable the collection and analysis of data on energy consumption in real time, which can help homeowners and utility companies optimize energy use and reduce costs. The use of AMI in residential applications can also improve customer service, as it enables quick identification and resolution of issues such as power outages or billing discrepancies. The market for residential AMI is driven by government initiatives for smart metering, the adoption of Internet of Things (IoT) devices, and increasing urbanization.

Advanced Metering Infrastructure Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)