Advanced Metering Infrastructure Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)

Based on the Device :

The device segment is trifurcated into smart water meters, smart electric meters, and smart gas meters. Smart electric meters accounted for the largest market share in 2022 as smart electric meters play a crucial role in energy efficiency and grid optimization. The smart electric meters provide accurate and real-time data on electricity consumption, enabling utilities to identify patterns, monitor peak demand, and optimize energy distribution. Additionally, smart meters enable utilities to implement demand response programs effectively, allowing customers to adjust electricity usage during peak demand periods, to balance the grid and avoid power shortages. Consequently, the ability of smart electric meters to focus on energy efficiency and grid stability is contributing considerably in driving the growth of the segment. For instance, in November 2022, Trilliant Holdings Inc. partnered with Manx Utilities for the installation of smart electricity meters for 8,000 customers across the Isle of Man. The aim of the partnership is to replace existing electricity meters with advanced metering infrastructure to reduce electricity consumption and save on energy costs for approximately 50,000 industrial, residential, and commercial customers.

Smart water meters are anticipated to witness the fastest CAGR in the advanced metering infrastructure market during the forecast period. The growth of the market is attributed to the increasing global focus on water conservation and sustainable resource management, driving the adoption of smart water meters. In addition, smart water meters provide real-time data on water consumption, enabling utilities and consumers to identify leaks, monitor usage patterns, and implement water conservation measures. Moreover, smart water meters detect leaks and abnormalities in water usage, enabling proactive maintenance and reducing water loss, further contributing to market growth. Consequently, the need to modernize water infrastructure and improve efficiency, and optimize water resource management is bolstering the growth of the smart water meter segment.

Based on the Component :

The component segment is bifurcated into solutions and services. Solutions accounted for the largest market share in 2022 and comprise meter data management, meter data analytics, meter communication infrastructure, and advanced metering infrastructure security. Meter Data Management (MDM) holds the largest market share as MDM solutions provide utilities with a centralized platform to manage and process the vast amounts of data collected from smart meters. Additionally, meter data management handles data validation, storage, and integration with other utility systems namely billing and customer information systems. The ability to effectively manage and utilize metering data is crucial for utilities to optimize the operations and deliver accurate billing services.

Moreover, MDM solutions play a critical role in billing and revenue management by calculating accurate consumption data based on meter readings, facilitating complex tariff calculations, generating invoices, and managing billing cycles. In conclusion, MDM solutions streamline the billing process, reduce billing errors, and enable efficient revenue collection, hence contributing significantly in fueling the market growth. For instance, in May 2021, Itron, Inc. collaborated with Microsoft to offer highly scalable cloud-based advanced metering infrastructure solutions to users. The advanced solution is able to process 2.8 billion readings in less than three hours and provide billing determinants equal to a 10 million meter utility, hence contributing significantly in accelerating the market growth.

The services segment is anticipated to witness the fastest CAGR in the advanced metering infrastructure market during the forecast period. The installation and deployment of smart metering infrastructure involves complex processes, including physical installation of fiber optic cable assemblies, configuration, and network integration. Service providers offer specialized expertise and resources to ensure seamless deployment, efficient project management, and timely implementation. Additionally, smart metering infrastructure requires ongoing maintenance, monitoring, and support to ensure optimal performance. Service providers offer maintenance services to address issues namely firmware updates, meter calibration, and fault detection, and also provide support services, including troubleshooting, meter replacements, and customer assistance. Consequently, the aforementioned factors are responsible for accelerating the growth of the services segment during the forecast period.

Based on the End-User :

The end-user segment is categorized into residential, commercial, and industrial. Residential sector accounted for the largest market share of 61.6% in 2022 as smart meters provide precise measurements of electricity, gas, and water consumption in residential properties. The smart meters ensure accurate billing based on actual usage, eliminating manual readings, and are calibrated precisely, thus benefitting the customers by providing more fair billing practices. Additionally, smart meters enable real-time monitoring of energy consumption in residential properties through online portals and mobile apps, allowing consumers to access energy usage data, view consumption patterns, and track costs. Moreover, the emergence of the Internet of Things (IoT) offers advanced grid-edge intelligence to support distribution system operators in maintaining an efficient and reliable grid, further increasing the adoption of smart meters in the residential sector. For instance, in November 2022, Landis+Gyr launched E360 residential electric meter and W270 and W370 smart water meters based on IoT technologies and 100% recyclable material. The electric meter provides ten times more accuracy and speed in comparison to traditional meters to maintain a reliable and efficient grid, hence contributing remarkably in propelling the growth of the residential sector.

The industrial sector is anticipated to witness the fastest CAGR in the advanced metering infrastructure market during the forecast period. The growth is endorsed by the ability of industrial smart meters to monitor and manage energy consumption in real time by tracking energy usage patterns and identifying areas of high consumption. In addition, smart meters provide accurate data for energy audits, to monitor the electricity demand and identify peak usage periods. Moreover, smart meters equipped with power quality monitoring capabilities help industrial facilities track and assess the quality and stability of the electricity supply. The monitoring parameters include voltage fluctuations, harmonics, and power factors for detecting and rectifying power quality issues, reducing equipment downtime, optimizing performance, and ensuring reliable operations. In conclusion, the aforementioned factors are contributing notably in fueling the growth of industrial smart meters during the forecast period.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share in the year 2022 valued at USD 6,852.23 million and is predicted to reach USD 16,640.62 million in the advanced metering infrastructure market. In addition, in the region, the United States accounted for the maximum revenue share of 62.35% in the year 2022. North America is at the forefront of implementing regulatory policies that drive the adoption of smart metering infrastructure. In particular, the United States is witnessing significant regulatory support at the federal and state levels, mandating utilities to deploy smart meters for improved energy efficiency, grid modernization, and consumer benefits. Moreover, the aging infrastructure in North America, particularly in the electricity and water sectors, is creating a need for modernization and improved efficiency. Smart metering infrastructure offers a solution for utilities to upgrade the systems, enhance data collection, and optimize operations. Furthermore, the presence of key players in the region including Trilliant Holdings Inc., General Electric Company, and Emerson Electric Co. constantly applying innovations and strategic decisions to expand the market portfolio is also contributing to the market growth. For instance, in July 2022, Trilliant Holdings Inc. deployed more than 3.5 million smart meters in the Asia-Pacific region and also started its manufacturing in Malaysia.

Asia Pacific is anticipated to witness the fastest CAGR of 12.2% owing to the significant investments in the development of smart cities. Smart metering infrastructure is a critical component of smart city initiatives, enabling efficient energy management, demand response, and sustainability practices. Additionally, the growing awareness of energy efficiency and the importance of sustainable practices among consumers, businesses, and governments in Asia Pacific is also propelling market growth. Smart metering infrastructure empowers consumers to monitor energy consumption, make informed decisions, and actively participate in energy-saving initiatives. Moreover, Asia Pacific is witnessing significant growth in renewable energy generation, including solar and wind power. Smart metering infrastructure plays a crucial role in integrating and managing distributed energy resources into the grid. Consequently, the expanding renewable energy sector is driving the growth of the smart metering infrastructure market to enable efficient integration, grid stability, and optimized energy usage.