Advanced Metering Infrastructure Market - Forecast(2024 - 2030)

Advanced Metering Infrastructure Market Overview

The Advanced Metering Infrastructure Market is estimated to reach $10,913.7 million by 2027, growing at a CAGR of 8.5% during 2022-2027 period. Smart metering devices is used to measure thermal energy, electricity amount, water volume or gas volume delivered to be used by residential, commercial, industrial building units. Smart Water Meter is generally cash registers for the water meter industry which adds value to the overall meter scheme, drive sales and helps to ensure the efficiency of the decision-making information generated by the meter application. For water services around the world, meter data analytics, data manegemnt systems, data Processing systems and logistics continue to be at the forefront as they solve issues facing the sector, such as growing demand, increasing water conflict, rising energy costs and ageing water systems. Many of water related issues can be easily solved by implementing Advanced Smart Water Metering system thereby contributing to the growth of the market. The growth of residential and commercial sectors due to the urbanization along with the growth of smart grid adoption have driven the market. Government initiatives in increasing the popularity of solar-powered water meters are likely to propel the water meter market. With nearly one-third of the global population secluded to their homes during lockdown, the demand to support traditional and labor-intensive utility operations declined while the demand for smart utility applications increased. Smart metering with bi-directional communication has become a top IoT technology to address these COVID-19 challenges and is expected to continue in 2021.

Report Coverage

The report: “Advanced Metering Infrastructure Market – Forecast (2022-2027)”, by Industry ARC covers an in-depth analysis of the following segments of “Advanced Metering Infrastructure Market Report”.

Key Takeaways

Advanced Metering Infrastructure Market CAGR, By Region, 2022-2027 (%)

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Advanced Metering Infrastructure Market Segment Analysis - By Meter Type

Water meters are projected to grow at the fastest rate with a CAGR of 10.4% through 2027. Smarter water meters are cash registers for the water meter industry, add value to the overall meter scheme, drive sales and helps to ensure the efficiency of the decision-making information generated by the meter application. The elimination and regulation of losses, or non-revenue water, is a permanent challenge for water supply providers, utility maintenance companies and municipal service managers. While the freshwater supply is becoming scarcer and demand is rising continuously, water depletion rates in cities can exceed 20%. For water services around the world, data analytics, smart water technologies and logistics continue to be at the forefront as they solve issues facing the sector, such as growing demand, increasing water conflict, rising energy costs and ageing water systems. Utilities recognize that smarter water infrastructure is vital to address for any downturn and to transform water into revenue by improved leak detection and unprecedented data collection. Many of water related issues can be easily solved by implementing Advanced Smart Water Metering system thereby contributing to the growth of the market.

Advanced Metering Infrastructure Market Segment Analysis - By End Users

By End Users the market is segmented into Residential, Commercial, Industrial (Water and Wastewater, Chemical, Oil and Gas, Food and Beverages, Semiconductor and Electronics, Medical and Pharmaceutical, Power and Energy, Metal and Mining, Paper and Pulp, Others. Industrial sector is witnessing a significant growth in a market and estimated to grow at a CAGR of 5.1% through 2027. The growth is attributed due to the surge of various industrial verticals such as water and waste water, chemicals, Oil and Gas and others. According to Federal Ministry for the Environment, Nature Conservation and Nuclear Safety more than 96 percent of German population is connected to the public sewage system and 10.07 billion cubic meter of waste water were collected and treated in public sewage treatment facilities in 2020. The public sewage system covers 540,723 kilometers of sewers and discharged into 10,000 waste water treatment facilities. Water meters measures liquid all phases including sludge by-products, large volumes of fluid carrying suspended solids. In March 2020, Rotterdam (city in Netherland) Integrated Food Projects that are going on in progress that is helping to create carbon-neutral manufacturing factory. Integrated Food Projects are working with London-based drinks manufacturers with an investment of $250 million approx. These manufacturing of factory in Rotterdam is highly using water and heat meter for production of chilled juice drinks by manufacturing 400 million bottles of drinks per year as they are used in many applications such as carbonation, leak detection, tank blanketing, dryer air and others.

Advanced Metering Infrastructure Market Segment Analysis - Geography

Advanced Metering Infrastructure Market is dominated by North America with a market share 35.2% in 2021. Growing interest towards unconventional reserves accompanied with technological advancements leading to the higher well production rates are driving the growth of oil and gas in U.S. The growth of oil and gas industry has poised the growth of Advanced Metering Infrastructure. In 2019, McDermott International, Inc announced that it had been awarded a $1.5 billion contract by Saudi Aramco for its Marjan Field. The contract for engineering, acquisition, construction, and installation (EPCI) covers the production of offshore and pipeline oil and gas installations. Such developments leverage a positive impact on the market growth. In 2019, Canadian Utilities Limited entered into a partnership with Quanta Services, Inc. for the Fort McMurray West 500-kV Transmission Project valued at $1.6 billion, hence creating more opportunities for Advanced Metering Infrastructure, them being essential for measuring the thermal energy of source and sink in this vertical.

Advanced Metering Infrastructure Market Drivers 

Rise in demand for energy efficient products:

Water meter manufacturers are increasingly producing energy-efficient products to reduce carbon footprint and enable energy savings for the consumers. The rise of energy-efficient appliances can be attributed to the stringent government regulations on electric home appliances and advances in technology. The U.S. Department of energy, mandated the industry manufacturers to use new technologies for the development of energy efficient meters which were rated based on thermal efficiency and standby losses. As energy efficient appliances are designed to utilize minimum energy. More than 80 countries have set standards and labels for energy efficient appliances. For instance, in the USA, an ENERGY STAR certified water meter saves $3500 over its lifetime. With BEE’s Standards and Labelling Program having included water meters as a mandatory appliance, manufacturers produce more energy-efficient products, in turn reducing energy costs and improving demand for water meters. Hence rise in demand for energy efficient products will drive the market demand in the forecast period 2022-2027.

Favourable government subsidies encouraging the use of solar water meters:

Government initiatives in increasing the popularity of solar-powered water meters are likely to propel the water meter market. For instance, in India, the government offers various incentives for the installation of roof-top solar-powered water meters through an initiative called Jawaharlal Nehru National Solar Mission (JNNSM). Similarly, the government also provides an interest subsidy, besides a 5% rebate on property tax. Moreover, governments of the U.S, the U.K and so on have been providing several incentives and tax rebates for the installation of solar water meters. In addition growth in concern among consumers regarding natural resources and energy is encouraging the consumers to shift toward energy-efficient water heating systems in the forecast period 2022-2027.

Advanced Metering Infrastructure Market Challenges

High Initial Investment:

Implementation of Advanced Metering Infrastructure in factories is a part of automation process. Adoption of automation machines can be one of the most cost intensive process and requires high capital input. In addition to the initial costs, there are several unpredictable costs which may exceed the real cost saved by the accomplishing automation in the company. Some of these costs involve research and development costs of automating a process, anticipatory repairs, and maintenance costs. Additionally, there is also training cost associated with Advanced Metering Infrastructure operation that further restraints the market growth. The average cost of mechanical meters are quite low varying from €22.5 per unit up to €90. Smart meters meanwhile start at €85 and upwards. In addition to it, a mid-range water meter of considerably good quality costs €62.5 (per unit). Most of the Advanced Metering Infrastructure also occupy larger space which is a major challenge in small sized industries. The high cost of installation of Advanced Metering Infrastructure further discourage the application in residential projects and small scale commercial buildings.

Advanced Metering Infrastructure Market Landscape

Advanced Metering Infrastructure Market is dominated by major companies such as

1. Diehl
2.  Itron
3. Kamstrup
4. Landis+Gyr
5. Sagemcom
6. Sensus (Xylem)
7. Sontex
8. Zenner
9. Schneider Electric
10. Tieto Corp.

Recent Developments

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