Advanced Distribution Management System Market Size

Advanced Distribution Management System (ADMS) Market Analysis

Advanced Distribution Management System Market is expected to register a CAGR of 19.7% over the forecasted period. The Advanced Distribution Management System (ADMS) Market's expansion is driven by rising global energy demand, increased utility efficiency, and improved customer service. A distribution management system (ADMS) provides services that automate outage restoration and improve distribution grid performance. ADMS features for electric utilities include fault location, isolation, and restoration, as well as volt/voltampere reactive optimization, conservation through voltage reduction, peak demand management, and support for microgrids and electric cars.

• One of the primary reasons driving market expansion is the increasing demand for efficient energy resources worldwide. ADMS assists in optimizing distribution grid performance and automating outage restoration. Furthermore, the increased adoption of advanced metering infrastructure (AMI) boosts market growth. AMI assists in remotely measuring electricity usage, monitoring voltage, and recognizing and isolating outages. It also allows utilities and customers to communicate with one another. Furthermore, technological improvements such as integrating connected devices with the Internet of Things (IoT) and using modern components and control systems to improve security while reducing total costs and electricity loss propel market expansion.
• In accordance with this, increased implementation of smart grid technologies boosts the market growth. ADMS assists in effectively transporting electricity and data by optimizing energy usage and detecting grid issues. Other reasons, including the increased building of smart cities and the implementation of various government efforts to improve carbon efficiency, are expected to propel the market forward. For instance, according to the recent estimates of the US Department of Energy, smart grid investments are expected to reach over USD 13.8 billion by 2024, accounting for over 64% of the total grid information and control investments in the United States.
• The United Arab Emirates introduced "Energy Policy 2050," which is regarded as the nation's first comprehensive supply-and-demand-based energy strategy. The strategy intends to save USD 190 billion by 2050 and boost the share of renewable energy in the whole energy mix from 25% to 50%. It also aspires to lower the carbon footprint of power generation by 70%. Additionally, it aims to improve corporate and individual consumption efficiency by 40%. Such policies by the government will significantly create opportunities for the market to grow.
• According to EIA, from the past year, annual global energy investment was set to rise to USD 1.9 trillion, bringing the total investment volume back towards pre-crisis levels. However, the composition has shifted towards power and end-use sectors - and away from traditional fuel production. While many energy companies remain in a fragile financial state, there are signs developers are using the window provided by accommodative monetary policy and government backing to plan infrastructure developments and investments in new projects. These positively affected the studied market during the post covid.
• Significant upfront costs are associated with installing an entirely automated ADMS system in buildings or enterprises. Every industry seeks to reduce the cost of its consumption. Therefore, they need energy management systems to track how much energy various devices and factories use. Even while using energy-efficient solutions and practices results in significant long-term cost and energy savings, it necessitates a hefty initial investment. There may be circumstances when certain businesses, sectors, or industrial facilities need more resources to invest in EMS. For small- or medium-sized companies, such an expenditure is not practical. In most cases, the hardware parts of energy management systems are substantially more expensive than the software and service parts.