Market Trends of Advanced Metering Infrastructure Industry
This section covers the major market trends shaping the Advanced Metering Infrastructure Market according to our research experts:
Smart Metering Devices Will have the Significant Market Share
- Smart metering solutions include meters or modules with communication capabilities (either unidirectional or bidirectional) embedded within the meter or attached to the meter. Smart meters are becoming more popular because they allow two-way communication between the meter and the central system used by utilities. This is because the main concern is that people are using more energy.
- Smart meters are increasingly being adopted for multiple deployments, such as gas, electricity, and water, due to their two-way communication feature, which enables real-time monitoring of utility usage by both the utility supplier and consumer and also encourages the start, reading, and cutting off of supply remotely by the supplier. Smart meter deployment also enables the implementation of a home energy management system (HEMS) or building energy management system (BEMS) that allows visualization of the electric power usage in individual homes or entire buildings.
- To increase the effectiveness of power networks, governments worldwide are investing billions of dollars in installing smart grids and smart meters. Additionally, numerous fresh smart city initiatives are continuously being introduced globally. Such factors will raise the demand for smart meters globally.
- In order to create a cleaner and more effective energy system, nations like China and India are constantly installing smart meters in residential and commercial structures. Governments are starting a number of new initiatives to promote the use of smart meters. For instance, the Revamped Distribution Sector Scheme (RDSS), which was introduced by the Indian government in 2021, calls for the deployment of 25 crore smart prepaid meters by the end of March 2025. Asian countries are positioning themselves to move forward with the adoption of smart meters.
- Additionally, according to Mercom Capital, the state of Uttar Pradesh in India had the most smart meters installed nationwide in January 2022, with over 1.15 million of them. Bihar and Rajasthan came after this. Energy Efficiency Services Limited, a joint venture company established by various public power distribution companies in the nation, took on the installation of smart meters. Such a rapid pace for the installation of smart meters across the Asian region will boost market growth.
In the future, developments in software and cloud computing, rising investments in digitalizing grid systems, a growing need to deal with energy waste, and more people using the internet of things are all expected to help the market grow.
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North America Region is Expected to Grow at Significant Pace
- North America is expected to hold a prominent share in the Advanced Metering Infrastructure (AMI) market due to the rapid adoption of smart metering in the region. Favorable government initiatives and increasing government investments in smart meter deployment across regions drive market growth.The United States is the key country in the region, driving the smart meter market through the American Recovery and Reinvestment Act (ARRA) and the Smart Grid Investment Grant (SGIG) program.
- In the United States, the number of houses represents the market potential for gas-enabled utilities. As more new houses are built, a growing proportion of homes will have smart meters installed as part of the AMI program, which continues its widespread adoption. According to the US Energy Information Administration (EIA), over 111 million advanced meters were installed in the US as of 2021. The nation has been steadily increasing the scope of its advanced metering infrastructure. It is also expected to increase in the near future.
- Further, Canada has also witnessed the large-scale incorporation of smart electricity meters after the governmental mandate was introduced more than five years ago with the prime motive of reducing peak-time loads. Thus, increasing demand and stringent regulations are stimulating the adoption of smart meters among end users.
- Along with leveraging smart electric meters for energy efficiency, targeted programs for end users are likely to benefit.As per the American Council for an Energy-Efficient Economy (ACEEE), Pacific Gas & Electric in the United States reported that AMI targeting for a home retrofit program delivered 3.5 times more energy savings in the targeted homes. Additionally, the integration of smart electric meters with technologies such as data analytics is expected to further foster the growth of the market in the region.
- Moreover, in April 2021, Aclara Technologies LLC, US, announced that Austin Utilities would implement an end-to-end advanced metering infrastructure solution based on the Aclara RF network to serve its electric, gas, and water customers. The point-to-multipoint AMI network replaces a manual meter-reading system and supports 12,000 electric, 9,500 water, and 11,000 gas meters for the combination utility.
- Also in 2021, Calaveras County Water District partnered with Mueller Systems for the deployment of an advanced metering infrastructure (AMI) network. It will cover 1,000 square miles with 13,000 AMI endpoints. The project replaces most of the district's meters and adds communication capabilities to all meters. Calaveras County Water District provides water service to over 13,000 municipal, residential, and commercial customers in six service areas throughout the county.
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