Utilities Tech Outlook Weekly Brief
Be first to read the latest tech news, Industry Leader's Insights, and CIO interviews of medium and large enterprises exclusively from Utilities Tech Outlook
The requirement for grid modernization and positive steps taken by utilities worldwide is expected to replace conventional electronic meters with improved smart meters. These meters are able to improve meter reading, and data collections are the most important factors that facilitate growth in the global market for advanced metering infrastructure (AMI). In addition, dynamic pricing schemes and demand response programs are expected to be the driving factors for the utilization of smart meters.
Demand response programs in the global AMI market are considered to facilitate growth. Consumers will get more benefits from lower electricity bills by taking participation in demand response programs, while electricity distribution companies will be able to avoid investing in expensive new capacity buildings and benefit from a stable load on the grid. The electrical distribution utilities can remotely control metering assets and collect information on energy use in real time through bi-directional communication between the meter and meter data management.
The report Advanced Metering Infrastructure Market by Device, by Solution, by Service, and by Regions - Global Forecast to 2020, predicts that the AMI market size is expected to grow from $4.48 Billion in 2015 to $9.19 Billion by 2020, at an estimated CAGR of 15.5 per cent during the forecast period.
The size of the AMI market has grown significantly in recent years and the rise of disruptive technologies such as IoT and connected devices has further increased AMI's opportunities. With the rise of connected devices, such as home gateways, smart meters, and intelligent plugs, innovative ways of managing and predicting the use of energy have emerged. Increasing integration of IoT with the smart grid opens up significant opportunities for AMI market growth.
AMI solutions start from standalone AMI security, communication infrastructure, and analytics to integrated solutions, in which service providers provide end-to-end solutions to utilities. Due to a large amount of data generated, the MDM solutions segment is projected to grow at the highest growth rate and is crucial for the user, which is why it is likely to present the biggest market opportunity during the forecast period. The purpose of AMI services is to enable smarter and coordinated decision-making by overcoming the risks and vulnerabilities of AMI infrastructure with efficient tools and techniques.
