The global market for advanced metering infrastructure associated with the supply of electricity, gas and water is forecast to show a compound annual growth rate (CAGR) of 16.5% over the next five years, according to a new report.
Research and Markets took into account vendor revenues of devices, solutions and services to estimate the overall value of the market, and said that it will be worth $20,029 million in 2019, compared with a value of $9,319 million in 2014.
In its report, Research and Markets identified three key factors that are driving the market for advanced metering infrastructure: regulatory mandates, moves to conserve energy and grid modernization initiatives.
Advanced metering infrastructure goes a step further than automated meter reading by improving customer engagement activities through two-way communication.
The benefits of such technology for utilities are clear: in their day-to-day business they face numerous difficulties in managing the meter-to-cash cycle, not to mention commercial losses due to meter inaccuracies, meter reading errors and unauthorized consumption.
Smart meter deployments can reduce operational costs and improve non-technical loss identification like theft/tamper detection and outage notification. On top of these advantages, advanced metering infrastructure systems will allow for consumer bill savings by means of time-of-use billing.
Major vendors are focused on providing end-to-end integrated services to utilities from hardware and network endpoints to meter data management (MDM), system integration and program management services, Research and Markets said. The biggest expense when implementing advanced metering infrastructure is the hardware, but growth is also anticipated in system integration, meter data analytics and MDM.
The North American region is expected to see a slowdown in smart meter shipments in 2014-2019, although a surge in demand will be seen in associated professional and IT services and solutions. Europe is predicted to account for the largest share of the advanced metering infrastructure market in 2019.