Advanced Metering Infrastructure Market

Increase in the generation of energy

The Global Advanced Metering Infrastructure (AMI) Market Industry is poised for substantial growth, with projections indicating a market value of 30.3 USD Billion in 2024 and an anticipated increase to 74.4 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 8.5 percent from 2025 to 2035. The increasing adoption of smart meters, driven by technological advancements and regulatory support, is likely to be a key contributor to this expansion. As utilities and consumers alike recognize the benefits of AMI systems, the market is expected to flourish in the coming years.

Government regulations and incentives play a pivotal role in the expansion of the Global Advanced Metering Infrastructure (AMI) Market Industry. Many countries are implementing policies that mandate the deployment of smart meters to enhance grid reliability and consumer engagement. For example, the European Union has set ambitious targets for smart meter installations, aiming for 80 percent coverage by 2024. Such regulatory frameworks not only facilitate market growth but also encourage utilities to invest in AMI technologies. This supportive environment is expected to contribute to the market's growth trajectory, with projections indicating a rise to 74.4 USD Billion by 2035.

The Global Advanced Metering Infrastructure (AMI) Market Industry is witnessing a surge in demand for energy efficiency solutions. As consumers and utilities alike strive to reduce energy consumption and costs, AMI systems provide real-time data that enables better energy management. This trend is particularly evident in urban areas where energy demands are high. For instance, cities implementing AMI have reported reductions in peak demand by up to 15 percent. The market is projected to reach 30.3 USD Billion in 2024, reflecting the increasing adoption of smart meters and energy-efficient technologies.

Consumer awareness regarding energy consumption and sustainability is on the rise, significantly impacting the Global Advanced Metering Infrastructure (AMI) Market Industry. As consumers become more informed about their energy usage, they demand greater transparency and control over their consumption patterns. AMI systems empower consumers by providing detailed insights into their energy usage, enabling them to make informed decisions. This shift in consumer behavior is prompting utilities to adopt AMI technologies to enhance customer engagement and satisfaction. The growing emphasis on consumer-centric solutions is likely to drive market growth in the coming years.

The integration of renewable energy sources into the grid is a crucial factor influencing the Global Advanced Metering Infrastructure (AMI) Market Industry. As more utilities incorporate solar, wind, and other renewable sources, the need for advanced metering solutions becomes paramount. AMI systems facilitate the management of distributed energy resources, allowing for better grid stability and efficiency. This trend is expected to accelerate as countries aim for carbon neutrality and increased reliance on renewables. The market's growth is anticipated to align with these sustainability goals, further solidifying the role of AMI in modern energy systems.

Technological innovations are driving the evolution of the Global Advanced Metering Infrastructure (AMI) Market Industry. The integration of Internet of Things (IoT) technologies and advanced data analytics is enhancing the capabilities of smart meters. These advancements allow for improved data collection, real-time monitoring, and predictive maintenance, which can lead to significant operational efficiencies for utilities. As a result, the market is likely to experience a compound annual growth rate (CAGR) of 8.5 percent from 2025 to 2035. Utilities are increasingly recognizing the value of these technologies, further propelling the adoption of AMI solutions.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The market for advanced metering infrastructure will be dominated by the North American area, and the growing use of smart grid technologies is cited as the cause. Another factor driving the expansion of the advanced metering infrastructure market in the North American area is the region's growing population and the number of water and energy applications.

Additionally, the European region's superior metering infrastructure will accelerate this market's global expansion. Due to increased end-user demand for smart meters and the implementation of tight rules and policies for their adoption, the Asia Pacific region will also experience notable development during the projection period.

Figure 3:  ADVANCED METERING INFRASTRUCTURE (AMI) MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development such as new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Advanced Metering Infrastructure (AMI) industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the  Advanced Metering Infrastructure (AMI) industry to benefit customers and expand the market sector. Major market players, including Cisco Systems Inc, General Electric, Schneider Electric, and ITRON Inc, are attempting to increase market demand by funding R&D initiatives.

Cisco Systems develops and markets a variety of technologies for networking, security, teamwork, apps, and the cloud. It provides products for wireless, data centers, switching, routing, cloud, and email security, identity and access management, threat prevention, and unified threat management, as well as cloud and system management.

Schneider Electric is an industrial automation and energy management firm that offers hardware, software, and services. It provides a comprehensive range of solutions in building automation and control, grid automation, critical power and cooling, industrial automation and control, energy access, solar and energy storage, low voltage products and systems, and so on. The company serves commercial real estate, automotive, data centers and networks, life sciences, healthcare, retail transportation, and other markets.