EUROPE ADVANCED METERING INFRASTRUCTURE MARKET ANALYSIS

Europe Advanced Metering Infrastructure Market Size and Trends

Europe advanced metering infrastructure market is estimated to be valued at US$ 6.84 Bn in 2024 and is expected to reach US$ 12.65 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.2% from 2024 to 2031.

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The Europe Advanced Metering Infrastructure Market is driven by initiatives for energy conservation and the need for two-way communication between utilities and consumers. With rapid urbanization and increasing demand for energy, advanced metering solutions help utilities better manage supply and demand.

Europe advanced metering infrastructure market trend shows significant growth in demand over the forecast period. Governments across Europe are framing policies to reduce carbon footprint which is positively impacting the adoption of AMI solutions. Deployment of smart meters enables timely collection of energy consumption data, improved customer services and reduced operation costs for utilities.

Market Driver - Increasing demand for energy efficiency and management solutions

With rising energy costs and focus on reducing carbon footprint, there is increasing demand from both commercial and residential sectors to better manage their energy consumption. Smart metering solutions allow real-time monitoring of energy usage and help identify areas where efficiencies can be achieved. Advanced metering infrastructure provides valuable usage data that building managers and homeowners can utilize to understand appliance-wise breakdown and make more informed choices around scheduling tasks during off-peak hours or replacing old appliances with energy star rated ones. Remote disconnect and connect features in AMI also help utility providers manage outages proactively and reduce truck rolls. The ability to prepay for electricity through AMI platforms has boosted financial inclusion by providing access to reliable power supply even for those who earlier struggled with deposits or line of credit requirements. Remote and automatic meter reading through two-way communication has significantly reduced manual reading costs and deployment of smart street lighting controls has led to substantial energy savings for municipalities.

Market Concentration and Competitive Landscape

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Government regulations promoting smart meter deployment

Most European nations have recognized the role smart metering can play in transforming the energy sector landscape. Several countries have announced policies and set targets to rollout advanced metering infrastructure on priority. The European Commission has also outlined guidelines under the Third Energy Package to accelerate AMI adoption. In U.K., the nationwide smart meter program is a flagship US$2.5 billion initiative to install smart meters in homes and small businesses by mid-2020s. Italy passed a law in 2017 making installation of second generation smart meters mandatory in medium and large businesses by 2022 and residential premises by 2024. Germany too set a goal of equipping over 90% households with smart meters by 2032. Even Nordic countries like Sweden and Finland have high penetration driven by government led modernization programs. Regulators are actively monitoring progress and applying policy nudges like easier approval for utility spending on digitalization of grid, incentives for consumers to shift loads and reward mechanisms for distributors to rollout at faster pace. 

Key Takeaways from Analyst:

Europe advanced metering infrastructure market is poised to grow significantly over the next decade driven by mandates and targets set by regulatory bodies across various countries to replace aging infrastructure with smart meters. Governments are pushing utilities to deploy smart grid technologies to improve energy efficiency and reduce carbon emissions. This policy support will be a key growth driver for AMI deployment in Europe. However, high initial investment remains a major challenge for utilities and can act as a barrier to large scale rollouts.

Countries like Italy, France and Germany which have already replaced a major portion of their conventional meters with smart meters are likely to see steady growth. On the other hand, nations like the UK, Poland and Spain which are in early stages of smart meter deployments present lucrative opportunities for AMI vendors and network providers to participate in large government initiatives. Communication technologies like RF mesh and cellular will witness increased adoption thanks to their capability to support high meter penetration without requiring separate infrastructure.

AMI solutions integrated with self-healing and predictive analytics will see higher demand from DSOs trying to improve service reliability and operational efficiency. Overall, Western Europe will continue dominating the regional market owing to established economies and proactive policies.

Market Challenge - High initial costs of implementing AMI systems

One of the key challenges currently faced by the Europe Advanced Metering Infrastructure (AMI) market is the high initial costs associated with implementing AMI systems. Transitioning from traditional electricity meters to advanced smart meters and establishing the necessary communication infrastructure requires heavy upfront capital investments. AMI deployments involve purchasing smart meters, communication modules, database management systems as well as upgrading existing grid infrastructure to support two-way communication networks. All of these system components contribute to significantly high deployment costs for utilities. According to industry estimates, the initial cost of a basic AMI deployment ranges between 200 to 600 euros per installation. Considering the massive scale of meter deployments required across countries and remote areas, the total investment outlay can run into hundreds of millions of euros. The high costs often act as a deterrent for many cash-strapped utilities from embarking on large-scale advanced metering programs in the short term. Overcoming financial hurdles to mobilize funds remains a major area of concern for wider adoption of AMI technology in Europe.

Market Opportunity - Technological advancements in smart grid and AMI systems

One of the major opportunities for the Europe advanced metering infrastructure market lies in the ongoing technological advancements in the domain of smart grid and AMI systems. The evolution of more efficient and cost-effective communication network solutions has significantly reduced the installation and management costs of AMI deployments over time. Emerging technologies like broadband powerline communication, low power wide area networks using LoRaWAN and LTE-M are enabling reliable two-way communication even in geographically dispersed remote regions at affordable prices. Additionally, advancement in metering technologies has led to the development of more feature-rich smart meters with advanced functionalities like demand response, power quality monitoring and integration of distributed energy resources. These state-of-the-art AMI systems are effectively addressing the efficiency, reliability and sustainability priorities of next-generation power networks. With continued innovation, AMI solutions are expected to become even more cost-competitive and user-friendly. The technological progress is poised to be a major driver propelling wider adoption of AMI across Europe in the coming years.

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Insights By Type – Rising Adoption of Smart Energy Management Systems Drive Smart Meters Segment

In terms of type, the smart meters segment is estimated to contribute the highest market share of 53.1% in 2024 owing to the rise in adoption of smart energy management systems across Europe. Smart meters allow two-way communication between utilities and consumers, providing real-time energy consumption data to help consumers manage and reduce their power usage. This enables better demand response by utilities and curtailing of energy usage during peak times. Smart meters also empower consumers to make informed energy choices by providing granular insights into consumption patterns. Their integration with smart home technologies and IoT solutions further aids in automated energy management. Additionally, smart meters enable proactive maintenance by utilities through remote fault detection and diagnostics. This improves grid reliability and efficiency. With policies and incentives promoting energy efficiency and conservation, the deployment of smart meters is increasing rapidly across countries in Europe. Their centralized network management capabilities are also driving utilities to adopt smart metering on a large scale.

For instance, In June 2023, Honeywell, a global technology leader specializing in aerospace and building technologies, introduced a new communication network solution for smart meters called the Next Generation Cellular Module (NXCM). This innovative module enables advanced metering infrastructure (AMI) by retrofitting legacy gas and water meters into smart meters, allowing them to connect wirelessly through existing public cellular networks. The NXCM enhances monitoring, safety, and data analytics capabilities for utility providers, significantly improving operational efficiency and reducing costs.

Insights By Technology – Advanced Functionalities Fuel Advanced Metering Infrastructure (AMI) Adoption

In terms of technology, advanced metering infrastructure (AMI) is estimated to hold 61.5% of the market share in 2024 owing to its advanced functionalities over conventional AMR technologies. AMI allows two-way communication between central systems and smart meters using meshed or point-to-point networks. This enables features like remote connect/disconnect, outage management, load profiling, and telemetry. AMI also supports integration of distributed energy resources and microgrids for better grid resilience. Its interoperability with diverse communication technologies simplifies deployment. Additionally, AMI provides utilities with tools for predictive maintenance and equipment monitoring. These features are driving utilities to replace aging infrastructure with AMI systems for operational optimization and delivery of value-added services to consumers. Governments are also incentivizing AMI adoption through regulatory policies for modernizing utility infrastructure.

Insights By End User – Focus on Energy Efficiency Drives Utilities Deployments

In terms of end user, the utilities (electric, water, gas) segment is estimated to contribute the highest market share of 68.9% in 2024 due to the focus on energy efficiency and conservation. Driven by climate change initiatives and decarbonization goals, utilities across Europe are aggressively deploying advanced metering infrastructure to reduce distribution losses, enable demand response, and optimize capacity planning. AMI provides granular load data to analyze consumption patterns and implement targeted efficiency programs. It also helps shift peak loads and curtail energy usage. This supports utilities in meeting regulatory energy savings mandates while lowering infrastructure costs. AMI further allows commercializing value-added services leveraging usage data. The tech-enabled customer experience boosts satisfaction levels. With policy push for modernization of aging infrastructure, most large European utilities are involved in multi-year AMI deployment programs to transition to smart grid operations.

Market Report Scope

Europe Advanced Metering Infrastructure Industry News

• In March 2023, Landis+Gyr, a leading global provider of integrated energy management solutions, expanded its operations in Eastern Europe to enhance service delivery. This strategic move aims to strengthen the company's presence in key markets and improve support for utilities in the region. The expansion is part of Landis+Gyr's broader initiative to meet the growing demand for smart metering and grid management solutions, driven by the increasing focus on energy efficiency and sustainability. By leveraging its advanced technologies and expertise, Landis+Gyr is poised to offer innovative solutions that help utilities optimize their operations and better serve their customers in Eastern Europe, further solidifying its position as a market leader in the energy sector.
• In September 2022, Schneider Electric, a global specialist in energy management and automation, partnered with a utility provider to deploy advanced metering infrastructure (AMI) in several European cities. This collaboration aims to enhance the efficiency and reliability of energy distribution by integrating smart metering technologies that provide real-time data and analytics. The deployment of AMI will enable utilities to optimize their operations, improve customer engagement, and facilitate better energy management practices. 
• In July 2021, Itron, Inc., a prominent technology company specializing in energy and water resource management, acquired a software company to enhance its advanced metering infrastructure (AMI) solutions. This strategic acquisition is aimed at improving Itron, Inc.'s capabilities in delivering innovative software that supports utilities in managing their energy and water resources more efficiently. By integrating the new software into its existing portfolio, Itron, Inc. seeks to provide utilities with advanced analytics and operational insights, ultimately driving better decision-making and resource management. This move aligns with Itron, Inc.'s commitment to innovation and its goal of helping utilities and cities optimize their operations in an increasingly complex energy landscape.
• In February 2021, Siemens, a global leader in digital industries and smart infrastructure, launched a new smart meter equipped with enhanced data analytics features. This innovative meter is designed to provide utilities with advanced capabilities for monitoring energy consumption and optimizing grid management. By leveraging sophisticated data analytics, the smart meter enables utilities to gain real-time insights into usage patterns, identify inefficiencies, and improve operational decision-making. 

*Definition: Europe advanced metering infrastructure market involves the implementation of a system that measures, collects and analyzes energy usage from advanced devices and communicates with metering devices such as electricity, gas or water meters through various communication technologies. It enables two-way communication between utilities and customer meters and helps create opportunities for peak load reduction, outage management, improved customer service, standardization, and increased accuracy in monitoring electricity usage or billing. Key components include smart meters, communication networks.

Market Segmentation

•  Type Insights (Revenue, US$ Bn, 2019 - 2031)
• • Smart Meters
  • Communication Networks
  • Meter Data Management Systems
•  Technology Insights (Revenue, US$ Bn, 2019 - 2031)
• • Advanced Metering Infrastructure (AMI)
  • Automated Meter Reading (AMR)
•  End User Insights (Revenue, US$ Bn, 2019 - 2031)
• • Utilities (Electric, Water, Gas)
  • Residential
  • Commercial
• Key Players Insights
  • Siemens AG
  • Schneider Electric SE
  • Itron, Inc.
  • Landis+Gyr
  • Honeywell International Inc.
  • Sensus (Xylem Inc.)
  • Elster Group GmbH
  • Kamstrup A/S
  • ABB Ltd.
  • Iskraemeco d.d.
  • Aclara Technologies LLC
  • Echelon Corporation
  • Wasion Group Holdings Ltd.
  • Diehl Metering GmbH
  • Invensys