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Advanced Metering Infrastructure Market to Grow at Fast Rate, States Frost & Sullivan

- Revenues expected to triple - Massive opportunities for communication systems and network, meter data management (MDM), customer and programme data management

LONDON, Jan. 23, 2013 /PRNewswire/ -- Legislation and standardisation are set to catalyse the advanced metering infrastructure (AMI) market in Europe. Market participants are working towards standardisation and fulfilling regulatory requirements for the development of smart meters and AMI to begin mass rollouts.

New analysis from Frost & Sullivan (http://www.energy.frost.com), European Advanced Metering Infrastructure (AMI) Market, finds that the AMI revenue in Europe is expected to grow from $1.13 billion in 2011 to $3.72 billion in 2016 at a compound annual growth rate (CAGR) of 26.9 per cent. The research covers smart meters, installation, communication systems and network, meter data management (MDM) and customer and programme data management.

"Emerging smart grid technologies, which support enhanced energy management, will boost the installation of AMI in Europe," noted Frost & Sullivan Energy & Power Supplies Research Analyst Neha Vikash. "The market is expected to witness higher growth not only in smart meters and the installation segments, but also in communications networks, MDM, customer and programme data management segments as well." Most companies in the AMI space are not just the hardware (meter) providers. They combine them with important services and appropriate functionalities in communication infrastructure and data management. These are the key technologies for the deployment of innovative solutions. Installation of hardware does not generate a constant stream of revenue.

Despite its obvious benefits, smart meter implementation reveals regional disparities. Market growth has been faster in Western and Northern Europe. The lack of regulatory drive and utility implementations has affected installation rates in Central and Eastern Europe. It is expected that the smart metering activity in the CEE region will follow the Western European knowledge wave and experience. "It is also expected that once large scale roll out activity begins in Central and Eastern Europe, the pace of implementation will be faster compared to that of Western Europe," concluded Vikash. "Regulatory approval, along with increased competition, aging infrastructure, and new technology will continue to drive investments in advanced metering and intelligent grid technologies."

Nevertheless, EU member states that lack the regulatory push for deployment will experience large-scale implementation after 2015, as they have to comply with the EU's Third Energy Directive, or pay a high penalty fee.

"AMI is an important step towards achieving the EU 20-20-20 goal which states that by 2020, 80 per cent of households must have smart meters and complete rollout achieved by 2022," elaborated Vikash. "Government mandates will, therefore, be a key driver for AMI deployment."

In addition to legislation, the lack of communication standards and security issues also play a major role in determining market prospects. In fact, data security is an issue among all member states, but it is of higher importance in the UK, Germany and the Netherlands. This has resulted in a delay in smart meter roll out plans by utilities.

"Standardisation is likely to affect future smart meter sales, development and innovation," concluded Vikash. "Meters complying with security requirements as per the standardisation mandate as well as satisfying regional legislative security requirements are likely to encourage customers to adopt smart meters."

If you are interested in more information on this research, please send an email to Chiara Carella, Corporate Communications, at chiara.carella@frost.com.

European Advanced Metering Infrastructure (AMI) Market is part of the Energy & Power Growth Partnership Service programme. Frost & Sullivan's related research services include: European Nuclear Power Sector, European Wind Energy Markets, Global Prospects for Coal-Fired Power Generation, and European Solar Power Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion

Contact:
Chiara Carella
Corporate Communications – Europe
P: +44 (0) 20 7343 8314
M: +44 (0) 753 3017689
E: chiara.carella@frost.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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