Advanced Metering Infrastructure: Possibilities Abound — Part 1

The renaissance of advanced metering infrastructure, or smart meters, is still in its infancy despite its recent surge. AMI’s recent surge in popularity and industry revenue are both largely attributable to government policies and stimulus.

The main industrial benefactors of the proliferation of AMI technology are Oil & Gas, Electricity, and Water. Future posts will elaborate in more detail how each aforementioned industry will benefit specifically from AMI. I’m a Water man, and believe strongly that AMI coupled with Data Analytics will profoundly change the landscape of the Water industry in the U.S. and abroad for years to come. But that is for another post.

For now, a brief overview of the AMI industry, Historical Revenue Trends, and Revenue Forecasts shall suffice. The historical revenue trends show the AMI’s industry revenues from 2002–2014 (N=13) had a mean of $737M and Standard Deviation of $456M. The forecast method for the AMI industry revenue is an exponential smoothing forecast with upper and lower 95% confidence boundaries.

AMI Industry Overview :

At a glance, industry revenue as of 2014 are approximately $1.5Bn, which includes an annual growth rate of 12.9% during the period of 2009–2014. Additionally, annual revenue growth over the period 2014–2019 is projected to be 16.8% (Figure 1). [1] According to Edison Electric Institute, the number of smart meters installed in the US has gone from roughly 13 million in 2009 to 46 million in 2013.[2] This growth is expected to remain steady until 2016 when many government tax incentives expire.

AMI Revenue Trends 2002–2014:

Revenue Exponential Smoothing Forecast:

This post is just a brief introduction. My future goals are to specifically illustrate how AMI and Data Analytics are profoundly changing Water and Electric Utilities forever.

[1] IBIS World Industry Report — Smart Meter Manufacturing in the US, August 2014

[2] IBIS World Industry Report — Smart Meter Manufacturing in the US, August 2014

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