|By Business Wire||
|September 28, 2012 05:00 AM EDT||
Managing the cost and complexity of large-scale smart meter deployments is proving to be a significant challenge for many utilities. Advanced metering infrastructure (AMI) managed services, or AMS, has emerged as a third-party option in which the day-to-day operations of the AMI system are outsourced to managed service providers, often via cloud-based resources. To date, smaller utilities have been the primary customers for AMS, but according to a recent report from Pike Research, a part of Navigant’s Energy Practice, during the middle of this decade, larger utilities will also increasingly choose to outsource these functions. By 2020, the study concludes, AMS will represent half of the overall AMI market, with annual revenues of more than $2.2 billion.
“AMS remains something of a well-kept secret, but the market is poised to take off,” says senior research analyst Bob Lockhart. “While there’s more current activity and more installed endpoints than you would expect today, the current volumes pale in comparison with what is likely to come over the rest of this decade. The successful AMS vendors will be those that can stick to a business dialogue with their clients while internally optimizing their technology and delivery capability continuously.”
Some utilities will want to roll the entire infrastructure cost into their monthly service fees to avoid any capital outlay, according to the report, while others – especially large regulated utilities in North America – will want to capitalize the infrastructure, even if it remains at a cloud hosting center. In some cases these choices will be determined, at least in part, by federal incentives. Some large utilities in the United States that did not obtain stimulus funds through the American Recovery and Reinvestment Act of 2009 may consider AMS if they do not believe that they can get a rate case approved for AMI capital expenses in the current political environment.
Pike Research’s report, “AMI Managed Services”, analyzes the global market for AMS with regional breakdowns and detailed analysis of the AMS market in 27 key countries. The report also assesses key business drivers for AMS, pricing methodologies, and the types of vendors most likely to be successful, with in-depth profiles of key players. The market forecasts cover the period from 2012 through 2020, for each major region of the world. U.S. forecasts are further segmented by utility type: investor owned, municipal, and cooperative. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “AMI Managed Services,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.