Advanced Metering Infrastructure Market Size, Share & Industry Analysis, By Devices (Smart Gas Meters, Smart Water Meters, and Smart Electric Meters), By Component (Smart Meters (Hardware), Communication Network Infrastructure, Head-End System (HES) & MDMS, and Services), By Application (Residential Metering, Commercial & Industrial (C&I) Metering, and Multi-Utility & Infrastructure Metering), and Regional Forecast, 2026-2034

The global advanced metering infrastructure (AMI) market size was valued at USD 25.06 billion in 2025 and is expected to reach USD 29.78 billion by 2026. The market is projected to reach USD 71.41 billion by 2034, exhibiting a CAGR of 11.6% during the forecast period. Moreover, the Asia Pacific region holds the largest market share in terms of revenue, driven by rapid urbanization, massive government investments in smart grids in countries such as China, India, and Japan, and rising energy demand. With AI integration, real-time data analysis is enhanced, resulting in improved grid management and reduced power losses.

Advanced Metering Infrastructure (AMI) is a two-way communication system of smart meters, networks, and data systems that enables real-time energy usage monitoring and management, driving grid efficiency, customer engagement, and outage response; key drivers include smart grid evolution, demand for detailed data, operational cost reduction, and integration of renewables, moving beyond older, manual meter reading (AMR) systems.

• In March 2025, Moldova's third batch of 18,000 smart meters was installed, funded by Italy through the UNDP, for the Premier Energy Distribution and RED Nord networks. Combined with prior deliveries, 32,000 units are expected to be installed in 2025, reaching 60,000 households by 2027. The pilot enhances grid resilience, real-time monitoring, and alignment with European standards through transparent site selection.

Itron is a major international leader and prominent player in the market, holding a significant market share in North America and a strong global presence. The company is recognized for its comprehensive, end-to-end solutions that extend beyond basic smart meters to encompass software, data analytics, and grid-edge intelligence. Other key leaders include Schneider Electric, Siemens AG, IBM, and General Electric (GE), which often lead through large-scale innovative grid projects across the globe.

ADVANCED METERING INFRASTRUCTURE MARKET TRENDS

Increased Adoption of Hybrid Communication Networks Shaping Advanced Metering Infrastructure Market Trends

Increased adoption of hybrid communication networks is shaping key trends in the advanced metering infrastructure market. Blending cellular, RF mesh, PLC, and emerging satellite technologies ensures robust, redundant connectivity, overcoming the limitations of single networks in remote or densely populated areas. This evolution supports low-latency data transmission for real-time analytics, outage management, and EV charging integration. Driven by 5G rollout and IoT proliferation, hybrid setups enhance scalability and interoperability, enabling utilities to future-proof grids against rising distributed energy resources and smart city demands.

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MARKET DYNAMICS

MARKET DRIVERS

Growth of Distributed Energy Resources and Electrification is Driving the Market Evolution

The rapid development of distributed energy resources, such as rooftop solar panels and small-scale wind installations, is driving the advanced metering infrastructure market growth. These decentralized systems generate power closer to end-users, necessitating smarter grids that can manage variable flows and integrate renewable energy sources seamlessly. Meanwhile, escalating electrification across transportation, industry, and households amplifies electricity demand, straining traditional networks and highlighting the need for real-time monitoring and control.

• In December 2025, India had installed 4.76 crore smart meters, as of November 2025, under the RDSS and state schemes, with 20.33 crore sanctioned nationwide. Maharashtra leads with over 73 lakh units, followed by Uttar Pradesh (65 lacs) and Assam (49 lacs). Implemented via PPP in TOTEX mode, AMISPs handle supply, maintenance, and operations to boost grid efficiency and indigenization.

Advanced metering infrastructure enables precise energy tracking, dynamic pricing, and demand response, optimizing resource allocation and minimizing outages. This synergy fosters grid resilience, empowers consumers with usage insights, and supports utilities in balancing supply with surging loads from electric vehicles and industrial automation.

MARKET RESTRAINTS

High Upfront Capital Expenditure to Suppress Market Growth

High upfront capital expenditure remains a significant restraint, suppressing growth in the advanced metering infrastructure market. Deploying smart meters at scale demands substantial investments in hardware, software integration, network connectivity, and cybersecurity measures, straining the budgets of utilities, especially in emerging economies. Retrofitting legacy systems adds complexity and costs, while long payback periods deter private investors amid economic uncertainties. Limited access to affordable financing further hampers rollouts, delaying widespread adoption despite evident long-term benefits in efficiency and grid reliability.

MARKET OPPORTUNITIES

Expansion of Gas and Water AMI is Expected to Create Lucrative Opportunities

Expansion of gas and water advanced metering infrastructure presents lucrative opportunities for market growth. As utilities seek comprehensive resource management, extending smart metering beyond electricity to gas and water networks enables unified monitoring, leak detection, and precise tracking of consumption across all networks. This multi-utility approach reduces non-revenue losses, optimizes distribution, and supports sustainability goals, such as water conservation and efficient gas usage.

The rising demand for integrated smart city solutions further fuels adoption, opening avenues for innovative sensors, IoT platforms, and data analytics, which promise enhanced operational efficiencies and new revenue streams for providers.

MARKET CHALLENGES

Supply Chain Volatility and Component Availability May Create Challenges for Market Growth

Supply chain volatility and component availability pose significant challenges to the growth of the advanced metering infrastructure market. Disruptions from geopolitical tensions, raw material shortages, and semiconductor constraints inflate costs and delay deployments. Reliance on specialized components, such as chips, sensors, and communication modules, exposes manufacturers to global supply chain risks, hindering timely scaling.

Escalating trade barriers and logistics bottlenecks further complicate procurement, forcing utilities to grapple with extended lead times and budget overruns. Mitigating these requires diversified sourcing and resilient strategies to sustain momentum amid evolving energy demands.

Segmentation Analysis

By Devices

Smart Gas Meters Fuels the Segmentation Growth Owing to Widespread Utility Upgrades in Natural Gas Networks

Based on device, the market is classified into smart gas meters, smart water meters, and smart electric meters.

In 2025, the smart gas meters’ segment dominated the market, with a revenue share of 67.2%, due to widespread utility upgrades for leak detection, accurate billing, and energy efficiency in natural gas networks.

• In March 2021, Itron launched a new residential smart electricity meter, eHZ-B, for the German market, which is compliant with 3: HZ FNN standards and interoperable in multi-vendor environments. The meter features TLS encryption for secure Smart Meter Gateway communication, advanced grid monitoring, and next-gen cybersecurity to support Germany's energy transition and innovative grid development.

Meanwhile, smart electric meters are emerging as the fastest-growing segment, with a CAGR of 17.42%, fueled by surging electrification, renewable integration, and demand for real-time grid monitoring amid rising electric vehicle adoption and the growth of distributed energy resources.

By Component

Smart Meters (Hardware) are the Dominant Segment Owing to the Robust Demand for Reliable Devices

Based on component, the market is classified into Smart Meters (Hardware), Communication Network Infrastructure, Head-End System (HES) & MDMS, and Services.

In 2025, the Smart Meters (Hardware) segment dominated the global market, holding a market share of 33.4%, owing to robust demand for reliable devices equipped with sensors, displays, and communication modules for precise energy measurement.

In contrast, services emerge as the fastest-growing segment, with a CAGR of 11.98%, driven by the need for installation, maintenance, data analytics, cybersecurity, and cloud integration, enabling utilities to optimize operations and extract value from vast metering data streams.

By Application

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Residential Metering Leads the Market Due to Its Ability to Massively Scale Deployments in Households

Based on application, the market is classified into residential metering, Commercial & Industrial (C&I) Metering, and multi-utility & infrastructure metering.  

In 2025, the residential metering segment dominated the global advanced metering infrastructure market share with a 57.8%, primarily due to the massive-scale deployment of meters in households for demand response, time-of-use pricing, and consumer empowerment through usage insights.

• In November 2025, Polaris Smart Metering announced plans to deploy 10 million smart electricity meters across India as part of government initiatives aimed at modernizing power distribution.

Meanwhile, the commercial and industrial (C&I) metering segment is surging as the fastest-growing, with a CAGR of 15.27%, driven by escalating energy needs in factories, offices, and data centers. Advanced features such as load forecasting, predictive maintenance, and integration with automation systems are key factors in enhancing efficiency and achieving cost savings.

Advanced Metering Infrastructure Market Regional Outlook

By region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific

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Asia Pacific held the dominant share in 2025, valued at USD 9.95 billion, and also took the leading share in 2026 with USD 12.23 billion. Asia Pacific leads the global advanced metering infrastructure market, holding the largest regional share driven by rapid urbanization, surging electricity demand, and aggressive smart grid technology initiatives. Countries like China, India, Japan, South Korea, and emerging markets such as Thailand, Indonesia, and the Philippines are spearheading massive smart meter rollouts to reduce energy losses, integrate renewable energy sources, and enhance grid stability.

China Advanced Metering Infrastructure Market

The China Advanced Metering Infrastructure market in 2025 is estimated to be around USD 4.33 billion, accounting for roughly 22.94% of the global Advanced Metering Infrastructure revenues.

China dominates globally through State Grid's aggressive deployments under its Five-Year Plan, with a focus on efficiency and low-carbon goals.

India Advanced Metering Infrastructure Market

India’s Advanced Metering Infrastructure market is projected to be one of the largest worldwide, with revenues estimated at around USD 2.66 billion in 2025, representing approximately 14.08% of the global Advanced Metering Infrastructure market.

• In October 2025, Wirepas launched its Wirepas Certified platform in India, introducing the industry's first performance-guaranteed AMI connectivity model. Utilities pay only for meters that connect and perform according to SBD requirements; non-performing service is provided at no cost.

Japan Advanced Metering Infrastructure Market

The Japan Advanced Metering Infrastructure market in 2025 is estimated to be around USD 1.46 billion, accounting for approximately 7.75% of global revenues.

Europe

Europe is projected to record a growth rate of 9.4% in the coming years, which is the third highest among all regions, and reach a valuation of USD 4.73 billion by 2025. Europe's advanced metering infrastructure market is growing steadily, driven by EU mandates for smart meter rollouts that aim to achieve over 80% coverage. Leaders such as the UK, Italy, France, and Germany are advancing grid modernization and renewable integration through widespread deployments. Hardware dominates amid regulatory efforts to promote energy efficiency.

Germany Advanced Metering Infrastructure Market

The German Advanced Metering Infrastructure market is estimated to be around USD 1.06 billion in 2025. It is projected to reach USD 1.26 billion by 2026, representing approximately 5.62% of the global advanced metering infrastructure (AMR) revenues.  

North America

North America is projected to reach USD 7.94 billion by 2025, securing the position of the second-largest market region. The market, led by the U.S., is undergoing a massive rollout of smart meters for grid modernization and energy efficiency. High investments in renewable energy integration, real-time analytics, and regulatory support drive market growth across both residential and commercial sectors. Canada complements its steady AMI upgrades with a focus on resilience.

U.S. Advanced Metering Infrastructure Market

Based on North America’s substantial contribution and the U.S. dominance within the region, the U.S. market can be analytically approximated at around USD 6.56 billion in 2025, accounting for roughly 34.72% of the global market size. The market growth is driven by the robust investments in real-time analytics in the energy sector. For instance, in August 2024, Iberdrola announced the installation of over 700,000 smart meters for electricity and gas customers across New York cities, including Ithaca, Rochester, and Binghamton. The upgrades enable accurate consumption readings, outage detection, and grid modernization, with plans to install 1.3 million additional electric meters and 600,000 gas modules statewide over the next two years to support the energy transition.

Latin America

Latin America is expected to witness moderate growth in this market space during the forecast period. The Latin America market is set to reach a valuation of USD 1.47 billion in 2025. Latin America advances metering infrastructure market grows via Brazil, Mexico, and Chile's digital programs to cut grid losses and boost efficiency. Residential smart meter rollouts and prepaid solutions are gaining traction amid urbanization and the push for renewables.

Brazil Advanced Metering Infrastructure Market

Brazil's Advanced Metering Infrastructure market is projected to reach approximately USD 1.15 billion by 2025, accounting for roughly 6.07% of the global Advanced Metering Infrastructure market.

Middle East & Africa

The Middle East & Africa are expected to witness significant growth in this market space during the forecast period. The Middle East & Africa market is set to reach a valuation of USD 0.97 billion in 2025. The Middle East & Africa Advanced Metering Infrastructure market is driven by Urbanization, renewable energy integration, and the adoption of prepaid metering, despite high costs and cyber risks. Government investments fuel residential and utility upgrades.

GCC Advanced Metering Infrastructure Market

The GCC Advanced Metering Infrastructure market is projected to reach approximately USD 0.47 billion by 2025, accounting for around 2.49% of the global advanced metering infrastructure market.

COMPETITIVE LANDSCAPE

Key Industry Players

Vendors are Actively Expanding Their Market Share in The Advanced Metering Infrastructure (AMI) Market Through Partnerships, Business Expansion, And Technological Advancements

The global advanced metering infrastructure market has a fragmented structure, comprising prominent players such as Itron, Inc., Landis+Gyr Group AG, Sensus (Xylem Inc.), Aclara Technologies LLC, Honeywell International Inc., and others. Companies operating in the Advanced Metering Infrastructure (AMI) are adopting AMI-targeted growth strategies focused on strengthening technical capabilities, expanding their manufacturing presence, and improving access to high-demand sectors. Other major players in the global market include Toshiba Corporation, EDMI Limited, Holley Technology Ltd., ZENNER International GmbH & Co. KG, Trilliant Holdings Inc., Oracle Corporation, and others. These companies are expected to prioritize new product launches and collaborations to increase their global market share during the forecast period.

List of Key Advanced Metering Infrastructure Companies Profiled

• Itron, Inc. (U.S.)
• Landis+Gyr Group AG (Switzerland)
• Sensus (Xylem Inc.) (U.S.)
• Aclara Technologies LLC (Hubbell Incorporated) (U.S.)
• Honeywell International Inc. (U.S.)
• Siemens AG (Germany)
• Schneider Electric SE (France)
• Kamstrup A/S (Denmark)
• Diehl Metering GmbH (France)
• Toshiba Corporation (Japan)
• EDMI Limited (Singapore)
• Holley Technology Ltd. (China)
• ZENNER International GmbH & Co. KG (Germany)
• Trilliant Holdings Inc. (U.S.)
• Oracle Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS

• In December 2025, Apraava Energy secured USD 92 million from British International Investment and Standard Chartered to expand its smart metering rollout across multiple Indian states. The funding supports the installation of over 2 million smart meters under RDSS, targeting grid efficiency, renewable integration, and loss reduction towards India's 250-million-meter goal by 2026.
• In October 2025, Wirepas launched its "Wirepas Certified" platform in India, the world's first AMI connectivity solution with performance guarantees for smart metering. This RF mesh technology simplifies deployments, cuts costs, and ensures 99.9% SLA compliance amid India's massive 250-million-meter rollout under RDSS. Partnerships with Silicon Labs and HPL enable utilities to build scalable, resilient networks.
• In August 2025, Vi Business, Vodafone Idea's enterprise arm, announced plans to deploy 12 million smart meters nationwide within three years, aligning with India's National Smart Grid Mission. Leveraging its IoT Smart Central platform and IoT Lab expertise since 2018, the initiative targets reducing AT&C losses, implementing prepaid metering, and providing real-time consumer insights for DISCOMs.
• In March 2025, Netmore Group launched Metering-as-a-Service (MaaS) for water metering and gas utilities, offering a capex-free alternative to traditional AMI deployments. Utilities pay monthly fees per communicating meter, covering complete energy management, repairs, and replacements to accelerate modernization. This IoT solution enhances efficiency, tackles non-revenue water, and promotes sustainability without upfront investments.
• In February 2025, EDF India and Actis announced a strategic joint venture to develop advanced metering infrastructure in India. The partnership establishes a dedicated platform for AMISP concessions under the Revamped Distribution Sector Scheme, facilitating the acceleration of smart meter deployments to enhance grid efficiency, reduce losses, and support the financial stability of DISCOMs. EDF leverages global digital grid expertise, while Actis bolsters sustainable infrastructure investments.

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