The advanced distribution management system market is expected to grow at a CAGR of 16.43% during the forecast period. Increasing renewable energy demand across the world, the surging requirements for better customer service and utility efficiency, and rapid development of the smart grid are some of the major factors driving the growth of an advanced distribution management system market.
- Increase demand to upgrade the power infrastructure in developed countries to conserve energy, reduce costs, increase reliability, and transparency with the usage of a smart grid is expected to drive the market. The smart grid generates volumes of data from smart meters and sensors, and legacy systems cannot handle the enormous data. Hence, an advanced distribution management system is employed that organizes and analyzes the enormous volumes of new near-real-time data and manage microgrids and virtual power plants.
- For instance, in 2020, Ameren, one of the largest utility companies in the United States, has announced to spend USD 7.6 billion on a five-year grid modernization plan that includes installation of smart meters for more than 1.2 million customers. It will develop solar energy and battery storage in rural areas and switch to storm-resilient utility poles and wires and will boost the market in the future.
- A surging number of solar energy projects across the United States and Canada to meet the demand for renewable and clean sources of energy is expected to drive the market. Moreover, strong federal policies like the solar Investment Tax Credit, declining costs, and increasing demand across the private and public sectors for clean electricity in the United States have led to the average annual growth rate of 48% in the solar industry.
- Data security challenges, problems of interoperability, and inadequate incentives for utilities are expected to hamper the growth of the market in the future.
- However, COVID-19 is expected to help overcome these challenges as it has positively impacted the market growth. Since energy and utility industry are considered under essential services, coronavirus pandemic has forced these utilities to rethink the way in which many of their operations are performed, and the ways in which they engage with both their staff and their customers.
Key Market Trends
Advanced Metering Infrastructure (AMI) Will Experience Significant Growth and Drive the Market
- Advanced metering infrastructure (AMI) is an integrated system of smart meters, communications networks, and data management systems that enables two-way communication between utilities and customers. It automatically and remotely measures electricity used, connects and disconnect service, identify and isolate outages, and monitor voltage.
- It is combined with customer technologies, such as in-home displays and programmable communicating thermostats, and enables utilities to offer new time-based rate programs and incentives that encourage customers to reduce peak demand and manage energy consumption and costs.
- Increasing investment in advanced metering infrastructure to reduce the cost from remote billing and metering services is expected to compel the market. According to the CenterPoint Energy report, the cost saving of more than USD 61 million was recorded from 2012-2014, and tamper detection functions of AMI alone prevented revenue losses exceeding USD 450,000 in 2012 and USD 130,000 in 2014.
- Moreover, utility provider also achieves a reduction in peak demand (time-based rate or incentive programs) which lowers their wholesale power purchase costs and allow them to sell excess electricity to regional markets and defer investments in new generation and delivery capacity. For instance, Oklahoma Gas & Electric reported average annual electricity savings of USD 191.78 from residential customers and USD 570.02 for commercial customers, participating in time-based rate or incentive programs.
- Additionally, the U.S. Department of Energy (DOE) is investing to support grid modernization through research, development, demonstration, analysis, and technology transfer activities. It released a Grid Modernization Multi-Year Program Plan (MPP) to achieve a modern, secure, sustainable, and reliable grid which is supported by the Grid Modernization Lab Consortium, a multi-year collaboration among 14 DOE national laboratories and regional networks, that assist it in developing and implementing the activities of the MYPP and it is expected to drive the AMI market in the United States.
North America is Expected to Experience Significant Growth
- North America is expected to dominate the market throughout the forecast period due to rapid technological advancements and penetration of supervisory control and data acquisition (SCADA) in various sectors, stringent government regulations mandating the deployment of an advanced distributed management system to reduce electric loss and cost and increasing smart cities projects which are expected to drive the growth in North America.
- Due to on growing demand for enhanced power quality, data security, and resiliency to natural disasters and other threats which interrupt the supply of power, most of the companies are deploying innovative ADMS systems. For instance, in February 2020, Open Systems International, Inc. launched a new business unit, AfterNext Solutions, to provide utilities with integrated hardware and software solutions. It’s newest offering, Tina (Thermo Intelligent Network Appliance), a secure, intelligent thermostat that connects utilities directly to consumers and also informs incentive programs, time-of-day pricing, green energy profile, and other prosumer programs which drives them to reduce their electricity usage in peak hours.
- The recent COVID-19 outbreak has temporarily slowed the demand for advanced distribution management system as most of the infrastructure projects are delayed in order to contain the spread of virus. For instance, in May 2020, Google’s Sidewalk Labs has abandoned its plan to build a high-tech neighborhood on Toronto's waterfront, Quayside project, due to unprecedented economic uncertainty.
The advanced distribution management system market is competitive and is dominated by a few major players like Schneider Electric SE, ABB Group, General Electric Company, Siemens AG, and Advanced Control Systems. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
- July 2020 - Open Systems International, Inc. (OSI) launched a new business subsidiary, Adherant Consulting, an operational technology (OT) systems' integration and consulting organization. Adherant Consulting will provide professional services to clients who are implementing and deploying OSI OT systems such as Energy Management, Generation Management, Advanced Distribution Management, Outage Management, and Renewables Management systems.
- June 2020 - ETAP announced the release of ETAP 20, which features an innovative, time-saving electrical safety capabilities. It is built upon a digital twin platform to design, operate, and automate electrical power Systems.
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Table of Contents
1.2 Scope of the Study
4.2 Market Drivers?
4.2.1 Rapid Adoption Of Smart Grid Technology
4.2.2 Rising Energy Demand And Efficient Distribution Management System
4.2.3 Increasing Investment in Infrastructure Construction in Emerging Economies
4.3 Market Restraints
4.3.1 Higher Initial Investment
4.4 Market Opportunities
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5.1.4 System Integration
5.1.5 Support and Maintenance
5.2 System Type
5.2.1 Distribution Management System (DMS)
5.2.2 Automated Meter Reading/Advanced Metering Infrastructure (AMR/AMI)
5.2.3 Distributed Energy Resources Management Systems (DERMS)
5.2.4 Energy Management Systems (EMS)
5.2.5 Customer Information Systems (CIS)
5.2.6 Meter Data Management Systems (MDMS)
5.3 End-user Verticals
5.3.1 Energy & Utilities
5.3.2 IT and Telecommunications
5.3.4 Defense and Government
5.3.6 Transportation & Logistics
5.3.7 Others End-user Verticals
5.4.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdoms
22.214.171.124 Rest of Europe
5.4.3 Asia Pacific
126.96.36.199 Rest of Asia Pacific
5.4.4 Middle East and Africa
6.1.1 ABB Group
6.1.2 General Electric Company
6.1.3 Siemens AG
6.1.4 Advanced Control Systems
6.1.5 Schneider Electric SE
6.1.6 Survalent Technology
6.1.7 ETAP/Operation Technology,Inc.
6.1.8 S&C Electric Company
6.1.9 Capgemini Consulting
6.1.10 Open Systems International, Inc
6.1.11 Alstom S.A.
A selection of companies mentioned in this report includes:
- ABB Group
- General Electric Company
- Siemens AG
- Advanced Control Systems
- Schneider Electric SE
- Survalent Technology
- ETAP/Operation Technology,Inc.
- S&C Electric Company
- Capgemini Consulting
- Open Systems International, Inc
- Alstom S.A.