Electricity Metering

Update 2017:

Europe and APAC the key growth regions

as Chinas rollout nears completion

Frost & Sullivan

Chiswick Park Building 5
566 Chiswick High Road
London W4 5YF
United Kingdom
www.frost.com

1
Key Advanced Meter Infrastructure (AMI) Global
Developments

Global market shipments increased by 29%, from 76.3

million in 2014 to 98.4 million in 2015.

China accounted for 69.1% of global shipments in 2015, a

decline from 75.1% in 2014, but it still continues to dominate
the global market. However, this is the peak of Chinese
The Chinese
demand and the situation will change dramatically as the
market is at its
rollout nears completion. Frost & Sullivan forecasts that by
peak; an end
2019, shipments will be more than halved to 30 million units.
to its global
dominance is APAC accounted for only 2.6% of the global market in 2014,
in sight. but thanks to the start of the Japanese rollout this increased
to 10.4% in 2015, APAC has moved ahead of both Europe
and North America. Europe and APAC are the key growth
markets going forward, but the more mature North American
market will continue to see demand of 7-8 million units per
year till 2020.

REGIONAL AMI MARKET UNITS SHIPMENTS, 2015

Units: 98.4 million

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China AMI Competitive Landscape

Chinese AMI shipments increased from 57.6 million in 2014

Further increase to 68.0 million in 2015. The Chinese market is now at its
in Chinese peak, with approximately 65% of the population having a
shipments as smart meter. It is important to note, however, that meters
the rollout sold in the Chinese market are lower spec than meters sold
reaches its peak in Europe and North America and therefore, the average
unit price is much lower.
As in past years, Chinese players continue to dominate the
market. There has been limited consolidation in the market,
Chinese players but Chinese players are now actively targeting other regions
continue to for project wins, particularly Africa and South America.
dominate Although volumes in both markets are currently low for
smart metering, China is clearly making a play for the
future.

CHINA AMI MARKET SHARES, 2015

Units: 68.0 million

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Global AMI Competitive Landscape

Globally, Chinese meter manufacturers dominate

Chinese the AMI market, mainly because only Chinese
companies manufacturers make any significant sales into
dominate China and it accounts for 69.1% of the global AMI
globally market.

The global AMI market excluding China increased from 18.8

Strong global
million in 2014 to 30.4 million in 2015. Sales in South Korea
growth in smart
increased to 2.5 million, Spain reached 5 million and Japan
metering
became the top market with sales of 9 million.
Landis+Gyr has been the market leader since Frost &
Landis+Gyr Sullivan began consistently tracking this market in 2011, and
retains it retained the title again in 2015. EDMI/Osaki and
leadership of Mitsubishi made the largest gains, both up by 8% due to
the global AMI sales in Japan. Sagemcom also moved ahead of Itron in
market second place, mainly due to sales in Europe.

GLOBAL AMI MARKET SHARES (EXCLUDING CHINA), 2015

Units: 30.4 million

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North America AMI Competitive Landscape

North American shipments declined by 550,000 in 2015, down from

Despite a number 9.9 million in 2014. Although a number of projects have been
of major projects completed in the United States, there are still a number of
being completed significant projects to be carried out. Consolidation Edison in New
there are still a York and Orange and Rockland Utilities will install 3.9 million meters
number of big from 2017, Entergy will install 1 million a year from 2018, and
projects in the US Memphis Light Gas & Water has started installing 1 million meters
to be completed by 2020.
Canada slowing as The Canadian market is starting to slow as the final major rollout in
major utilities Hydro-Quebec near completion with around 3 million of 3.8 million
near completion, installed. Mexico recorded strong market growth with an estimated
but future growth 600,000 units sold in 2015. Frost & Sullivan forecasts that it will be a
from Mexico 2 million meter market by 2020.
Landis+Gyrs retained leadership of the market, with Hydro-Quebec
Landis+Gyr
its most important individual contract. The big mover was Elster
retains market
which gained 8% share to assume joint second place with Itron.
leadership, but
Elster currently dominates in Mexico. Aclara bought GEs meter
Elster makes the
business and will gain share as it won the Consolidation Edison
biggest gain in
order for 3.9 million meters.
share

NORTH AMERICA AMI MARKET SHARES, 2015

Units: 9.35 million

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South America AMI Competitive Landscape

The South American market increased by 200,000 units in

Despite the
2015, mainly through rise in sales in Brazil. With no
need to protect
mandatory rollouts, the market conditions remain
revenue, tight
challenging, particularly given the on-going economic
investment
challenges currently being faced in the region. Besides
budgets are a
Brazil, which generally accounts for around 80% of the total
challenge to
market, Colombia and Chile are the most attractive markets
growth
for future potential.
Landis+Gyrs market share declined by 4%, but it continues
Landis+Gyr to dominate in South America. Its only major competitor is
retains Elster which gained 17% in second place. Other players have
leadership struggled, mainly due to the lack of sizable projects to
compete for and the limited demand outside of Brazil.

SOUTH AMERICA AMI MARKET SHARES, 2015

Units:798,000

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Europe AMI Competitive Landscape

Viva Espania as
Spain was the hottest market in Europe, accounting for 5 million of
Spain dominates
the 9.3 million meters sold in 2015. The rollout is around 65%
the European
complete and will be largely finished by 2019.
market

The next big market opportunities are the United Kingdom and
France which will install 61 million smart meters between them by
France and the UK 2024 this is equivalent to roughly half the total installed meter
key markets for base of the United States. There is still considerable future potential
the future in Europe, as most countries are gradually introducing smart
metering, even if there is not a national mandated rollout and
Sweden and Italy are both looking to install next generation meters.
Sagemcom gained 13% market share to overtake Landis+Gyr and
Sagemcom lead the European market. The main reason for this is Sagemcom
overtake dominates in Spain, but it also made significant sales to Poland and
Landis+Gyr to Italy. Landis+Gyr lost 7% share but its actual sales volumes were
take the number 1 similar to 2014. Its key markets were Spain, the Netherlands, and
spot the United Kingdom. The other key player in the market was ZIV
which made all of its sales to Spain.

EUROPE AMI MARKET SHARES, 2015

Units: 9.3 million

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Asia-Pacific (excluding China) AMI Competitive
Landscape

The APAC market was around 2 million units from 2012 2014, but
in 2015 it increased to 10.3 million, mainly due to Japan, where 9
APAC booms,
million units were sold in 2015. The Japanese government is rolling
Japan the key
out smart metering to 80 million Japanese households. Most
market
utilities have accelerated their rollout programs, and 90% of
households are forecast to have a smart meter by 2021.
South Korea is committed to a gradual rollout of smart metering
and the process has already started. Over 13 million meters will be
South Korea,
installed across the country. Volumes in the rest of APAC are
Malaysia and
currently low, but a number of countries are piloting smart
Taiwan strong
metering projects as a away of minimising non-technical losses and
future growth
facilitating a gradual transition to a smart grid. Both Malaysia and
markets Taiwan have plans to install 8.5 million and 7.2 million smart meters
between 2017 and 2025.

Japanese EDMI/Osaki gained 14% to assume joint leadership of the APAC

companies set to market along with Mitsubishi which gained 6%. Domestic
dominate the companies dominate the Japanese rollout and as a result dominate
the APAC market shares, accounting for 91% of the total.
APAC market for
some time

APAC AMI MARKET SHARES (EXCLUDING CHINA), 2015

Units: 10.3 million

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Russia & the CIS AMI Competitive Landscape

The challenging economic conditions continued into 2015 in

Russia and the CIS, with sales declining from 670,000 to
Further 455,000, with Russia accounting for all of the decline. The
slowdown in Russian market has already started to recover and by the
the CIS in 2015 end of 2017 is forecast to be around 1 million units. The
other big CIS market is Uzbekistan which has plans to
rollout smart meters to 6.3 million households.
There has been little significant change in the market in
terms of the position of the leading players. ADD declined
by 5% but retained leadership of the market. It faces a
ADD continues
strong threat in the future from local players such as
to led the
Concern Energomera and LEMZ, both of which are
market
expanding their capabilities in smart metering. Much of the
communication technology in the Russia & CIS market
comes from Korean/Chinese firms.

RUSSIA & CIS AMI MARKET SHARES, 2015

Units: 455,000