WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 112 / 356
This Frost & Sullivan research segments the North American AMR market into advanced
metering AMR and basic AMR based on the capability of the solution to provide interval
usage data. The study provides two forecasts for the electric AMR market, one assuming the
current economic outlook and the other assuming a more optimistic outlook.
Electric Industry Turmoil Spurs Utilities to Increase Operational Efficiencies
"New market drivers have emerged as a result of the need for utilities and end-use
customers to avoid the risks associated with the restructuring of the electric market," says
the author of the study. Hourly data from the advanced metering AMR solution can provide
utilities with data to support retail rates that send a strong price signal to customers to
reduce usage during periods of relatively high wholesale energy prices. This will help utilities
mitigate the volume and price risks created by the restructuring of the energy market.
The elevated interest in interval usage data for the small end-use customers and the
emergence of new AMR technologies that are reliable and less expensive should spur
market growth in advanced metering AMR solutions. However, the industry turmoil can limit
market growth as a result of the financial difficulties facing many investor owned electric
utilities. They are not in a position to invest in AMR due to losses incurred by wholesale
energy trading, and worsened by the decline in the volume of trade.
Economic Outlook and New Products Impact Revenue Growth Potential
Projected revenue growth for advanced metering AMR is strongly dependent on the
assumed economic outlook. Under the current economic outlook, utilities are expected to
settle for basic AMR. If conditions are more favourable to capital investment by utilities, as
assumed in the optimistic outlook, utilities are expected to favour advanced AMR. BPL has
started to be seen as the most affordable technology to build the networks needed to create
smart grids.
5.2.5.5 Service Providers
The Table 5.1.5 below shows the main AMR service providers for utilities, the used network
technology and the country.