Proving the Business Case for the Internet of Things

Distribution management systems to hit $3.3bn by 2024

Steve Rogerson
April 15, 2015
 
Advanced distribution management systems (ADMSs) are expected to exceed $3.3bn in annual revenue by 2024, according to Navigant Research. Its report analyses the global market opportunities for ADMSs, including global forecasts for software purchases and upgrades, integration services, maintenance, analytics, and software as a service (SaaS) until 2024.
 
Offering the potential to unify utility distribution IT systems into a single, more efficiently managed platform, ADMSs have emerged over the past few years as a major smart grid technology. As such, the market for ADMSs has expanded rapidly, fuelled by investment in marketing and R&D coming from many of the major smart grid IT vendors.
 
According to the report, worldwide revenue from ADMSs, including software, services, maintenance and analytics, is expected to grow from $681m in 2015 to more than $3.3bn by 2024.
 
“Although utilities still face a steep learning curve with ADMS technology, its direct and indirect benefits are becoming widely apparent,” said Lauren Callaway, research analyst with Navigant Research. “Industry wide, utilities are taking an increasingly strategic approach to their smart grid IT and OT deployments, and ADMSs represent a key element of this trend.”
 
Until recently, ADMS vendors have been at pains to find experiential proof that their system could be applied to each unique distribution grid, according to the report. As a result, vendors have been required to play a prominent role in the integration process and, in many cases, to build their product as they install it, managing it after installation at an unsustainably low cost. That is expected to change, according to the report, as penetration rises and utilities develop in-house expertise around these systems.
 
The report analyses the global market opportunities for ADMSs. It provides an assessment of current operational benefits for utilities, market drivers and barriers, regional trends, and technologies, in addition to business recommendations for both vendors and utilities. Global forecasts for software purchases and upgrades, integration services, maintenance, analytics, and SaaS for ADMSs, segmented by region and category, extend to the end of 2024.
 
The report also profiles key industry players and examines several utilities that have implemented ADMS technology to align with more ambitious smart grid initiatives and aggressive regulatory policies.
 
• The global smart meters marketis estimated to grow from an expected $11.1bn in 2014 to $18.2bn by 2019, at a CAGR of 10.2% from 2014 to 2019, according to a report from Markets & Markets.