MEA (Middle East & Africa) Advanced Metering Infrastructure (AMI) Market Outlook to 2030

MEA Advanced Metering Infrastructure (AMI) Market Overview

The MEA Advanced Metering Infrastructure (AMI) market was valued at USD 1.68 billion . This growth has been driven by increasing government mandates for energy conservation, growing urbanization, and the adoption of smart technologies across utilities. Utility companies across the region are investing heavily in AMI systems to enhance their energy distribution efficiency, reduce technical and commercial losses, and cater to the growing demand for energy-efficient solutions.

The key players operating in the MEA advance metering infrastructure market include Siemens AG, Schneider Electric, Itron, Landis+Gyr, and Honeywell International Inc. These companies are not only focused on providing smart metering solutions but are also involved in developing integrated software and IoT-based platforms to enhance energy management efficiency.

In 2023, Schneider Electric announced a USD 100 million project to upgrade smart metering systems in Egypt. This move is part of the governments broader initiative to modernize its energy infrastructure. Schneider's implementation aims to install 500,000 smart meters by the end of 2024, enhancing energy efficiency by reducing losses and enabling real-time monitoring for both consumers and utility providers.

Saudi Arabia and the UAE, dominate the market in 2023. Saudi Arabia's massive investment in smart metering infrastructure through the Smart Metering Program, alongside the UAE's ambitious energy efficiency targets, has led to the rapid adoption of AMI systems. These nations also benefit from high levels of urbanization and technological advancements.

MEA (Middle East & Africa) Advanced Metering Infrastructure (AMI) Market Segmentation

By Product Type: The market is segmented by product type into hardware, software, and services. In 2023, hardware dominated the market share, primarily due to the demand for smart meters and communication devices across utilities. The dominance of hardware is attributed to the ongoing large-scale installations of smart meters and associated equipment in key markets like Saudi Arabia.

By End-User Industry: The market is further segmented into residential, commercial, and industrial sectors. In 2023, the residential sector held a substantial market share due to the large-scale deployment of smart meters for individual households, especially in countries like Saudi Arabia and the UAE. Government-driven residential AMI rollouts have driven this segments dominance.

By Region: The Market is segmented by region into North, South, East, and West. In 2023, North Africa dominated the market which is driven by strong government initiatives and large-scale energy projects in Egypt. Egypts efforts to modernize its grid infrastructure with AMI solutions have led to the rapid adoption of these technologies in the region.

MEA (Middle East & Africa) Advanced Metering Infrastructure (AMI) Market Competitive Landscape

Landis+Gyr: In 2023, Landis+Gyr announced the deployment of 2 million smart meters across Egypt as part of the governments energy modernization plan. The USD 200 million project is expected to be completed by 2026 and will reduce energy losses and improve billing accuracy in urban areas like Cairo.

Honeywell: In 2017, DEWA appointed Honeywell to help deliver a first-of-its-kind smart energy project in Dubai. The project aimed to develop smart infrastructure for electricity transmission and distribution networks, to enhance the speed of service delivery and response. In August 2024, DEWA prepared for an outstanding participation in GITEX Global 2024 to showcase its innovative digital initiatives, services, and programmes.

MEA (Middle East & Africa) Advanced Metering Infrastructure (AMI) Industry Analysis

Growth Drivers

• Growing Investments in Smart Grid Infrastructure: Egyptian government is planning to invest over USD 100 million in smart metering technologies in 2024. This is part of the country's broader modernization plan to reduce energy losses and improve billing accuracy. South Africa's largest utility, Eskom, invested USD 300 million in 2024 to integrate advanced metering systems in its electricity network, aiming to reduce technical losses by 2 million megawatt-hours annually.
• Increased Energy Consumption in Urban Areas: As of 2024, energy consumption in Cairo alone is expected to reach 30,000 gigawatt-hours, necessitating the adoption of AMI to optimize grid performance. This demand for enhanced energy management solutions is driving utilities to invest in AMI systems, ensuring the efficient distribution of energy in high-demand urban centers.
• Rising Demand for Renewable Energy Integration: MEA governments are increasingly integrating renewable energy sources like solar and wind into their energy grids. In 2024, Egypt commissioned a 1,000 MW solar project that requires advanced metering systems for real-time energy monitoring and management. Smart meters are essential for the integration of renewable energy into existing grids.

Challenges

• Lack of Skilled Workforce: As of 2024, the MEA region faces a shortage of skilled professionals capable of maintaining and operating AMI systems. Countries like Egypt report that very small part of their utility workforce is trained in handling smart grid technologies, leading to operational inefficiencies and delays in project implementation. This lack of expertise is a major barrier to the widespread adoption of AMI in the region.
• Cybersecurity Risks: The integration of smart meters into national grids has raised concerns about cybersecurity. In 2024, MEA countries reported over 1,000 cyberattacks targeting energy infrastructure, with several attacks leading to temporary shutdowns. The lack of robust cybersecurity frameworks for AMI systems exposes the energy sector to potential data breaches and operational disruptions.

Government Initiatives

• Saudi Arabias Smart Metering Program: In 2019, Saudi Electricity Company (SEC) awarded a USD 2.5 billion smart metering project to install 10 million smart meters across Saudi Arabia over 3 years. This program is part of the government's broader goal to reduce energy consumption by 15% and modernize its energy infrastructure. One-third of the 10 million smart meters are being manufactured locally in Saudi Arabia.
• UAEs Energy Strategy 2050: The UAE is investing heavily in smart grid technologies as part of its Energy Strategy 2050. In 2024, the government committed USD 500 million to the deployment of advanced metering systems, which are essential for managing the growing share of renewable energy in the countrys energy mix. By 2024, the UAE had installed over 1 million smart meters in major cities like Dubai and Abu Dhabi.

MEA (Middle East & Africa) Advanced Metering Infrastructure (AMI) Market Future Outlook

The MEA AMI market is expected to expand by 2028, this growth will be driven by government-led modernization projects in key economies like Saudi Arabia, Egypt, and the UAE, where investments in energy infrastructure and smart grid technologies are expected to surge. The deployment of smart meters across various sectors such as residential, commercial, and industrial is expected to further fuel market growth.

Future Trends

• Expansion of Renewable Energy Projects: The MEA region is expected to witness a surge in renewable energy projects, particularly in solar and wind energy. By 2028, Egypts solar energy capacity is projected to exceed, necessitating the widespread adoption of AMI systems to manage the integration of renewable energy into the national grid. Smart meters will play a crucial role in balancing energy loads and ensuring grid stability.
• Increase in Government-Led Initiatives: Governments across the MEA region is expected to launch new initiatives to promote energy efficiency and modernize energy infrastructure. By 2028, Saudi Arabia, the UAE, and Egypt are projected to invest heavily collectively in smart grid technologies, with a significant portion allocated to AMI systems. These initiatives will accelerate the adoption of smart meters and enhance energy management across the region.