Advanced Distribution Management System Market - Growth, Trends, And Forecasts (2023 - 2028)

Advanced Distribution Management System Market is expected to register a CAGR of 19.7% over the forecasted period. The Advanced Distribution Management System (ADMS) Market's expansion is driven by rising global energy demand, increased utility efficiency, and improved customer service. A distribution management system (ADMS) provides services that automate outage restoration and improve distribution grid performance. ADMS features for electric utilities include fault location, isolation, and restoration, as well as volt/voltampere reactive optimization, conservation through voltage reduction, peak demand management, and support for microgrids and electric cars.

Key Highlights

• One of the primary reasons driving market expansion is the increasing demand for efficient energy resources worldwide. ADMS assists in optimizing distribution grid performance and automating outage restoration. Furthermore, the increased adoption of advanced metering infrastructure (AMI) boosts market growth. AMI assists in remotely measuring electricity usage, monitoring voltage, and recognizing and isolating outages. It also allows utilities and customers to communicate with one another. Furthermore, technological improvements such as integrating connected devices with the Internet of Things (IoT) and using modern components and control systems to improve security while reducing total costs and electricity loss propel market expansion.
• In accordance with this, increased implementation of smart grid technologies boosts the market growth. ADMS assists in effectively transporting electricity and data by optimizing energy usage and detecting grid issues. Other reasons, including the increased building of smart cities and the implementation of various government efforts to improve carbon efficiency, are expected to propel the market forward. For instance, according to the recent estimates of the US Department of Energy, smart grid investments are expected to reach over USD 13.8 billion by 2024, accounting for over 64% of the total grid information and control investments in the United States.
• The United Arab Emirates introduced "Energy Policy 2050," which is regarded as the nation's first comprehensive supply-and-demand-based energy strategy. The strategy intends to save USD 190 billion by 2050 and boost the share of renewable energy in the whole energy mix from 25% to 50%. It also aspires to lower the carbon footprint of power generation by 70%. Additionally, it aims to improve corporate and individual consumption efficiency by 40%. Such policies by the government will significantly create opportunities for the market to grow.
• According to EIA, from the past year, annual global energy investment was set to rise to USD 1.9 trillion, bringing the total investment volume back towards pre-crisis levels. However, the composition has shifted towards power and end-use sectors - and away from traditional fuel production. While many energy companies remain in a fragile financial state, there are signs developers are using the window provided by accommodative monetary policy and government backing to plan infrastructure developments and investments in new projects. These positively affected the studied market during the post covid.
• Significant upfront costs are associated with installing an entirely automated ADMS system in buildings or enterprises. Every industry seeks to reduce the cost of its consumption. Therefore, they need energy management systems to track how much energy various devices and factories use. Even while using energy-efficient solutions and practices results in significant long-term cost and energy savings, it necessitates a hefty initial investment. There may be circumstances when certain businesses, sectors, or industrial facilities need more resources to invest in EMS. For small- or medium-sized companies, such an expenditure is not practical. In most cases, the hardware parts of energy management systems are substantially more expensive than the software and service parts.

Advanced Distribution Management System Market Trends

Software Segment would Experience Significant Growth and Drive the Market

• Some software comprises features, such as the user getting a snapshot of energy spending mapped to business metrics. Some of the companies provide tools that integrate with the existing building management systems, ERP, and various other systems. Moreover, the advent of cloud-based energy management software further fuels the demand.
• Cloud services effectively minimize operational costs of software development and maintenance and direct monetary costs, time, and spent resources on maintaining in-house IT professionals and infrastructure for gathering, storing, and analyzing energy data. Further, According to EIA, the Admin Information technology of smart grids is expected to invest USD 4.7 billion in the last year, and smart grid-related information technology investment is USD 1.9 billion. Such huge investments would create an opportunity for the software segment to grow.
• For instance, Lenovo offers XClarity Energy Manager, a centralized policy-based energy management solution. The software helps track, manage, and plan server power utilization. It helps decrease energy costs and further control data center power usage.
• Also, Honeywell added enhancements to its cloud-based energy management software, Inncom INNcontrol 5, with push notifications, alarms, and enhanced UI, which allows multi-property scalability for full portfolio management. INNcontrol 5 features a live dashboard with property-level data and HVAC analytics reports, as well as the status of each guestroom's room automation IoT devices, such as the thermostat, occupancy sensor, door sensor, and lighting controls.
• Digital solutions make it possible to collect, process, and enhance the metering data in increasingly complex grids, and in this context, in March last year, Sagemcomwas selected by Groupe E for the delivery of its SICONIA Software suite, which is composed of Multi-energy and scalable Head-End System (HES) and Big data-based Meter Data Management system (MDMS). This large-scale project is the beginning of the Smart Grid journey in Switzerland and a long-term partnership with Groupe E.

North America is Expected to Experience Significant Growth

• According to US Energy Information Administration, past few years, total primary energy consumption in the United States was around 98 quadrillion British thermal units (Btu), accounting for approximately 16% of total global primary energy consumption of approximately 604 quadrillion Btu. The United States had a 4% share of the global population, and the country had the world's tenth highest per capita primary energy consumption. Such huge consumption of energy would increase the production capacity of energy plants that would impact the growth of inertia systems in the region.
• In January 2023, Landis+Gyr Technology Inc., a subsidiary of Landis+Gyr Group AG, and a U.S. investor-owned utility have signed a new agreement to modernize the company's metering software infrastructure. The utility's plans to modernize are still subject to regulatory clearance. The 20-year contract comprises meter data management software, Software as a Service, and services to support the utility's 500,000 legacy one-way communicating electric meters, and the project will eventually incorporate over 500,000 next generation smart metering devices.
• The US Department of Defense (DOD) consumes the most energy of any federal entity, accounting for 77% of total federal government energy consumption. The control of energy is critical to DOD operations. DOD relies on energy to ensure readiness and resiliency for mission activities, from maintaining bases and training facilities to powering jets and ships. Energy efficiency-providing the same or better quality of service with less energy-can lower agency expenses over time, especially for a department like the DOD, where energy accounts for around 2% of the annual budget.
• According to the New York State Energy Research and Development Authority (NYSERDA), enabling smart technologies and real-time energy management systems can decrease costs by an average of 15% and improve the bottom line by creating an ecosystem that reduces energy waste and boosts employee productivity. Moreover, the building sector's CO2 emission has increased over the past two years. Again, this has intensified the need to install energy management systems in buildings, keeping track with the SDS program

Advanced Distribution Management System Market Competitor Analysis

The Advanced Distribution Management Market is moderately competitive owing to the presence of multiple players. The players in the market are adopting strategies like product innovation, mergers, and acquisitions to expand their product portfolio, expand their geographic reach, and primarily stay competitive in the market.

In May 2022, Advanced Utility Systems debuted its Infinity Customer Information System (CIS), a Harris Computer firm. It is a modern, cloud-based customer information and billing software platform that is critical in transforming customer service and billing, customer experience, and field workforce management for utilities. As utilities digitally modernize their customer experience, integrating Advanced's Infinity CIS would boost customer service and engagement initiatives. It boasts unrivaled functionality to assist utilities in accomplishing all of their needs and more. In February 2022, Swell Energy Inc. (Swell), an energy and smart grid solutions provider, announced the general availability of GridAmp, its proprietary Distributed Energy Resource Management System. The expanded DERMS platform combines Distributed Energy Resources (DERs), such as solar and battery storage devices, into virtual power plants (VPPs) to provide utilities with additional grid capabilities. GridAmp will manage multiple grid service operations using behind-the-meter solar-powered batteries as part of Swell's Home Battery Rewards program, an 80-megawatt distributed VPP being developed on the islands of O'ahu, Maui, and Hawai'i - as contracted with Hawaiian Electric and approved by the Hawai'i Public Utilities Commission.

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