[September 19, 2012]

Installed Base of Meter Data Management Systems Will Serve More Than 480 Million Smart Meters by 2020, Forecasts Pike Research

The last year has seen a major shift in the meter data management (MDM) market. No longer able to survive strictly on traditional MDM capabilities, MDM vendors have moved aggressively into offering analytical capabilities alongside traditional MDM capabilities. At the same time, the MDM marketplace has diverged into two distinct approaches: in-house utility deployments and managed services deployments. According to a new report from Pike Research, a part of Navigant's Energy Practice, increased drivers from smart grid data analytics and better visibility into advance metering infrastructure (AMI) deployment plans will fuel steady growth in the MDM market over the remainder of this decade. Annual installations of MDM systems will reach nearly 90 million smart meters by 2020, the report concludes, while the total installed base of such systems will serve 484 million meters in the same year.

"MDM's ultimate survival as a standalone service, as opposed to broader data analytics service, rests in a complex stew of utilities' perceptions of what they need, analytics vendors' ability to align utilities' visions with their own, and MDM vendors' ability to convince utilities that they can provide the answers," says senior research analyst Bob Lockhart. "While it is far too early to forecast success or failure, MDM vendors have already expanded their analytical capabilities and most MDM products can now store non-AMI data, such as sensor readings from supervisory control and data acquisition systems, enabling more complex analytics."

North America and Europe will remain the major MDM markets throughout the forecast period, the study finds. Significant activity is also likely to occur in Asia Pacific during the second half of the decade, with large MDM deployments in China and India will exert severe downward prcing pressure on MDM software licenses. MDM programs in those two countries are not likely to use MDM managed service offerings, which will produce the lion's share of MDM revenue throughout the forecast period.

The report, "Meter Data Management", analyzes the global MDM market as it evolves with and even does battle with the utility data analytics market. The report forecasts revenue for MDM vendors for each year during the period from 2012 through 2020, with separate forecasts for in-house MDM and MDM delivered as a managed service. The narrative includes a detailed analysis of how MDM vendors are coping with the invasion of data analytics vendors, and what utilities are really asking for. The report also discusses how MDM vendors differentiate themselves, how the market segments based upon utility size and region of the world, and how MDM vendors are approaching the delivery of MDM managed services. The report includes detailed profiles of 13 key MDM vendors and 7 systems integrators that are key players in the MDM marketplace. An Executive Summary of the report is available for free download on the Pike Research website.

About Pike Research (News - Alert)

Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.

About Navigant

Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.

* The information contained in this press release concerning the report, "Meter Data Management," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.

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