Vendors of meter data management (MDM) systems find themselves at a crossroads. MDM systems face serious competition for traditional utility customers from data analytics engines. The ability to survive strictly on traditional MDM capabilities no longer exists. According to a recent report from Pike Research, a part of Navigant’s Energy Practice, these challenges – and vendors’ ability to meet and overcome them – will lead to moderate but steady growth in the sector over the remainder of the decade. Global MDM revenue will increase from $122 million annually in 2012 to $424 million by the end of 2020, the study concludes.
“MDM vendors are evolving to avoid becoming obsolete,” says senior research analyst Bob Lockhart. “MDM vendors have expanded their analytical capabilities, but their continued success is likely to depend upon their limited ability to process non-structured data that is also needed for decision support, such as weather, economic, and political data. There’s plenty of opportunity for MDM to remain a viable marketplace, but it’s too early to forecast success or failure.”
The largest revenue generator for MDM vendors, by far, will be managed services, according to the report, because of the number of capabilities that must be bundled into a managed service before it can be offered. By comparison, in-house deployments of MDM may generate only software license and maintenance revenue for the MDM vendors. Hardware, telecommunications, and professional services necessary for an in-house MDM deployment can be procured from a number of vendors beside MDM providers.
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 seven 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 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 Utilities, 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.