Annual tech spend of utilities sector to reach Rs. 32,500 crore (US$ 3.76 billion) by 2027

Narrowband Internet of Things (NB-IoT) is rapidly emerging as the preferred connectivity solution for Advanced Metering Infrastructure (AMI) in India. A white paper released by the Independent Directors Council (IDC) and supported by Airtel Business highlights that annual technology spending in the utilities sector is expected to reach Rs. 32,500 crore (US$ 3.76 billion) by 2027, up from Rs. 14,500 crore (US$ 1.68 billion) in 2022 reflecting a compound annual growth rate (CAGR) of 17.7%. This rise in investment signals the sector’s commitment to digital transformation aimed at reducing aggregate technical and commercial (AT&C) losses, which stood at 15.4% in FY23, nearly twice the global average of 8–9%. The Smart Meter National Programme (SMNP) aims to lower AT&C losses to 12–15% by 2025 by replacing 250 million conventional electricity meters with smart meters. However, only about 9%, 20.85 million out of 222.4 million sanctioned had been converted as of February.

NB-IoT’s cellular-based, wide-area, low-power connectivity is ideal for large-scale smart metering. Cellular connections, including NB-IoT, in the utilities segment are projected to grow at a CAGR of 25.6% between 2023 and 2027. Airtel Business, with its comprehensive IoT portfolio, provides various connectivity options—NB-IoT, 5G, 4G, and 2G alongside platforms for meter data management, prepaid billing, and analytics via Airtel Cloud. In collaboration with Secure Meters, Airtel has deployed 1.7 million NB-IoT smart meters in Bihar. Airtel's IoT Hub supports full meter lifecycle management, data visualisation, and system monitoring. As of 2023, Airtel became the first Information and Communications Technology (ICT) provider in India to connect over 20 million devices via its IoT solutions, which also include tools for feasibility testing and deployment tracking for AMI service provide 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.