SMART WATER MANAGEMENT MARKET ANALYSIS

Smart Water Management Market Size and Trends

The Global Smart Water Management Market is estimated to be valued at US$ 15.14 Bn in 2024 and is expected to reach US$ 37.62 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.9% from 2024 to 2031.

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The market is witnessing positive trends due to increasing awareness about conservation of water and rising need for real-time monitoring solutions. Factors such as growing urbanization, climate change, increasing demand for clean water and technological advancements in smart systems are expected to drive further growth. Additionally, government initiatives to reduce non-revenue water and infrastructure developments in developing nations also supplement the market expansion. Various smart water technologies including advanced metering infrastructure, geographic information systems, cellular networking, and analytical software are being adopted to address the issues of water leakage and wastage and provide real-time data. The development of innovative IoT based solutions coupled with the integration of AI and analytics are also projected to provide new opportunities over the forecast period.

Rising concerns over limited water resources

With the growing global population and rapid urbanization, the demand for water is increasing tremendously across both developed and developing regions of the world. However, the supply of freshwater resources remains limited and fixed. Various factors like over-extraction, wastage, pollution and climate change are further straining the already scarce water resources in many parts of the world. Both citizens and governments are facing tremendous challenges to meet the rising water needs in a sustainable way. Advanced technologies for monitoring water usage, detecting leaks, optimizing distribution and enabling conservation have become critical needs of the hour. Smart water management solutions are gaining prominence as they can help utilities and municipalities better manage the available water infrastructure and usage patterns. Through tools like smart water meters, network monitoring systems and analytics, utilities are able to reduce non-revenue water, optimize operations and maintenance activities. This is helping them delay or avoid costly infrastructure expansion projects. For consumers, smart water solutions provide real-time usage information and alerts to help reduce wastage. With growing water scarcity becoming an inevitable reality, particularly in densely populated urban centers, prioritizing sustainable and efficient smart water management has become imperative across the world.

Market Concentration and Competitive Landscape

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Needs of aging water infrastructure

A majority of water supply networks across cities were set up several decades ago and are in dire need for upgrades to tackle challenges of the modern times. Deteriorating pipelines have been resulting in huge water losses, frequent pipe bursts and disruptions in supply. The infrastructure is also not equipped to deal with the rising demand pressures. Modernizing these aging systems with smart digital solutions is the need of the hour. Advanced technologies enable utilities to better monitor the condition of pipelines, proactively detect faults and schedule predictive maintenance. Sensor networks along the distribution network help locate and mitigate leaks faster. This helps reduce non-revenue water losses, enhance service reliability and optimize capital expenditure towards systematic rehabilitation or expansion of pipelines. Real-time monitoring further helps simulate network usage and plan infrastructure augmentation intelligently based on data-driven insights. For utilities struggling with outdated water facilities and rising operation & maintenance costs, smart systems offer an efficient pathway to upgrade, better manage and future-proof their infrastructure assets as per evolving usage patterns.

Key Takeaways from Analyst:

The growing need to conserve water and enable better management of water resources is a major driver for the global smart water management market growth. Usage of smart water networks and advanced metering infrastructure for measuring water usage will see rising adoption. Development of smart technologies for leakage detection will help reduce non-revenue water losses. Integrating Internet of Things solutions can help utilities better optimize water usage and predict demand patterns. The Asia Pacific region, with large population and rising income levels, is projected to emerge as the dominant market. However, high initial costs may restrain developments in some areas. Cities and municipalities upgrading aging water infrastructure will capture new opportunities. Data analytics capabilities when combined with smart devices and meters offer scope for customized demand management. Transitioning towards sensor-driven technologies allows remote monitoring of distribution systems for improved service quality. Europe and North America markets are maturing but cost-effective smart solutions can augment replacement cycles. Public-private partnerships may aid solution deployment across emerging regions. Adoption across industrial and agricultural sectors depend on demonstrating robust ROI. Overall, the increasing focus on sustainable water usage practices signals positive prospects for smart water management technology providers.

Market Challenges: Data privacy and security concerns

The growing concerns over data privacy and security are a major factor restraining the growth of the global smart water management market. As smart water meters and solutions become increasingly connected to the internet to enable remote monitoring and management, there are inherent risks of cyberattacks and unauthorized access to critical infrastructure and customer data.

Utility companies are collecting vast amounts of highly sensitive water usage data through smart meters, which, if compromised, could jeopardize people's privacy. The lack of stringent data protection policies and regulations has made much of this consumer data vulnerable.

To address these concerns, utility providers must implement robust cybersecurity measures to safeguard sensitive customer information and critical water infrastructure. This includes adopting encryption, access controls, network segmentation, and other security best practices. Failure to do so could undermine consumer trust and hinder the widespread adoption of smart water management solutions, posing a significant challenge to market growth.

Market Opportunities: Integration of advanced technologies like AI and IoT

Smart water management systems leveraging AI and IoT technologies can deliver significant operational and financial benefits for water utilities. By monitoring water distribution networks in real-time, these systems can detect leaks and anomalies early, enabling proactive maintenance and reducing non-revenue water losses. Advanced metering infrastructure powered by IoT provides granular usage data, allowing utilities to optimize demand management and billing. AI algorithms can analyze data from multiple sources to forecast demand, optimize treatment and distribution, and identify opportunities for water reuse and recycling. Integrating these technologies into a comprehensive smart water management platform empowers utilities to enhance service delivery, lower operating costs, and improve the sustainability of water resources.

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Insights By Offering- Solutions leading offerings due to wide-ranging applications

By offering, the solutions segment is expected to dominate the global smart water management market with 57.2% share in 2024 attributable to its diverse applicability across industries. Water utilities leverages solutions like advanced metering infrastructure (AMI), geographic information system (GIS) network, supervisory control and data acquisition (SCADA), and meter data management (MDM) systems to gain real-time visibility and optimize their network. AMI solutions enable two-way communication between water meters and a central system, allowing remote monitoring of usage patterns and faster leak detection. In contrast, GIS-based solutions map distribution pipes and valves to locate faults more efficiently.

Commercial facilities widely adopt smart irrigation management and analytical solutions to conserve water used for landscaping and curb wastage.  Building automation systems integrated with water flow controllers and sub-metering solutions help track real-time and historical usage, aiding in monitoring for anomalies and setting consumption targets.  Industries deploy quality monitoring sensors, leak detection systems, and purification solutions to meet process requirements and ensure safety.  The broad applicability of these solutions across end-user verticals has made the water management segment a dominant part of the global market.

Insights By Technology - IoT brings interconnectivity at the core of water management

Within technologies, Internet of Things (IoT) is expected to emerge as the foremost enabler of the smart water management market with 39.5% share in 2024 attributing to its interconnected characteristics. IoT devices like smart meters, sensors, and controllers embedded with communication technologies like LPWAN and NB-IoT facilitates real-time data collection from pipes and appliances. IoT networks enable water utilities to centrally monitor flow, detect transmission main leaks, and optimize pump operations based on usage patterns. Industries benefit from remote asset management via IoT, receiving real-time alerts on equipment failures. IoT also facilitates data integration across systems to derive actionable insights. This interconnected environment enhances end-to-end visibility and efficiency across the entire value chain from source to consumption, making IoT pivotal in advancing smart water network solutions.

Insights By End User - Industrial segment leads with stringent compliance

Among end-users, industrial segment is expected to dominate the global smart water management market with 41.7% share in 2024. Process industries such as food & beverage, chemicals, energy, and manufacturing require substantial amounts of water as an integral part of operations. Industries face significant financial risks from excessive water use, such as penalties for waste, contamination, or unexpected shutdowns. This fuels demand for advanced monitoring and optimization solutions. IoT networks and analytical sensors enable real-time monitoring of critical parameters like pH and turbidity, ensuring compliance with regulatory standards. Leak detection technologies further mitigate losses in water transfer pipelines between facilities. Integrated analytics, linked with manufacturing systems, offer insights for benchmarking consumption and devising strategies for reduction. In pursuit of sustainability, industries are increasingly adopting solutions such as recycling and rainwater harvesting to lessen dependence on municipal water sources. The imperative to meet regulatory requirements and manage operational costs drives industries to invest in and leverage smart water management solutions effectively.

Regional Insights

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North America has emerged as the dominant region in the global smart water management market. The region is estimated to account for over 35.7% of the global market share in 2024 due to significant industrial presence and advanced infrastructure. With many global players stationed in the U.S. and Canada, the market has witnessed strong growth over the past decade. The governments in the region have also implemented various initiatives and regulations to promote sustainable water management. This has driven large scale adoption of smart water meters and networks across cities. The presence of advanced technologies and focus on innovation has further provided impetus to the regional market growth.

The Asia Pacific region is touted to be the fastest growing market for smart water management solutions globally. Rapid urbanization and rising awareness about water conservation in densely populated countries like China and India has boosted the regional market. The governments in the region have undertaken several projects to modernize aging water infrastructure and optimize distribution networks. This has significantly boosted the demand for smart water infrastructure and management systems. Further, growing industrialization and increasing investment in process optimization are positively impacting the adoption of smart sensors and control valves. The pricing of smart water solutions is also relatively affordable in the region attracting more customers. Several global companies have also established prominent manufacturing base and R&D centers in countries like Singapore and Japan to further tap into the opportunities.

Market Report Scope

Smart Water Management Industry News

• In June 2023, SUEZ (a global leader in water, waste, and environmental management solutions, providing services to 64 million people and 90,000 industrial and municipal customers in 70 countries) joined forces with Northumbrian Water Ltd. (NWL) (one of the 10 regulated water and sewerage companies in England and Wales, serving 2.7 million customers in the North East and Essex) as one of the key partners in the groundbreaking Hydro Powered Concentric Smart Meter Project, the recipient of the Ofwat Innovation Fund's Catalyst Stream prize. The project aims to develop a novel smart water meter powered by a hydro-electric turbine, eliminating the need for external power sources and reducing the environmental impact of traditional battery-powered meters.
• In May 2023, Lummus Technology (a global provider of process technologies and value-driven energy solutions, focusing on a more sustainable, low-carbon future) announced its agreement with Siemens Energy (a global technology company specializing in energy transition and decarbonization, with a focus on wind power, hydrogen, and conventional power generation) to acquire assets from its water solutions portfolio, including intellectual property and trade secrets, copyrights, and research and development properties.
• In November 2022, Siemens (a global technology powerhouse focused on industry, infrastructure, transport, and healthcare, with over 300,000 employees worldwide) became a sustaining partner for The Water Tower (a new water innovation center in Gwinnett County, Georgia that provides applied research, technology demonstration, training, and public outreach to solve regional and industry-wide water challenges). As part of this expanded partnership, Siemens will sponsor The Water Tower's Control Center, a state-of-the-art learning and demonstration platform that allows visitors to experience the physical and digital worlds of water and wastewater treatment side-by-side. The Control Center showcases how digitalization, data analytics, and emerging technologies can help water utilities operate more efficiently.
• In November 2022, the Government of Manitoba (the provincial government of Manitoba, Canada, responsible for governing the province and serving its 1.3 million residents) announced the launch of a comprehensive new Water Management Strategy to guide future decisions, actions, and investments aimed at safeguarding Manitoba's valuable water ecosystems and resources while sustainably developing the province's economy and communities. The strategy, the first of its kind in nearly 20 years, sets a clear vision, mission, guiding principles, and 11 key focus areas with 47 strategic objectives to conserve and protect the environment, enhance resiliency, improve water quality and availability, advance Indigenous inclusion, and foster economic opportunities related to water management. The strategy will be complemented by iterative Water Action Plans outlining specific initiatives to transform the framework into concrete actions.
• In October 2022, Landis+Gyr Pty Ltd., a subsidiary of Landis+Gyr Group AG (a leading global provider of integrated energy management solutions with a focus on smart metering, grid edge intelligence and smart infrastructure, employing over 6,500 people across five continents), partnered with Watercare, New Zealand's largest water utility serving 1.7 million customers in the Auckland region, to deploy 22,000 of Landis+Gyr's W350 ultrasonic smart water meters equipped with NB-IoT communications across Auckland. The partnership also includes the supply of some smart meters integrated with Landis+Gyr's Sotto network leak detection sensor, enabling Watercare to quickly identify and address leaks in its distribution network to reduce non-revenue water losses.
• In March 2022, the Government of Karnataka (the state government of Karnataka, India, responsible for governing the state and serving its 61 million residents) launched India's first digital water data bank, 'AQVERIUM', formed by AquaKraft Group Ventures (a water sustainability and impact group focused on creating 'water entrepreneurs' with the objective of making India 'Water Positive' by 2030). Karnataka's IT Minister C.N. Ashwath Narayan stated that this innovative platform combines sustainable and green technologies, information technology, skill development, and entrepreneurship to address the state's water challenges. AQVERIUM aims to aggregate water resources under a single digital platform, enabling real-time monitoring, efficient water management, and incentivizing water conservation and recycling efforts across Karnataka.

*Definition: The global smart water management market consists of advanced technologies and products that help in efficient monitoring and control of water usage and management of water infrastructure. It involves implementing intelligent network systems, smart meters, leakage detection systems and smart irrigation management systems that help utilities and municipalities intelligently manage water resources and operations. The smart water management solutions aid in reducing non-revenue water losses, ensuring 24/7 water supply, and optimizing the use of water which saves both money and natural resources on a global scale.

Market Segmentation

• Offering Insights (Revenue, US$ Bn, 2019 - 2031)
  • Solutions
  • Services
•  Technology Insights (Revenue, US$ Bn, 2019 - 2031)
  • IoT
  • AI
  • Big Data & Analytics
  • Cloud Computing
  • Others
•  End User Insights (Revenue, US$ Bn, 2019 - 2031)
  • Residential
  • Commercial
  • Industrial
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • ABB Ltd.
  • Honeywell International Inc.
  • IBM Corporation
  • Itron, Inc.
  • Schneider Electric SE
  • Siemens AG
  • SUEZ Group
  • Badger Meter
  • Hydropoint
  • Oracle Corporation
  • Trimble Inc.
  • Arad Group
  • Elster Group SE
  • Sensus
  • Takadu