Smart water management (SWM) is a smartly designed system to collect meaningful and actionable data on the pressure, flow, and distribution of a city’s water. The primary objective of SWM is to ensure that the infrastructure and energy used for transport of water are efficiently managed. SMW also helps to minimize energy usage in pumping of water at water utilities, the cost of detection of leaks and theft and enhances customer engagement in water conservation. Smart water solutions and services are still struggling for rapid adoption in major parts of the globe owing to regulatory support from the governments, lack of funds, and fragmented technology solutions from various vendors without an integrated platform.
The global smart water management market is estimated to account for US$ 15,232.6 Mn in terms of value by the end of 2019.
Market Dynamics- Drivers
- Presence of outdated water infrastructure is expected to drive growth of the global smart water management market during the forecast period
Many water utilities across the globe have become outdated. Since the demand for continuous water supply is rising due to modernization and industrialization, there is a major need for renovation of existing water infrastructure. According to Coherent Market Insights’ analysis, over 40% of the world’s water escapes through leaky, aging pipes, costing nearly US$ 14 Million every year. Furthermore, according to CNN’s report in 2011, in the U.S. alone huge number of water main breaks occurred every day. For instance, in 2011, Houston, alone, reported 700 water main breaks in one day. Since urbanization across the globe is increasing, the demand for smart water management is growing rapidly. Thus, these factors are expected to drive growth of the global smart water management market during the forecast period.
- Rising need to reduce water loss and non-revenue water (NRW) is expected to propel the global smart water management market growth over the forecast period
According to the World Bank, potable water worth more than US$ 14 Million is lost annually to theft, unbilled usage, and leaks. Water wasted in this manner is referred to as non-revenue water (NRW). Furthermore, in emerging economies, the relative loss incurred by NRW is high. As a matter of fact, water utilities across the globe lose around 10% to 60% of the water they pump to consumers due to poor infrastructure. Inadequate water and lack of proper sewage treatment have placed over 50% of Brazil’s cities at risk of water shortage by 2015. Hence, these factors are expected to propel, the global smart water management market growth over the forecast period.
North America region held dominant position in the global smart water management market in 2019, accounting for 39.2% share in terms of value, followed by Europe, Asia Pacific, Latin America, and Middle East & Africa (MEA) respectively.
Smart Water Management Market Report Coverage
||Market Size in 2019:
||USD 15,232.6 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 49,694.4 Mn
- 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 and Africa: GCC Countries, South Africa, and Rest of Middle East and Africa
- By Component: (Hardware (AMR, AMI, and Others), Solutions, and Services)
IBM Corporation, TaKaDu Ltd., Arad Metering Technologies, Sensus USA Inc., Arad Metering Technologies, i2O Water Ltd, ABB Ltd, ET Water Systems, LLC, Schneider Electric SA, General Electric Company, Evoqua Water Technologies (Siemens), Emerson Electric Corporation, and Itron, Inc.
- Presence of outdated water infrastructure
- Rising need to reduce water loss and non-revenue water (NRW)
|Restraints & Challenges:
- Water utilities hesitant towards cloud service adoption
Figure 1: Global Smart Water Management Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
- High installation cost advanced metering infrastructure (AMI) is expected to restrain growth of the global smart water management market during the forecast period
Installing advanced metering infrastructure (AMI) requires significant initial investment. For instance, in 2013, the American Water Works Association stated in a publication that over a million miles of water pipelines have reached the end of their life cycle and need to be replaced. The cost of replacing and expanding these pipelines in the U.S. would be more than USD 1 trillion over the next couple of decades. Furthermore, the long-term payback period of the smart water technologies is hindering its adoption. Therefore, these factors are expected to restrain growth of the global smart water management market during the forecast period.
- Water utilities hesitant towards cloud service adoption is expected to hinder the global smart water management market growth over the forecast period
Although cloud-based services offer various advantages including higher efficiency and effective utilization of pooled resources, many water utilities are hesitant towards the adoption of cloud-based services. As a result of this, the adoption of smart water management is declining. Hence, these factors are expected to hinder the global smart water management market growth over the forecast period.
- Growing adoption of SMW in agricultural irrigation can present major business opportunities
The sensor semantic web uses sensor networks to gather information about sensors and sensor observations using web technologies. According to FAO (Food and Agriculture Organization), agriculture is the biggest water-using segment, accounting for about 70% of all water withdrawals, compared to municipal (domestic) and industry with 10% and 21% withdrawals, respectively. Moreover, water usage in agriculture varies between developing and developed countries. For instance, in the Asian countries agriculture accounts for about 84% of all water withdrawals.
- Major untapped growth opportunities in emerging economies
Finite water resources, rapidly growing population, changes in consumption and production patterns, industrialization, urbanization, and trade policies due to development have rapidly increased the demand for water. Different geographies such as the Middle East and North Africa have various issues related to water management. These are safe wastewater re-use in water-scarce regions such as Africa; sanitation responses to water-scarce regions such as southeast Asia; sustainable river management such as in Middle America and the Caribbean; optimization of water infrastructures and resources, wastewater treatment in urban areas in South America; and sustainable management of water and wastewater, along with sustainable basin management in such regions.
Figure 2: Global Smart Water Management Market Value (US$ Mn), 2017 - 2027
The global smart water management market was valued at US$ 15,232.6 Mn in 2019 and is estimated to reach US$ 49,694.4 Mn by 2027 exhibiting a CAGR of 16.4% between 2020 and 2027.
- Merger and acquisition activities among market players is a major trend
Key players in the market are focused on merger and acquisition activities, in order to gain a competitive edge in the market. For instance, In January 2014, Schneider Electric acquired UK-based multinational engineering and information technology company Invensys. In September 2012, Schneider Electric acquired Australia-based SolveIT Software, a provider of planning and scheduling software.
- Research and development activities by market players is another major trend
Major market players are involved in research and development activities, in order to expand the product portfolio. For instance, in October 2013, Siemens introduced its full line of Vantage systems in the European market for water and wastewater treatment. Furthermore, in October 2013, Evoqua Water Technologies and Texas A&M AgriLife Research developed cost-effective technology to remove heavy metals from water and wastewater.
Value Chain Analysis
Major companies operating in the global smart water management market are IBM Corporation, TaKaDu Ltd., Arad Metering Technologies, Sensus USA Inc., , i2O Water Ltd, ABB Ltd, ET Water Systems, LLC, Schneider Electric SA, General Electric Company, Evoqua Water Technologies (Siemens), Emerson Electric Corporation., and Itron, Inc.
- Major companies are focused on product launches, in order to enhance the market presence. For instance, in October 2019, Sensus USA Inc. launched Cordonel, a smart utility solution to transform water management in the Middle East.
- In March 2018, ABB India, a subsidiary of ABB Ltd, upgraded digital water management solution with its GSM (Global System for Mobile communications) enabled AquaMaster flowmeters solution to measure water consumption in real-time.