The global smart water management market size was valued at USD 16.12 billion in 2023. It is estimated to reach USD 37.39 billion by 2032, growing at a CAGR of 11.09% during the forecast period (2024–2032). In recent years, the increasing demand for effective wastewater management solutions globally has been estimated to drive the growth of the global smart water management market. Additionally, the non-revenue water loss worldwide is surpassing the recommended values by regulatory bodies, which is, in turn, expected to increase the demand for smart water management.
Smart water management (SWM) is an ICT solution that collects, shares, and evaluates real-time data from water networks. It utilizes digital meters, sensors, geographic information systems, and supervisory control and data acquisition (SCADA) systems to communicate and interact with wastewater systems. SWM's primary goal is to ensure that the infrastructure and energy used for transporting water are managed efficiently. They detect leaks, reduce energy consumption, conserve water, predict equipment failure, and ensure compliance with regulations.
SWM systems are also integrated with meter data management, advanced pressure management, residential water efficiency, advanced analytics, and smart irrigation management systems for enhanced operational efficiency. SMW also lowers the energy water utilities use to pump water, lowers the price of finding leaks and theft, and encourages consumer water conservation. It is used in several sectors such as agriculture, industrial, farming, residential, etc.
Highlights
In the global smart water management market, the critical driver is the increasing necessity to manage the burgeoning global demand for water. According to the 2023 United Nations World Water Development Report, global water consumption has increased by 600% in the past century and is currently expanding at a rate of approximately 1.8% per year. Water demand is anticipated to increase by 55% by 2050, primarily as a result of industrial and domestic requirements.
Furthermore, the World Resources Institute has reported that 25 countries are currently experiencing extremely high water stress, with over 80% of the available supply being withdrawn annually. Additionally, the 2022 data from the World Bank indicates that the annual loss of 32 billion cubic meters of water, which is valued at $9 billion, is solely attributable to leaks in urban areas. Therefore, it is imperative to implement smart water management technologies in order to address this issue.
As a critical catalyst in the global smart water management market, the increasing necessity to reduce Non-Revenue Water (NRW) losses has emerged. In its most recent Water Global Practice report, the World Bank emphasizes the significant influence of NRW, which results in an annual cost of approximately $39 billion for utilities worldwide. An average of 25-30% of water is lost in urban water systems as a result of leaks, theft, or metering inaccuracies.
Smart water management technologies have emerged as effective solutions to this urgent issue in response. In 2023, the International Water Association conducted a study that demonstrated a 30% reduction in NRW for utilities that implemented smart leak detection systems within a two-year period. This highlights the critical role of smart water management technologies in improving operational efficiency, reducing losses, and conserving precious water resources, thereby escalating the demand for these solutions in the Global Smart Water Management Market.
The lack of capital investments in infrastructure remains a significant barrier to the growth of the Global Smart Water Management Market. According to the World Bank's 2022 report on water infrastructure, approximately $114 billion is invested annually in water supply and sanitation globally. However, this amount falls dramatically short of the $850 billion required each year until 2030 to achieve universal access to safe water. In India, for instance, the National Jal Jeevan Mission estimates a need for $50 billion to provide piped water to all rural homes by 2024. Unfortunately, due to budget constraints, smart water components are often excluded.
Thus, utilities in many regions face a tough decision between investing in basic infrastructure and opting for smart upgrades. The American Water Works Association's 2022 survey highlights this challenge, showing that while 76% of U.S. utilities recognize the benefits of smart water management, only 28% have budgeted for such technologies in the next five years. This gap underscores the formidable restraint that inadequate capital investment imposes on the advancement of smart water management solutions globally.
The escalating significance of smart water management within the smart city revolution offers an unparalleled market opportunity for the global smart water management market. As per the United Nations' 2023 World Cities Report, the global urban population has reached 56.2%, with projections soaring to 68.4% by 2050, ushering in an additional 2.5 billion urban residents. This urbanization surge is driving the evolution of smart cities, with IDC's Worldwide Smart Cities Spending Guide estimating investments to escalate from $124 billion in 2020 to $203 billion by 2024, showcasing a robust CAGR of 14.4%.
Within this dynamic ecosystem, smart water systems are emerging as key players. A 2023 study conducted by Frost & Sullivan underscores this by revealing that water management commands a substantial portion of smart city budgets, ranging from 20-25%, standing second only to energy. This underscores the pivotal role of smart water management solutions in the broader context of smart city development and underscores the immense potential for growth and innovation within the global smart water management market.
| Study Period | 2020-2032 | CAGR | 11.09% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 16.12 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 37.39 billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | Europe |
Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia Pacific is the most significant global market shareholder and is expected to expand substantially during the forecast period. By 2050, more than two-thirds of Asia-Pacific's urban population will reside in urban regions. The region includes nations with significant non-revenue water (NRW) losses, such as India (with nearly 60% of revenue losses from the water distributed) and Singapore. These numbers indicate the need for water management and the growth potential of the regional market.
In addition, the increasing number of smart cities in the region is anticipated to generate significant business opportunities for smart water management solutions providers. For instance, India aims to construct around 100 smart cities through initiatives like India's Smart Cities Mission. Furthermore, Asian regions such as Malaysia, Japan, Vietnam, and Thailand, among others, have also undertaken significant efforts to develop smart water systems, signaling the market's potential for growth. For instance, Japan has a comparatively lower NRW than the United States (24%) and has invested in water management infrastructure. With the help of the Japan Water Research Center (JWRC), the country plans to achieve a 100% rollout of smart water meters by 2025. Consequently, these factors are estimated to foster the Asia-Pacific smart water management market growth.
When it comes to the global market for smart water management, Europe is a sub-dominant region. This region places a significant emphasis on environmentally friendly and effective water management practices. The European Environment Agency (EEA) reports that the region is experiencing significant water stress, as more than 20% of the population of Europe resides in areas that are inadequately supplied with water.
Additionally, the increasing adoption of smart meters, real-time monitoring systems, and the incorporation of Internet of Things (IoT) technologies are the primary factors driving the growth of the market in this region. Furthermore, Diehl Stiftung & Co. KG, Itron, and Kamstrup are among the most important players in the European market. These companies are making significant contributions to the region's efforts to manage water resources in a more efficient and environmentally responsible manner. Thus, the factors above are estimated to drive the European smart water management market.
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The global smart water management market is segmented by type and end-user.
The global smart water management market is segmented into solutions and services based on type.
Throughout the forecast period, the solution segment is anticipated to be the largest revenue contributor to the market. The solution segment is further divided into asset management, SCADA, distribution network monitoring, meter data management, analytics, and other solutions based on their respective types. The market was primarily dominated by the distribution network monitoring segment, which is anticipated to expand at a compound annual growth rate (CAGR) of 14.40%. Appropriate pressure management is a critical component of service sustainability in a water distribution system. This ensures a consistent level of service, reduces water loss through leakage, conserves energy, and enhances the proportion of revenue-earning water. Furthermore, SWM technology offers real-time data to facilitate the monitoring of water flow quantity and pressure in the distribution network at various critical points in the water supply system. This allows the management teams to promptly identify leaks and implement preventive measures to regulate water losses. The distribution network is linked to GIS maps through advanced water management software, and the data is automatically transferred to the server.
The global smart water management market is divided into three segments residential, commercial, and industrial, based on the end-user.
During the forecast period, the residential segment holds the largest market share. Water is a luxury that must be conserved efficiently, and residential water consumption contributes to a significant portion of global water consumption. Consequently, smart water management technology is essential in ensuring that individuals are held accountable for their water usage. Intelligent water management software and hardware are being implemented by consumers to modernize their residences. As software and hardware become more affordable and cost-effective, this adoption rate is increasing at a rapid pace.
In addition, the interaction between residential smart water management systems and their surroundings is being redefined by the adoption of connected technologies and digitization, which is affecting all smart water management solutions applications. It is anticipated that the demand for smart water management solutions for home and building automation will increase over the forecast period as residential customers become more aware of the benefits of reduced water waste associated with these solutions.
