|Base Year Market Size
|USD 7.86 Billion
|Forecast Year Market Size
|USD 24.94 Billion
|Fastest Growing Market
The global smart water management market size was valued at USD 7.86 billion in 2022. It is estimated to reach USD 24.94 billion by 2031, growing at a CAGR of 13.69% during the forecast period (2023–2031). The increasing demand for effective wastewater management solutions globally is among the primary factors driving market growth. The non-revenue water loss worldwide surpasses the recommended values by regulatory bodies, also increasing 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.
According to Worldwild Life, 1.1 billion individuals globally do not have access to water, and 2.70 billion face water crises for at least one month per year. Numerous water systems that sustain ecosystems and a growing human population have become stressed. Rivers, lakes, and aquifers are either drying up or becoming unusable due to contamination. Such a factor is catering to the demand for smart water management solutions.
Furthermore, as per the industry analysis, a water pipe bursts every 30 seconds in Germany. In 2019 alone, 1.1 million cases of tap water damage were reported, costing more than EUR 3 billion. Considering the factors mentioned above, the increased demand for water conversation is driving the growth of the global smart water management market.
NRW constitutes water produced but lost due to theft, evaporation, faulty metering, poor data gathering, and leakage. The World Bank recommends that the NRW be less than 25% of the total water produced. However, NRW can be as high as around 60% in many countries. The high level of NRW is detrimental to the financial viability of a water utility and poses an extra burden on customers.
Furthermore, the International Energy Agency (IEA) termed that about 34% of the pumped water was a non-revenue loss due to tampering, meter errors, and faulty distribution networks, which, if otherwise sold, could serve approximately 90 million people. Therefore, the adoption of smart water management is also increasing, thereby boosting market growth.
The shortage of suitable analytical tools and data to assess complex water-related investments and the track record of such investments can deter financiers. Water projects frequently suffer from being insufficiently scaled and excessively tailored to unique contexts. This phenomenon increases transaction costs and presents difficulties in scaling up and developing new finance arrangements.
The efficiency of operation and maintenance is often not adequately supported by prevailing business models, which can hinder the ability to sustain service costs over time. Countries across the globe are lacking in investing capital in installing suitable infrastructure, thus hampering the growth of the global market.
Governments worldwide emphasize incorporating smart technologies for economic development as a central component of their urban planning strategies. Smart water is one of the defining characteristics of a smart city. SWM is a component of intelligent infrastructure that implements digital water and wastewater treatment solutions. With a surging population, rapid urbanization, soaring demand for food, and overexploitation of resources, smart city initiatives offer huge business opportunities for SWM solution suppliers.
As per the United Nations Department of Economic and Social Affairs, 68% of the globe's population will reside in cities by 2050. This has created an extensive business landscape for providers of smart water solutions, where accurate water consumption and forecasting measurement are crucial. This requires smart water systems to collect actionable data regarding a city's water flow, pressure, and distribution. For instance, from July 2020 to December 2023, the IWRA collaborated with the Asia Water Council (AWC), K-water (the Korea Water Resources Corporation), and water experts from around the globe on its Smart Water Management (SWM) projects.
Based on region, the global smart water management market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific Dominates the Global Market
Asia-Pacific is the most significant global smart water management market shareholder and is anticipated to exhibit a CAGR of 14.57% 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 intelligent water management solutions providers. India aims to construct around 100 smart cities by 2022, approximately USD 500,000, which is anticipated to affect nearly 1 billion individuals.
Asian regions such as Malaysia, Vietnam, and Thailand, among others, have also undertaken significant efforts to develop intelligent water systems, signaling the market's potential for growth. 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), Japan plans to achieve a 100% rollout of smart water meters by 2025.
Europe is estimated to exhibit a CAGR of 13.54% over the forecast period. The major driving factor in the European region is the government's initiatives to boost the adoption of smart solutions. Europe has about 3.5 million kilometers of water distribution network, which poses significant challenges to the government's management. The European Environmental Agency estimated that 46% of Europe's population lives in water-stressed places. The European Commission introduced the Smart Water Management Platform (SWAMP) project to address the issue of water wastage by using the Internet of Things (IoT), data analytics, autonomous devices, and other related technologies. The European Commission had funded the project with EUR 1.47 million until October 2020. In addition, most utilities in the EU countries have adopted advanced solutions, such as advanced meter data analytics, advanced pressure management solutions, network monitoring, and leakage detection solutions. The EU Commission also laid out a vision for the future of smart water across the region in its Digital Single Market for Water Services Action Plan, which will drive the market growth further.
North America held a prominent share of the global smart water management market, owing to a high volume of early adopters in the United States and Canada. Due to its developed infrastructure, which may house smart solutions in the residential and commercial segments, the region is envisaged to dominate the global market over the forecast period. Factors such as the challenges posed by water scarcity and aging infrastructure have pushed the need to tackle efficient water management, which may benefit revenue generation and consumer satisfaction. Cities around the country are finding remarkable success by integrating smart water technology. In Kansas City, Missouri, smart sewer and stormwater management systems—including the world's largest sewer sensor network—were installed for USD 1.2 million to continuously monitor and manage water flow and autonomous stormwater detention. Moreover, the region has a robust foothold on IoT platform vendors, contributing to the market's growth.
Latin America's public and private sectors are undergoing a digital transformation to be competitive in the global economy. The market for smart water management in the region is primarily boosted by factors such as the rising need for the conservation of water resources and the rising adoption of smart technology solutions by water utilities and water regulatory authorities to streamline operations and reduce maintenance and repair costs. Likewise, there is an increasing need for smart freshwater management for precision irrigation in agriculture. Such an application is essential for increasing crop yield and decreasing costs while contributing to environmental sustainability, and IoT is the natural choice for the applications of smart water management. According to the FAO, the region produces only 11% of the food in the world. This highlights the potential for market growth in the region.
|ABB Ltd Schneider Electric SE (+AVEVA) IBM Corporation SUEZ Group Honeywell International Inc. Siemens AG Sebata Holdings Limited Hitachi Ltd. TaKaDu Limited Sensus Inc. (Xylem Inc.) i2O Water Ltd.
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global smart water management market is segmented by type and end-user.
Based on type, the global smart water management market is divided into solutions and services.
The solution segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 13.73% throughout the forecast period. The solution segment is further bifurcated into asset management, SCADA, distribution network monitoring, meter data management, analytics, and other solutions based on type. The distribution network monitoring segment dominated the market and is expected to grow at a CAGR of 14.40%. In a water distribution system, appropriate pressure management is an essential aspect of service sustainability, which provides a consistent level of service, helps reduce water loss through leakage, saves energy, and improves the proportion of revenue-earning water. In addition, SWM technology provides real-time data to support monitoring water flow quantity and pressure in the distribution network at various critical points in the water supply system. This enables the management teams to identify leakages quickly and take preventive measures to control water losses. The data is transferred automatically to the server, where the distribution network is linked to GIS maps through advanced water management software.
The professional services offered by the vendors concerning smart water management are services related to software and assessment of the functionality of equipment/infrastructure through training and support sessions. Similarly, the professional services include controller programming to reduce water use and ensure plant health in compliance with the schedule and restrictions of the operation. This optimizes the programming with immediate effect. The increased popularity of the professional services may be attributed to the municipal corporations that are highly dependable for managing smart water systems. For instance, in August 2021, Jacobs, a company offering professional services, including consulting, scientific, technical, and project delivery for the government and private sector, helped Mount Isa City Council (MICC) realize its smart water management goals. As part of its smart water management strategy, MICC introduced a smart water meter scheme worth USD 2.3 million or AUD 3 million.
Based on the end-user, the global smart water management market is segmented into residential, commercial, and industrial.
The residential segment owns the highest market share and is estimated to exhibit a CAGR of 14.40% during the forecast period. Residential water consumption contributes to a large portion of global water consumption, as water is a luxury that must be conserved efficiently. Therefore, technology is also crucial in making individuals accountable for water misuse. Consumers are modernizing their homes by adopting intelligent water management software and hardware. This adoption rate is increasing rapidly as software and hardware become less expensive and more affordable. In addition, digitization and the adoption of connected technologies are influencing all smart water management solutions applications by redefining how residential smart water management systems interact with their surroundings. As residential customers become increasingly aware of the advantages of smart water management solutions in terms of reduced water waste, the demand for these solutions for home and building automation is anticipated to increase over the forecast period.
Various private companies are expected to provide software and databases for commercial building operators to better track their properties' water use. Smart water technologies are helping water municipalities and commercial building operators to find leaks more effectively, reducing damage to buildings and, thus, reducing monetary loss. Recently, PropTech, a startup, launched a revolutionary smart water management system for commercial buildings, thereby eliminating catastrophic water leaks. The startup offers property managers real-time visibility and insights into optimizing plumbing systems in commercial properties using connectivity and advanced analytics.
In addition, many water associations and companies collaborate to provide better and more innovative water management solutions. For instance, Shenzhen Water, China Telecom, and Huawei jointly announced the release of the first commercial NB-IoT-based smart water project. The commercial NB-IoT-based smart water project had an exemplary role in developing the IoT industry and smart cities globally.