Last edited 29 May 2016

Global smart water management

Aging pipe networks in several established cities are driving the demand for better water mains. For example, in London, approximately 40% of the pipes are more than 100 years old. Furthermore, according to the District of Columbia Water and Sewer Authority, the average age of it's city’s water pipes is 76 years.

There is a need to replace such water management systems with smarter, better systems. This, along with increasing government legislation is driving the global smart water management market, which is expected to demonstrate a marked compound annual growth rate (CAGR) of 17.7% from 2013-2019. The market was valued at US$4,813.3 million in 2012 and is projected to reach US$15,232.6 million by 2019.

The global smart water management market will also benefit from the growing need for mapping water resources and the need to reduce water loss and non-revenue water (NRW). In addition, the lack of water management systems in urban areas will provide good growth opportunities.

The global smart water management categorised by meter-read technology into fixed technology and cellular technology. On the basis of components, it can be categorised into; hardware (AMI, AMR, and others), solutions, and services.

The high cost associated with AMI installation will suppress the market, along with the apprehension of water utilities about the adoption of cloud services.

In spite of the high cost of AMI, the hardware segment in the global smart water management (SWM) market will continue to dominate the industry throughout the forecast period. In 2012, the hardware segment held the largest share, of the market, at 40.1%.

Geographically, the global smart water management market is divided into North America, Asia Pacific, the Rest of the World (RoW), and Europe. At present, North America dominates the market due to the high investment in smart water management technologies to curb water loss and optimise the NRW. In 2012, North America generated 47.5% of total revenue in the global smart water management market

Asia Pacific is predicted to demonstrate the highest CAGR of 23.7% during the forecast period. Factors such as higher rainfall variability, ageing facilities, the need for palatable and safe water, and the presence of countries rich in water resources will drive this regional market.

The global smart water management market is fragmented in nature with the presence of local players across the regions. 67.1% of the global smart water management market is held by regional and local companies. Notable players in the global smart water management market include ABB, Arad Metering Technologies, Schneider Electric, Sensus USA, General Electric Company, I20 Water, and TaKaDu.