- Published: March 2011
- Region: Global
Smart Water Management Market in North America - Investment Opportunities
- Published: April 2010
- Region: North America, United States
- 38 Pages
- Frost & Sullivan
Deteriorating Water Situation Enables Strong Traction for the Smart Water Management Market in North America
Due to inadequate efforts, the water position is worsening with each passing year. Pressing water problems require more intelligent management of aquifers and other hydrogeology issues. More than two billion people across the world lack access to proper water supply and sanitation. There are no standard measures for water wastage in irrigation due to negligence. Small incremental improvements in irrigation efficiency are likely to allow large volumes of water for municipal use. "Smart water management is the need of the hour to prevent water resources from being depleted," notes the analyst of this research service. "Smart water management is a combination of markets such as the smart controller for water, smart meters for water and residential and commercial sanitary ware products that control water consumption." The revenues for the total U.S. smart meter market for 2009 were in the range of $1.20 billion and $1.40 billion. Smart meters for water are relatively new and contribute about 2.0 to 4.0 percent of the total U.S. smart meter market. The smart controller market was above $200.0 million in terms of revenues by the end of 2009.
Much of the water stress in the North American region is concentrated around the states of Arizona, Texas, and California, which form a part of the Sun Belt region. Most of the water rights are held by agricultural land owners; hence, the water available for human consumption is not much. Control of water consumption through smart water management is necessary here. The high level of water scarcity has not discouraged the heavy usage of freshwater resources, which is above 1,690 cubic meters per capita. The amount of agricultural usage of water in the United States and Canada is approximately 30.0 percent of the total freshwater available in the countries. High initial installation costs, non-availability of adequate infrastructure and low awareness of water shortage problems in general are the major restraints of this market. "A general lack of awareness regarding problems of water scarcity is apparent," says the analyst. "Information and statistics of water shortages are published, but are not read and understood in a widespread manner." The high cost of smart controllers has deterred market penetration. Though there are rebates given on the unit price by many government authorities to promote the usage of the smart controller, the initial cost is still considered high. With the existing deficient infrastructure in the water industry, basic water supply cannot be provided efficiently. Considering the level of infrastructure, the installation of techno-savvy instruments, such as smart controllers and smart meters, looks very difficult.
The best strategic response to the restraints is increasing the awareness of acute water shortage by the government and other public agencies. Providing subsidies on smart water management equipment will help bring down the burden of high initial costs. It is important to understand that there is no "one-shot" formula that would solve the problem of water scarcity. The solution to water scarcity requires two important components: capital and intellect. Opportunities abound for institutional investors in the smart controller and smart meter markets. Both markets have high-performance private companies that have robust products running on proven technology. SHOW LESS READ MORE >
1. Research Methodology & Definitions
3. Smart Water Management Market
4. Investment Themes
5. Company- Product Profiling