Smart Water Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Smart Water Management Market size is expected to grow from USD 16.08 billion in 2023 to USD 30.80 billion by 2028, at a CAGR of 13.89% during the forecast period (2023-2028).

In recent years, owing to increasing population and urbanization, the global demand for water and the need to address the cost implications of maintaining an aging infrastructure has been the major growth factors for the smart water management market.

Key Highlights

• Smart water management (SWM) uses information and communication technology (ICT) and real-time data and responses, which is an integral part of the solution for water management challenges. The potential application of smart systems in water management is vast and includes solutions for water quality, water quantity, efficient irrigation, leaks, pressure and flow, floods, droughts, and more.
• Smart data-driven methods for detecting water losses in public networks are becoming popular. Such solutions are based on the application of the internet of things (IoT) and artificial intelligence (AI) techniques. In the State of Palestine, the UNDP/PAPP's Accelerator Lab partnered with a promising start-up company, FlowLess, to test a locally developed and cost-efficient smart system for detecting water losses using IoT and AI, supported by a customized web platform.
• Water infrastructure costs need to be assessed across the full water cycle and for all its major uses. As 2030 approaches, the costs of operating a new infrastructure built may exceed the annual capital cost requirements to meet those remaining unserved. When coupled with increased billing accuracy, the short-term issues in investing in smart water metering highlight a higher initial capital outlay. Traditional water management users are reluctant to switch to newer and advanced methods. The high initial cost of infrastructure and training prevails in most developing nations, hindering the market's growth.
• Post-COVID-19 pandemic, European countries are focused on investing in water loss solutions. The European Union has invested in research and innovation to support a smooth transition. 79% of citizens agree that tackling climate change may lead to innovation that may make European companies more competitive, and 70% agree that water-based activity may positively affect citizens.

Smart Water Management Market Trends

Growing Need for Water Management to Drive the Market

• According to UN-Water, by 2025, 1.8 billion people may be living in countries or regions with absolute water scarcity. Developing countries are most affected by water shortages, flooding, and poor water quality. Countries are working toward the United Nations’ 2030 Agenda for sustainable development goals. Water targets are included across the 17 sustainable development Goals.
• According to the World Water Council, nearly four billion people are expected to face water stress by 2025. Contaminated drinking water poses a significant threat to public health, and failing dams and outdated water infrastructure are also harming people. Long-lasting droughts and failing water distribution systems constitute another set of challenges to the water supply. Outdated water asset management, in such cases, restricts efficiency and puts people’s lives at risk.
• With the scarcity of fresh water globally, governing bodies have made water management policies a priority agenda. The United Nations defines basic water access as having an improved water source within a 30-minute collection time. Recently, water conservation has been promoted to its sustainable development goals.
• On the other hand, ESRI GIS Company’s study suggests that 25% of water points break within the first four years, indicative of a massive failure rate. Extreme weather events, coupled with water scarcity and failing infrastructure, are contributing factors hitting major water companies, especially in South Asia. For instance, SADA, a water utility, has witnessed issues supplying a consistent and uninterrupted water supply to over two million people in Kedah, Malaysia.

Asia-Pacific is Expected to Register the Fastest Growth

• Asia-Pacific is home to more than 2.1 billion urban residents, with over two-thirds estimated to live in cities by 2050. The region comprises countries with substantial non-revenue water (NRW) losses, like India (with almost 60% of revenue losses from the total water distributed) and Singapore. Such figures signify the need for water management and indicate the potential for market growth in the region.
• The region is also witnessing demand for IoT platforms due to the growing number of connected devices and the adoption of IoT technologies for water management. For instance, Agua Water Systems, an Indian start-up, enables water usage monitoring with the help of smart solutions. The plug-and-play system utilizes artificial intelligence (AI) to analyze water usage, measure the water level in the pump, and control water distribution. Several smart wireless devices, such as motor controllers, ultrasonic sensors, and flow sensors, are used in the process.
• Consumers are upgrading their residences by adopting smart water management software and hardware. This adoption rate is rapidly increasing as software and hardware are becoming cheaper and more affordable.
• Digitization, along with the adoption of connected technologies in developing nations, is impacting all applications of solutions for smart water management by revolutionizing the way the systems for smart water management interact with the surroundings in the residential sector.

Smart Water Management Industry Overview

The market studied comprises several global players and emerging new players vying for attention in a fairly-contested market space. The firm concentration ratio is expected to record higher growth during the forecast period because several firms consider this market a lucrative opportunity to consolidate their offerings. Various companies are launching new and advanced products in the market.

• In February 2022, Takadu partnered with Asystom, a specialist in universal smart monitoring for predictive maintenance, to provide water utility customers with an integrated and enhanced central event/asset management solution.
• In February 2022, ABB introduced the ABB Ability Smart Solution for Wastewater. This digital solution solves wastewater treatment plant operators' challenges in achieving both the lowest energy consumption and the highest operational requirements. The innovative solution comprises two main pillars, advanced process control (APC) and digital twin and simulation technology to forecast future operational needs.

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