Product Code: 63678
The smart water management market was valued at USD 7.14 billion in 2019, and it is expected to reach USD 13.81 billion by 2025, registering a CAGR of 12.31%, during the period from 2020 to 2025. The worldwide demand for water, as a result of the growing population, increasing urbanization, and the need to address the cost implications of maintaining an aging infrastructure, is among the major driving factors for the growth of the smart water management market. Similarly, with the growth of IoT, smart cities across various locations are expected to promote the growth of the market studied. Technological advancements related to smart meters and their integration with communication solutions (SCADA, GIS, etc.) have transformed water management systems, to address the challenges faced by water utilities, residents, and industries erroneous billing and water management.
- Owing to global demand, the need to address the efficiency related to operational issues of water management became essential due to which adoption of smart water management technologies is expected to gain significant traction. The smart water management products consist of sensors, smart meters, communication infrastructure, and software that enables two-way communication, thus allowing users to gather actionable information and make informed decisions about optimized water distribution and usage. The global water scarcity trends are the sole reason to justify the increasing innovations in this sector and growing adoption. The UN World Water Development Report suggests that by 2050, a quarter of the people would reside in an area affected by the recurring and chronic scarcity of freshwater.
- The need for smart water management aligns with predicting failure to allow governments and interested parties to do preventive maintenance, thus saving the considerable cost of replacing infrastructure. Moreover, the American Water Works Association suggests that reparation, maintenance, and expansion of any water services would cost around USD 1 trillion in the next 25 years. Further, the American Civil Engineers Society (ASCE) states a 23% increase in wastewater treatment by 2030, and the EPA projects a USD 271 billion investment to resolve potential wastewater demands. Predictive modeling, leak protection, water pressure monitoring, and smart metering are some of the technologies that have come up in the market to address such issues.
- Demand for IoT-enabled advanced metering infrastructure (AMI) smart water meters is increasing due to their real-time visualization, leak detection, and machine-to-machine (M2M) communications, among other benefits. For instance, Esri, in January 2020, announced its partnership with Open Systems International, Inc. (OSI). Esri's ArcGIS Utility Network Management is expected to be offered to customers in the electric, gas, and water utility industries. The geographic information system (GIS) and OSI's monarch operational technology (OT) platform does the job for these facilities. Additionally, Industry 4.0 has been witnessing the amalgamation of industrial IoT and smart water management.
- The COVID-19 pandemic has forced governments globally to think of measures to scale up the adoption of water-efficient technologies and introduce better water management practices since the spread of coronavirus has profoundly impacted the water industry. For instance, according to AWWA and the AMWA, the combined water and wastewater sector impact of the COVID-19 crisis in the US is calculated to be more than USD 27 billion. Millions of American citizens who have lost their jobs during the crisis are at risk of losing running water if they fall behind with bill payments in the coming months, as water utilities in several states have not suspended the policy of shutoffs for non-payment, unlike the UK.
Key Market Trends
Residential is Expected to Hold Major Share
- Residential water usage accounts for a large portion of water consumption globally, as water is considered to be one of the luxuries that need to be conserved efficiently. Therefore, technology also plays a vital role in making people liable for misuse of water. 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 affordable. Digitization, along with the adoption of connected technologies, is impacting all applications of smart water management solutions, by revolutionizing the way smart water management systems interact with the surroundings in the residential sector.
- For instance, WEGoT, a utility solution provider, provides sensor-based Internet of Things (IoT) devices and a software platform, VenAqua, which reduces the demand for water by more than 50%, especially in residential buildings, by tracking real-time flow. The granular data collected from various installations across residential buildings are analyzed, and the insights are shared with the end-users on a mobile app. The solution provided by the startup is subscription-based, wherein the company gives the product free, and users pay a nominal monthly fee of INR 149(Residential) / INR 0.20 per sq. Ft (Commercial) apart from installation charges.
- Government initiatives for saving water worldwide are majorly contributing to the rising demand for smart residential water management solutions. Connected systems are anticipated to emerge as one of the most critical components of the smart water management software by contributing mainly to the sustainability goals of the projects. For instance, Suriname, a Latin American country, is improving its water supply system with support from the Inter-American Development Bank. The USD 25 million plan will enhance the efficiency and quality of the Suriname water company's services, thereby benefiting over 3,700 households.
- Moreover, Biz Intellia, an end-to-end IoT solution, helps to manage water leaks in residential societies. It can also cover an entire city, and the range of one gateway is up to 6 miles in urban areas and 10 miles in open country areas. Multiple gateways can also be installed in case of broader area coverage requirements. The smart buildings are the microcosm of the smart cities, and it is one of the starting points for building for transforming into smart cities for managing energy, water, and lighting, to deliver security and emergency services. Additionally, the residential homes are growing vertically across the world; hence, there is an opportunity for deploying centralized smart water management solutions to gain more impact.
Asia Pacific is Expected to Register Fastest Growth
- The Asia-Pacific region is home to more than 2.1 billion urban residents, with over two-third estimated to be living 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. Significant initiatives, to develop smart water systems, are evident in the Asian countries, like Malaysia, Vietnam, and Thailand, among others, indicating the scope for the growth of the market.
- The rising number of smart cities in the region is expected to create substantial business opportunities for the smart water management solution providers. Accounting for about half a million dollars, India is planning to build over 100 smart cities by 2022, which is expected to impact almost 1 billion. Also, Singapore spent over USD 1 billion in smart city initiatives in FY 2019. Such smart city initiatives in the region are expected to provide a vast scope for the adoption of advanced metering infrastructure.
- Japan, which has relatively lower NRW (US-24%), invests in water management infrastructure. Japan, with the aid of its Japan Water Research Center (JWRC), plans to achieve a 100% smart water meter rollout by 2025. Countries such as India are witnessing increased investments in the start-ups that are operating in the market. In October 2019, WEGoT, an IoT-based start-up, announced that it received USD 2 million in seed funding. The company offers integrated water management solutions in real-time to prevent and address the water crisis.
- The region is also witnessing demand for IoT platforms owing 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, is enabling the monitoring of water usage with the help of smart solutions. The plug and play system utilizes artificial intelligence (AI) to analyze the water usage, measure water level in the pump, and control the distribution of water. Several smart wireless devices, such as motor controllers, ultrasonic sensors, and flow sensors, are used in the process.
The smart water management market is quite fragmented as the market comprises several global players, and emerging new players vying for attention in a fairly-contested market space. Owing to the emergence of new startups in IoT and AI-based offerings, the market is witnessing intensifying competitive rivalry, which is expected to increase during the forecast period. Some of the significant companies include IBM, Siemens, Schneider Electric, Honeywell, etc. Some key recent developments in the market include:
- March 2020 - AECOM has partnered with IBM on a "Smarter Water" solution to help drive improved water management. Using IBM Intelligent Water software and AECOM's water-management knowledge, the Smarter Water solution aggregates different data into one "system of systems," giving users comprehensive and consistent real-time views across an operation. Equipped with advanced data analytics, visualization, and optimization tools, the solution helps water and wastewater management companies detect anomalies such as leaks, and uncover insights to support proactive asset and system management.
- January 2020 - Verizon has announced a partnership with Honeywell that will integrate Verizon's Managed Connectivity LTE with Honeywell Internet of Things (IoT) sensors to create a smarter energy grid. Verizon and Honeywell are planning to include several elements in their new products that will make smart grid management more accessible. These include device ID and security features, remote monitoring, and management, real-time diagnostics to deliver smart metering, manage distributed energy resources, and conserve water.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Intensity of Competitive Rivalry
- 4.2.5 Threat of Substitute Products
- 4.3 Industry Value Chain Analysis
- 4.4 Impact of COVID -19 on the Market
- 4.5 Market Drivers
- 4.5.1 Growing Need to Manage the Increasing Global Demand for Water
- 4.5.2 Increasing Demand to Reduce Non-revenue Water Losses
- 4.6 Market Challenges
- 4.6.1 Lack of Capital Investments to Install Infrastructure
5 MARKET SEGMENTATION
- 5.1 Type
- 5.1.1 Solution
- 220.127.116.11 Asset Management
- 18.104.22.168 Distribution Network Monitoring
- 22.214.171.124 Supervisory Control and Data Acquisition (SCADA)
- 126.96.36.199 Meter Data Management (MDM)
- 188.8.131.52 Analytics
- 184.108.40.206 Other Solutions
- 5.1.2 Service
- 220.127.116.11 Managed Services
- 18.104.22.168 Professional Services
- 5.2 End-user Vertical
- 5.2.1 Residential
- 5.2.2 Commercial
- 5.2.3 Industrial
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 ABB Ltd
- 6.1.2 IBM Corporation
- 6.1.3 Suez group
- 6.1.4 Honeywell International Inc
- 6.1.5 Schneider Electric (+ Aveva)
- 6.1.6 Siemens AG
- 6.1.7 Utility Systems (Micro Mega Holdings Limited)
- 6.1.8 Hitachi Ltd
- 6.1.9 Arad Group
- 6.1.10 TaKaDu Limited
- 6.1.11 Sensus Inc. (Xylem Inc.)
- 6.1.12 Itron Inc.
- 6.1.13 i2O Water Ltd
- 6.1.14 Huawei Technologies Co. Ltd
- 6.1.15 Esri Geographic Information System Company
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS