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The smart water management market size is forecast to increase by USD 21 billion at a CAGR of 16.8% between 2023 and 2028. The market is experiencing significant growth due to the increasing water scarcity and the need to reduce water loss in the water distribution network. Technologically advanced solutions, such as smart water metering and IoT, and IoT-enabled sensors are being adopted to optimize water usage in various sectors, including agriculture and industrial applications. The chemical industries, in particular, are focusing on water recycling and wastewater treatment to minimize their water footprint. However, the high capital cost associated with implementing systems remains a challenge for many organizations. Moreover, ground water levels are declining, making it crucial to adopt sustainable practices. Artificial Intelligence and machine learning algorithms are being integrated into smart systems to improve efficiency and accuracy in water cycle management. Despite the initial investment, the long-term benefits, including reduced water wastage and improved water quality, make it a worthwhile investment for organizations.
Water is an essential resource for all forms of life, and its management is crucial for ensuring sustainable economic growth and social development. However, aging infrastructure, water quality issues, and extreme weather events pose significant challenges to effective management. In response, the global water industry is increasingly adopting smart water management systems to enhance efficiency, reduce costs, and ensure the reliable delivery of water and wastewater services.
According to the American Water Works Association, an estimated USD1 trillion is required to replace and upgrade water and wastewater infrastructure in the US alone over the next 25 years. Smart water management systems offer a cost-effective solution to these challenges by providing real-time data on water quantity, quality, and pressure and flow. The Backbone of Smart Water Management Real-time data is the foundation of smart water management systems. By collecting and analyzing data from sensors installed throughout the water distribution network, these systems can identify leaks, optimize water distribution, and detect anomalies in water quality. This data-driven approach enables water utilities to respond quickly to challenges, reducing water losses and improving overall system efficiency. Leaks, Floods, and Droughts Leaks in water distribution networks can lead to significant water losses, with an estimated 21% of water being lost due to leaks in the US alone. Smart water management systems can help identify and locate leaks in real-time, reducing water losses and saving utilities millions of dollars in repair costs. Floods and droughts pose significant challenges to water management, particularly in areas prone to extreme weather events.
Smart systems can help mitigate the impact of these events by providing real-time data on water levels and flow rates, enabling utilities to make informed decisions on water distribution and storage. Efficient Irrigation and Wastewater Management Smart systems can also be used for efficient irrigation and wastewater management. By collecting real-time data on soil moisture levels and weather conditions, these systems can optimize irrigation schedules, reducing water usage and saving on water bills. Additionally, smart wastewater management systems can help utilities identify and address issues in real-time, reducing the risk of contamination and ensuring the safe and efficient treatment and disposal of wastewater. Ensuring Safe and Reliable Water Supplies Water quality is a critical concern for water utilities, particularly in industries such as chemical manufacturing. Smar systems can help ensure safe and reliable water supplies by monitoring water quality in real-time and alerting utilities to any anomalies. This enables utilities to take swift action to address any issues, reducing the risk of contamination and ensuring the delivery of safe water to consumers. Managing the Water Supply Chain Smart systems can help utilities manage the entire water supply chain, from source to tap. By collecting and analyzing data on water quantity, quality, and distribution, these systems can optimize water usage and reduce costs.
Additionally, they can help utilities respond to water management challenges, such as droughts or floods, by adjusting water distribution and storage accordingly. Cost-effective systems offer a cost-effective solution to the challenges facing the water industry. By reducing water losses, optimizing water distribution, and improving overall system efficiency, these systems can help utilities save on capital costs and reduce operating expenses. Additionally, the use of technologies such as the Internet of Things (IoT) and artificial intelligence (AI) can help utilities automate processes and reduce labor costs. By providing real-time data on water quantity, quality, and distribution, these systems can help utilities optimize water usage, reduce costs, and ensure the reliable delivery of water and wastewater services. As the world's population continues to grow and water resources become increasingly scarce, the adoption of smart water management systems will become essential for ensuring sustainable economic growth and social development.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The commercial and industrial segment is estimated to witness significant growth during the forecast period. In today's world, ensuring the availability of clean and safe water is essential for public health and industrial processes. Advanced smart water management systems offer real-time monitoring of water quality parameters, detecting contamination, and issuing alerts when necessary.
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The commercial and industrial segment was the largest segment and valued at USD 6.94 billion in 2018. These solutions are increasingly being adopted in industrial settings due to the growing recognition of the importance of efficient and sustainable water usage. Industries consume substantial amounts of water for various processes like fabrication, processing, washing, diluting, and cooling. To optimize water management, industries are focusing on reducing wastage and improving resource utilization. Hence, such factors are fuelling the growth of this segment during the forecast period.
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Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the demand is escalating due to various factors. With a heightened focus on sustainability and water conservation, industries and communities are seeking innovative solutions to minimize their environmental impact. The region's technological advancements, including the availability of advanced sensors, IoT technology, data analytics, and cloud computing, are driving the adoption of smart systems.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for smart water management in agriculture sector is notably driving market growth. In the realm of water management, smart systems have emerged as a vital solution to address the challenges posed by aging infrastructure, water scarcity, and the need for efficient irrigation. Real-time data plays a pivotal role in smart water management, enabling farmers to monitor water quality, quantity, pressure, and flow, thereby preventing leaks and minimizing water wastage. This technology is essential in agriculture, where water is a significant resource and scarcity is a persistent issue.
By optimizing irrigation practices, smart water management enhances crop yield and quality while promoting sustainable farming. This technology is crucial for mitigating the risks of floods and ensuring the efficient use of water resources. Smart water management is a critical component of modern agriculture, empowering farmers to make data-driven decisions and adapt to the ever-evolving water management landscape. Thus, such factors are driving the growth of the market during the forecast period.
Smart water management using IoT is the key trend in the market. The integration of the Internet of Things (IoT) in water management systems is revolutionizing the way water resources are utilized and conserved in various sectors, including urban water supply, agriculture, and industry. IoT technology enables the deployment of sensors at strategic points within water distribution networks, such as pipes, reservoirs, pumps, and meters, to collect data on water flow, pressure, temperature, and water quality parameters like pH, turbidity, dissolved oxygen, and contaminants.
IoT-powered smart water management systems offer numerous benefits, including the ability to proactively address water loss issues, optimize water distribution, and enhance water quality. These systems can generate alerts when water quality deviates from predefined thresholds, enabling timely intervention to prevent potential contamination or infrastructure damage. Furthermore, IoT sensors can help monitor ground water levels, providing valuable insights into water availability and facilitating more informed decision-making in water resource management. Thus, such trends will shape the growth of the market during the forecast period.
High initial investment costs is the major challenge that affects the growth of the market. Smart water management systems have gained significant attention in addressing water losses and mitigating the impacts of droughts. These systems employ data-driven methods, including the Internet of Things (IoT) and artificial intelligence (AI), to optimize water distribution and reduce wastage. However, the high initial investment costs associated with implementing these systems can pose a challenge for many organizations and public networks.
The expenses encompass various components, including hardware, sensors, software, and infrastructure. Installing sensors, meters, and other hardware throughout the water infrastructure necessitates skilled labor and specialized equipment, further increasing the costs. For smaller municipalities or organizations with limited budgets, these costs may hinder adoption. UNDP/PAPP's Accelerator Lab, such as FlowLess, offers customized web platforms to help manage water infrastructure costs and facilitate the implementation of smart water management systems. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers smart water management solutions to automate, electrify and digitize water and wastewater plants and infrastructure.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the realm of water management, aging infrastructure poses significant challenges in ensuring the efficient use and distribution of this vital resource. Smart water systems, fueled by real-time data, are revolutionizing the sector by addressing water quality and quantity issues. These technologically advanced solutions employ data-driven methods to optimize irrigation, detect leaks, monitor pressure and flow, and mitigate the impacts of floods and droughts. Water loss due to leaks and inefficiencies in public networks is a major concern, with smart metering infrastructure playing a crucial role in accurate billing and resource allocation. The integration of Internet of Things (IoT) and artificial intelligence (AI) enables real-time monitoring, cost savings, and operational efficiency. The water cycle, including water scarcity, wastewater, and ground water level, is a critical aspect of sustainable resource management. Chemical industries and urbanization contribute to water demand and pollution, necessitating modern smart solutions to minimize wastewater runoff and ensure compliance with regulations. Capital investments in smart water management systems can lead to substantial cost savings, with consulting and advisory services available to guide the transition from legacy water systems to more efficient, data-driven methods. Climate change further highlights the importance of smart water management, with smart cities adopting these solutions to mitigate the impacts of extreme weather events and ensure a reliable water supply.
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Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.8% |
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Market growth 2024-2028 |
USD 21 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
14.0 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 37% |
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Key countries |
US, UK, China, France, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Aquamatix Ltd., Badger Meter Inc., Cisco Systems Inc., General Electric Co., Honeywell International Inc., HydroPoint Data Systems Inc., International Business Machines Corp., Itron Inc., Landis Gyr AG, Oracle Corp., Schneider Electric SE, Siemens AG, SUEZ SA, and TAKADU LTD |
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Market dynamics |
Parent market analysis, market report, market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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