The global smart water grid market stood at around USD 27,620.8 million in 2023 and is expected to expand at a CAGR of 6.5% to reach a valuation of USD 48,683.6 million by 2033. Demand for smart water grid technology is predicted to rise due to its cost-effectiveness, efficiency, time & energy saving, and reliability.
Hence, application in utilities and commercial & residential buildings is anticipated to increase over the forecast period of 2023 and 2033. Further, growing emphasis on reducing carbon footprints and optimizing financial savings & water utilities is driving the adoption of smart water grids across the globe. This is predicted to expand the smart water grid sales by 5x over the assessment period.
Moreover, growing concern for water conservation and safety maintenance of water distribution has led to the enforcement of the installation of smart water grid systems across the globe. As per Future Market Insights (FMI), the smart water grid sector accounted for around 22% to 25% of its global smart grid market in 2022.
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Smart City Projects in Emerging Economies
The growing trend of developing smart cities, especially across India and other developing countries is creating growth opportunities for the smart water grid business. About 200 smart city projects are ongoing across the world. Urban water infrastructure has been improved through the use of "smart water grids," which are networks of interconnected devices that gather and share data with other devices and data centers.
With the rising development of smart cities, IoT and information and communications technologies are being used to address the issues of urban living to enhance the quality of life through more effective use of scarce resources. In order to meet the rising water demand from developing smart cities and ensure secure access to clean water resources, a network of smart water grids is deployed along water distribution pipes.
Smart meters for readings of water consumption and automatic water grid monitoring for leak and contamination detection are being installed in water pipes to maximize water conservation and improve the efficiency of the water distribution system. In the case of managing water distribution, smart water grids also look into water reuse systems and pursue energy efficiency in addition to more important objectives like pressure, quality, and leakage control of the distribution system.
The smart water grid has a high amount of initial installation cost which hinder the market to grow, opines FMI. This technology leads to a large number of investments for the establishment of a smooth transmission network through sources and consumers.
Hence, the unavailability of this technology in several low and middle-income economies impedes the growth in the smart water grid sector over the upcoming decade. However, in some cases smart water grid network providers look for time-to-time maintenance for the system which has a high amount of operational maintenance cost, limiting the sales in the market.
Subsequently, the development of the smart water grid is based on the application of machine learning and artificial intelligence, smart networks, and IoT in the utility sector. This development has resulted in an urgent need to upskill all employees working in the water utility. However, the lack of availability of manpower and digitally skilled workforce in under-developed nations hamper the demand in the market.
| Attributes | Details |
|---|---|
| Smart Water Grid Market CAGR (2023 to 2033) | 6.5% |
| Smart Water Grid Market Size (2023) | USD 27,620.8 million |
| Smart Water Grid Market Size (2033) | USD 48,683.6 million |
Principal Consultant
| Attributes | Details |
|---|---|
| Market CAGR (2018 to 2022) | 5.7% |
| Market Size (2018) | USD 20,777.2 million |
| Market Size (2022) | USD 25,935 million |
| Market Growth Rate (between 2022 and 2023) | 1.06x |
From 2018 to 2022, the global smart water grid sector witnessed impressive growth at 5.7% CAGR and is expected to grow at 6.5% CAGR from 2023 to 2033. Growth in the market is underpinned by the rising focus of governments across the globe on the installation of smart water grid systems for water distribution purposes.
It is anticipated that the global smart water grid sector is likely to increase as a result of the need to manage the imbalance between supply and demand for water, water scarcity, and constant water quality monitoring.
Smart water grid is expected to be widely built across the globe for guaranteed smooth and regular water distribution and clean water supply. Users control the distribution of water by using this system. As the smart water grid system is associated with IoT (Internet of Things), therefore distribution management is easily managed, maintained, and monitored remotely at a steady pace.
Further, the surging need for sustainable management of urban water resources due to several external issues, such as the effects of climate change, droughts, etc. also boosts the market. Hence, the adoption of smart water grid systems improves at a robust pace for preventive maintenance in the water distribution pipeline.
As per the study, the United States held around 21.5% of the global market in 2022. Demand in the country is predicted to rise on the back of increased investments in infrastructure developments, residential and commercial sectors.
In 2021, the United States government announced the first-ever water shortage, due to the low level of water storage in The Lake Mead water reservoir located in the states of Nevada and Arizona. Hence, to improve water conservation and its resources the government deployed the installation of smart water grid units in residential and commercial sectors.
Moreover, the replacement of installed traditional water distribution systems by smart water grid is also propelling sales in the United States. Hence, the growing demand for clean and safe drinking water is expected to boost the growth in the United States market between 2023 and 2033.
China is expected to witness prolific growth at a CAGR of 5.5% between 2022 to 2032, as per the report. The burgeoning development of advanced technology to improve the quality of life and the expansion of the utility sector in China is the primary factor augmenting the demand.
Favorable government policies and regulations such as The Water Conservation Law drive the smart water grid sector. As China has a huge water distribution network, it is hard to find where it leaks. This is improving the need for smart water grid technology for better water management. This is anticipated to create lucrative growth prospects for the smart water grid market players in the coming decade.
Over the forecast period, the India smart water grid industry is projected to grow at a significant CAGR of 6.8% between 2023 and 2033. Due to the development of smart city projects and urbanization across the country, India is expected to be a hotspot for smart water grid system providers.
Further, the need for easy operation to provide better quality fresh water to localities, especially in rural areas creates a conducive environment for the key players in the market. On the back of these factors, the demand in the India smart water grid market is slated to increase at a staggering pace over the projection period.
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Smart Infrastructure to Hold Nearly 3/5th of Sales in the Market
The smart infrastructure technology in the smart water grid is projected to create an absolute incremental opportunity of more than USD 50,248.9 million between 2023 and 2033. Smart infrastructure segment accounted for over 57.5% of the demand share.
Development of smart infrastructure including the energy sector, public transport, and safety, especially in emerging economies is driving the growth in the market. Further, the growing focus on better water management services also boosts the adoption of smart water grid technology prominently.
Based on application type, commercial applications accounted for more than 35% of the market share in 2022. Rapid commercialization has resulted in rising demand for clean and safe water distribution, which is expected to propel the need for smart water management.
As per the study, China, Japan, and India are expected to provide lucrative growth opportunities owing to the increasing government initiatives and investments in the commercial sector for the installation of smart water grid systems for efficient and uninterrupted water supply.
Leading manufacturers in the global smart water grid market are focusing on innovations and advances to maintain a strong foothold in the industry. Some of the key companies are forming alliances with leading national logistics firms and governments to quickly deliver the products and ensure the quality, and durability of the product.
Meanwhile, with strategies including investments, partnerships, acquisitions, and mergers, key market players are attempting to increase their market share. They are also focusing on new strategies and technologies to improve the performance of the water grids as technology develops.
Automated meter reading (AMR), advanced metering infrastructure (AMI), and supervisory control and data acquisition (SCADA) are some of the current techniques for monitoring water infrastructure. Manufacturers are also focused on this existing technology for betterment to increase process outputs and relatively better and more efficient results of the distribution system.
Schneider, Toshiba, and Itron: Smart Water Grid Technology Leaders Collaborate with Governments to Improve Water Quality and Reduce Wastage
Smart water grids are gaining immense popularity across the world as governments focus on water conservation and improving the quality of water. To achieve this, governments across the globe are partnering with leading companies with technical know-how on installing and maintaining a smart water grid.
On their part, these companies are viewing smart water grids not only as a revenue generation aspect but also as a part of their corporate social responsibility (CSR). For instance, in order to support the numerous sustainable water management efforts of the Ministry of Jal Shakti in India, Schneider Electric provides its expertise and technology. The company is using IoT-enabled software, tools, technologies, and universal automation to help the Indian government.
Further, to boost its profile among end-users, the company is also participating in various conferences and competitions. For instance, the company won The 'Water Technology Company of the Year award at the Global Water Awards 2022. To maintain their position in this space, manufacturers launch innovative products on a regular basis.
For instance, Schneider Electric launched Version 21.2 of EcoStruxureTM Automation Expert, a software-centric universal automation system. The product is aimed at helping Schneider Electric consolidate its position in the digital transformation of energy management and automation.
In addition to Schneider, another leading player, Toshiba Corporation is also focusing on collaborating with governments, especially in developing countries. For instance, the company reached an agreement with Larsen & Toubro to manage ozone generators at the Chandrawal Water Treatment Plant in Delhi, India. This is one of India's most substantial ozonation systems for a water treatment facility.
Toshiba is also going big on AI technology to improve the effectiveness of its smart water grids. For instance, the company developed a new anomaly detection by using AI. This new anomaly detection monitors a number of sensors and devices automatically and on a real-time basis.
Itron, another leading player in this space, is also collaborating with governments to improve water quality and reduce water wastage. For instance, the company launched Temetra, a cloud-based mobile meter data collecting and administration system, with Energy Queensland. The Temetra solution from Itron offers a straightforward method for quickly gathering meter reads.
Key Players
The global market size to reach USD 48,683.6 million by 2033.
Wetsus, Siemens AG and ABB Group are the top key players.
The growth potential of the global market is 6.5% through 2033
The lack of skilled labor and installation costs are likely to limit market growth.
The commercial segment is highly preferred in the global market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology 5.1. Smart Infrastructure 5.2. Control & Automation 5.3. ICT & Analytical Software 5.4. Design & Engineering 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Residential 6.2. Commercial 6.3. Utility 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Xinapse Systems Ltd, Prezi Inc. 17.2. ICT, Co., Ltd. 17.3. Wetsus 17.4. The Whitmore Group 17.5. ABB Group 17.6. Arqiva 17.7. Toshiba Corporation 17.8. Neptune Technology Group Inc. 17.9. Schneider Electric 17.10. Badger Meter, Inc. 17.11. Itron Inc. 17.12. Sensus Worldwide Holdings Ltd. 17.13. Siemens AG 18. Assumptions & Acronyms Used 19. Research Methodology
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Smart Water Grid Market
