The global smart water meters market is expected to record significant growth of 7.7% between 2020 and 2026 owing to massive investments in digitalisation by stakeholders in the water sector as economies recover from the pandemic.
A new report released by Global Industry Analysts forecasts investments in smart water metering to jump from $2.9 billion in 2020 to $4.6 billion by 2026 with the US, China, Canada, Japan, and Germany leading the market.
With two-way communication-based system operations taking over, the advanced metering infrastructure (AMI) segment is expected to witness more investments than the automated meter reading (AMR) sector.
The AMI segment which enables utilities to access consumer water usage data in real-time by allowing smart meters to communicate directly with the utility on their own is expected to record a 10.6% growth. Benefits associated with AMI including fault or leakage identification, service connection/disconnection, and theft or tamper detection, are expected to drive increased utility investments, states the “Smart Water Meters – Global Market Trajectory & Analytics” report. The AMR sector is projected to record a 4.9% expansion.
Overall, the primary drivers of utility investment in smart meters include the need to address water scarcity, leakages, non-revenue water, aging infrastructure, rapid urbanisation, an increase in the enactment of supporting legislation, water conservation, and measures to improve operational savings.
Other factors driving the growth of the market include the need to ensure efficient water leakage and pressure management, reliable network operations and management, strategic channelization of capital expenditures, and better water quality monitoring.
The US, in 2021 alone, is expected to generate $467.8 million in revenue. North America is expected to remain a strong market for smart water meters owing to rapid industrialisation and urbanisation. Efforts by North American governments to reduce non-revenue water, ensure accurate water bills, and develop smart cities will drive the market. Moreover, the increasing amount of technology companies offering smart metering solutions in North America presents growth opportunities for the market.
The Chinese market, owing to the country’s high population, IoT rollouts, and rapid digitalisation, is expected to reach $1.8 billion in revenue by 2026.
Japan and Canada are projected to record a 4.8% and 6.2% growth, respectively, whilst Germany is forecast to grow at approximately 6.2% CAGR. In Germany and its other European counterparts, increasing awareness of the benefits of smart meters on consumer water usage and government efforts to enhance water conservation will be the main drivers.
Find out more about the report.