Smart Water Metering Market Expected to Expand
Increasing popularity of data analytics strengthens case for global smart water metering
The market for smart water metering is expected to witness solid expansion due to development in North American and European markets—both regions where water utilities are increasingly aligned with the potential uses of data and analytics. This forecast, however, should not be read as an endorsement of even market growth, as regional patterns must be explored to gain insightful analysis of the market’s direction and frame a successful growth strategy.
New analysis from Frost & Sullivan, Analysis of the Global Smart Water Metering Market, finds that the market earned revenues of $3.48 billion in 2013 and estimates this to reach $5.18 billion in 2017. The study covers smart water meters, installation services and meter data management services.
“Smart water metering is a global trend driven by key factors: reducing non-revenue water, increasing sustainable and reliable billing, improving water service reliability, and the need for higher optimization and control,” said Frost & Sullivan Energy and Environment Industry Analyst Seth Cutler. “The understanding that data is the lynchpin spurring these agendas forward will fuel investments in the market over the forecast period.”
Since smart water metering is a fundamentally different way of managing municipal water supply, the current state of product knowledge is still expanding and not authoritative enough to quell utility skepticism on its benefits. Hence, the lack of in-depth knowledge on technology and vendor choices, project implementation best practice, and business case development is slowing down adoption.
Without strong government mandates, end users in this traditionally conservative industry require time to reduce risks and gain confidence in decision-making. Moreover, the levels of market awareness vary by region and country and participants need to factor this into their regional marketing and business development strategies. Many assumptions and best practice scenarios fail to gain traction in different regions.
“Each region is likely to follow a traditional technology advancement trajectory in smart water metering,” observed Cutler. “A ‘leap-frog’ effect of late adopters jumping ahead in advanced technology adoption is not expected to materialize in this dynamic landscape. This reinforces the importance of tailored and targeted market approaches.”