Digital Water Market Size, Share, and Industry Analysis by Technology (Metering & Customer Management, Network Management, Work & Asset Management, Plant Management, and Information Management), and Regional Forecast 2025-2032

The global digital water market is anticipated to grow owing to the soaring need for better water management and distribution and the rising adoption of smart technologies to enhance water supply service. The main factors driving market growth include managing limited water resources, aging water infrastructure, reducing expenses, and increasing efficiency in operations.

• In December 2024, the U.S. Department of Interior announced funding of USD 849 million to enhance water delivery systems across the country. The funding supports 77 projects across the U.S. to improve water conveyance and enhance hydropower generation. Such government investments are expected to propel market growth in the near future.

Digital Water Market Driver

Market Growth to be Propelled by Resource Management and Water Scarcity

The need for effective resource management primarily drives the market for digital water solutions in response to water scarcity. Urbanization and the increasing population are putting significant pressure on water resources. Therefore, there is an increased awareness of the importance of efficient water management and the urgent necessity to address water scarcity.

• In September 2024, DuPont launched the water solutions sustainability navigator, which emerged as the first digital tool designed to assist users in estimating key sustainability indicators by utilizing various water treatment technologies.

Digital water solutions provide advanced tools and technology to enhance water resource management, assessment, and utilization. These technologies help water utilities and authorities quickly understand water supply, usage trends, and changes in demand. IoT devices, sensors, and data analytics can track water usage, detect leaks, and identify areas with high usage or wastage.

Digital Water Market Restraint

High Initial Investment Costs May Limit Market Growth

The implementation of technologies and solutions requires significant upfront requirements. Utilities and industries often operate at a set budget, and allocating funds for modernization can be challenging. It is further challenging in small economies as financial resources are scarce, and governments could focus on basic infrastructural development rather than digital transformation. The return on investment in digital technologies can take more time to materialize. Further, the cost of a skilled workforce and maintenance of digital systems may add extra pressure on financial capabilities.

Digital Water Market Opportunity

Soaring Development of Smart Cities to Create New Opportunities for Growth

Growing urbanization and the development of smart cities are anticipated to fuel the growth of the global market. As urbanization increases, the need for smart water infrastructure grows. Digital water solutions, such as smart meters and predictive maintenance tools, can enhance water distribution efficiency, reduce losses, and support the sustainability goals of smart cities. Strict water conservation policies and funding initiatives also support the adoption of digital market technologies.

• In August 2024, India's Cabinet Committee on Economic Affairs announced a funding of USD 3.41 billion to develop 12 new smart city projects under the National Industrial Corridor Development Programme (NICDP).

Hence, such developments in the key countries are expected to foster market growth in the coming years.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in Digital Water
• Key Industry Trends
• Regulatory Landscape for Digital Water
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis By Technology

Based on technology, the market is segregated into metering & customer management, network management, work & asset management, plant management, and information management.

Utilizing digital water meters and customer management can assist utilities and customers in enhancing water management and conservation. Digital water meters can gather and send water consumption information to water companies, enabling them to track usage and charge customers. This information can also assist utilities in recognizing abnormal patterns, such as leaks, and reacting promptly. Utility companies can enhance customer interaction by offering clients access to their water usage data through digital water meters.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The North America market is expected to grow owing to the high demand for advanced metering infrastructure (AMI), leak detection, data analytics, and customer engagement. The increasing need to optimize water usage and enhance customer service is anticipated to drive market growth in North America.

The region's aging water infrastructure drives the market in Europe. Countries in Europe highly emphasize the conservation and preservation of water resources. Digital water technologies effectively help to enhance operations and maintenance of water resources, thereby helping expand the digital water market.

Asia Pacific is anticipated to experience growth owing to rapid urbanization, soaring need for clean water, rising employment of the Internet of Things (IoT), and others. Asia Pacific has some of the most populous countries in the world. Thus, reliable water services are of utmost importance, which is further anticipated to propel digital water market growth.

In Latin America and the Middle East & Africa, the market is anticipated to grow gradually due to economies such as Brazil, Mexico, and others. Due to scarcity and limited water resources, the Middle East region is highly focused on implementing new technologies. Given the financial capability of countries such as Saudi Arabia, UAE, and others, they are likely to adopt digital water technology more prominently than African countries.

Key Players Covered

The global digital water market is fragmented in terms of the number of providers. Various market initiatives, R&D activities, and others, are anticipated to drive market growth. For instance, in August 2024, ABB acquired Canada-based Real Tech, an advanced optical sensor technology provider for real-time water monitoring and testing. Real Tech's patented solutions span the complete digital water value chain for monitoring water quality, prioritizing data creation, and analytics.

The report includes the profiles of the following key players:

• WSP (Canada)
• Hatch Ltd. (Canada)
• SUEZ (France)
• Bentley Systems (U.S.)
• Tetra Tech, Inc. (U.S.)
• Schneider Electric (France)
• Jacobs (U.S.)
• Veolia (France)
• Sweco AB (U.K.)
• Eviden (France)

Key Industry Developments

• In March 2024, Saudi Arabia’s Ministry of Environment, Water, and Agriculture signed a contract to establish a geographical information system (GIS) for water planning. This project aims to establish a digital platform for water management in line with global standards for the water industry in the country.
• In July 2023, SUEZ and Schneider Electric collaborated to speed up the implementation of digital solutions for energy efficiency, resource preservation, and monitoring the carbon footprint of water cycle management systems. SUEZ's digital AQUADVANCED® products will be incorporated into Schneider Electric's EcostruxureTM Water Advisor for water cycle management.