The smart water management market is expected to grow by an annual rate of 17.7 percent until 2019, according a report published by research company Transparency Market Research.
The report, entitled “Smart Water Management Market Global Industry Analysis,” said that the market is expected to reach $15.23 billion by 2019, compared to $4.81 billion in 2012.
The authors noted that the smart water management market is driven by aging water infrastructure, lack of water management in urban areas and the need to reduce non-revenue water. This is augmented by the strict environmental standards mandated by water regulatory bodies and growing enforcement of government regulations for the deployment of smart water technologies.
At the same time, however, the hesitance of water utilities to adopt cloud technology and the high cost of advanced metering infrastructure (AMI) inhibits the growth of this market.
The research company indicated that the three main component segments in the SWM market are hardware, solutions, and services. The hardware segment, which accounted for 40.1% of the revenue in 2012, is also expected to dominate in the coming years, while the solutions segment is expected to grow at a faster rate due to the growing demand for advanced software.
According to the report, North America was the largest market for smart water management in 2012, accounting for 47.5% of the revenue. Future growth in this region is expected to be driven by increasing investment by water utilities in smart water technologies and growing focus on smart irrigation and minimizing non-revenue water.
Asia-Pacific is expected to show the fastest growth, with a compound annual growth rate of 23.7% until 2019. This growth is derived from greater rainfall variability and climate change, aging facilities, and the growing need for safe, potable water in countries such as Japan, China, and India.