Smart Water Management Market Experiencing Significant Growth

The smart water management market is set for growth at a CAGR of 12.5% over the next decade, according to a new report from Market.us.

The market analysis report finds that the global smart water management market is expected to be worth around $61.7 billion by 2034, up from $19 billion in 2024, as utilities and industries worldwide adopt advanced technologies to optimise water usage, reduce waste and ensure sustainable management of this resource.

The report points out that the increasing global population and rapid urbanisation have escalated the demand for efficient water management solutions.

Digital tools such as sensors, data analytics and IoT devices are able to provide real-time monitoring and control over the networks, leading to enhanced efficiency and conservation efforts.

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“The demand for smart water management solutions is rising due to the need to address water scarcity and ageing infrastructure,” writes the Market.us analyst.

“Many regions face significant water losses through leaks and inefficient systems, underscoring the necessity for smart technologies that can monitor usage, detect anomalies and facilitate timely maintenance. This proactive approach conserves water and reduces operational costs for utilities and consumers alike.”

In 2024, North America held a dominant market position, capturing over a one-third share equating to $6.65 billion in revenue.

With a market value of $6.23 billion, it holds a strong position with a CAGR of 10.4%, driven by advanced infrastructure, smart city initiatives and increasing government investments.

Europe follows, slightly behind North America in terms of overall market share and revenue generation.

However, the region is seeing steady growth, primarily driven by stringent water management regulations and an increasing focus on sustainability, making it a key market to watch in the coming years.

The Asia-Pacific region, on the other hand, is expected to witness the highest growth rate due to rapid urbanisation, population growth and the increasing need for efficient water management solutions.

In Latin America, the market is gradually gaining momentum, particularly in Brazil and Mexico, and the Middle East and Africa are also becoming increasingly important in the global smart water management market, the report adds.

The report finds that solutions lead the market, accounting for 45% of the market share by offering and indicating the high adoption of software and hardware solutions for smart water management.

These include solutions such as enterprise asset management, leak detection, smart irrigation management and analytics and data management.

By technology, IoT technology held a dominant position in 2024 with a 30% smart water management market share, highlighting the growing role of connected devices and real-time monitoring.

By end user the residential segment was dominant, with a more than 40% market share and smart water meters accounting for a majority of this market and driving growing awareness of the need for water conservation and efficiency.

The report notes however, that as the adoption of smart water management systems increases, so too are concerns regarding data privacy and security.

Navigating the complex landscape of data protection regulations adds another layer of complexity for utilities implementing smart water solutions.

Addressing these concerns necessitates a comprehensive approach that includes implementing robust cybersecurity protocols, ensuring data anonymisation and encryption, and fostering transparency with consumers regarding data usage practices, the report concludes.

By proactively managing data privacy and security, stakeholders can build trust and facilitate the broader adoption of smart water management technologies.