The pace of digital transformation by US water utilities has significantly increased in the last 5 years in response to water stress caused by unprecedented droughts and heat waves across the country. Water utilities of all sizes are responding to state-level regulations and policies to improve water conservation and reduce water loss as the urbanization trend has led to an increase in water demand and water availability has become a cause for concern. Public utilities also face aging infrastructure and an aging workforce, both of which have strained resources and forced the need to improve their economic and environmental sustainability. As such, utilities are adopting smart water metering solutions as a frontline tool to improve economic and environmental sustainability. Automated metering infrastructure (AMI)-based smart water metering solutions are witnessing strong adoption as the cost of low-power wide area network (LPWAN) connectivity has decreased in the last 5 years and is likely to drop further as many more IoT devices transmit data via LPWAN connectivity solutions.
Innovative business models, such as Network as a Service (NaaS) and Software as a Service (SaaS) approaches, are gaining acceptance as they significantly reduce water utilities’ smart metering CAPEX. The key market segments presented in this report include smart water meters; network solutions; meter data management (MDM) and customer information system (CIS) billing; customer engagement portal (CEP) and data analytics; and project management. The study period is 2022 to 2030 using a base year of 2023.
Author: Paul Hudson
Revenue forecast
The revenue estimate for the base year 2023 is $1,494.4 million, with a CAGR of 7.9% for the study period 2022–2030
The Impact of the Top 3 Strategic Imperatives on the United States US Smart Water Metering Industry
Transformative Megatrends
Why
- The US water utilities are challenged by climate change and drought, which has led to water stress and inadequate water availability.
- Utilities are embracing digital transformation to improve their resilience against these challenges and ensure long-term sustainability.
- Smart water metering has become a key priority as it helps reduce water loss and improve sustainability efforts.
Frost Perspective
- Water stress has led many states and utilities to develop policies and regulations aimed at improving water conservation and ensuring equitable supply. These efforts directly flavor the implementation of smart water metering projects.
- Smart water meters are now viewed as a critical tool that assists by reducing revenue generation, due to their focus on holistic network-level optimization and reduction of non-revenue water (NRW) loss.
Disruptive Technologies
Why
- Kamstrup offers smart water meters embedded with acoustic sensors. These tools are highly disruptive in detecting leaks on both the customer side and the service network side.
- Subeca is offering automated metering infrastructure (AMI) connectivity through Amazon Sidewalk network that is free of charge. Subeca made its communication module plug-and-play to allow for fast-paced deployment.
Frost Perspective
- Integration of acoustic sensors and pressure sensor data could significantly improve asset visibility, provide robust and reliable leak detection, and help in work order prioritization.
- AMI connectivity is a major cost center in the operational expenditure (OPEX) of smart metering systems. Reduction or removal of these costs provides a pathway for the digital transformation journey and thereby enables the digital frictionless water streams based.
Innovative Business Models
Why
- LPWAN solution providers play a vital role in AMI-based smart water metering by enabling wireless connectivity that also supports long battery life. LPWAN solution providers are investing in improving nationwide coverage.
- Metering solution providers are leveraging this coverage to offer network as a service (NaaS) and metering as a service (MaaS) business models that are cost-effective for utilities, especially those that serve fewer than 100,000 connections.
Frost Perspective
- NaaS business models offered through a partnership with LoRaWAN or telecom companies that deliver LTE-M provide high customer value, due to the cost effectiveness and relatively low investment in AMI network infrastructure.
- Through the MaaS model, solution providers can focus on delivering value addition through meter data management and analytics, which is also packaged as a component of NaaS.
Scope of Analysis
- The US smart water metering solutions industry is growing, driven by favorable policies meant to reduce water loss, improve water utilities' financial sustainability, tackle labor shortages, and ensure resilience through water conservation.
- In this analysis, one unit (unit shipment) represents a water meter fitted with a smart communication module. Total revenue calculations consider both the capital expenditure (CAPEX) and OPEX involved in a smart water metering value chain.
- This analysis focuses only on the forecast for unit shipments of smart water meters and the revenue associated with smart water metering solutions in the United States.
- Total revenue is derived by considering the unit price (typically offered to a utility by the solution provider) of hardware and software solutions that are involved in the smart water metering value chain.
- The report only covers residential smart water meters used by water utilities; it does not cover commercial or industrial smart water meters.
Segmentation
Smart Water Metering
Smart Water Meters
A smart water meter can be either mechanical or static (ultrasonic or electromagnetic) and is fitted with a communication module that transmits data via LPWAN. It could be one-way communication, such as automated meter reading (AMR), or bidirectional communication, such as automated metering infrastructure (AMI).
Network Solutions
Network solutions include the provision of hardware such as collectors, gateways, and base stations (in case of private network) that enable data transmission from the meter to a head-end system (HES), network connectivity solutions, and services associated with the operation and maintenance of network connectivity (typically an LPWAN or radio frequency [RF] mesh).
MDM & CIS Billing
MDM
MDM is a software solution that helps utilities manage and sort data collected from the HES that is further used for activities such as billing (meter to cash), meter and network asset management, and alert and alarm management. It also consists of an API for the seamless transmission of meter data for any third-party applications.
CIS Billing
CIS billing software enables utilities to generate accurate bills and organize customer data for efficient customer service.
CEP & Data Analytics
CEP platforms and solutions enable utilities to help their customers visualize near real-time consumption data, track and analyze consumption patterns, and engage in campaigns that can help execute key messages, such as water conservation and other important alerts. The meter data analytics enables utilities to monitor and detect leaks, assist in asset management, and improve operational efficiency.
Design & Engineering and Project Management
Consultants or system integrators offer smart water metering project management solutions that typically involve assisting water utility customers in the design, implementation, and execution of a smart water metering project. Project Management could also include advisory services to assist utilities in procuring smart water metering solutions. In some cases, this could be only end-to-end implementation and management of smart water metering projects. Smart water metering providers may also double up as system integrators and bid for projects.
Competitive Environment
| Aspect | Details |
|---|---|
| Number of Competitors | Approximately 100 players; about 40 of them with revenue greater than 10 million |
| Competitive Factors | Total cost of ownership, quality of smart water meters, reliability, value-added solutions, end-to-end provision capability, and long-term customer relationships |
| Key End-user Industry Verticals | Private and public water utilities |
| Leading Competitors | Xylem-Sensus, Badger Meter, Itron, and Kamstrup |
| Revenue Share of Top 8 Competitors (2023) | 74% |
| Other Notable Competitors | Mueller Water Product (MWP), Neptune, Aclara, Diehl, and Master Meter |
| Distribution Structure | Direct (by water meter OEMs), system integrators, and distributors |
| Notable Acquisitions and Mergers | In January 2024, Badger Meter acquired remote monitoring solutions from Trimble, including the Telog brand of a remote telemetry unit (RTU) and the Trimble Unity remote monitoring software. |
Key Competitors in the Smart Metering Value Chain
- Neptune
- Mueller
- Badger Meter
- Diehl
- Itron
- Kamstrup
- Master Meter
- Xylem - Sensus
- Landis + Gyr
- Aclara
- Eaton
- Senet (LoRa)
- AT&T
- Verizon
- Everynet (LoRa)
- TMG
- Black & Veatch
- Jacobs
- Capgemini
- Siemens
- Aqua Metric
- Utility Metering Solutions (UMS)
- Saks Metering
- Ferguson
- Core & Main
- Secure Vision America
- Performance Services
- VertexOne
- Dropcount (a Kubra Company)
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the United States (US) Smart Water Metering Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Scope of Analysis
Segmentation
Competitive Environment
Key Competitors in the Smart Metering Value Chain
Key Competitors in the Smart Metering Value Chain (continued)
Key Competitors in the Smart Metering Value Chain (continued)
Growth Opportunities in the US Smart Water Metering Solutions Sector Being Shaped by the 6Ps
Water Utilities Landscape
Water Infrastructure Spending Projections
Key Sources of Funding for Smart Water Metering Projects
Key Sources of Funding for Smart Water Metering Projects (continued)
Key Open/Public LPWAN Solution Providers and Coverage in the US
Distribution Channels
Growth Metrics
Growth Drivers
Growth Restraints
Forecast Considerations
Revenue and Unit Shipment Forecast
Unit Shipment Forecast Discussion
Revenue Forecast by Product Segment
Revenue Forecast Discussion
Companies to Action (C2A)
C2A (continued)
C2A (continued)
C2A (continued)
C2A (continued)
Growth Opportunity 1—Platforms and Software for Performance-oriented Outcomes
Growth Opportunity 1—Platforms and Software for Performance-oriented Outcomes (continued)
Growth Opportunity 2—Network as a Service (NaaS)
Growth Opportunity 2—Network as a Service (NaaS) (continued)
Growth Opportunity 3—Smart Water Metering-Lite Solutions for Small and Medium-sized Water Utilities
Growth Opportunity 3—Smart Water Metering-Lite Solutions for Small and Medium-sized Water Utilities (continued)
Growth Opportunity 4—Universal Head End System (HES) and Meter Vendor or Data Source-agnostic Meter Data Management (MDM)
Growth Opportunity 4—Universal Head End System (HES) and Meter Vendor or Data Source-agnostic Meter Data Management (MDM) (continued)
List of Exhibits
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| Deliverable Type | Market Research |
|---|---|
| Author | Paul Hudson |
| Industries | Environment |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Smart Water Metering |
| Keyword 2 | Water management solutions |
| Keyword 3 | US Water Meter Market |
| Podcast | No |
| WIP Number | PFK4-01-00-00-00 |
Growth Opportunities in Smart Water Metering Solutions in the United States, Forecast to 2030
Water Conservation Policies and Utilities Need for Improved Revenue Collection Efficiencies Drive Growth
11-Jul-2024
Global
Market Research