Digital Water Market Size, Share, By Solution Type (Hardware, Software, and Services), Technology (Smart Water Meters, Internet of Things, Artificial Intelligence & Machine Learning, Digital Twin, Geographic Information Systems, and Others), End-User (Municipal Water Industries, Industrial, and Others), and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the digital water market size to reach USD 23.0 Billion.
• In 2024, the market was worth USD 7.0 Billion.
• Target market is expected to grow at a CAGR of 12.1%.

Digital water, refers to the uptake of datafied smart technologies within traditional water supply systems, is imagined by its leading advocates to optimize the economy and sustainability of the water utilities of the future. The demand for quality water, government support, technological advancements, need to replace aging water infrastructure, digitization of the utility sector, competition from innovative start-ups, and collaboration between well-renowned companies is boosting the digital water market growth. In addition to this, digital water improves water efficiency, reduces waste, provides real-time quality tracking, detects leaks, and predicts maintenance, thus, further contributing in the market augmentation.

Footprint of AI on Digital Water Market:

Digital water describes the idea of using digital technologies, such as sensors, data analytics, and artificial intelligence (AI), to manage and monitor water systems. This approach allows for better efficiency and optimized water usage, but it also draws attention to the substantial amount of water needed to power the AI systems, which raises questions about the environmental impact of AI, particularly in areas with water scarcity.

Key Drivers of Target Market:

Rising Demand for High-Quality Water is Skyrocketing the Market Growth

Digital water, which is defined as the use of technology and data analytics to monitor, manage, and optimize water usage and quality, is becoming more and more important as the demand for high-quality water increases as a result of environmental concerns, climate change, and population growth. In essence, it enables real-time water quality monitoring, leak detection, and predictive modeling to guarantee effective and sustainable water distribution.

• For instance, in August 2024, Siemens had introduced an innovative service that provided U.K. water utilities with the real-time digital water quality data and insights it needs to get ahead of the issues in drinking water networks and improve maintenance regimes. The new Water Quality Analytics as a Service (WQAaaS) simplified and derisked the process of bringing insight directly into water company operations, accelerating the pace of digital transformation and empowering companies to push the standard against the demanding performance commitments.

Restraints:

Digital Water is Vulnerable to Cyber-Attacks thereby Obstructing the Market Growth

The digital water market is highly dependent on technology, which makes it susceptible to cyber-attacks, data breaches, and system malfunctions. Moreover, rural regions with inadequate digital infrastructure that might encounter difficulties in accessing these services, resulting in digital disparity. Significant implementation expenses can also pose a challenge for small water utilities.

• Counterbalance Statements: Establishing strong cyber security protocols and securing data encryption to safeguard digital systems. Moreover, advocating for digital inclusion initiatives and providing financial assistance to smaller utilities to close the digital gap are possible solutions to stop cyber-attacks.

Opportunities:

Growing Use of Smart Sensors can Fuel the Market Expansion

The adoption of digital water solutions across a range of sectors, including utilities, industries, and even individual households, can be greatly accelerated by smart sensors, which enable real-time monitoring of water quality, flow rates, pressure, and leak detection. These sensors also provide valuable data for optimizing water management systems, reducing waste, and making data-driven decisions to improve operational efficiency, particularly in areas such as leak detection, resource allocation, and predictive maintenance.

• For instance, in January 2024, Sensata Technologies, announced the launch of the 129CP Series digital water pressure sensor, a smart sensor, which would help deliver enhanced smart pressure monitoring capabilities to water utilities and drive waste reduction. Sensata’s new sensor design would improve efficiency and reliability in water metering; combining precision pressure monitoring with digital communication to enable water meters to deliver granular insights in water usage.

Solution type, technology, end-user, and region are the segmentations of the digital water market.

Solution Type

Based on solution type, the market is trifurcated into hardware, software, and services. The software segment is attributed to lead the market as it is responsible for managing and analyzing the vast amount of data collected by hardware, such as smart meters, allowing for efficient operations, leak detection, and optimized distribution through data-driven insights.

Technology

Under technology, the market is divided into smart water meters, Internet of Things, artificial intelligence & machine learning, digital twin, geographic information systems, and others. The Internet of Things (IoT) is projected to hold the largest digital water market share due to its ability to provide real-time data collection through smart sensors and meters, enabling efficient monitoring and management of water systems across the entire network.

• For instance, in April 2022, Coimbatore City Municipal Corporation (CCMC), launched a smart 24x7 water supply project in India. According to CCMC sources, this is the first-of-its-kind IoT (Internet of Things) based digital water supply project and was funded by Government of India’s Department of Science & Technology - Water Technology Initiative (DST-WTI).

End-User

The market is pigeonholed into municipal water industries, industrial, and others, on the basis of end-user. The industrial sector is expected to dominate the market, as industries face financial risks from excessive water use, such as penalties for waste, contamination or unexpected shutdown, further expanding the segment’s growth. Additionally, industries are increasingly turning into smart technologies to optimize its water usage.

• For instance, in February 2022, ABB launched ABB Ability Smart Solution for Wastewater, a digital water solution which addressed the un-precedented challenge faced by wastewater treatment plant operators to achieve both the lowest energy use, and the highest operational standards. This new product leveraged the company’s long-standing expertise in advanced process control.

Region

Geographically, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: North America holds the largest digital water market share of 37.8%. This is due to the region’s advanced infrastructure, government initiatives promoting sustainable water management, high technology adoption, and a significant presence of global players in this region, thereby promoting the market growth.

• For instance, in October 2024, Veolia North America, the leading provider of environmental solutions in the U.S. and Canada, joined new Orleans mayor and water board of new Orleans executive director at the city’s East Bank wastewater treatment plant to open a new digital water control center that would for the first time use advanced data collection and analysis to improve how New Orleans treats its wastewater, protects public health, improves environmental quality and advances its smart city goals.

Europe: This region is estimated to have the fastest growing market during the forecast period. The growth is attributed to region’s strong emphasis on sustainable water practices, advanced digital infrastructure, focus on environmentally friendly water management practices, and a focus on effective resource management.

• For instance, in November 2024, Water Europe announced the launch of its new Collaboration Matrix, an innovative framework designed to advance the WE Vision for a Water-Smart Society. This was a digital water system which was built on the success of the previous six-year collaboration matrix comprising Working Groups (WGs) and Vision Leadership Teams (VLTs), the new structure introduced 15 exclusive Expert Groups (EGs) and three Communities of Practice (CoPs).

Digital Water Market Report Scope:

Segmentation:

By Solution Type:

• Hardware
  • Sensors
  • Sub-meters
  • Gateways
  • Others
• Software
  • Civil 3D
  • AEC Collection
  • Revit
  • InfoWorks WSPro
  • Others
• Services
  • Sensoring
  • Modelling and Data Analysis
  • Dashboard and Digital Twins
  • Others

By Technology:

• Smart Water Meters
• Internet of Things
• Artificial Intelligence & Machine Learning
• Digital Twin
• Geographic Information Systems
• Others

By End User:

• Municipal Water Industries
• Industrial
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of the Middle East & Africa

The prominent players are adopting strategies such as focusing on data-driven insights, developing user-friendly platforms, targeting specific customer segments including large water utilities, and building strong partnerships with technology providers. The companies operating in the digital water market are Schneider Electric, Xylem, ABB, Bentley Systems, Incorporated, Veolia Water Technologies, and others.

List of Key Players in the Market:

• Schneider Electric
• Xylem
• ABB
• Bentley systems, Incorporated
• Veolia Water Technologies
• Siemens
• Indra
• Plutoshift AI
• Copperleaf Technologies Inc.
• TakaDu
• General Electric Company
• Autodesk Inc.
• Radius Synergies International Pvt Ltd
• Bluefield Research

• In March 2022, The Minister for IT-BT, India, launched India’s first digital water bank ‘AQVERIUM’ formed by AquaKraft Group Ventures. Launching the digital startup of the company the minister said that this was a unique innovation combining sustainable and green technologies along with information technology, skill development and entrepreneurship.
• In March 2020, The AVK Group commenced under the name AVK Smart Water, making sure the apex of digital water is maintained. By inflicting intelligent solutions in core products, the new group company aimed for a smart, data-driven future for the water industry. The company monitored the whole distribution network by developing new digital and intelligent solutions.

Analyst View:

The digital water market is seeing expansion due to reasons such as need for quality water, government backing, technical improvements, replacing outdated infrastructure, digitalization, competition from start-ups, and collaboration between firms. Digital water enhances efficiency, lowers waste, provides real-time tracking, detects leaks, and forecasts repairs.

More Related Reports

Digital Health Market
Digital Fluoroscopy System Market
Digital Pathology Market
Smart Water Bottle Market
Bottled Water Market