The smart water metering market is expected to reach a size of USD 5.51 billion by 2021, at a CAGR of 7.23% from 2016 to 2021.
Factors such as increasing focus towards reducing non-revenue water, retrofitting of aging water infrastructure, and the need for accurate billing are driving the market globally. Water utilities that cover residential, commercial, and agricultural applications are the largest end-users of smart water metering, followed by industries. The meters & accessories segment is the largest market for smart water metering, on the basis of component, followed by IT solution and communication.
The AMR segment is estimated to be the largest market for smart water metering in 2016. Popular in North America and Europe, this metering infrastructure is increasingly being implemented in other regions to reduce non-revenue water; it was developed initially and is less expensive than AMI, and hence, has the largest market size. However, the AMI market is projected to grow at the highest rate because of its advanced technology. Moreover, AMI reduces labor cost, and several utilities worldwide are replacing AMR with AMI infrastructure, further creating growth opportunities for the AMI market.
North America is currently the largest market for smart water metering, followed by Europe and Asia-Pacific. In North America, the growth of the market can be attributed to focus on water monitoring & prevention of water leakage and the repair & upgrade of aging water infrastructure. The U.S. accounted for the majority share in North America in 2015, and is projected to grow at the highest CAGR from 2016 to 2021.