| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 7.9 Billion |
| 2025 Market Size | USD 8.6 Billion |
| 2032 Forecast | USD 16.2 Billion |
| Growth Rate(CAGR) | 9.6% |
| Largest Region | North America |
| Fastest Growing Region | APAC |
| Nature of the Market | Fragmented |
| Largest Application Category | Residential |
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The global smart water meter market size stood at USD 7.9 billion in 2024, which is expected to reach USD 16.2 billion by 2032, advancing at a CAGR of 9.6% during 2025–2032. This is primarily because utility companies are focusing on the reduction of non-revenue water (NRW), along with the surging consumption of water due to the growing population, and the aging infrastructure leading to its losses.
The major advantage of this digital equipment is that it reduces reading errors. This leads to greater accuracy, as compared to conventional basic meters, thus generating high demand in various industries. These devices perform various tasks, such as controlling the consumption of water within a customer’s premises, messaging its abnormal usage, and remote reading on a scheduled and on-demand basis. Moreover, the factors such as the high requirement for advanced equipment for the reduction of leakages and the rising focus on system digitalization are expected to offer lucrative opportunities to key players in the upcoming period.
In addition, due to the negligible maintenance required for many years and precise billing abilities, these systems are seen as a one-time investment, thereby attracting more consumers to use them. Due to the aforementioned factors, the adoption of these systems is burgeoning in industries such as textiles and food and beverage.
Furthermore, the adoption of technologies like AI and IoT is supporting the development of numerous advanced meters. IoT-based systems provide various features such as high-end telematics abilities that lead to accurate detection of distribution network differences and visualization of consumption patterns, thereby boosting the market growth all over the world.
The advanced meter infrastructure (AMI) category accounted for a larger revenue share in 2024, of 65%, and it is expected to witness the faster growth in the forecast period. This is because of the higher adoption of AMI in the utility sector. In addition, the high convenience offered by AMI technology in monitoring water consumption, due to its two-way communication between the user and meter, leads to the high growth of the market in this category, globally.
Moreover, due to the easy detection of leakage, the use of this technology is predominating its applications in the residential, commercial, and industrial sectors. The other factors that are propelling the demand for AMI systems include increasing focus on the conservation of water, improvement in asset management, and better customer experience.
These technologies are covered in the report:
The residential category accounted for the largest market share in 2024. This is impelled by spurring customers in the sector, the surging population as well as rapid urbanization, and the incorporation of municipal water. Moreover, the prompting investments for the development of advanced infrastructure accompanied by a high focus on the smart city objective will positively influence the market outlook.
Furthermore, the industrial application accounted for the second-largest market share in 2024. This is because water is an essential raw material and coolant across various industries like pharmaceutical, automobile, and food and beverage. Moreover, the rising consumer awareness coupled with the surge in the need for efficient resource management is further intensifying market growth in this category. Also, the continued use of intelligent communication modules, united with the extensive availability of these units in various sizes, and their low-power consumption mode and long-range coverage will boost the prospects for smart water meters for industrial applications.
The commercial application is expected have the highest CAGR, of 10%. This can be fueled by technological adoption, leading to remote monitoring and robust integration of cybersecurity mechanisms to provide secure and reliable end-user data consumption in the commercial sector. Also, the undergoing reconstruction of distribution infrastructure will positively impact the market in this category.
We studied the below-mentioned applications:
The meters & Accessories category dominates the market, with 55% share, as they are the quintessential component of a smart water meter system. The dominance of the category is attributed to consumers’ increasing concerns over the rising water bills and utilities’ increasing efforts to reduce potable water loss. For instance, in July 2024, Dubai Electricity and Water Authority (DEWA) announced that it has installed over one million smart water meters in Dubai, achieving a 100% installation rate.
The IT solutions category will be the fastest growing because advanced software is required to enable the operations of such systems. Moreover, cloud integration and the usage of data analytics tools enables the meters to enhance their own efficiency and allow utilities to make better decisions about water supply.
Here are the components covered in the report:
The mechanical category dominates the market because they are the most-primitive of the smart water meters in operation. They have been around the longest, and people also know how to use them the best. Another factor that makes mechanical meters popular is their cost-effectiveness over other types.
The ultrasonic category will witness the highest CAGR, of 10.5%, during the forecast period. This is ascribed to the higher accuracy of ultrasonic water meters and ability to track the flow of water even at low rates. Moreover, the absence of moving parts makes them durable and less prone to wear and tear, which offers cost advantages in the long run by reducing maintenance expenses.
The report offers insights into the following meter types:
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North America led the market in 2024 with 40% revenue, primarily ascribed to the rising focus of government organizations on the reduction of NRW and the advancement in smart city infrastructure in countries like the U.S. and Canada. In addition, industrial development and rapid urbanization are other factors driving the domain size in the region.
Furthermore, the presence of prominent players and their various strategies, such as mergers and acquisitions, expansions, and product launches, to attain their position in the sector, and technological advancements in advanced meter solutions are advancing the regional market growth. For instance, WaterMeterCo developed a meter solution that collects data from around 500,000 water meters across the U.S.
In North America, the U.S. accounts for the dominant market share, primarily due to stringent regulatory norms and increasing government initiatives toward the installation of advanced systems in the country. For instance, the meter systems are exhibiting increased support from the U.S. government. Also, California deployed updated meters to assist consumers in order to improve consumption management.
Europe holds the second-largest market share, driven by the increasing number of product launches in the region to enhance the sustainable use of liquid resources. In addition, the promulgating efforts taken by government bodies to support the conservation as well as reduction of natural resources contamination also boost the adoption of such meters. For instance, the Federal Council of Germany implemented new regulations to support the rollouts of advanced meters in the country. The new laws led to the adoption of smart meter systems amongst 80% of consumers, thereby positively impacting the market growth.
The APAC market is expected to register the highest CAGR in the forecast period, of 10.5%, due to snowballing government initiatives toward the conservation of liquid resources in the region. For instance, the increasing focus on smart and efficient supply management has boosted the Japanese government to look for effective solutions that allow them to accomplish this objective. Also, the government is planning to deploy 100% smart water meters by 2025. Further, with the mounting agriculture sector in the region, the demand for these meters is expected to increase in the forecast period.
Moreover, the conservation of natural resources is gaining significant importance in countries like India due to the shortage of water coupled with rising population and swift urbanization. For instance, the water demand is expected to double in India by the end of 2030, and the most critical way to address this huge expansion is the deployment of advanced infrastructure in the country, thereby creating lucrative growth opportunities for the smart water meter market in the country.
Also, manufacturers in the region are focusing on the development of electronic meters, ultrasonic meters, and flow meters with the purpose of reducing NRW loss, attributable to pipe bursts, leaks, meter errors, and thefts.
Here is the geographical breakdown of the market:
The market is fragmented as there a wide variety of technologies available. Moreover, mechanical meters, which possess few smart features, are manufactured by a large number of regional and local companies. On the other hand, a select few major companies possess the technical and financial capability to manufacture ultrasonic and electromagnetic variants with cutting-edge features. Additionally, the connectivity protocols for smart appliances differ across countries, which allows many companies to flourish. Additionally, while utilities are in a position to integrate expensive meters manufactured by the major players, individuals usually prefer affordable models offered by regional companies.
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