Market Trends of US Water Meter Industry
Fast-paced Development of Water Infrastructure is Expected to Drive the Market
- Over the years, the United States has been among the leading spenders on adopting advanced technologies. This trend is also visible in the water management industry, as the country has been among the early adopters of water metering solutions and has also been among the leading countries in terms of the adoption of smart meters.
- In recent years, the country's investment in water supply infrastructure has grown significantly. For instance, according to the data provided by the US Census Bureau and St. Louis Fed, in 2022, the construction value of water supply infrastructure in the United States reached USD 21.2 billion, compared to USD 13.94 billion in 2016. With the demand for water increasing across residential and commercial verticals, the value is anticipated to grow further.
- Several new water supply and water management products have been assigned by the US government and individual states, which is also creating a favorable outlook for the growth of the market studied. For instance, in September 2023, the US Environmental Protection Agency (EPA) announced USD 7.5 billion in funding under the available Water Infrastructure Finance and Innovation Act (WIFIA). According to the agency, this innovative low-interest loan program has been framed to help communities invest in drinking water, stormwater, and wastewater infrastructure. EPA's WIFIA program announced about USD 19 billion to finance about 109 projects across the country.
- In April 2023, the EPA announced USD 98.53 million to support the state of Maryland's upgrade of essential drinking water infrastructure. A similar project undertaken in the US Virgin Islands and Puerto Rico also received funding worth USD 108 million from EPA in April 2023. Driven by the USD 6 billion boost from President Biden's Bipartisan Infrastructure Law, EPA is increasing investments through the Drinking Water State Revolving Fund (DWSRF) to modernize the nation's water infrastructure.
- Apart from the growing investments in water infrastructure, the country is also witnessing rapid growth in the development of supporting infrastructure. For instance, recent years have witnessed notable growth in the expansion of the LoRaWAN network across states like Phoenix, Atlanta, Austin, Miami, Charlotte, and Portland, providing vendors offering solutions such as smart meter with the required infrastructure to wirelessly and economically connect a variety of IoT sensors to the cloud without having to build communications infrastructure.
- The adoption of cloud services in the utilities sector has also increased significantly. According to Amazon Web Services (AWS), in the past two years, industry leaders such as Xylem, Neptune, Innovyze, and Badger have developed innovative solutions using cloud technology like AWS and delivering Software-as-a-Service (SAAS) solutions. Hence, such trends are anticipated to continue to support the growth of the market studied during the forecast period.
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Smart Water Meter to Hold Major Share
- Smart metering technology is fast becoming an essential component of advanced metering infrastructure owing to its capability to measure and record data on various parameters, including water usage, accurately and in real-time. Unlike traditional water meters, smart meters provide automated readings that are transmitted to utility companies through advanced communication networks for billing and analysis purposes.
- The United States is anticipated to remain among the important markets for smart water meters owing to higher penetration of advanced tech solutions and factors such as growing consumer awareness and a supportive government outlook. In recent years, the US government has taken several initiatives to promote water conservation across different sectors.
- The smart meter segment’s growth is also supported by the availability of a strong communication network required to support smart water metering infrastructure. For instance, Ethernet Ltd, a provider of low-power wide area networks, has its LoRaWAN network in the United States, covering around 550 cities.
- The United States is also among the major countries in terms of adoption of 5G services. According to the Ericsson Mobility Report, by 2028, North America is expected to have over 405 million 5G subscriptions. For instance, AT&T, one of the leading cellular service providers in the United States, offers 5G services that cover over 285 million people nationwide. With the footprint and adoption of 5G anticipated to grow significantly during the forecast period, it is anticipated to bring more opportunities in the studied segment by facilitating a faster and latency-free network.
- The growing number of smart metering projects being announced across different states is also driving the demand for smart water meters in the United States. For instance, in June 2023, Newport News Waterworks, Virginia, announced the completion of the milestone of installing more than 104,000 AMI meters, which got the company to about the 80% mark.
