Smart Water Networks: Opportunities in network efficiency optimisation

Smart Water Networks: Opportunities in network efficiency optimisation

Overview

- Help utilities save water and money

According to a report by Sensus, utilities could save up to $12.5 billion by implementing smart water systems, so there are huge opportunities for smart water companies who are offering the right solutions. Smart water networks will allow utilities to monitor and maximise existing water supplies, respond to regulatory pressure for improved customer services using cloud-based platforms, save expenditure on new infrastructure to secure water supplies and generally their network efficiency overall. There are also long-term benefits – saving water resources now will stand utilities in good stead for a future characterised by climate change, increasing water scarcity and population growth.

- Highlighting your business case

The biggest challenge for utilities is formulating a strong enough business case to justify investment in smart water networks – and your job is to help them recognise the benefits. The report analyses market trends and the challenges faced by utilities, so you can devise strong strategies to convince utilities that adopting your solution will be a worthwhile investment.

Designed to help you pitch the right solution in the right markets, this report is your guide to identifying the biggest opportunities for your solution now, planning your product development, or devising strategies to partner with businesses who complement your offering – so you can evaluate the potential of providing an integrated smart solutions to meet the changing needs of utilities.

The industry is still fragmented, giving you the ideal opportunity to establish your business as a leading players. The report is your essential tool to planning your involvement:

Global market size and growth rates for the smart network product market –plan your business strategy in smart water for the next 5-10 years
Key market players – we identify the market players, so you can identify your potential partners or competitors and plan your market entry with the right smart solution
Identify the top markets – the report has a global approach but focuses in on the markets with best prospects and the most activity, so you can capitalise on growth in these regions ahead of your competitors
Market trends – the report highlights the key emerging market trends in smart water, helping you to effectively pitch your solution and support it with a strong business case
Analysis of the ‘smart water network’ and its components – identify the existing prospects for your smart solution and pinpoint opportunities to develop your product and partner with other ‘smart’ businesses.

Key opportunities and regions

Smart Water Networks takes a global approach to the market, but focuses on trends and opportunities in the areas with the most activity, including the USA, Israel, UK and Australia. So you can get find your foothold in the market, the report explores the following major opportunities:

Leakage reduction – non-revenue water through leakage is high globally, even in developed markets, and utilities are losing both revenue and water. We identify significant opportunities in the smart architecture, so you know exactly how and where to pitch your smart solution to utilities.
Smart Metering – conventional meters and low meter deployment are becoming the source of billing inaccuracies (often to the detriment of the utility) in a relatively short time span. We show you the markets driven by revenue losses or regulations that demand improved customer information and services – so you can identify the markets with the best opportunities for your solution.
Software and cloud-based services – adopting smart systems will result in highly granular data which utilities are not equipped to handle. We show you how this is creating opportunities for software companies to offer data processing services so that utilities can monitor water supply and spend more efficiently.
Outsourcing – this report demonstrates why emerging markets with big budgets offer exciting opportunities for smart water network businesses. We identify the regions with the potential to invest in smart solutions but without the local expertise to manage these systems, so you can identify the regions with the biggest demand for your expertise.
Integrated solutions and partnerships – we show you how partnering with key players in the smart networks architecture to offer an integrated solution will give you the key to success in getting by in from your target utilities.

Publication information ii
Executive summary iii
Capital expenditure on smart water networks, 2013 iii
Regional forecast iv
Market forecast for smart water networks in early adopters, 2011-2018 iv
Market forecast for smart water networks by region, 2011-2018 v
Benefits of smart water networks vi
1. Introduction 1
1.1 What are smart water networks? 1
1.1.1 Smart water network architecture 2
1.1.2 Smart water network market segments 3
1.2 Smart water networks: Tackling supply and demand 3
2. Market dynamics 5
2.1 Overview 5
2.1.1 Market development and adoption 5
2.1.2 Customisation with integration 5
2.1.3 Standardisation 6
2.1.4 Procurement 7
2.2 Market players 7
2.3 Market drivers 9
2.4 Market challenges 10
2.5 Market access 11
2.5.1 Established players versus start-ups 11
2.5.2 Integration and partnerships 12
2.5.2.1 Instrumentation and communications companies 12
2.5.2.2 Data management and data analytics companies 12
2.5.2.3 Sustainability programmes 13
2.5.3 System integration 13
2.6 Market opportunities 14
2.7 Market forecast 16
Figure 2.1 Worldwide capital expenditure on SWN by region, 2011-2018 16
2.7.1 Smart water network market segments 17
Figure 2.2 Worldwide capital expenditure on SWN by market segment, 2011-2018 18
2.7.2 Smart water network tiers 18
Figure 2.3 Worldwide capital expenditure on SWN by tier, 2011-2018 19
2.7.3 SWN early adopters 20
Figure 2.4 Split of the SWN market between early adopters and other countries, 2013 and 2018 20
Figure 2.5 Capital expenditure on SWN in early adopter countries, 2011-2018 21
2.7.3.1 United States 22
Figure 2.6 Capital expenditure on SWN in the United States by market segment, 2011-2018 22
Figure 2.7 Capital expenditure on SWN in the United States by tier, 2011-2018 23
2.7.3.2 Canada 23
Figure 2.8 Capital expenditure on SWN in Canada by market segment, 2011-2018 24
Figure 2.9 Capital expenditure on SWN in Canada by tier, 2011-2018 24
2.7.3.3 United Kingdom 25
Figure 2.10 Capital expenditure on SWN in the United Kingdom by market segment, 2011-2018 25
Figure 2.11 Capital expenditure on SWN in the United Kingdom by tier, 2011-2018 26
2.7.3.4 Netherlands 26
Figure 2.12 Capital expenditure on SWN in the Netherlands by market segment, 2011-2018 27
Figure 2.13 Capital expenditure on SWN in the Netherlands by tier, 2011-2018 27
2.7.3.5 Germany 28
Figure 2.14 Capital expenditure on SWN in Germany by market segment, 2011-2018 28
Figure 2.15 Capital expenditure on SWN in Germany by tier, 2011-2018 29 viii
2.7.3.6 France 29
Figure 2.16 Capital expenditure on SWN in France by market segment, 2011-2018 30
Figure 2.17 Capital expenditure on SWN in France by tier, 2011-2018 30
2.7.3.7 Israel 31
Figure 2.18 Capital expenditure on SWN in Israel by market segment, 2011-2018 31
Figure 2.19 Capital expenditure on SWN in Israel by tier, 2011-2018 32
2.7.3.8 Japan 32
Figure 2.20 Capital expenditure on SWN in Japan by market segment, 2011-2018 33
Figure 2.21 Capital expenditure on SWN in Japan by tier, 2011-2018 33
2.7.3.9 Republic of Korea 34
Figure 2.22 Capital expenditure on SWN in the Republic of Korea by market segments, 2011-2018 34
Figure 2.23 Capital expenditure on SWN in the Republic of Korea by tier, 2011-2018 35
2.7.3.10 Australia 35
Figure 2.24 Capital expenditure on SWN in Australia by market segment, 2011-2018 36
Figure 2.25 Capital expenditure on SWN in Australia by tier, 2011-2018 36
2.7.3.11 Singapore 37
Figure 2.26 Capital expenditure on SWN in Singapore by market segment, 2011-2018 37
Figure 2.27 Capital expenditure on SWN in Singapore by tier, 2011-2018 38
2.7.4 Regional forecast 39
2.7.4.1 North America 39
Figure 2.28 Capital expenditure on SWN in North America by market segment, 2011-2018 39
Figure 2.29 Capital expenditure on SWN in North America by tier, 2011-2018 40
2.7.4.2 Latin America and the Caribbean 40
Figure 2.30 Capital expenditure on SWN in Latin America and the Caribbean by market segment, 2011-2018 41
Figure 2.31 Capital expenditure on SWN in Latin America and the Caribbean by tier, 2011-2018 41
2.7.4.3 Western Europe 42
Figure 2.32 Capital expenditure on SWN in Western Europe by market segment, 2011-2018 42
Figure 2.33 Capital expenditure on SWN in Western Europe by tier, 2011-2018 43
2.7.4.4 Eastern Europe and Central Asia 43
Figure 2.34 Capital expenditure on SWN in Eastern Europe and Central Asia by market segment, 2011-2018 44
Figure 2.35 Capital expenditure on SWN in Eastern Europe and Central Asia by tier, 2011-2018 44
2.7.4.5 East Asia and the Pacific 45
Figure 2.36 Capital expenditure on SWN in East Asia and the Pacific by market segment, 2011-2018 45
Figure 2.37 Capital expenditure on SWN in East Asia and the Pacific by tier, 2011-2018 46
2.7.4.6 Southern Asia 46
Figure 2.38 Capital expenditure on SWN in Southern Asia by market segment, 2011-2018 47
Figure 2.39 Capital expenditure on SWN in Southern Asia by tier, 2011-2018 47
2.7.4.7 Middle East and North Africa 48
Figure 2.40 Capital expenditure on SWN in Middle East and North Africa by market segment, 2011-2018 48
Figure 2.41 Capital expenditure on SWN in the Middle East and North Africa by tier, 2011-2018 49
2.7.4.8 Sub-Saharan Africa 49
Figure 2.42 Capital expenditure on SWN in Sub-Saharan Africa by market segments, 2011-2018 50
Figure 2.43 Capital expenditure on SWN in Sub-Saharan Africa by tier, 2011-2018 50
3. Smart water networks: Market tiers 51
3.1 Tier 1: Physical components 51
3.1.1 Tier profile 51
3.1.2 Companies active in this field 52
Figure 3.1 Companies with smart pump-related solutions 52
3.1.3 Tier forecast 53
Figure 3.2 Capital expenditure on the physical components tier by country, 2011-2018 53
Figure 3.3 Capital expenditure on the physical components tier by region, 2011-2018 54
Figure 3.4 Capital expenditure on the physical components tier by SWN market segment, 2011-2018 55
3.2 Tier 2: Instrumentation - sensing, measuring and control 56
3.2.1 Tier profile 56
3.2.1.1 Sensors 56
3.2.1.2 Meters 57
3.2.2 Companies with instrumentation-related solutions 58
Figure 3.5 Companies with instrumentation-related solutions 58
3.2.3 Tier forecast 61 ix
Figure 3.6 Capital expenditure on the instrumentation (sensors / control) tier by country, 2011-2018 61
Figure 3.7 Capital expenditure on the instrumentation (sensors / control) tier by region, 2011-2018 62
Figure 3.8 Capital expenditure on the instrumentation (sensors / control) tier by SWN market segment 63
3.3 Tier 3: Communications 64
3.3.1 Tier profile 65
3.3.1.1 Overview 65
3.3.1.2 Tier dynamics 66
Drivers 66
Challenges 66
3.3.1.3 Communications tier trends 67
3.3.2 Companies active in this field 68
Figure 3.9 Telecommunications companies active in the SWN market 68
3.3.3 Tier forecast 69
Figure 3.10 Capital expenditure on the communications tier by country, 2011-2018 69
Figure 3.11 Capital expenditure on the communications tier by region, 2011-2018 70
Figure 3.12 Capital expenditure on the communications tier by SWN market segment, 2011-2018 71
3.4 Tier 4: Data management and analysis 72
3.4.1 Tier profile: Data management 72
3.4.1.1 Overview 73
3.4.1.2 Data management dynamics 73
Drivers 73
Challenges 74
3.4.1.3 Data management trends 74
3.4.2 Tier profile: Data analysis 75
3.4.2.1 Overview 76
3.4.2.2 Data analysis dynamics 76
Drivers 76
Challenges 77
3.4.2.3 Data analysis trends 77
3.4.3 Companies active in this field 78
Figure 3.13 Data management and analytics companies active in the SWN market 78
3.4.4 Tier forecast 81
Figure 3.14 Capital expenditure on the data management and analysis tier by country, 2011-2018 81
Figure 3.15 Capital expenditure on the data management and analysis tier by region, 2011-2018 82
Figure 3.16 Capital expenditure on the data management and analysis tier by SWN market segment 83
4. Smart metering and customer services 85
4.1 Market trends 85
4.1.1 Profile 85
4.1.1.1 Automatic Meter Reading 85
4.1.1.2 Advanced Metering Infrastructure 85
4.1.1.3 AMI versus AMR 86
Figure 4.1 AMI versus AMR at a glance 87
4.1.2 Overview 88
4.1.3 Segment dynamics 88
4.1.3.1 Drivers 88
4.1.3.2 Challenges 89
4.1.4 Segment trends 90
4.1.5 Regional trends 91
4.1.5.1 Asia 91
4.1.5.2 US 92
4.1.5.3 Australia 93
4.1.5.4 Europe 93
4.1.5.5 Developing countries 94
4.2 Players 95
Figure 4.2 Players active in the smart metering and customer services segment 95
4.3 Market forecast 97
Figure 4.3 Capital expenditure on smart water metering and customer services by tier, 2011-2018 97
Figure 4.4 Capital expenditure on smart metering and customer services by country, 2011-2018 98
Figure 4.5 Capital expenditure on smart metering and customer services by region, 2011-2018 99 x
4.3.1 Early adopters 100
Figure 4.6 Capital expenditure on smart metering & customer services in the US by tier, 2011-2018 100
Figure 4.7 Capital expenditure on smart metering & customer services in Canada by tier, 2011-2018 100
Figure 4.8 Capital expenditure on smart metering & customer services in the UK by tier, 2011-2018 101
Figure 4.9 Capital expenditure on smart metering & customer services in the Netherlands by tier 101
Figure 4.10 Capital expenditure on smart metering & customer services in Germany by tier, 2011-2018 102
Figure 4.11 Capital expenditure on smart metering & customer services in France by tier, 2011-2018 102
Figure 4.12 Capital expenditure on smart metering & customer services in Israel by tier, 2011-2018 103
Figure 4.13 Capital expenditure on smart metering & customer services in Japan by tier, 2011-2018 103
Figure 4.14 Capital expenditure on smart metering & customer services in Republic of Korea by tier 104
Figure 4.15 Capital expenditure on smart metering & customer services in Australia by tier, 2011-2018 104
Figure 4.16 Capital expenditure on smart metering & customer services in Singapore by tier, 2011-2018 105
4.3.2 Regional forecast 106
Figure 4.17 Capital expenditure on smart metering & customer services in North America by tier 106
Figure 4.18 Capex on smart metering & customer services in Latin America/Caribbean by tier, 2011-2018 106
Figure 4.19 Capital expenditure on smart metering & customer services in Western Europe by tier 107
Figure 4.20 Capex on smart metering & customer services in Eastern Europe/Central Asia by tier 107
Figure 4.21 Capital expenditure on smart metering & customer services in East Asia/Pacific by tier 108
Figure 4.22 Capital expenditure on smart metering & customer services in Southern Asia by tier 108
Figure 4.23 Capex on smart metering & customer services in Middle East/North Africa by tier, 2011-2018 109
Figure 4.24 Capex on smart metering & customer services in Sub-Saharan Africa by tier, 2011-2018 109
5. Smart leakage management 111
5.1 Overview 111
Figure 5.1 Non-revenue water rates in selected countries 111
5.2 Drivers for adoption 112
5.3 Conventional leakage management 113
Figure 5.2 IWA leakage management methods 113
5.4 Smart technologies for managing leakage 114
5.4.1 Smart leakage detection or localising 114
5.4.2 Smart leakage pinpointing or location 115
5.4.3 Smart or advanced pressure management 115
5.4.4 Smart asset management 116
5.5 Market participants 117
Figure 5.3 Companies active in smart leakage management 117
5.6 Challenges in adopting smart leakage solutions 119
5.7 Market forecast 120
Figure 5.4 Capital expenditure on smart leakage management by tier, 2011-2018 120
Figure 5.5 Capital expenditure on smart leakage management by country, 2011-2018 121
Figure 5.6 Capital expenditure on smart leakage management by region, 2011-2018 122
5.7.1 Early adopters 123
Figure 5.7 Capital expenditure on smart leakage management in the US by tier, 2011-2018 123
Figure 5.8 Capital expenditure on smart leakage management in Canada by tier, 2011-2018 123
Figure 5.9 Capital expenditure on smart leakage management in the United Kingdom by tier, 2011-2018 124
Figure 5.10 Capital expenditure on smart leakage management in France by tier, 2011-2018 124
Figure 5.11 Capital expenditure on smart leakage management in Germany by tier, 2011-2018 125
Figure 5.12 Capital expenditure on smart leakage management in the Netherlands by tier, 2011-2018 125
Figure 5.13 Capital expenditure on smart leakage management in Israel by tier, 2011-2018 126
Figure 5.14 Capital expenditure on smart leakage management in Japan by tier, 2011-2018 126
Figure 5.15 Capital expenditure on smart leakage management in the Republic of Korea by tier 127
Figure 5.16 Capital expenditure on smart leakage management in Australia by tier, 2011-2018 127
Figure 5.17 Capital expenditure on smart leakage management in Singapore by tier, 2011-2018 128
5.7.2 Regions 128
Figure 5.18 Capital expenditure on smart leakage management in North America by tier, 2011-2018 128
Figure 5.19 Capex on smart leakage management in Latin America and the Caribbean by tier, 2011-2018 129
Figure 5.20 Capital expenditure on smart leakage management in Western Europe by tier, 2011-2018 129
Figure 5.21 Capex on smart leakage management in Eastern Europe and Central Asia by tier, 2011-2018 130
Figure 5.22 Capex on smart leakage management in East Asia and the Pacific by tier, 2011-2018 130
Figure 5.23 Capital expenditure on smart leakage management in Southern Asia by tier, 2011-2018 131 xi
Figure 5.24 Capex on smart leakage management in the Middle East and North Africa by tier, 2011-2018 131
Figure 5.25 Capital expenditure on smart leakage management in Sub-Saharan Africa by tier, 2011-2018 132
6. Smart water quality monitoring 133
6.1 Approaches to monitoring drinking water quality 133
6.2 What is smart water quality monitoring? 134
6.2.1 Water safety/security 135
6.2.2 Smart WQM for operational purposes - the business case 136
6.3 Early adopters and smart WQM development paths 136
6.3.1 US 137
6.3.2 EU 137
6.4 Drivers for adoption 139
6.5 Challenges to adoption 139
6.6 Accessing the smart WQM market 140
6.7 Market players 141
Figure 6.1 Companies active in smart WQM 141
6.8 Market forecast 143
Figure 6.2 Capital expenditure on smart WQM in early adopter countries by tier, 2011-2018 143
Figure 6.3 Capital expenditure on smart WQM in the early adopter countries, 2011-2018 144
6.8.1 Early adopters 145
Figure 6.4 Capital expenditure on smart WQM in the United States by tier, 2011-2018 145
Figure 6.5 Capital expenditure on smart WQM in Canada by tier, 2011-2018 145
Figure 6.6 Capital expenditure on smart WQM in the United Kingdom by tier, 2011-2018 146
Figure 6.7 Capital expenditure on smart WQM in the Netherlands by tier, 2011-2018 146
Figure 6.8 Capital expenditure on smart WQM in Germany by tier, 2011-2018 147
Figure 6.9 Capital expenditure on smart WQM in France by tier, 2011-2018 147
Figure 6.10 Capital expenditure on smart WQM in Israel by tier, 2011-2018 148
Figure 6.11 Capital expenditure on smart WQM in Japan by tier, 2011-2018 148
Figure 6.12 Capital expenditure on smart WQM in Republic of Korea by tier, 2011-2018 149
Figure 6.13 Capital expenditure on smart WQM in Australia by tier, 2011-2018 149
Figure 6.14 Capital expenditure on smart WQM in Singapore by tier, 2011-2018 150
7. Services within the SWN market 151
7.1 Performance-based contracts 151
7.1.1 Overview 151
7.1.1.1 Fee structuring 151
7.1.2 Benefits of PBCs 152
7.1.2.1 Market opportunities 153
7.1.2.2 Drivers 154
7.1.2.3 Challenges 154
7.1.3 Market players 155
7.1.3.1 Maynilad (Manila, Philippines) and Miya Water NRW PBC 155
Figure 7.1 Contract performance targets, 2009-2012 156
Figure 7.2 Project indicators, 2007 and 2011/2012 156
7.1.3.2 Future projects 156
7.1.3.3 Company profiles 157
Figure 7.3 System integrators and consultants 157
7.2 Software as a service (SaaS) 158
7.2.1 Benefits of SaaS 158
7.2.2 Drivers and challenges 159
7.2.2.1 Drivers 159
7.2.2.2 Challenges 160
7.2.3 Opportunities in SaaS 160
7.2.3.1 Market players 161
Figure 7.4 SaaS market players 161
7.2.3.2 SaaS Projects 163
Figure 7.5 SWN market projects involving SaaS 163
Interviewees 165
References 167