Smart Water Management Market Report 2026

The smart water management market size has grown rapidly in recent years. It will grow from $19.9 billion in 2025 to $23.01 billion in 2026 at a compound annual growth rate (CAGR) of 15.6%. The growth in the historic period can be attributed to urban population growth, aging water infrastructure, rising non revenue water losses, increasing regulatory oversight, growing public sector investments.

The smart water management market size is expected to see rapid growth in the next few years. It will grow to $40.67 billion in 2030 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to water scarcity concerns, climate variability impacts, smart city development initiatives, demand for real time monitoring, increasing adoption of digital utilities. Major trends in the forecast period include deployment of smart water metering systems, expansion of leak detection and loss reduction programs, adoption of data driven water usage analytics, integration of remote monitoring and control platforms, rising focus on water quality and compliance monitoring.

The growing concerns over water scarcity are expected to support the expansion of the smart water management market. Water scarcity refers to a situation in which the available supply of fresh, clean water is insufficient to meet the needs of a region’s population or ecosystem. As awareness of water scarcity increases, governments, municipalities, industries, and individuals are placing greater emphasis on water conservation. This heightened focus is driving the adoption of smart water management solutions that enable more efficient and sustainable use of water resources. For example, in March 2023, a report by the United Nations Educational, Scientific and Cultural Organization (UNESCO), a France-based specialized agency, noted that approximately 2 billion people worldwide - 26% of the global population - lack access to safe drinking water, while 3.6 billion people, or 46%, do not have access to safely managed sanitation. The report also projected that by 2050, the number of urban residents facing water scarcity will double to between 1.7 and 2.4 billion people. Therefore, increasing concerns about water scarcity are driving demand for smart water management solutions.

Major companies in the smart water management market are focusing on innovative technologies such as hybrid cloud and artificial intelligence, along with collaborative ecosystems of experts, to scale projects that support populations vulnerable to environmental risks. Hybrid cloud combines on-premises infrastructure with public and private cloud services to improve flexibility and scalability, while artificial intelligence enables machines to learn, analyze data, and make informed decisions. For instance, in March 2023, International Business Machines Corporation (IBM), a US-based technology company, issued a Request for Proposals (RFP) aimed at accelerating global water management solutions for vulnerable communities. The initiative emphasizes smart technologies such as IoT and AI for monitoring and optimizing water resources, enhancing resilience in areas affected by climate change and other challenges.

In January 2024, ABB Ltd., a Switzerland-based global engineering company specializing in automation and electrification technologies, acquired Realtech for an undisclosed amount. Through this acquisition, ABB aims to strengthen its smart water management offerings by incorporating advanced optical sensor technology and AI-powered data analytics, enabling improved real-time water quality monitoring and supporting global sustainability efforts.

Major companies operating in the smart water management market are Honeywell International Inc., Siemens Aktiengesellschaft, ABB Ltd., International Business Machines Corporation, Itron Inc., Schneider Electric SE, SUEZ Group SA, Sensus USA Inc., HydroPoint Data Systems Inc., TaKaDu Ltd., AquamatiX Limited, Xylem Inc., Badger Meter Inc., Aclara Technologies LLC, IDEX Corporation, Mueller Water Products Inc., Kamstrup A/S, Elster Group SE, Landis+Gyr Group AG, Echologics Engineering Inc., Neptune Technology Group Inc., Innovyze Inc., Aquatic Informatics Inc., Syrinix Ltd., Zenner International GmbH & Co. KG, WaterSmart Software Inc., Utilis Corp.

North America was the largest region in the smart water management market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart water management market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart water management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart water management market includes revenues earned by providing smart water management systems, pressure management, better leakage techniques for water networks, smart network operations and water cycle maintenance, smart water meter technologies, and smart water quality monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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