Digital Water Solutions Market–Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Technology (Metering & Customer Management, Network Management, Work & Asset Management, Plant Management, and Information Management), By Solution Type (Hardware, Software and Services), By Utility Tier (Tier 1, Tier 2, and Tier 3), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.13 Billion
CAGR (2026-2031)	11.49%
Fastest Growing Segment	Metering & Customer Management
Largest Market	North America
Market Size (2031)	USD 2.17 Billion

Market Overview

The Global Digital Water Solutions Market is projected to grow from USD 1.13 Billion in 2025 to USD 2.17 Billion by 2031 at a 11.49% CAGR. The Global Digital Water Solutions Market encompasses integrated technologies such as smart metering, sensors, and advanced data analytics software designed to monitor and optimize water and wastewater infrastructure in real time. The primary drivers supporting this market include the critical need to reduce non-revenue water losses, the urgency to rehabilitate aging utility assets, and increasingly stringent regulatory mandates regarding water conservation and quality. These fundamental operational necessities are distinct from temporary technological trends, as they address the core infrastructural and resource challenges facing the sector globally.

Despite these strong imperatives, the market faces a significant challenge regarding the financial capacity of utilities to fund these capital-intensive modernization projects. Budgetary constraints and the complexity of securing long-term funding often delay the deployment of necessary digital upgrades. According to the American Water Works Association, in 2025, only 41% of utilities reported feeling very or fully able to cover their costs through rates and fees, underscoring the severe fiscal limitations that can impede the adoption of digital water technologies.

Key Market Drivers

The imperative to minimize non-revenue water (NRW) and leakage acts as a primary catalyst for the deployment of digital solutions, compelling utilities to transition from reactive repairs to predictive asset management. As global water stress intensifies, regulatory bodies are enforcing stricter efficiency targets, necessitating the widespread integration of acoustic sensors, AI-driven pressure management systems, and real-time leak detection software to preserve resource integrity. This regulatory pressure is a decisive market force; according to Ofwat, October 2025, in the 'Water company performance report 2024-25', the regulator challenged water companies to deliver a further 20% reduction in leakage between 2025 and 2030, a mandate that directly drives capital allocation toward advanced monitoring technologies. To meet such demanding benchmarks, utilities are increasingly relying on digital twins and algorithmic modeling to pinpoint losses within vast distribution networks with unprecedented accuracy.

Simultaneously, the rapid adoption of IoT, AI, and advanced analytics is transforming aging infrastructure into interconnected smart grids capable of autonomous operation and enhanced decision-making. Utilities and solution providers are capitalizing on this technological shift to improve operational visibility and billing accuracy through the rollout of advanced metering infrastructure (AMI) and intelligent edge devices. This surging demand for connectivity is reflected in the financial performance of key industry players; according to Xylem, October 2025, in the 'Third Quarter 2025 Results' report, the company recorded 11% organic growth in its Measurement & Control Solutions segment, driven by robust orders for smart metering and digital applications. These technologies are supported by substantial capital programs aimed at modernization; according to American Water, in 2025, the utility planned to invest approximately $3.2 billion across its footprint to upgrade critical systems and enhance service reliability.

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Key Market Challenges

The restricted financial capacity of utilities acts as a substantial barrier to the growth of the Global Digital Water Solutions Market. Utilities are frequently compelled to allocate their finite capital budgets toward the urgent rehabilitation of failing physical infrastructure, such as pipes and pumps, rather than investing in digital overlays. This prioritization of immediate physical repairs over technological modernization creates a competitive funding environment where digital initiatives are often postponed. Consequently, the high upfront costs associated with smart metering and analytics software are difficult to justify for entities struggling to maintain basic operational continuity.

The scale of these competing fiscal demands is illustrated by the immense investment gap facing the industry. According to the Association of Metropolitan Water Agencies, in 2025, the water sector requires more than $1.2 trillion in investment over the next 20 years to simply maintain current levels of service. This massive backlog of essential maintenance absorbs the majority of available funding, severely limiting the discretionary budget required for digital transformation and slowing the market’s overall expansion.

Key Market Trends

The focus on cyber-physical security for critical water networks has intensified as utilities increasingly integrate operational technology with internet-facing systems to modernize grid management. As digitization expands the attack surface, protecting water treatment facilities and distribution grids from ransomware and state-sponsored actors has become a paramount operational priority, surpassing simple regulatory compliance. This urgency to secure digital infrastructure is reflected in industry sentiment; according to the American Water Works Association, July 2025, in the '2025 State of the Water Industry' report, 73% of utility executives rated cybersecurity as critically important to their operations, underscoring its status as a top-tier challenge distinct from standard leakage management.

Simultaneously, the expansion of digital solutions for wastewater reuse and circularity is reshaping market investment as regions combat chronic water scarcity. Advanced digital monitoring and real-time quality control systems are now essential for ensuring the safety and compliance of treated effluent for industrial and potable applications, effectively closing the water loop. This shift toward circular water management is generating tangible resource dividends through technology adoption; according to Xylem, May 2025, in its '2024 Sustainability Report', the company’s digital and treatment technologies enabled the reuse of 18.1 billion cubic meters of water since 2019.

Segmental Insights

The Metering & Customer Management segment is currently positioning itself as the fastest-growing category in the Global Digital Water Solutions Market. This rapid expansion is primarily driven by the critical necessity for utilities to minimize non-revenue water losses caused by aging infrastructure and leaks. Furthermore, regulatory frameworks from institutions such as the U.S. Environmental Protection Agency are accelerating adoption by encouraging stricter conservation measures and efficient resource monitoring. Consequently, utilities are increasingly investing in smart metering technologies to ensure precise billing accuracy and foster proactive customer engagement, ultimately driving the digital transformation of the water sector.

Regional Insights

North America maintains a dominant position in the Global Digital Water Solutions Market due to the extensive modernization of aging utility infrastructure and stringent regulatory frameworks. The United States Environmental Protection Agency enforces rigorous standards for water quality and efficiency, which compels municipalities to implement digital monitoring systems. Additionally, the region prioritizes the adoption of smart metering infrastructure to manage water scarcity and reduce non-revenue water losses effectively. This strong focus on technological integration within public utilities and substantial government funding for infrastructure improvements consolidates North America as the leading regional market.

Recent Developments

• In September 2025, Schneider Electric released comprehensive research highlighting a significant disconnect between the awareness of water risks and the actual implementation of modernization strategies among U.S. infrastructure leaders. The study, which surveyed over 200 executives and government officials, revealed that while a majority recognized the urgency of upgrading water systems, execution lagged considerably due to budget constraints and cybersecurity concerns. The findings emphasized the critical need for adopting digital transformation tools, such as AI-driven leak detection and digital twins, to address persistent issues like aging pipes and water loss, aiming to catalyze public-private collaboration for a secure water future.
• In January 2025, Badger Meter expanded its "BlueEdge" suite of digital solutions through the acquisition of SmartCover Systems, a provider of remote wastewater monitoring technologies. This acquisition added real-time monitoring capabilities for sewer lines and lift stations to the company's portfolio, significantly enhancing its ability to support customers in managing wastewater collection systems. The integration of these new hardware and software tools was intended to help utilities visualize and optimize their operations, specifically targeting the reduction of sanitary sewer overflows. The move reinforced the organization's commitment to delivering comprehensive, end-to-end smart water management strategies that improve network resilience.
• In December 2024, Xylem acquired a majority stake in Idrica, a company specializing in water data management and analytics, to accelerate the digital transformation of the water sector. This strategic move combined the company's Xylem Vue digital portfolio with Idrica’s GoAigua technology platform, creating a unified and intelligent solution for utility operators. The collaboration focused on empowering customers to visualize their networks effectively and utilize real-time insights for improved decision-making. By integrating these technologies, the partnership aimed to address critical industry challenges such as aging infrastructure and water scarcity while streamlining operations and reducing non-revenue water loss globally.
• In May 2024, Autodesk announced the release of the 2025 versions of its desktop hydraulic modeling software, including updates to InfoWorks ICM, InfoWater Pro, and InfoDrainage. This launch introduced enhanced cloud capabilities that allowed users to access simulation results directly online and perform batch runs to improve processing efficiency. The new product versions also featured deeper integration with Info360 cloud analytics tools and upgrades to the MSX 2.0 engine. These advancements were designed to support water professionals in addressing complex challenges in drainage design and water distribution modeling through more robust, accessible, and data-driven digital workflows.

Key Market Players

• Siemens Aktiengesellschaft
• Schneider Electric SE
• International Business Machines Corporation
• ABB Ltd.
• Xylem Inc.
• SUEZ SA
• Veolia Environnement S.A.
• Trimble Inc.
• Badger Meter, Inc.
• Oracle Corporation

By Technology	By Solution Type	By Utility Tier	By Region
Metering & Customer Management Network Management Work & Asset Management Plant Management Information Management	Hardware Software Services	Tier 1 Tier 2 Tier 3	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Digital Water Solutions Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Digital Water Solutions Market, By Technology:

• Metering & Customer Management
• Network Management
• Work & Asset Management
• Plant Management
• Information Management

• Digital Water Solutions Market, By Solution Type:

• Hardware
• Software
• Services

• Digital Water Solutions Market, By Utility Tier:

• Tier 1
• Tier 2
• Tier 3

• Digital Water Solutions Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE