The latest Frost & Sullivan analysis of the Asia-Pacific water meter market, Water Meter Market in Asia-Pacific, Forecast to 2022, finds the market is undergoing rapid transformation due to renewed focus on metering and sub-metering, evolving business models, and market consolidation.
Growth will be augmented by the need to reduce non-revenue water (NRW), lower operational expenditure, improve billing efficiency, and bring about better demand management.
Frost & Sullivan's research expects the Asia-Pacific region to achieve 25% smart meter penetration by 2025 as a result of the increasing use of disruptive business models such as Metering-as-a-Service (MaaS) and static metering technology, which are set to subsidise overall meter costs significantly.
Key report findings
The report analyses key market dynamics, drivers, restraints, forecast and trends, meter type, and market growth opportunities. Competitive profiles for key players such as ltron, Elster, Sensus, and Kamstrup are also provided.
"As interest and adoption of static metering and MaaS increase in the Asia-Pacific region, operational and maintenance costs associated with water networks will decrease. Taking steps toward consumer engagement will also improve customer service and manage demand," said Frost & Sullivan Environment and Water Senior Industry Analyst Hari Raamanathan.
In a nascent and highly fragmented market, Raamanathan recommends that companies focus their efforts on unexplored markets such as Indonesia, Vietnam, and the Philippines. These markets offer high growth potential and are expected to reap immense benefits when smart water network improvements occur.
Further strategic imperatives for growth in the Asia-Pacific water meter market include:
• Companies prioritising flexibility of meter configuration and payment models for increased penetration;
• Integrating data processing and analytics packages with meter products;
• Meeting smart city visions by designing and delivering entire Internet of Things networks;
• Developing capabilities to offer scalable, end-to-end metering solutions and services.
"Despite notable growth opportunities, metering adoption will be restrained by a lack of capital.
"Many water utilities in the region, especially in South East Asia, are experiencing an acute financial crisis due to chronic underfunding and low water tariffs," observes Raamanathan.
He added: "This weak financial state has led to poor maintenance and infrequent rehabilitation of network infrastructure, resulting in further losses due to increasing NRW levels.
"Given this situation, externally-financed installations and retrofits of existing water networks with advanced metering devices could be just what is required to stop this loss spiral."