North America and Europe’s smart water meter industry can expect solid growth, according to forecasts by analyst Frost & Sullivan.
The global research company reported that the smart water metering market, including smart water meters, installation services and meter data management services, was valued at US$3.48 billion in 2013.
North America and Europe are seen as key areas of growth as water utilities in both regions are aware of the potential uses of data and analytics.
Seth Cutler, energy and environment industry analyst at Frost & Sullivan, said: “Smart water metering is a global trend driven by key factors: reducing non-revenue water, increasing sustainable and reliable billing, improving water service reliability, and the need for higher optimisation and control.
"The understanding that data is the lynchpin spurring these agendas forward will fuel investments in the market over the forecast period."
The report found several factors slowing down the adoption of meters in other regions.
As smart water metering is a fundamentally different way of managing municipal water supply, Frost & Sullivan believes that end users in this traditionally conservative industry need more time to reduce risks and gain confidence in decision-making.
A lack of in-depth knowledge on technology, best practice for project implementation and business case development is also hindering the take-up of smart metering schemes.
Mr Cutler said: "Each region is likely to follow a traditional technology advancement trajectory in smart water metering.
"A 'leap-frog' effect of late adopters jumping ahead in advanced technology adoption is not expected to materialize in this dynamic landscape.
“This reinforces the importance of tailored and targeted market approaches."