US Digital Water Solutions Market Research Report: By Technology (Metering & Customer Management, Network Management, Work & Asset Management, Plant Management, Information Management), By Solution Type (Hardware, Software, Services) and By Utility Tier (Tier 1, Tier 2, Tier 3) - Forecast to 2035

US Digital Water Solutions Market Overview:

As per MRFR analysis, the US Digital Water Solutions Market Size was estimated at 225.4 (USD Million) in 2023. The US Digital Water Solutions Market Industry is expected to grow from 250(USD Million) in 2024 to 1,050 (USD Million) by 2035. The US Digital Water Solutions Market CAGR (growth rate) is expected to be around 13.935% during the forecast period (2025 - 2035).

Key US Digital Water Solutions Market Trends Highlighted

The US Digital Water Solutions Market is experiencing notable growth driven primarily by increasing concerns surrounding water management and sustainability. Government initiatives aimed at improving water infrastructure and reducing waste are key market drivers. The implementation of the Water Infrastructure Finance and Innovation Act encourages innovation and the adoption of new technologies, leading to improved efficiency in water systems across cities. Moreover, the rising demand for smart water management systems, including real-time monitoring and predictive analytics, is reshaping how water utilities operate, enabling them to efficiently manage resources and respond to challenges, like aging infrastructure and climate change effects.Opportunities within the US market are significant, especially for companies focusing on digital twin technologies and IoT solutions for water management. These technologies enhance the accuracy and effectiveness of water distribution networks, reducing operational costs and energy consumption. As municipalities and private sectors invest in digitization, there is a growing demand for data-driven decision-making tools that can optimize water treatment processes, improve leak detection, and enhance overall service delivery. Recent trends show an increasing collaboration among stakeholders, including technology firms, government agencies, and utility companies, to create innovative solutions tailored to regional water challenges.There is also heightened awareness and commitment to sustainability practices among consumers, leading to greater acceptance of digital solutions. Furthermore, advances in artificial intelligence are facilitating smarter water management, offering promising avenues for growth in this sector. Collectively, these trends and opportunities reflect the evolving landscape of the US Digital Water Solutions Market, as stakeholders prioritize sustainable, efficient, and technology-driven approaches to water management.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Digital Water Solutions Market Drivers

Government Regulations and Initiatives

In the United States, government regulations and initiatives focusing on water quality and sustainability have significantly boosted the US Digital Water Solutions Market Industry. The Environmental Protection Agency (EPA) has established several standards aimed at improving water infrastructure and reducing waste. For instance, the Bipartisan Infrastructure Law, enacted in 2021, allocates approximately 55 billion USD towards modernization of the nation’s drinking water, stormwater, and wastewater systems.This substantial investment is aimed at addressing aging infrastructure and enhancing clean water access, which is anticipated to drive adoption of digital water solutions that leverage advanced technologies like Internet of Things (IoT) and data analytics, crucial for monitoring and managing water resources effectively. This increased funding aligns with the need for innovative solutions that can adapt to the challenges posed by climate change, thereby expanding opportunities for firms specializing in digital water technologies.

Growing Urbanization and Population Growth

Rapid urbanization and population growth in the United States is a significant driver for the US Digital Water Solutions Market Industry. The U.S. Census Bureau reported that by 2020, urban areas held approximately 83% of the U.S. population, with projections indicating an increase to around 89% by 2030. This shift places immense pressure on water resources and necessitates smarter water management solutions. As cities expand, the need for efficient water supply, sewage treatment, and leak detection become critical.Digital water solutions, equipped with technologies such as remote sensing and smart meters, can help municipalities optimize water distribution and reduce losses. Thus, urbanization accelerates the demand for integrated digital solutions that improve efficiency and sustainability in water management.

Advancements in Water Technology

Technological advancements are playing a crucial role in propelling the US Digital Water Solutions Market Industry forward. Innovations such as real-time monitoring systems, predictive analytics, and artificial intelligence (AI) are revolutionizing how water is managed in the United States. According to the Water Research Foundation, investment in water technology innovations has been steadily increasing, with many utilities adopting new technologies to enhance operational efficiency.For instance, implementation of smart water technologies has led to a reduction in non-revenue water by up to 30%, according to some case studies. The ability of digital solutions to provide actionable insights can significantly help water utilities in managing resources more effectively and enhancing service reliability.

US Digital Water Solutions Market Segment Insights:

Digital Water Solutions Market Technology Insights

 

The US Digital Water Solutions Market, particularly within the Technology segment, demonstrates a dynamic landscape driven by the need for efficient water management solutions in response to increasing demand for water sustainability. This segment encompasses several pivotal elements including Metering and Customer Management, Network Management, Work and Asset Management, Plant Management, and Information Management, each contributing to optimized operations in water distribution and treatment processes. Metering and Customer Management are crucial as they enhance revenue collection and foster consumer engagement, allowing utilities to gauge demand accurately and implement dynamic pricing strategies.Network Management utilizes advanced technologies to monitor and control water distribution systems, ensuring reduced leakage and improved service reliability. This aspect is increasingly important as aging infrastructure poses significant challenges to water utilities in the US. Similarly, Work and Asset Management tools play an essential role by streamlining processes, thus enabling efficient maintenance and operation of assets, thereby extending their lifecycle and reducing operational costs. Plant Management focuses on optimizing the treatment processes which are vital for ensuring the delivery of safe and clean water to consumers.Information Management further enhances these capabilities by providing analytics and insights extracted from large sets of operational data; this is where big data and machine learning come into play, helping utilities make informed decisions for long-term strategy and regulatory compliance. The integration of these technologies addresses growing concerns over water scarcity and infrastructure degradation while aligning with environmental regulations and sustainability goals set forth by various federal and state initiatives. As the US Digital Water Solutions Market continues to evolve, the implementation of digital technologies stands as a vital driver for addressing contemporary challenges faced by the water sector, paving the way for more intelligent, responsive, and sustainable water management practices.

 

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Digital Water Solutions Market Solution Type Insights

 

The US Digital Water Solutions Market exhibits a notable division across Solution Types, comprising Hardware, Software, and Services, each playing a crucial role in the sector's evolution. The increasing demand for efficient water management spurs advancements in Hardware solutions, which are vital for monitoring and controlling water systems. Software solutions are gaining traction as they offer analytics and real-time data visualization, helping utilities in decision-making processes to optimize resource allocation and improve service delivery.Meanwhile, Services related to digital water solutions, such as system integration and support, are essential for ensuring that these technologies are implemented and maintained effectively. This focus on comprehensive service offerings aids organizations in navigating challenges like outdated infrastructure and regulatory compliance. The convergence of these elements within the US Digital Water Solutions Market significantly boosts operational efficiencies while fostering sustainable water practices, as stakeholders increasingly recognize the importance of data-driven strategies in addressing modern water management issues.With a robust infrastructure in place, opportunities for innovation around these Solution Types continue to expand, further strengthening the market's position as a key player in the broader water sector.

Digital Water Solutions Market Utility Tier Insights

 

The Utility Tier within the US Digital Water Solutions Market showcases a vital component in optimizing water utility management through advanced technologies. This tier includes various levels of digital solutions tailored to enhance operational efficiency, drive water conservation, and improve customer engagement. The growing demand for smart water management systems and real-time data analytics highlight the necessity for robust digital solutions across all utility levels. With Tier 1 focusing on foundational technologies, it serves as the backbone for enhancing utility operations.Meanwhile, Tier 2 emphasizes integrated systems that allow for better resource allocation and system monitoring, facilitating improved decision-making for utilities. Lastly, Tier 3 leverages predictive analytics and advanced data utilization, offering significant insights that lead to substantial operational performance improvements. The convergence of these tiers addresses numerous challenges such as aging infrastructure, regulatory compliance, and the need for sustainable water management practices, presenting ample opportunities for growth in the market.As the US federal and state governments continue to promote funding for digital transformation in water management, the Utility Tier stands poised to play a critical role in shaping the future of water solutions in urban and rural settings alike.

US Digital Water Solutions Market Key Players and Competitive Insights:

The US Digital Water Solutions Market is rapidly evolving, driven by advancements in technology and the increasing need for sustainable water management solutions. As stakeholders, including utilities, municipalities, and private enterprises, seek more efficient ways to manage water resources, the market has attracted a diverse range of players. These companies leverage innovative technologies such as cloud computing, Internet of Things (IoT), and data analytics to improve water management systems. Competitive insights into this market reveal trends in product development, strategic partnerships, and market entry strategies that shape how companies operate. Companies are not only investing in cutting-edge technologies but also focusing on customer-centric approaches to differentiate themselves in a dynamic marketplace. Understanding these competitive dynamics is crucial for market participants to identify opportunities and mitigate challenges in this burgeoning sector.Sensus stands out in the US Digital Water Solutions Market as a leading provider of advanced metering infrastructure and smart water solutions. With a robust portfolio of products designed to enhance operational efficiency and customer engagement, Sensus focuses on delivering solutions that enable utilities to gain real-time insights into their water systems. The company's strengths lie in its innovative technology that integrates IoT capabilities, enabling improved data collection and management for water utilities. Sensus has cultivated a strong presence in the market through strategic partnerships and collaborations, which have not only expanded its reach but also enhanced its technological prowess. By addressing the challenges of water scarcity and regulatory compliance faced by utilities, Sensus continues to play a vital role in driving the digital transformation of water management in the United States.Oracle has firmly established itself within the US Digital Water Solutions Market by offering comprehensive software solutions that address the unique needs of water utilities. The company delivers a suite of products focused on enterprise resource planning, data management, and customer relationship management, specifically tailored for water operations. Oracle's strengths include its extensive experience in the IT sector, allowing it to provide integrated solutions that improve operational efficiencies and customer service for utilities. The company has made significant inroads in the market through strategic mergers and acquisitions, enhancing its capabilities and expanding its service offerings. By combining advanced analytics with its existing infrastructure, Oracle empowers water utilities to utilize data-driven decision-making and optimize their operations effectively. With an emphasis on innovation and customer satisfaction, Oracle's approach positions it as a key player in transforming the digital landscape of the water solutions market in the United States.

Key Companies in the US Digital Water Solutions Market Include:

Sensus

Oracle

Gartner

Xylem

Cisco

MWH Global

IBM

Pentair

Aqueduct

Black and Veatch

Stantec

Emerson

Honeywell

Siemens

Schneider Electric

US Digital Water Solutions Market Industry Developments

Recent developments in the US Digital Water Solutions Market have been significant, particularly with companies such as Sensus, Oracle, and Xylem leading innovations in smart water management tools and analytics. In September 2023, Xylem announced a partnership with Siemens to enhance the integration of digital solutions into water infrastructure, aiming to improve efficiency in water usage. Additionally, MWH Global has been focusing on sustainability initiatives in collaboration with Black and Veatch to address the growing challenges of water scarcity and quality. Current affairs reveal a marked increase in investment in digital solutions with IBM and Schneider Electric exploring advanced data management and analytics technologies to optimize water resources. In terms of mergers and acquisitions, there were notable moves in July 2023 when Pentair acquired a digital water management software firm to expand its offerings. The market valuation of these companies has surged due to increasing demand for smart water systems, with the US Environmental Protection Agency promoting digital transformation in water utilities to combat infrastructure challenges. In recent years, major players have witnessed growth from significant technology advancements aimed at improving water monitoring and management.

US Digital Water Solutions Market Segmentation Insights

Digital Water Solutions Market Technology Outlook

Metering & Customer Management

Network Management

Work & Asset Management

Plant Management

Information Management

Digital Water Solutions Market Solution Type Outlook

Hardware

Software

Services

Digital Water Solutions Market Utility Tier Outlook

Tier 1

Tier 2

Tier 3

 

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	225.4(USD Million)
MARKET SIZE 2024	250.0(USD Million)
MARKET SIZE 2035	1050.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.935% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	Sensus, Oracle, Gartner, Xylem, Cisco, MWH Global, IBM, Pentair, Aqueduct, Black and Veatch, Stantec, Emerson, Honeywell, Siemens, Schneider Electric
SEGMENTS COVERED	Technology, Solution Type, Utility Tier
KEY MARKET OPPORTUNITIES	Smart metering technology integration, AI-driven predictive analytics, IoT for remote monitoring, Cloud-based data management solutions, Sustainable water conservation initiatives
KEY MARKET DYNAMICS	growing water scarcity, increasing regulatory pressures, advanced data analytics adoption, rising investment in infrastructure, focus on sustainability initiatives
COUNTRIES COVERED	US