USA Water Metering Market Outlook to 2030

USA Water Metering Market Overview

• The USA water metering market, valued at USD 23 Mn units in 2023, is driven by increasing urbanization and the necessity for efficient water management. The market has seen significant growth due to the adoption of advanced metering infrastructure (AMI) systems that offer real-time data collection and remote monitoring.

• Major players in the market include Badger Meter Inc., Itron Inc., Sensus USA Inc., Neptune Technology Group Inc., and Mueller Systems LLC. These companies have established a strong foothold in the market by offering a wide range of products, including smart meters, which provide enhanced data accuracy and operational efficiency. Their dominance is attributed to their robust distribution networks and continuous technological innovations.
• In 2023, Itron Inc. announced the successful deployment of advanced water meters in California, as part of a state initiative to improve water usage efficiency. This deployment is expected to help utilities better manage water resources and reduce consumption by providing customers with detailed usage data. The project is part of a broader trend towards digital water management solutions in the U.S., indicating a shift towards smart infrastructure.
• The cities of Los Angeles, New York, and Chicago dominate the market due to their large urban populations and the high demand for efficient water management solutions. Los Angeles leads the market, driven by its ongoing efforts to tackle water scarcity through advanced metering systems. New York's extensive infrastructure modernization projects and Chicago's focus on reducing non-revenue water also contribute to their significant market shares.

USA Water Metering Market Segmentation

The USA Water Metering Market can be segmented based on several factors:

• By Product Type: USA water metering market segmentation by product type is divided into smart water meters, mechanical water meters and electromagnetic water meters. In 2023, smart water meters dominated the market. Their adoption is driven by the need for accurate, real-time water usage data, leak detection, and integration into smart city initiatives, making them essential for water conservation and efficient management.

• By End User: USA water metering market segmentation by end user is divided into residential, commercial and industrial. In 2023, the residential sector dominated the metering market. This is driven by the rising demand for water conservation, accurate billing, and the increasing adoption of smart meters in homes, supported by utility companies' efforts to enhance efficiency and sustainability.

• By Region: USA water metering market segmentation by region is divided into north, south, east and west. In 2023, the Western region dominated the market share due to its acute water scarcity issues and the stringent water management policies in states like California and Nevada. The adoption of advanced water metering systems is critical in these areas to monitor and reduce water usage. The focus on sustainable water management practices and the presence of key market players further solidifies the West region's leading position in the market.

USA Water Metering Market Competitive Landscape

• Mueller Systems to Deploy NaaS AMI System: In August 2023, Mueller Systems announced that the City of South Daytona, Florida, will soon implement its Network as a Service (NaaS) AMI system with LoRaWAN technology. This deployment will allow South Daytona to gather and monitor customer water consumption data more efficiently in real-time. Mueller highlighted that the LoRaWAN endpoint enables immediate on-demand reads and rapid communication, offering near real-time access to customer service and operations data, which aids in quicker leak detection and billing issue resolution.
• Honeywell Introduces Next-Generation Cellular Module: In May 2023, Honeywell International Inc. launched its next-generation cellular module, designed to enhance advanced metering infrastructure by upgrading legacy water meters to smart meters without requiring additional infrastructure. This innovation is expected to significantly boost Honeywell's market presence and brand recognition in the water metering industry.

USA Water Metering Industry Analysis

Growth Drivers

• Increasing Water Infrastructure Investments: In 2024, the U.S. federal government allocated $10 billion towards improving water infrastructure as part of the Infrastructure Investment and Jobs Act. This funding, distributed across various states, aims to modernize aging water systems, including the implementation of smart water meters. The investment is expected to significantly boost the adoption of advanced metering technologies, especially in states like California and Texas, where water management is a critical issue.
• Stringent Water Conservation Regulations: States such as California and Nevada have implemented stringent water conservation regulations in response to ongoing drought conditions. In 2023, California's Water Conservation Act required the installation of water meters for all new residential and commercial buildings, driving demand for both mechanical and smart water meters. These regulations are designed to reduce water wastage and ensure efficient water usage, with heavy penalties for non-compliance.
• Rise in Smart City Initiatives: The U.S. government, along with state governments, has been increasingly supporting smart city initiatives that integrate advanced technologies into urban infrastructure. In 2024, the city of Chicago received $150 million in federal and state funding to implement smart city technologies, including smart water meters, as part of its broader initiative to reduce water wastage and improve urban living conditions.

Market Challenges

• High Initial Costs in Advanced Metering Infrastructure: The significant upfront costs associated with deploying Advanced Metering Infrastructure (AMI) systems present a major challenge for the U.S. water metering market. The expenses involved in installing smart water meters, including integration and installation, pose a financial burden, particularly for large-scale deployments in major cities. This financial barrier often restricts the adoption of smart meters, especially in smaller towns and less affluent areas.
• Interoperability Challenges with Legacy Systems: Many U.S. water utilities encounter difficulties when integrating new smart water meters with their existing legacy systems. A significant portion of utilities struggles with achieving seamless compatibility between modern metering technologies and older infrastructure. This issue is particularly pronounced in regions with outdated systems that require substantial upgrades, leading to delays in implementation and increased operational costs.

Government Initiatives

• WaterSMART (Sustain and Manage Americas Resources for Tomorrow) Program: In 2023, the Bureau of Reclamation indeed announced funding opportunities as part of the WaterSMART program. Specifically, on August 7, 2023, they published a funding opportunity for Phase I of the WaterSMART Cooperative Watershed Management Program. This phase involves various activities related to watershed management and restoration. This initiative is aimed at reducing water wastage and improving the efficiency of water usage in both urban and rural areas, making it a significant driver for the water metering market.
• Build America Buy America (BABA) Waiver: As part of this initiative, a proposed BABA waiver was introduced to facilitate the procurement of AMI water meters. This waiver aims to support projects funded by both the Bureau of Reclamation and the Environmental Protection Agency (EPA) by allowing for a phased approach to domestic production requirements for these meters. The act is expected to drive significant demand for water meters in the state, particularly in urban areas.

USA Water Metering Future Market Outlook

The USA Water Metering Market is expected to show significant growth by 2028 driven by technological advancements, regulatory mandates, and increasing investments in water infrastructure. By 2028, the market is projected to see widespread adoption of smart water meters, particularly in urban areas where water conservation is a critical concern. The integration of IoT and AI technologies into water metering systems will further enhance the accuracy and efficiency of water management, reducing non-revenue water losses and improving the overall sustainability of water resources.

Future Market Trends

• Increased Integration of IoT in Water Metering: The future of the USA water metering market will see a significant increase in the integration of IoT technologies. This trend will enable utilities to monitor water usage in real-time, detect leaks instantly, and manage water resources more efficiently. IoT-enabled water meters will become more prevalent, especially in smart cities, contributing to more sustainable water management practices.
• Shift Towards AI-Driven Predictive Analytics: Over the next five years, there will be a growing trend towards the adoption of AI-driven predictive analytics in water metering. Utilities will increasingly use AI to analyze vast amounts of data collected from smart meters, allowing them to predict water demand, optimize resource allocation, and identify potential issues before they become critical. This shift will enhance the operational efficiency of water utilities and reduce costs associated with water management.