The market for residential smart water meters is expected to grow at a CAGR of 6.6 percent globally, reaching $5.5 billion USD by 2033, according to a new report from Guidehouse Insights. The global value of the smart water meter market is expected to be $3.1 billion USD in 2024.

Smart metering technology measures and records water usage in real-time. They do not require manual reading and are therefore considered more accurate than traditional water meters that require manual reading. The smart meters automatically transmit reading to water utilities for billing and analysis. Smart meters typically provide a way for consumers to monitor their water usage.

“Smart water meter technology has increasingly appealed to water utilities looking to reduce costs and manage water usage as the demand for water conservation rises,” said Bitania Yemane, research analyst with Guidehouse Insights, in a press release. “The AI-powered platforms are reshaping how meter technology is quickly and effectively processing data collection for billing, while identifying potential issues.”

A rising demand in water conservation is driving the market for smart water meters as shifting climate patterns result in water scarcity and severe droughts in arid regions. Barriers to smart water meters adoption include privacy and security issues and high initial investment costs, but the report stated that urbanization and emerging automatic meter reading (AMR) and advanced metering infrastructure (AMI) solutions will drive the market over the next decade. The report did warn that industry players wanting to increase adoption must implement strong security measures while investing in high end communication networks.

The report, Residential Smart Water Meters, analyzes the global market for smart water meters, segmented by two product types: AMR and AMI. It provides an analysis of the market issues, including business cases, opportunities, and implementation challenges, associated with smart water meters. Global market analyses for revenue, broken out by segment and region, extend through 2033.