Smart water grids are double-way distribution networks, which comprises intelligent monitoring and response systems that depend on real-time information, Internet of Things (IoT) technology-driven devices, and sensors.
Some of the IoT devices deployed include smart water meters, which have proven beneficial in checking the water pressure, temperature, flow, and quality.
Rising need to replace older electrical grid systems with growing limitations has driven the growth in the global smart water grid market.
Also, rising awareness about the environmental effects caused by increased fossil fuel deployment at power stations and the increasing need to decrease the carbon footprint could fuel the demand for renewable energy sources in future, which would, in turn, contribute to the growth of the smart water grid market.
Smart water grids have proven beneficial for consumers to control water distribution and as result, could witness higher demand, in the years ahead.
Improved Consistency, Reliability in Power Supply Could Fuel the Demand for Smart Water Grids in Future
Smart water grid systems have shown improved consistency and reliability in electricity supply through the decrease in power leakages. These systems have also shown the capability of self-repair.
These product features are expected to fuel product demand and propel the overall smart water grid market. The deployment of smart water grids is also anticipated to offer smooth and secure power flow to different industries in future.
Innovations to existing products could help improve the technology used to check temperatures and these products could witness increased product demand and contribute to the growth of the global smart water grid market.
Government initiatives and measures, promoting the benefits of deploying smart water grid systems in a bid to reduce the global warming effects could help bolster product demand and fuel the growth in the global smart water grid market, in the years ahead.
Other factors such as rapid industrialization and digitalization especially in developing economies such as India could also propel the smart water grid demand, in future.
The outbreak of the COVID-19 pandemic negatively impacted the growth in the global smart water grid market. With industries closing down temporarily or permanently in a bid to contain the spread of the virus, the demand for smart grids reduced substantially, which led to reduced growth in the overall market.
While smart water grids have witnessed high demand in different industries, there are drawbacks that could impact the market growth, in future.
High Innovation Costs Could Dent the Growth in the Global Smart Water Grid Market in Future
Smart water grids have witnessed an increased demand predominantly among large-scale public and private enterprises. The lack of demand among the smaller entities which do not receive the large funding and cannot incur huge capital costs could negatively impact the growth in the global smart water grid market.
In some cases, the deployment of smart water grids can be restricted to only certain application areas. As a result, these grids will need to be integrated with novel technologies in a bid to meet the new requirements. However, the technological advancements to improve the quality of smart water grids can incur high costs, which cannot be afforded by all market players.
This could lead to manufacturers looking for suitable alternatives which are cost-effective in nature which could affect the smart water grid demand, in the coming years.
Collaboration with Smaller Players Could Help Leading Smart Water Grid Market Players Expand their Market Presence
Well-established market players could collaborate with smaller players in a bid to expand their market presence and increase their revenue shares.
Leading France-based market player Schneider Electric, in March 2021, signed a collaborative agreement with SUEZ to develop new, innovative digital water solutions which would assist municipal water operators and leading industrial players hasten their digital transformation practices.
R&D undertakings to produce improved quality of products could be a key growth strategy for leading smart water grid market players, in future.