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AI-based Platforms Transform the Global Water Sector, Finds Frost & Sullivan


News provided by

Frost & Sullivan

26 Jan, 2021, 13:02 GMT

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Technological advancements that require minimal maintenance or human interference become key value proposition differentiators in the water sector

SANTA CLARA, Calif., Jan. 26, 2021 /PRNewswire/ -- Frost & Sullivan's recent analysis, Digitalization Powering the Global Water Market, 2020, finds that smart sensors with advanced artificial intelligence (AI)- and machine learning (ML)-based data analytics platforms are on the rise in the global water sector as they require minimal maintenance or human interference. The COVID-19 pandemic has further highlighted the sector's technological need following supply chain disruptions and a labor shortage during lockdowns, which adversely impacted the growth of the water market globally. Due to the pandemic, the global water market  declined to $805.31 billion in 2020 from $947.89 billion in 2019. The market was projected to reach $1,014.54 billion in 2020, registering an impressive growth of 7%.

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For further information on this analysis, please visit: http://frost.ly/573

"The water market could witness more high-level consolidation of data analytics platforms in the water sector. Cellular communication technologies, such as narrowband Internet of Things (NB IoT) and long-term evolution for machines (LTE-M), could become key enablers of growth penetration and digital transformation," said Paul Hudson, Energy & Environment Research Analyst at Frost & Sullivan. "Going forward, the product-as-a-service business model would become the most subscribed among customers for its equal risk allocation and ability to provide high value to customers."

Hudson added: "Smart decentralized water and wastewater treatment solutions are disrupting the market significantly. Low OPEX and holistic economic sustainability have become key drivers that enable the growth of decentralized treatment systems. Value-add services and solutions such as decision and predictive intelligence, along with a smart product line and effectively leveraging e-commerce platforms, could improve customer relationships and increase loyalty. These features have gained precedence due to the pandemic."

Despite the pandemic's adverse impact on the global water sector, market participants can focus on the following growth prospects:

  • Hydration treatment systems market:
    • Filter-as-a-service: For price-sensitive customers, smart hydration treatment systems and solutions providers could offer the filter-as-a-service business model.
    • Flavor pack: To enhance customer relationships and brand loyalty, hydration treatment systems providers could add flavor and mineral packs as a value-add to their product line.
  • Municipal and industrial water and wastewater treatment systems market:
    • Smart operation: Market participants must embrace smart operation and AI-based virtual assistance platforms that can significantly reduce the OPEX cost of a treatment plant.
  • Irrigation systems and solutions market:
    • Investment/mergers and acquisitions (M&A): Smart irrigation solution providers should invest in research and development (R&D) or M&A to provide holistic smart irrigation solutions.
  • Bottled water hydration market:
    • Leading brands are introducing recycled PET bottles to reduce plastic waste generation. Startups are experimenting with degradable plastics and paper-based bottles. Products with sustainable packaging will be in high demand.

Digitalization Powering the Global Water Market, 2020 is the latest addition to Frost & Sullivan's Energy & Environment research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion

Digitalization Powering the Global Water Market, 2020

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Contact:
Jaylon Brinkley
P: +1 210 247 2481
E: Jaylon.Brinkley@frost.com
http://ww2.frost.com

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