Over 20% of utilities‘ expenditures in digital infrastructure were spent for metering systems in 2024. Advanced equipment, including automatic meter reading and advanced metering infrastructure (AMI), enables utilities to optimize shrinking workforces, recover lost revenue, enhance customer engagement, and better manage underground assets.
“These advanced meters have evolved into powerful tools that provide real-time visibility into water networks,” according to Christine Ow, an analyst at Bluefield Research. “For utilities, they’re not just data points—they’re primary interfaces with residential, commercial, and industrial customers.”
Global Market Share for 20 leading water metering firms (Note: *2024 Global Metering Value includes hardware and software spend on automatic meter reading endpoints, advanced metering infrastructure endpoints, mechanical meters, static meters, meter data management, and customer engagement software; value is estimated from Bluefield’s latest North America and Europe digital water forecasts)
Source: Bluefield Research
The top 20 water metering vendors now account for 76% of the global market for hardware and software. Headlined by leading companies Sensus (a Xylem company), Badger Meter, and Neptune Technology Group, they are developing more robust portfolios spanning equipment, analytics, and services. Diversified players like Honeywell and Mueller Water Products are joining the market, though water metering comprises a smaller share of their overall business.
Software, AI, and the Rise of Digital Platforms
Vendors are moving beyond hardware, using advanced analytics and software platforms to help utilities detect leaks and forecast asset performance. These digital solutions offer higher margins, scalability, and position vendors as long-term technology partners. AI is starting to streamline installations, analyze water usage, and predict equipment failures—helping utilities move from reactive to proactive operations.
New Business Models Expand Access
Service-based models like network-as-a-service (NaaS) and metering-as-a-service (MaaS) are making smart metering more accessible, especially for smaller utilities, by reducing upfront costs. Retrofit technologies, such as meter interface units, are enabling legacy meters to connect to IoT networks like Amazon Sidewalk, extending smart metering to rural areas.
Policy: Both Driver and Challenge
Policy remains a key factor in smart meter deployment. Initiatives like Spain’s €3 billion PERTE and the U.K.’s AMP8 are accelerating adoption in Europe. In the U.S., federal funding is boosting the market, but tariffs and Build America, Buy America (BABA) rules complicate manufacturing. A temporary BABA waiver for AMI meters lasts through 2027, but long-term compliance will require more domestic sourcing.
“Smart meters are no longer just tools for data collection—they’re platforms that deliver deeper insights and system-wide visibility,” Ow adds. “As utilities move further into digitalization, they’re looking for future-ready systems that can grow with their needs.”
