digital water october...this new digital water landscape. through ongoing analysis of key trends,...

ADVANCING WATER STRATEGIESDIGITAL WATER INSIGHT SERVICE

DIGITALWATER

Enablingsuccessfulstrategiesinasmarterwatermarketlandscape

DIGITAL WATER INSIGHT SERVICE

DIGITALWATER:EnablingSuccessfulStrategiesinaSmarterWaterMarketLandscape

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The water industry is going digital and the impacts are far-reaching– influencing operations, maintenance, and capital investments from pipe networks to water quality monitoring. Driving this trend are rising water rates, aging infrastructure, and overall water stress. Municipal utilities are seeking ways to reduce water loss and improve efficiencies.

As the leading experts on water market analysis, Bluefield Research has launched a new Digital Water Insight service – the latest addition to our suite of annual subscriptions – to help navigate this new digital water landscape.

Through ongoing analysis of key trends, technologies, market drivers and opportunities, as well as access to our team of water market experts, our Digital Water Insight service enables successful strategies shaping the future of water.

Bluefield’s Digital Water Insight service will help you: • Understand and anticipate water market

shifts. Which technologies will make the most impact?

• Evaluate company strategies and evolving business models. Which companies are ripe for acquisition?

• Forecast and size different aspects of the market to identify relevant opportunities. How are data and and analytics solutions being deployed across the municipal water sector?

• Anticipate the biggest game-changers across municipal water. Which technology segments and business models stand out as the fastest growth opportunities?

It doesn’t matter what you call it: the Digitization of Water, Digital Water, Smart Water, Water IoT, or Big Data for Water. It applies to using data-driven solutions to solve age

old infrastructure problems – options that were unavailable 10 years ago.” –Steph Aldock, Bluefield Research

digital WATER



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The water sector can no longer sustain itself in isolation from the technological shifts taking place in other critical infrastructure verticals, affecting both the customer and operator levels. These changes stem from a multitude of data driven innovations.

Bluefield Research has identified eight key trends that build on these themes and will continue to push advanced, data-driven solutions to the industry forefront:

1. Private Equity Sees Opportunity In Smart Water… tracking flow of venture and private equity capital entering the market segment.

2. Project Finance Gets Smarter… innovations in financing structure increase the focus on performance, which encourages adoption of smart water technologies.

3. Asset Management Becomes Key Focus… from multiple angles (e.g. leak detection, network management, workflow management), solutions providers are look to raise profile of data in asset-centric decision-making.

4. Artificial Intelligence at the Core… machine-learning techniques at the core of multiple firms’ offerings, enhancing opportunities for predictive insights.

5. Stormwater at Resilience Ground Zero… real-time control solutions for smarter stormwater management which present an opportunity to avoid heavy CAPEX spending and maximize the use of existing assets.

6. Cybersecurity Increases in Priority… utilities’ move into the cloud, cybersecurity is becoming a key priority with the European Union developing standards and IT departments increasing focus.

7. Convergence of Infrastructure Communications… emerging communications protocols (e.g. LoRa, NB-IoT) have the potential to improve the economics of smart metering, network monitoring strategies.

8. Smart Technologies to Play Key Role in Utility of The Future… utilities must meet rising expectations of digitally-savvy customers.

Mapping the Maturity of Asset Management Programs

“Globally, the water industry has embarked on a journey toward digital transformation. As OT applications are extending further afield onto distribution and

collection networks, the historical divide between IT software is increasingly blurred.”-Will Maize, Bluefield Research

key THEMES

Denmark

Mat

urity

of A

sset

M

anag

emen

t Pro

gram

sLe

ss M

atur

eM

ore

Mat

ure

Regulatory Pressure

Regulation and Market Structure

Lack of Regulatory Pressure

United Kingdom

United States

Germany

Canada

Chile

Australia

France

Spain

Since the U.K. sector was privatized in 1991, water regulator Ofwat has steadily increased the regulatory complexity required by water service companies. The sector is currently preparing for the 2019 price review, set to establish the investment levels over the seventh, 5-year asset management planning period.

Emerging regulatory pressure in Canada is being supported by grant funding, burgeoning focus on long-term asset management planning in the country. Fellow Commonwealth countries Australia and New Zealand, and water scarce Israel are also hot spots for advanced asset management. Australia’s asset management planning cycles most closely mimic the U.K. market.In the U.S., the lack of consistent, centralized asset

management standards (and related regulatory pressures) means that strategic asset investment tools have been deployed on a state-by-state basis, driven by local utility needs. Early adopter states in water loss regulation (e.g. California, Georgia, Tennessee) are being pushed by Michigan and New Jersey in mandating strategic asset management planning.

Cost recovery mechanisms ensure that asset management remains top of mind for European utilities, but countries demand for strategic asset management solutions varies depending on technical maturity and appetite for innovation.

Singapore



• Hardware, software, data & analytics - Customer management (e.g. metering, billing) - Distribution network intelligence- Collection system monitoring- Asset intelligence- Communications protocols - Artificial intelligence- Internet-of-things- Cyber-security

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Digital Water Insight Service

Technology Trends• State, local policies driving change• Smart city initiatives• Water conservation measures on municipal &

industrials• Funding mechanisms targeting utility, industrial pain-

points• Innovations in project finance

Regulations & Finance• Utility adoption rates and trends• Early adopter strategies• Smart water system deployment case studies• Performance tracking, benchmarking• Technology business cases & ROI• Utility key performance metrics

The Utility Journey

• Software-as-a-Service• Managed-Service• Data-as-a-Service• DMA Leak Detection-as-a-Service• Infrastructure-as-a-Service• Smart Metering-as-a-Service• Consulting/software hybrid• Capital vs. Operations focus

Business Models

• Global project activity & trends• Mergers & acquisitions impacting landscape• Strategic partnerships• Venture capital investments• Private equity investments

Projects, Partnership, Venture Funding

• M&A trends as traditional equipment providers build-out digital water strategies

• Value chain shifts and impacts• Product portfolio and positioning• Company profiles and company strategies

Competitive Landscape

Global Industrial Water and Municipal Water

Bluefield’s team of water experts are tracking the critical factors reshaping the municipal and industrial infrastructure landscapes in a

more data-driven world.

research FOCUS



Mapping utilities’ positions along the adoption curve with...

• In-depth analysis of utility silos and impact of digital water solutions within the organization’s hierarchy.

• Understanding of vendor applications within the utility landscape.

• Comparisons of utility strategies and demonstrated solutions to advanced its digital footprint.

Source: Bluefield Research

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Establish data feeds through improved network monitoring to facilitate management.

Unify data feeds on common platform to enhance management activities.

Multi-siloed analysis enabled by data integration, correlation. Marks a shift towards predictive and prescriptive analytics, proactive and reliability-centered maintenance regimes.

Situational Awareness

Data Integration / Descriptive Analytics

Diagnostic Analytics

Predictive, Prescriptive Analytics and Management

Instrumentation / Sectorization

Smart Metering

SCADAIntegration

EventManagement

Work OrderManagement

NetworkManagement

Strategic AssetManagement

Geospatial & Hydraulic Models

Utility Data Silos

Tact

ical

Ass

et

Man

agem

ent

Stra

tegi

c As

set

Man

agem

ent

Cor

e As

set

Man

agem

ent

Framing the Utility Landscape for Advanced Technology Adoption

Tracking utilities’ journey toward strategic asset management highlights their situational awareness and fit for the next phase of enhanced asset

management, including data driven hardware and software solutions.

utility JOURNEY



Benchmarking utilities’ digital water potential with...

• Key performance indicator (KPI) analysis to determine utility pain-points, position along the adoption curve.

• System and operating characteristics to empirically measure potential market opportunities for vendors.

• Data-backed guidance to determine next phases of growth in the digital journey.


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Tracking Utilities’ Key Performance Indicators

Utility system and operating metrics represent the baseline from which vendors map out their strategic decisions for market entry, product portfolio expansion,

and partnerships.

utility METRICS

Cairns Coliban

P&W—Darwin

Redland City

Townsville Water

Barwon City West

Gold Coast City

Hunter Icon

SA Water

South East

Sydney Water

Unitywater

WC—Perth

Yarra Valley

Coffs Harbour Fitzroy River Water

Gladstone

GWMWater

Lower Murray Water

Mackay

MidCoast Port Macquarie

Tamworth

Wide Bay Water Aqwest—Bunbury

Byron Shire

Cassowary Coast

Central Highlands

Gympie Regional

Westernport Water0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Infra

stru

ctur

e Le

akag

e In

dex

Real Losses (m³/km/day)

Legend:Size of Bubble = Network Size

For comparison:• Cassowary Coast (819 km)• Townsville Water (2,594 km)• South East Water (9,961 km)• Sydney Water (22,657 km)



Monitoring trends in utility decisions that...

• Signal the convergence of data & analytics platforms across departmental siloes.

• Demonstrate technology developments in the internet-of-things (IoT) and cloud computing, which have ushered in new concepts.

• Indicate vendors– active in other critical infrastructure sectors– expanding towards network and asset management as extensions of their core value offering.


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Platform Convergence within Municipal Utilities

Utilities’ technical staff must operate at the confluence of operations (OT) and information technologies (IT), managing a variety of procurement requests

influenced by department function, incentives, and targets.

Smart Water

Platform

Operations Management Platforms

Geo

-Spa

tial (

GIS

) / H

ydra

ulic

M

odel

ling

Plat

form

s

SCA

DA

Platform

s

Industrial Internet-of-Things Platforms

platform CONVERGENCE



Support a range of companies with inputs on...

• Value chain positioning and emerging trends.

• Competitive benchmarking and growth strategies.

• M&A prospects and activity by geography.

• Regional footprints, channels to market, and portfolio strategies.

• Capital structures, partnerships, and position along the growth curve

Companies Repositioning Across The Value Chain


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Mapping the digital water value chain demonstrates an increasingly competitive marketplace, heightening the need for a detailed understanding of

strategies and positioning of peer companies.

business MODELS

Communication companies bridge data collection and analytics gap with M2M solutions – mobile & cellular connectivity. Proprietary solutions, and low power wide area networks position for nascent IoT business models

Enterprise software companies with established utility and commercial presence

Fragmented, burgeoning group of software and analytics companies

targeting entire supply chain, diversified players monitor acquisition targets to scale

Building on control system, automation, offer smart water applications,

network management

Consolidated group, meter companies position as the prerequisite to smart water networks, adjusting strategies with downstream applications, acquisitions and partnerships to gain differentiation

Consultancies position themselves as smart

technology integrators tying components together with

global, smart city approach

Water quality and monitoring hardware solutions

Meter Reading Data Transmission Meter Management Data Processing Billing Customer ManagementNetwork Management

Hardware Communications & Controls Software & Analysis



Guide companies with in-depth analysis of...

• Market drivers & inhibitors for technology adoption.

• Localized decisions shaping digital water investment–utilities, investors.

• Supply-side influences on outlook for deployment.

• Growth markets and sectors to consider in strategic decisions.


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Trending Value Utility Assets Under Management

The addressable market for digital water, wastewater, and stormwater assets is valued at US$2.9 trillion, currently providing critical infrastructure services to

over 822 million people in 31 countries.

sizing MARKETS

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Asse

ts U

nder

Man

agem

ent (

trillio

n U

SD)

United States European Union 28 Canada Australia



critical INSIGHTS

GLO

BAL

MARKETS

• U.S. Smart Water: Defining the Opportunity, Competitive Landscape, and Market Outlook

• Ofwat Challenges UK Water Utilities to Evolve

• Smart Water Down Under: Australia Water Utilities Deploy Advanced Technologies

• Advanced Asset Management for Municipal Water: Global Trends & Strategies, 2018 –2027

• Global Smart Water Trends (AquatechMexico)

• Global Smart Water: Market Trends, Competitive Shifts, & Project Activity

• Itron Seeks Smart Water Growth at the Silver Spring

• Europe Smart Water: Market Forecasts & Utility Strategies

• Maximizing Operational Resilience

• Venture Capital in Water: Key Transactions and Trends

Bluefield’s DIGITAL WATER INSIGHTS provide rich data, in-depth analysis, and industry metrics in key water market segments, globally.

Clients receive the most out of Bluefield reports with added value, including:

• a full set of PDF, PPT

• access to key data inputs and outputs in XLS files

• analyst support to provide clarification, address specific questions following purchase

RECENT ANALYSIS

REG

ION

AL

COMPANIES

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• Comcast, Telecoms Fortifying Positions Across Water IoT Battleground

• Regulatory Review: Beast from the East Exposes Vulnerability of UK Water System

• XPV Increases Exposure to Digital Water with Metasphere Buyout

• Jain adds ETWater, Reaffirms Digital Strategy

• Xylem Smart Water Strategy Breakdown: The Creation of a Market Leading Portfolio

• Innvoyze Strategy Breakdown: The Growth of a Smart Water Pure Play

INSIGHT SERVICE

DIGITAL WATER INSIGHT SERVICE ADVANCING WATER STRATEGIES

INSIGHT REPORTS INSIGHT SERVICES CONSULTING

Advanced Asset Management for Municipal Water: Global Trends & Strategies, 2018 – 2027. Smarter, more advanced asset management strategies will save water utilities US$41.9 billion in capital expenditures by 2027…

Fracta AI Takeover Maps Kurita’s Water Future. The Fracta investment reaffirms Kurita’s for water technology innovation in the U.S…

Xylem Smart Water Strategy Breakdown: The Creation of a Market Leading Portfolio. Xylem eyes nascent developments around smart infrastructure and data analytics as key catalysts for future growth opportunities…

INSIGHT SERVICE OFFERINGAnnual membership providing a steady stream of deliverables and analyst advice:

MARKET & DATA INSIGHT REPORTS– deliverables covering unique market segments, providing rich data, and market analysis.

COMPANY INSIGHTS– strategy breakdowns of key market leaders, including growth, acquisitions, opportunities and competitors.

FOCUS REPORTS– Deep-dive analyses of markets, competitive trends, and growth drivers.

MARKET FORECASTS– data-backed outlooks of the municipal infrastructure market segments, including methodology, drivers, sub-segments, and geographies.

RESEARCH NOTES– executive intelligence briefings on relevant market and competitive developments.

ANALYST SUPPORT– Dedicated analysts on-call to meet client enquiries, review forecast methodologies, or clarify proprietary data and analysis.

CONTACT BLUEFIELD

NORTH AMERICA192 South St. // Suite 550Boston, MA 02111United StatesT +1 617 910 2540

EUROPECarrer de Sant Joan de la Salle 42Edifici Technova, 2.1208022 Barcelona, SpainT +34 93 681 4325

[email protected]

Digital WaterINSIGHT SERVICE

Featured Research

CLIENT FOCUS: designed for utilities, technology vendors, EPCs and investors deploying advanced data & analytics solutions across the range of water sectors, supporting:

• Strategy directors seeking in-depth understanding of market drivers and utility benchmarks.

• Business development teams requiring utility benchmarks to evaluate addressable markets and customer profiles.

• Technology firms and investors determining new markets for growth across water utility value chain.

RESEARCH COVERAGE: a 12-month cycle of data and analysis research provided in multiple formats, covering:

• Geographic and segment forecasts by capital expenditures.• Technology adoption and signals for broader market growth by

technology and communication protocol.• Competitive positioning of solutions providers through

partnerships, acquisitions, and market entry. • Project developments indicating momentum and future growth for

smart technologies.

METRICS: primary research and analysis is supported by proprietary market, project and company databases:

• Market forecasts• Global smart water projects• Utility key performance indicators• M&A deal-flow• Venture capital investment


DIGITALWATER:Enablingsuccessfulstrategiesinasmarterwatermarketlandscape

Global companies across the value chain are developing strategies to capitalize on greenfield opportunities in water − new build, new business models, and private investment. Bluefield Research supports a growing roster of companies across key technology segments and industry verticals addressing risks and opportunities in the new water landscape.

Companies are turning to Bluefield for in-depth, actionable intelligence into the water sector and the sector's impacts on key industries. The insights draw on primary research from the water, energy, power, mining, agriculture, financial sectors and their respective supply chains.

Bluefield works with key decision-makers at utilities, project development companies, independent water and power providers, EPC companies, technology suppliers, manufacturers, and investment firms, giving them tools to define and execute strategies.

NORTH AMERICA192 South Street // Suite 550Boston, MA 02111T +1 617 910 2540

EUROPECarrer de Sant Joan de la Salle 42Edifici Technova, 2.1208022 Barcelona, SpainT +34 93 681 4325

[email protected]

Contact Bluefield Research

DIGITAL WATER INSIGHT SERVICE ADVANCING WATER STRATEGIES

digital water october...this new digital water landscape. through ongoing analysis of key trends,...

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