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northeast group, llc Emerging Markets Smart Infrastructure: Smart Water September 2013 | www.northeastgroup.com
northeast group, llc
Emerging Markets Smart Infrastructure: Smart Water
September 2013 | www.northeast-‐group.com
© 2013 Northeast Group, LLC
Emerging Markets Smart Infrastructure: Smart Water
Water scarcity is a growing problem across the globe,
compounded by climate change and population
growth. All signs indicate that this scarcity will only
continue to grow more severe. Even as countries
scramble to build water treatment and desalination
plants and impose consumption restrictions,
emerging market nations are still on average losing
38% of their water due to leaks from crumbling
infrastructure and theft. A failure to accurately meter
and bill water on a timely basis is another
contributing factor. This lost water creates additional
needs for costly treatment plants, increases the
demand for energy from pumping stations, and puts
added stress on already strained communities and environments. Meanwhile, lost revenue from this water only
increases the need for government subsidies, which already are necessary to cover a significant portion of the
costs of water in many countries.
Smart water infrastructure will improve water sector efficiency by reducing leakage, waste, and theft. This smart
water infrastructure includes smart water meters, smart water networks, smart irrigation, and advanced water
software analytics used by utilities to improve their operations. These smart infrastructure components represent
cost-‐effective solutions that have already been deployed in many regions across the globe and show enormous
potential for growth in the coming decade. However, to-‐date smart water technologies have still been slow to be
adopted, even in developed countries. The hurdles for smart water in emerging market countries are in many
cases greater, but so are the opportunities.
This study covers the smart water infrastructure markets in 72 emerging market countries across Central &
Eastern Europe, China, Eurasia, India, Latin America, the Middle East & North Africa, Southeast Asia, and Sub-‐
Saharan Africa. A key component of this study’s methodology is the calculation of the savings potential in each
country from smart water infrastructure based on the “full cost of water.” The full cost of water is a metric that
takes into account water scarcity, water-‐related
energy and labor costs, as well as implicit and
explicit subsidies not captured by existing
tariffs. This study uses these savings potential
numbers as well as assessments of the political,
economic, and technical capacity of water
utilities in each country to forecast the smart
water markets in each country to 2023.
Financing remains the key hurdle to smart
water development in emerging market
countries. Even with strong business cases,
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© 2013 Northeast Group, LLC
many of these countries are too poor to make such
long-‐term investments without outside assistance.
The ones that are capable are often reluctant to do so
due to a lack of awareness and a tendency towards
inaction. But with infrastructure aging and scarcity
growing more severe, inaction is no longer an option
and the case for smart water is simply too compelling
to ignore. All emerging market countries covered in
this study will begin to explore smart water
infrastructure in this decade, creating a total market
potential of $46.5 billion in cumulative capital
expenditure by 2023.
Emerging Markets Smart Infrastructure: Smart Water
includes a global overview section with over 60 tables
and charts. The study highlights 35 leading smart
water projects across all emerging market regions.
This study also includes market forecasts for the smart
water metering, smart water networks, smart
irrigation, and water software analytics sectors for
each of the 72 emerging market countries. In the
study, after the global overview section, each country
is profiled in a dashboard format that covers the key
water metrics and forecast in the country.
Key questions answered in this study:
• How large will the smart water market in emerging markets
become over the next decade?
• Which countries stand to achieve the most benefits through
smart water deployments?
• In which countries are current water tariffs failing to achieve
cost recovery?
• Where are the major smart water projects and who are the
major vendors?
• Which countries will focus on AMI, AMR, smart water networks,
and software analytics to reduce leakage?
• What is the role of smart irrigation in emerging markets?
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© 2013 Northeast Group, LLC
Table of Contents
i. Executive Summary 1
ii. Methodology 4
1. Introduction 6
1.1 What does smart water infrastructure entail? 6
1.2 Smart water within the larger smart infrastructure landscape 12
2. The case for smart water 16
2.1 The full cost of water 16
2.2 Smart water networks business case 21
2.3 Smart water metering business case 23
2.4 The case for smart irrigation 27
2.5 Hurdles to smart water deployments 27
3. Smart water market forecast 31
4. Global outlook for smart water 35
4.1 Water scarce countries 36
4.2 High non-‐revenue water (NRW) countries 37
4.3 High consumption countries 39
4.4 Agriculturally intensive countries 40
4.5 Regional overviews 41
5. Projects and vendors 54
5.1 Smart water vendors active in emerging markets 54
5.2 Smart water projects in emerging markets 61
6. Country snapshots 78
6.1 Snapshot overview 78
6.2 Albania 79
6.3 Algeria 80
6.4 Argentina 81
6.5 Armenia 82
6.6 Azerbaijan 83
6.7 Bahrain 84
© 2013 Northeast Group, LLC
Table of Contents (cont.)
6.8 Belarus 85
6.9 Bolivia 86
6.10 Bosnia and Herzegovina 87
6.11 Brazil 88
6.12 Bulgaria 89
6.13 Burma (Myanmar) 90
6.14 Cambodia 91
6.15 Chile 92
6.16 China 93
6.17 Colombia 94
6.18 Croatia 95
6.19 Czech Republic 96
6.20 Ecuador 97
6.21 Egypt 98
6.22 Estonia 99
6.23 Georgia 100
6.24 Ghana 101
6.25 Hungary 102
6.26 India 103
6.27 Indonesia 104
6.28 Jordan 105
6.29 Kazakhstan 106
6.30 Kenya 107
6.31 Kuwait 108
6.32 Kyrgyzstan 109
6.33 Laos 110
6.34 Latvia 111
6.35 Lebanon 112
6.36 Libya 113
6.37 Lithuania 114
6.38 Macedonia 115
© 2013 Northeast Group, LLC
Table of Contents (cont.)
6.39 Malaysia 116
6.40 Mexico 117
6.41 Moldova 118
6.42 Montenegro 119
6.43 Morocco 120
6.44 Oman 121
6.45 Paraguay 122
6.46 Peru 123
6.47 Philippines 124
6.48 Poland 125
6.49 Qatar 126
6.50 Romania 127
6.51 Russia 128
6.52 Rwanda 129
6.53 Saudi Arabia 130
6.54 Serbia 131
6.55 Singapore 132
6.56 Slovakia 133
6.57 Slovenia 134
6.58 South Africa 135
6.59 Tajikistan 136
6.60 Tanzania 137
6.61 Thailand 138
6.62 Tunisia 139
6.63 Turkey 140
6.64 Turkmenistan 141
6.65 Uganda 142
6.66 Ukraine 143
6.67 United Arab Emirates (UAE) 144
6.68 Uruguay 145
6.69 Uzbekistan 146
© 2013 Northeast Group, LLC
Table of Contents (cont.)
6.70 Venezuela 147
6.71 Vietnam 148
6.72 Yemen 149
6.73 Zambia 150
7. Conclusion 151
7.1 The next steps 151
8. Appendix 152
8.1 List of abbreviations 152
8.2 List of companies mentioned in this report 154
List of Figures, Boxes, and Tables
Emerging markets smart water: key takeaways 3
Figure 1.1: Smart water value chain 6
Figure 1.2: Water supply chain 7
Figure 1.3: Five layers of smart water networks 8
Figure 1.4: Metering in emerging markets 9
Table 1.1: Benefits of different water metering technologies 10
Figure 1.5: Smart infrastructure overview 13
Figure 2.1: Current tariffs and full cost of water 17
Figure 2.2: Calculating the full cost of water 18
Figure 2.3: Annual per-‐household savings from smart water networks 19
Figure 2.4: Smart water networks savings example: Oman 20
Figure 2.5: Annual per-‐household smart water network savings at different water prices 21
Figure 2.6: Annual per-‐household savings from smart water metering 24
Figure 2.7: Smart water metering savings example: Oman 25
Figure 2.8: Annual smart meter savings examples in Oman 26
Table 3.1: Emerging markets smart water forecast (by country) 32
Figure 3.1: Cumulative smart water deployments in emerging markets (by country) 32
Table 3.2: Emerging markets smart water forecast (by segment) 33
Figure 3.2: Cumulative smart water deployments in emerging markets (by segment) 33
Figure 4.1: Water scarcity 35
Figure 4.2: Countries with NRW rates above 40% 36
Figure 4.3: High NRW and electricity loss countries 37
© 2013 Northeast Group, LLC
List of Figures, Boxes, and Tables (cont.)
Figure 4.4: Correlation between NRW and power distribution losses 37
Figure 4.5: Countries with per-‐capita water consumption above 700 m3/person/year 39
Figure 4.6: Countries with highest % of water used for agriculture 40
Figure 4.7: Water scarcity and NRW in emerging markets 41
Figure 4.8: Water consumption in terms of income 42
Figure 4.9: NRW by region (weighted average) 42
Table 4.1: Central & Eastern Europe smart water forecast 42
Figure 4.10: Cumulative smart water deployments in Central & Eastern Europe 43
Figure 4.11: Combined annual savings from smart water by region 43
Table 4.2: Eurasia smart water forecast 44
Figure 4.12: Eurasia smart water forecast 44
Figure 4.13: Cumulative smart water deployments in Latin America 45
Table 4.3: Latin America smart water forecast 46
Figure 4.14: Water scarcity by region (weighted average) 46
Table 4.4: Middle East & North Africa smart water forecast 47
Figure 4.15: Cumulative smart water deployments in Middle East & North Africa 47
Table 4.5: Southeast Asia smart water forecast 48
Figure 4.16: Cumulative smart water deployments in Southeast Asia 48
Figure 4.17: % water used in agriculture by region 49
Figure 4.18: Savings from smart water per income level by region 49
Table 4.6: Sub-‐Saharan Africa smart water forecast 50
Figure 4.19: Cumulative smart water deployments in Sub-‐Saharan Africa 50
Table 4.7: China smart water forecast 51
Figure 4.20: Cumulative smart water deployments in China 51
Table 4.8: India smart water forecast 52
Figure 4.21: Cumulative smart water deployments in India 52
Table 5.1: Smart water vendors by region 54
Table 5.2: Smart water metering vendors 56
Table 5.3: Smart water networking vendors 57
Table 5.4: Smart water irrigation vendors 58
Table 5.5: Smart water analytics vendors 59
Table 5.6: Smart water services vendors 60
Figure 5.1: Notable smart water projects (and vendors) in emerging markets 61
Table 6.1: The next steps and necessary actions 151
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