Analyst Insight: Trends in Water Management

In the face of climate change, many cities have increased investments in their water and wastewater systems to strengthen them and ensure access to clean water and sanitation. In developed nations, these investments are generally driven by government spending and policy initiatives, whereas in developing nations investments commonly originate from grants, awards, and financing from global funding agencies and developed nations looking to improve their diplomacy. Guidehouse Insights expects these trends to continue over the next decade, along with greater participation from private entities aiming to help cities address their water management issues.

Approaches to addressing such issues vary by location. Cities along coasts and rivers are investing more in flood prevention technologies, while cities in arid climates are more focused on preventing leaks and increasing water security. Regardless of location, technologies such as digital twins, the Internet of Things (IoT), and AI are being utilized to help cities capture granular-level data that allow them to better prevent, respond to, and mitigate future water management issues.

This Guidehouse Insights report focuses on three areas of water management infrastructure where cities are prioritizing investment—flood prevention; wastewater and water quality; and water security and leak detection—and looks at solutions that can create sustainable and resilient cities. Drawing on Guidehouse Insights’ Smart City Tracker 3Q24, the report looks at trends, drivers, and barriers for the smart city market, highlights case studies in each water management focus area, and offers recommendations for industry stakeholders.