Smart Water Metering Mega Trend RoadmapSpending Reduction Strategy Could Drive Market Value to

$13.2B by 2020

Seth Cutler, Research AnalystEnvironment & Building Technologies

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Focus Points

• Introduction to the European Smart Water Metering Market• 360 Degree Market Perspective• Market Drivers & Restraints• Market Challenges• Forecast & Trends

• Penetration Rates• Vertical Market Attractiveness

• European Hot Spots• Smart Water Metering as a Mega Trend• Industry Convergence• Conclusion/Key Take-Aways

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European Smart Water Metering Market

• Smart Water Meters•AMR v AMI•Meter Tech.

• Installation

• Data and Network Management

• Smart Water Grid (example)

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Source: Frost & Sullivan analysis.

Figures adapted from the OECD

Recession and Debt Crisis within Europe

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360° Market Perspective

22Ultrasonic meters and AMI viewed as future but value yet to fully convince many utilitiesUltrasonic meters and AMI viewed as future but value yet to fully convince many utilities

33Industry convergence between meter manufacturers, meter installers and network and data managementIndustry convergence between meter manufacturers, meter installers and network and data management

44Europe catching up to smart water metering developments in North America and AustraliaEurope catching up to smart water metering developments in North America and Australia

55Meter installation and data and network management markets open for increased competition for prized leadership positionsMeter installation and data and network management markets open for increased competition for prized leadership positions

11Smart metering is one key aspect of carbon footprint reduction strategy undertaken by utilities in reaction to the current economic and debt crisesSmart metering is one key aspect of carbon footprint reduction strategy undertaken by utilities in reaction to the current economic and debt crises

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Smart Water Metering Market: Drivers & Restraints M

arke

t D

rive

rsM

arke

t R

estr

ain

ts

1-2 years 3-5 years 6-10 yearsEfficiencies and Savings

Environmental and Social Awareness

Fractured and Confused Market

Regulation and Legislation

Developing Business Case

Technology and Innovation

Stranded Assets

Impact: High Medium Low

Smart Grid Market: Key Market Drivers and Restraints Western Europe, 2010 – 2020

Source: Frost & Sullivan analysis.

Service Expansion

Capture Market Growth

Data Security and Public Resistance

Low Commitment to Evolving Market

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Smart Water Metering: Broad Industry Challenges

• AMR v. AMI Network • Communications Options

• Data Transmissions v Battery Life• Diverse Marketplace

OR

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Smart Water Metering: Market Penetration in Europe

Market Revenue

$1.2B

Market Revenue

$2.6B

Market Revenue

$7.8B

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Smart Water Metering: Vertical Market Attractiveness

Note: Bubble Size refers to relative market size in $ million for 2010; the base year is 2010. Source: Frost & Sullivan analysis.

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Smart Water Metering: European Hot Spots

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Smart Water Metering: Mega Trend

20102010 20202020 20302030

• Large-scale rollouts

• Governments use rollout as a spending reduction exercise

• Market leaders in ICT emerge

• Strong business case yet to emerge

• Limited government support

• Market currently trying to regulate itself and create standards to determine winning technologies

• Smart Water Metering standard across Europe

• Developments in network and data management continue

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Water

Distribution

Meter

Manufacturing

Meter

Installation

Comms.

Networks

Meter Data

Management

Data

Security

Utilities / Water

DistributorsActive Unlikely Active Active Active Active

Smart Water

Meter

ManufacturersUnlikely Active Active Active Active Active

Smart Water

Meter InstallersUnlikely Unlikely Active Unlikely Unlikely Unlikely

Comms.

NetworksUnlikely Unlikely Possible Active Active Active

Meter Data

ManagementUnlikely Unlikely Unlikely Unlikely Active Active

Data Security Unlikely Unlikely Unlikely Unlikely Possible Active

Smart Water Metering: Industry Convergence

Note: Comms. Is abbreviated for communications. Source: Frost & Sullivan analysis.

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Conclusion/Key Take-Aways

22 Businesses should engage with AMI and ultrasonic metersBusinesses should engage with AMI and ultrasonic meters

33Develop smart water metering as a long-term carbon reduction strategyDevelop smart water metering as a long-term carbon reduction strategy

11Businesses proactively engaged in multiple markets will thriveBusinesses proactively engaged in multiple markets will thrive

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For Additional Information

Chiara CarellaHead of Corporate CommunicationsEurope, Israel, Africa+44 (0) 207 343 8314chiara.carella@frost.com

Seth CutlerResearch AnalystEnvironment & Building Technologies+44 (0) 207 915 7807seth.cutler@frost.com

Fredrick Harry RoyanGlobal Research DirectorEnvironment (Water) Markets+44 (0) 207 343 8353froyan@frost.com

Andrew ThorndykeSales DirectorEnvironment & Building Technologies+44 (0) 186 539 8645andrew.thorndyke@frost.com