Digital Transformation of the Australian Water and Wastewater Sector

Digital Transformation of the Australian Water and Wastewater Sector

Australia has witnessed unprecedented extreme weather events of drought and flood. Climate change also plays a role in drought and flood severity and recurrence. With over 80% of its population living in and around urban hotspots, the country is one of the most urbanized worldwide. As such, water and wastewater (W&WW) utilities in Australia are under constant pressure to improve and invest in their infrastructure to meet the demands of its growing urban population and be more resilient to climate change-induced weather disruptions.

Frost & Sullivan’s analysis shows that all major water utilities focus on reducing non-revenue water to conserve water and enhance water security during dry spells. They also invest in improving sewer networks to minimize spills, which have a high cost impact, and effectively manage stormwater during wet seasons. On a macro level, W&WW utilities are entering a new investment phase to deliver on environmental, social, and governance goals to mitigate climate change-related risks. Digital solutions serve as the core enabler for near and long-term measurable targets.

Most digital spending by utilities is on hardware, such as smart water sensors and meters. However, Frost & Sullivan anticipates software and data analytics solutions to register high investments over the study period (2019–2028). There will be increasing use of artificial intelligence and machine learning-based solutions that allow process level or system automation; detect or predict issues like leaks, spills, and system failures; holistically monitor and manage demand or events; and ensure regulatory compliance. Notably, new tenders in W&WW network construction now include installing digital systems for monitoring and optimization. This demonstrates the future importance of digital solutions as a critical enabler of sustainability.

The scope of this study’s addressable market is the W&WW utility market, including council-run water and wastewater operations. This includes W&WW assets operated for in-house use by commercial and industrial enterprises. Segments in this research are hardware, software, on-site communications, and digital services. The market analysis considers smart water meter solutions and the intelligent water utility network.

Other aspects covered include:
• Growth drivers and restraints
• ICT expenditure size and year-on-year growth in the W&WW market
• Technologies, demands, and service trends likely to impact opportunities
• Leading solution providers and the competitive tools that provide differentiation
• Growth opportunities for solutions providers