The average citizen knows they want clean and consistent water from their tap. However, most people rarely consider what happens after their water goes down the drain. We evaluate drinking water with every glass we consume, yet wastewater is only scrutinized when something goes wrong. Sewer systems remain largely unseen until backups, overflows, or environmental contamination bring them into view.
Sewer overflows persist across the U.S., with up to 75,000 incidents occurring annually. These overflows disrupt utility operations, strain budgets, and harm the environment. In the past year, several major wastewater management issues have attracted public attention:
- Environmental impacts: Sewer failures are becoming increasingly costly environmental incidents. In January, a sewer interceptor collapse on DC Water’s system released more than 240 million gallons of wastewater into the Potomac River. The utility estimates that repair and remediation will cost US$20 million, with additional legal liabilities pending. More recently, intense rainfall pushed Chicago’s combined wastewater and stormwater reservoirs to near capacity, highlighting how more frequent extreme weather events are stressing aging sewer systems.
- Capital strain: Utilities are also facing mounting compliance costs. The Allegheny County Sanitary Authority in Pittsburgh recently approved a US$1.1 billion investment in underground storage infrastructure to comply with federal consent decree requirements. The overall program is now expected to cost US$4.5 billion, more than double its original estimate from 2010. Additionally, rates have increased by 7% annually since 2019. Pittsburgh’s situation reflects a broader trend: Since 1998, 107 consent decrees have imposed an estimated US$56.0 billion in compliance costs on U.S. wastewater utilities.
As environmental risks escalate and construction costs rise, traditional approaches to sewer management—such as upsizing pipes, building storage tanks, and relying on 10-year inspection cycles—are becoming increasingly unsustainable. Faced with aging assets, more frequent extreme storms, and tightening regulatory requirements, more than 19,000 wastewater utilities in the U.S. must transition from reactive crisis management to smart, data-driven sewer operations.
The Digital Opportunity
Sewer overflows stem from a combination of inflow and infiltration (I&I), blockages, power failures, aging infrastructure, and increasingly intense storm events. These issues often develop underground across thousands of miles of buried infrastructure, limiting utilities’ real-time visibility. Historically, managing the nation’s 1.8 million miles of sewer pipe has involved making critical operational decisions based on incomplete information.
Physical infrastructure—including larger pipes, storage tunnels, and pumping stations—will remain vital for wastewater management. However, these assets can be enhanced with smart sewer technologies that integrate sensors, analytics, inspection tools, and automation to provide continuous monitoring, predictive insights, and, in some cases, automated operational control. Rather than replacing traditional infrastructure, digital tools can help utilities optimize asset performance, proactively respond to system conditions, and prioritize capital investments where they will deliver the most significant impact.
Bluefield estimates that the market for wastewater monitoring solutions in the U.S. and Canada will grow from US$1.2 billion in 2026 to US$2.8 billion by 2036. This growth is driven by three main technology categories:
- Continuous monitoring: Flow and level sensors, such as those from ADS Environmental, detect early signs of blockages and I&I when paired with analytics software such as StormHarvester.
- AI-enabled inspections: Closed-circuit television (CCTV) inspections are essential for utilities to assess sewer infrastructure. Start-ups like Vapar and ITpipes have developed AI auto-coding capabilities, making manual reviews cheaper and enabling utilities to conduct more frequent inspections.
- Advanced condition assessment: Innovative technologies like SUEZ’s SewerBall and drones from RedZone Robotics provide detailed assessments of pipe condition.
Smart Sewer Adoption Gains Momentum
Utilities are already experiencing significant returns on investment from smart sewer technology. In Kansas City, Missouri, KC Water has installed hundreds of level and flow sensors across the city’s collection system, supported by modeling tools that help monitor performance and predict overflow risks. This data-driven approach enables the utility to optimize its investments, lower compliance costs, and maximize the effectiveness of infrastructure improvements required under its 2010 consent decree.
In the U.K., regulatory pressures have accelerated the adoption of smart sewer technology. Following substantial penalties for sewer overflow events—including an £8.5 million fine in 2025—utilities have deployed tens of thousands of sensors and adopted digital platforms to enhance network management through predictive analytics and automation. This situation in the U.K. illustrates how regulatory accountability can create clear incentives for utilities to transition from reactive response to proactive overflow prevention.
The Market Is Maturing
The smart sewer trend is also reshaping the competitive landscape. Strategic and institutional investors are increasingly acquiring digital wastewater portfolio companies. For instance, Badger Meter acquired the U.K.-based level sensor provider UDlive in May, building on its earlier acquisition of SmartCover, a premium real-time sewer monitoring company. Private equity interest is also evident, as demonstrated by JMI Equity’s recent major investment in SewerAI, a platform that automates CCTV coding. As utilities seek greater visibility into their systems, providers are racing to develop integrated platforms that deliver measurable results.
Bottom Line
Most citizens may not often consider what happens after they flush the toilet—and ideally, they shouldn’t have to. However, business as usual is no longer an option for the utilities responsible for protecting public health and local environments. As climate change and aging infrastructure increasingly strain wastewater systems, innovative digital tools offer a cost-effective path to resilience. By utilizing smarter, interconnected systems, utilities can not only make more informed decisions but also optimize limited resources and strengthen the infrastructure that communities depend on every day. When wastewater systems operate effectively, what is out of sight can effortlessly remain out of mind.
