Xylem Senses Smart Water Growth Opportunity
On 15 August 2016, water technology and solutions provider Xylem announced a US$1.7 billion cash deal to acquire Sensus USA. Sensus supplies metering equipment, network technologies, and advanced data analytics solutions to the water, gas, and electric power sectors.
This acquisition marks Xylem’s move into data and analytics solutions. While the company doubles down on municipal utility opportunities, it also gains access to the electric and gas utility sectors, in which smart solutions are more advanced.
Xylem has moved quickly in its transition from a hardware supplier with a core industrial & wastewater focus into a more diversified provider of intelligent water infrastructure. Lessons learned in smart technology deployment could prove valuable in a convergence of utility infrastructure.
For more in-depth analysis, see Bluefield’s upcoming report: US Smart Water: Defining the Opportunity, Competitive Landscape, and Market Outlook.
Deferred utility spending and increasing demand for data underlies more than US$1 trillion of forecasted CAPEX for smart water solutions over the next decade in the US and Europe, according to Bluefield’s forecasts.
- Acquisition reinforces municipal position, offsets flagging industrial revenues
- Xylem launches headfirst into data & analytics
- Metering market consolidation accelerates, shapes competitive landscape.