North America's Water Utilities Are Going Digital Fast

Bluefield Research projects North American digital water investment will double over the next decade, led by asset management and leak detection

29 May 2026

North American water utilities are committing to large-scale digital investment. A forecast by Bluefield Research, released on 6 May 2026, projects spending across the US and Canada will nearly double over the next decade, rising from $14.4bn today to $28.6bn by 2036 at a 7.1% compound annual growth rate. Total cumulative spending is expected to reach $230bn.

The shift reflects more than technology uptake. Ageing infrastructure, persistent drought, and tightening federal and state regulations have pushed digital tools from pilot programmes into system-wide deployment. Smart meters, AI-powered leak detection, and remote asset monitoring are now standard procurement considerations.

"Digital technology is reshaping every corner of the economy, and municipal water infrastructure is no exception," said Leigh Ramsey, senior analyst at Bluefield Research.

Asset management draws the largest absolute investment, growing from $2.3bn to $5.5bn by 2036 at an 8.8% annual rate. Drones, remote sensors, and AI condition-assessment platforms are replacing reactive maintenance with continuous monitoring. Leak detection spending is forecast to nearly quadruple over the decade. New York deploys field crews inspecting 40,000 feet of pipe nightly; Atlanta is commissioning more than 1,000 continuous acoustic sensors. Both cities face the same pressure, addressed through different approaches.

Smart metering is growing at 9.7% annually, far ahead of conventional meter replacement, and now functions as the primary data layer for utility operations.

Wastewater networks are following a similar path. A sewer overflow in Washington, D.C. in January 2026 discharged millions of gallons of untreated water, sharpening attention across the sector. Digital wastewater spending is on track to more than double by 2036. Cybersecurity investment is set to keep pace with expanding connectivity, with New York State already formalising security standards across the sector.

Ramsey cautioned that adoption rates vary considerably by system size and regulatory environment. Headline projections obscure real divergence across US utilities, where funding constraints and regulatory capacity differ sharply.