Digital Transformation For Growing Water Utilities - Bringing Safe and Reliable Water To All
2026.01.05
Globally, water scarcity is an escalating concern. By 2030, the United Nations projects that global water demand will exceed supply by 40%, while water utilities collectively lose more than 126 billion cubic meters of treated water each year through leakages and unbilled consumption—equivalent to one-third of total production[1]. The challenge is particularly acute in developing countries, where low service quality, limited investment capacity, and declining customer trust create a cycle of inefficiency and financial instability. Breaking this cycle requires a fundamental transformation that goes beyond traditional operating models.
Against this backdrop, JICA has released a strategic report titled “Digital Transformation for Growing Water Utilities”, aimed at improving the sustainability and efficiency of water services. Building on JICA’s on-the-ground expertise gained through Official Development Assistance (ODA), the report presents solutions to challenges faced by water utilities through the introduction of enterprise-level digital transformation (Enterprise DX).
Specifically, it outlines how advanced technologies such as AI, IoT, and smart meters can be leveraged to address urgent issues like reducing Non-Revenue Water (NRW)[2], managing aging infrastructure, and ensuring financial soundness. These technologies enable real-time monitoring, predictive maintenance, and efficient resource allocation. The report also introduces various tools to support transformation tailored to each utility’s current situation—such as digital maturity level assessment, optimal system architecture, and phased implementation steps—alongside real-world case studies.
Building on these insights, JICA will continue to support digital transformation in collaboration with governments, private companies, and local communities to ensure safe and reliable water supply for all.
[1] Source:Astute Analytica Pvt Ltd ”Global Water Pipeline Leak Detection Systems Market”
[2] NRW refers to water that is supplied but not billed, a major cause of resource waste, revenue loss, and service deterioration, particularly in developing countries.