Badger Meter is accelerating its expansion into the smart-water sector, aiming to capture a 25% share of the North American smart metering market by 2026. The company plans to deploy $120 million in research and development over the next three years to enhance its IoT-enabled water metering platforms.
- Badger Meter aims for 25% market share in North American smart metering by 2026
- $120 million R&D investment over 2024–2026 for IoT-enabled metering platforms
- Smart-meter segment to grow from 38% to 52% of total revenue by 2026
- Five new product variants expected by mid-2025, including LPWAN-compatible models
- Over 300 U.S. water utilities committed to smart meter adoption by 2027
- Projected 14% CAGR revenue growth through 2026 under current strategy
Badger Meter has unveiled a comprehensive strategy to solidify its position as a leader in the global smart-water infrastructure market, setting an ambitious target for 2026. The company intends to achieve a 25% market share in North America’s smart metering segment by leveraging its existing distribution network and expanding its digital water management solutions. This initiative is part of a broader push to modernize aging water systems and meet rising demands for water conservation and data-driven utility operations. Central to Badger Meter’s plan is a $120 million investment in research and development between 2024 and 2026. This funding will support the development of next-generation IoT-enabled water meters, cloud-based analytics platforms, and integration capabilities with municipal SCADA systems. The company also aims to launch five new product variants by mid-2025, including low-power wide-area network (LPWAN) compatible models designed for rural and remote utility deployments. The initiative aligns with growing regulatory and municipal support for water efficiency. In the U.S. alone, over 300 water utilities have committed to adopting smart metering technologies by 2027, creating a potential addressable market exceeding $2.4 billion annually. Badger Meter’s current smart-meter revenue accounted for 38% of total revenue in FY2023, and the company projects this segment will grow to 52% by 2026. Market analysts note that Badger Meter’s strategic focus on interoperability and long-term service contracts could differentiate it from competitors. The company’s recent acquisition of a Canadian water data analytics startup in December 2023 further strengthens its software capabilities. Shareholders are expected to benefit from anticipated revenue growth of 14% CAGR through 2026, assuming execution remains on track.