A contract calling for approximately 35,000 smart meters to be installed in Santa Fe, New Mexico, will launch the single largest implementation of cellular machine-to-machine (M2M) technology in the water utility sector worldwide, according to analysis from IHS.

Meters that rely on cellular are expected grow more rapidly than other technologies. Source: IHSThe foundation for the project is a cellular-enabled smart meter, which can be installed and used for the utility's smart water network applications.

The city chose Badger Meter's BEACON smart water meter solution for full installation across both residential and commercial customers. So far projects of this scale have only been built for electric utilities, where devices are inductively powered and do not have battery life concerns, IHS says. By 2020, approximately 600,000 cellular-enabled smart water meters will be shipped annually to the North American market.

According to the IHS service, in the past five years, telecom providers in North America have been altering their business plans to target critical infrastructure by lowering rates and investing in partnerships with various technology vendors that are targeting these industries.

Smart water meters make up the majority of total water meter shipments in North America, but they comprise less than half of the installed base, IHS says. There is a large market available for smart water meters, and many technologies will be used to facilitate communications; however, meters relying on cellular are expected grow more rapidly than other technologies, at least for the foreseeable future.

“Water utilities in North America are under pressure to improve operations, increase conservation and enhance customer service; however, in many instances they lack the capital, expertise and business model required to effectively implement new technologies," says Michael Markides, director of the Smart Utility Infrastructure Group at IHS.