According to a recent World Economic Forum publication, 2025 is set to be a year marked by two key milestones: on the one hand, an increase in water stress for two-thirds of the world's population, and, on the other, absolute water scarcity for 1.8 billion people. This, together with the threats posed by climate change and the poor state of infrastructure in regions such as Latin America, where an average of 40% of the drinking water produced is lost, underscores the urgency of action. Accordingly, this organization has advocated for greater investment in water resilience. And this is where digital transformation has a vital role to play.
Digital transformation, spearheaded by technology, will continue to be the cornerstone for tackling the water challenges facing the world today. According to Jaime Barba, General Manager of Xylem Vue and CEO of Idrica, it is essential to “adopt smarter, more resilient and sustainable approaches to holistically address these global challenges—whether urban, rural, or industrial—in order to achieve more robust system management focused on safeguarding water sustainability”. Likewise, Barba insisted that the technological transformation of the sector “will largely depend on the ability of the public and private sectors to work together effectively. This is crucial for enhancing end-to-end water cycle management”.
Xylem Vue has pinpointed eight technological trends that are set to shape the course of this year in its newly released report, Water Technology Trends 2025 - Revolutionizing Water Management through Digital Transformation.
The first trend highlighted by the report is the growing use of artificial intelligence and operational intelligence in water management. In this context, operational intelligence, backed by advanced artificial intelligence technologies, is set to redefine water resource management in 2025. These solutions offer organizations a clear competitive advantage, from centralizing data to optimizing operations through predictive algorithms. Utilities will be able to improve sustainability, optimize resources, and ensure reliable service in an increasingly challenging environment by leveraging these tools.
Digital transformation, spearheaded by technology, will continue to be the cornerstone for tackling the water challenges facing the world today
Another essential aspect will be cybersecurity in critical infrastructures. Strengthening cybersecurity in the water sector will be crucial this year due to the increase in digital threats. Technological modernization, together with strategies such as network segmentation and multi-factor authentication, will be key to protecting critical infrastructures. In addition, continuous monitoring, security training and the implementation of resilience plans will guarantee operational continuity and ensure public trust, positioning utilities as innovation leaders.
Meanwhile, non-revenue water will continue to be a key issue. As a result, digital solutions for controlling water loss are among the trends identified in this report. The need to optimize water distribution systems and minimize non-revenue water (NRW) is paramount for boosting efficiency, ensuring sustainability and reducing costs. Future innovations in real-time data analytics and sector management for water loss control will bring more accurate, faster and cost-effective tools in 2025. The use of technologies such as AI, IoT, digital twins, advanced metering infrastructure, improved sensors and digital platforms will lead to better management and protection of water resources, optimizing their use to meet growing demands for sustainability and resilience, as indicated in the Xylem Vue report. In this sense, robust data exploitation will continue to be one of the main challenges hindering progress in water loss control. As Manuel Parra, Vice President of Strategic Partnerships and Alliances at Xylem, pointed out, data availability is not the main issue. The problem lies in how the data is used. Many companies have installed systems that operate in isolation. Data integration across these platforms provides a holistic view of water systems, breaks down information silos and ensures that field operators and managers have access to actionable insights.
Emerging trends in wastewater treatment plants (WWTPs) are another aspect considered in the Xylem Vue report. According to many organizations, including the United Nations, 2025 is the year in which the world population will reach 8.2 billion people. This figure will exacerbate water stress and put WWTPs firmly in the spotlight due to their strategic importance on the road to sustainability.
As a result, experts point to digitalization as the main driver for transforming wastewater treatment plants into smart and sustainable facilities that meet the demands of a rapidly changing world. WWTPs can achieve greater efficiency, better compliance and better environmental stewardship by leveraging real-time monitoring, predictive analytics and automation.
As technology advances, embedding WWTPs into smart city frameworks will further position them as key players in sustainable urban ecosystems.
The importance of digitalization in flood management
Germany, Belgium, Brazil, South Sudan, Pakistan, Gambia, Spain... What do they all have in common? They have all suffered severe, high-impact floods in recent years. A combination of technological innovation, global cooperation and a holistic approach is vital for ensuring adaptive and efficient water management to handle these extreme events. In this context, Decision Support Systems (DSS) and Early Warning Systems (EWS) are proving to be valuable tools. The expansion and continuous improvement of these systems, together with the application of emerging technologies, are pivotal to comprehensive and sustainable water management. In fact, they will be the decisive technological trend when tackling these increasingly frequent extreme weather episodes.
Experts point to digitalization as the main driver for transforming wastewater treatment plants into smart and sustainable facilities that meet the demands of a rapidly changing world
Another trend highlighted in the report is the role of smart irrigation and digitalization as key tools for shaping the future of agriculture and urban development. The study identifies how digital transformation and smart irrigation, in both the agricultural and urban spheres, will contribute to tackling climate change-related issues and ensuring the efficient management of water and energy resources, thereby supporting food productivity and a more sustainable urban environment. Remote reading, automation, real-time monitoring, remote sensing and advanced algorithms are some of the technologies poised to become the building blocks of agricultural digitalization and urban irrigation.
When it comes to urban environments, sustainability must also apply to cities. More specifically, the report highlights a growing focus on innovations in smart buildings and DHC (District Heating and Cooling) networks.
Smart buildings and DHC networks, driven by digital platforms, will thus be key to urban sustainability in 2025. These solutions optimize resources, improve energy efficiency and promote the use of renewable energies, positioning themselves as essential elements in the cities of the future.
Finally, the report highlights how optimizing water resource management and improving service quality remain top priorities for the coming years. As UNICEF has pointed out, “Climate change is disrupting weather patterns, leading to more frequent and more intense extreme weather events, unpredictable water availability, exacerbating water scarcity and contaminating water supplies.” As a result, it is essential to embrace a new approach to innovative strategies and technologies that can transform the quality of services.
The aim is to improve water supply management through applications such as AI, machine learning, advanced algorithms and remote infrastructure control, promoting sustainability, increasing management transparency and ensuring that users have access to high-quality services.
In short, 2025 marks a turning point where the convergence of technology and sustainability is set to redefine the global water paradigm in a constantly evolving world.
