Signal failures are the Achilles' heel of smart water metering

Smart technology is making waves across the water industry. A growing number of providers are replacing conventional meters with Internet of Things (IoT)-enabled alternatives, but cracks have begun to show as this field has grown. As promising as smart water metering looks, signal failures may jeopardize its potential.

The growing field of smart water metering

IoT meters were a niche technology not long ago, but they are quickly becoming the new norm. The smart water metering market was worth $4.61 billion in 2024 and is on track to nearly double by 2030 as more cities and private companies embrace this technology.

Technologies like IoT have become buzzwords in many industrial circles. As such, some organizations’ push to adopt them is due in part to a desire to use the latest and most widely publicized innovations, but smart meters are more than a fad. While it’s certainly possible to over-apply and misuse them, these devices have several advantages.

IoT meters offer more regular measurements with greater accuracy, as they rely on sensitive, high-tech sensors. They also communicate all the data they collect wirelessly. Their most impactful benefit lies in their ability to enable real-time insight and remove the need for manual inspection.

Customers can connect to this infrastructure to get up-to-the-minute reports on their water consumption. Companies can use it to streamline billing without needing to send anyone into the field to read meters. In some cases, these endpoints can even send real-time alerts about leaks or other failures to facilitate faster responses.

Where smart water meters fail

As water companies have rushed to capitalize on these benefits, the unique downsides to smart water metering have become clearer. Most notably, network and signal failures can take them offline, suddenly removing any of their advantages.

The communication features of IoT metering endpoints rely on wireless networks and sensitive electrical components. As a result, these become critical points of failure. A drop in cellular connections or a battery malfunction may not have much effect on a conventional meter, but they’ll render a smart one entirely unfunctional.

Case study: Toronto, Canada

Concerns over signal failures impacting smart meters are more than just theoretical. Some cities know the reality of these situations all too well. One of the most notable recent examples comes from Toronto, Canada.

In mid-2024, the city reported that 470,000 wireless transmitters were failing years before they should have. Over 150,000 of them failed entirely. While the meters themselves were functioning properly, the components meant to transmit the data were not, making it impossible to read them and determine bills.

The effort to replace these malfunctioning IoT parts quickly grew expensive. Toronto water officials had to pay $5.6 million to replace just the first wave of transmitters despite a warranty covering some of the cost.

How to avoid smart water metering failures

Water companies hoping to avoid a problem like Toronto faced should act before issues arise. Smart water metering failures are avoidable if organizations follow the right steps.

Develop a detailed smart infrastructure strategy

Businesses should create a detailed IoT plan before purchasing any connected meters. U.S. utilities plan to invest $8.3 billion in smart infrastructure by 2027, but such a massive investment requires careful planning to achieve an acceptable return.

Company leadership must start by outlining specific goals. Implementing IoT meters for technology’s sake is a surefire way to overspend and miss critical optimization opportunities. Instead, any smart meters must serve a specific purpose aligned with real business needs.

Determining a need — such as reducing technician travel time or improving billing accuracy — will make it easier to decide what kind of meter technologies are necessary. This ensures providers can choose tech that suits their situation, making unexpected costs less likely. Planning a long rollout schedule to focus on the areas of greatest impact first is crucial for the same reasons.

Choose smart meter hardware carefully

After creating a smart water metering strategy, teams can select hardware that suits their goals. Careful comparisons and inspections are critical to ensure any new tech is both relevant and reliable.

Working with IoT providers who offer longer or more comprehensive warranties is ideal when possible. Similarly, organizations should review manufacturers’ history for any instances of device failures or success stories among their customers. These signs of trust or lack thereof help companies choose the right solution to avoid early signal failures.

The specific smart meters’ hardware specs should also be taken into consideration. Look for endpoints with greater built-in security features, analog fail-safes and support for multiple communication standards, as these will be more reliable.

Use a reliable communications protocol

When selecting IoT endpoints, companies should also keep their transmission technologies in mind. Smart meters can transmit data via multiple means, and which one is best depends on the overall system and its specific goals.

Cellular networks are a popular choice, as they support long ranges and are widely available. Some organizations may be tempted to embrace 5G cellular, as it promises latencies of one millisecond and speeds up to 10 gigabits per second, minimizing transmission errors. However, 5G’s range is limited and isn’t yet widespread, so it may not be reliable enough in some areas.

4G LTE is a safe option, although LPWAN may be better when transmitting smaller data packages. LPWAN has low bandwidth but long ranges and uses minimal energy, extending battery life.

Ensure backup power

Regardless of what communications protocol a smart water metering solution uses, backup power is essential. Outages can take data transmission infrastructure offline, leading to billing and efficiency issues, so contingency plans are critical.

Backup generators for all critical infrastructure points are the best solution, but teams must choose the right types. Diesel may be the most popular option, but natural gas alternatives produce less noise and burn cleaner, so they’re better for cell towers and other resources in urban areas.

Similarly, all IoT endpoints should have power reserves to keep them online in an outage or unexpected failure in their main energy source. Built-in solar panels are an elegant solution, as they also reduce the load during normal operations.

Employ proper cybersecurity protections

Smart meter systems also need protection against cyberthreats. Many of these endpoints are accessible both ways — they both transmit and receive data — which opens them to the possibility of hacking. This can take them offline or affect reading accuracy.

The EPA has warned that attacks against critical infrastructure are rising and requires states to start investigating cybersecurity best practices. Private operations should get ahead of the trend and enact technical safeguards beyond what’s mandated before government standards rise.

Encrypting all IoT traffic is an essential first step. All smart meters must also be only accessible to authorized users, and these accounts should use multifactor authentication to prevent attackers from impersonating legitimate personnel. Real-time network monitoring may also be necessary to catch and stop potential breaches.

Smart water metering must address technical challenges

IoT solutions offer many advantages, and water providers should not overlook these. However, they must come in the context of smart metering’s unique technical obstacles. Signal failures are a real and potentially damaging threat that deserves attention.

The risk of data transmission issues does not mean smart water metering is unsafe or unreliable. Rather, they necessitate attention to relevant best practices to ensure the downsides don’t counteract the benefits.