Seven Barriers To Digital Water Transformation In Asia

Smart water for a smart Asia: how digitalization can solve the region’s profound water challenges

Asia, the continent called home by over 4.7 billion people, is facing an unprecedented water crisis. The region is experiencing growing water stress as a result of rising demand and limited supply. According to the World Bank, over 37 million people live in areas of high water stress in Central Asia, and forecasts for the future point to an even worse scenario: as many as 75 million people could be living in areas of high water stress by 2050. As climate change accelerates and populations grow, traditional water management strategies are nearing the point of exhaustion.

However, digitalization offers a transformative path forward. If implemented effectively, smart technologies could help Asian countries address some of their most pressing structural and operational water challenges. As Martin Shaw, Xylem Business Development Manager for Southeast and North Asia pointed out, “there is no doubt that Asia-Pacific is firmly committed to digital transformation, and we will see how this commitment will progressively increase in order to improve the water cycle.”

According to the Annual Water Development Report (AWDO) published by the Asian Development Bank, water security is showing signs of improvement. However, it is still insufficient. Despite the potential demonstrated by technologies such as digital twins, the Internet of Things (IoT) and artificial intelligence in water management, digitalization in Asia is advancing at different speeds, and the region is facing complex barriers that hinder this progress.

Water scarcity and overextraction

According to UNICEF, climate change is “leading to more frequent and more intense extreme weather events, bringing unpredictable water availability,” and “exacerbating water scarcity.” Some of the most water-stressed countries are concentrated in the Asia region (China, India, Pakistan, Iran, and parts of Southeast Asia.)

To make matters worse, water withdrawals now exceed natural recharge rates, leading to overexploited aquifers and chronic shortages in many river basins. Inefficient irrigation methods, particularly in agriculture, further intensify the problem.

What are the potential solutions? Xylem Vue says digital tools such as smart metering, predictive analytics, and real-time management platforms can help optimize resource allocation, reduce overuse, and protect long-term availability.

Rapid urbanization and infrastructure pressure

As the United Nations highlighted in its report Mid-Term Review of the UN Water Action Decade: Input from the Asia Pacific Consultation, the rapid urbanization of the region means that nearly 2.5 billion people, more than half of the population, will be living in urban areas by 2030. Cities such as Delhi, Manila, Jakarta, and Bangkok are growing faster than their water networks can handle. Outdated infrastructure and limited investment have led to soaring levels of non-revenue water, sometimes exceeding 60%.

What are the potential solutions? In this case, the deployment of IoT-enabled sensors, digital twins for infrastructure modeling, and AI-driven leak detection systems will enable utilities to monitor their networks proactively, prioritize repairs, and plan smarter investments.

Widespread pollution of water sources

Key rivers such as the Ganges, Yangtze, and Mekong suffer from severe pollution due to untreated industrial and domestic wastewater, with many countries still lacking adequate sewage networks and effective treatment plants.

What are the potential solutions? SCADA systems and real-time monitoring platforms can optimize wastewater treatment operations and ensure compliance with environmental regulations.

Data silos and low interoperability

Water data is often fragmented across government agencies, municipalities, and private utilities. Coordinated planning becomes a nearly impossible task without standardized digital infrastructure.

What are the potential solutions? according to Xylem Vue Integrated platforms based on open standards and modular architecture offer a way forward, promoting collaboration and enabling centralized, data-driven decision-making.

Extreme weather and poor climate resilience

According to the World Meteorological Organization (WMO), temperature increases in Asia are almost twice as high as the global average, which is aggravating the frequency and severity of floods, droughts, and typhoons caused by climate change. Yet, many regions still lack early warning systems and robust adaptation strategies.

What are the potential solutions? AI-powered early warning systems and environmental monitoring networks can improve response times and build long-term climate resilience.

Insufficient investment and financial barriers

Many Asian cities and rural areas lack the funding needed to upgrade water infrastructure and adopt digital solutions. Often, the return on investment (ROI) for digital projects is poorly understood or undervalued.

What are the potential solutions? To address this, innovative business models such as public-private partnerships (PPPs), performance-based funding, and outcome-driven financing models can de-risk investment and promote adoption, the international water technology company points out.

Skills gaps and resistance to change

Digital transformation in the water sector requires more than new tools. It demands a new mindset. There is a shortage of skilled digital professionals across much of Asia, coupled with hesitancy among utilities and government agencies to embrace change.

What are the potential solutions? According Xylem Vue regional training programs, technical upskilling, and centers of excellence can accelerate the shift to a digitally mature water sector.

Ultimately, Asia's water future will be shaped not only by how much water is available, but by how intelligently it is managed. In this regard, Martin Shaw, Xylem Business Development Manager for Southeast and North Asia, underscored that, in a region with a growing economy, "technology becomes a lever for change in order to ensure the availability and sustainable management of water and sanitation services for all.” This is why digitalization offers an unprecedented opportunity to rethink, redesign, and rebuild water systems that are efficient, resilient, and equitable.

Public and private stakeholders must work together to break down data silos, invest in open, scalable technologies, and empower people with knowledge and tools. With the right strategy, Asia can lead the world in smart water management, and secure sustainable water for generations to come.

Xylem Vue is a secure, integrated, and vendor-agnostic analytics and software platform that can capture data from any source, including legacy solutions. It is headquartered in Valencia, Spain. Xylem Vue was developed as a result of the partnership between Xylem, a global leader in water technology, and Idrica, an international pioneer in water data management, analytics, and smart water solutions. The platform enables water utilities to maximize investments already made in existing technologies while moving further along their digital journey and breaking down data silos to provide a holistic, 360-degree view of their system. This alliance brings together Xylem and Idrica's technology, innovation and experience to solve critical global challenges in drinking water, wastewater and other water-related issues.