Europe faces a staggering €440 billion infrastructure investment challenge through 2030. The water sector is at a critical crossroads—and the solution lies in smart water management.

In an era of increasing climate change and urbanization, the strain on our water resources has never been greater. Municipalities and industries across Europe and beyond are grappling with aging infrastructure, rising operational costs, and the growing demand for sustainable practices. Europe alone faces a massive investment challenge, with Bluefield Research forecasting a cumulative €440 billion (US$476 billion) needed for water and wastewater infrastructure from 2024 to 2030 across 31 European countries. Meanwhile, the U.S. water utility sector faced an estimated $110 billion funding gap in 2024. These staggering figures highlight the urgent need for smarter, more efficient solutions.

- This is where Calejo Smart Water comes in, offering a transformative approach to water management that addresses these challenges head-on. By leveraging the power of IoT, AI, and advanced analytics, Calejo Smart Water provides a comprehensive suite of tools to optimize every facet of your wastewater operations and in the long run also your water operations. Here are nine compelling arguments for embracing this innovative technology, says Leonard Johard, co-founder and the Head of Technology in both the Swedish and Italian company Smart Water S.r.l.

1. Reducing the Global Risk of Floods and Wastewater Overflows

Urban flooding and combined sewer overflows (CSOs) represent one of the most pressing challenges facing municipalities worldwide. In the United States alone, an estimated 850 billion gallons of contaminated wastewater are discharged annually through CSO events [3].

These overflows not only pose significant environmental and public health risks but also result in substantial economic losses. Calejo Smart Water addresses this critical challenge through real-time monitoring, predictive analytics, and intelligent control systems.

- By deploying smart sensors throughout the wastewater network and utilizing AI-powered forecasting, Calejo can predict overflow events before they occur and automatically adjust system operations to maximize storage capacity and prevent discharges. In our R&D pilots we have proved that we can reduce the overflows by up to 100%. This proactive approach to flood and overflow prevention protects communities, preserves water quality, and avoids the costly cleanup and infrastructure damage associated with these events, says Leonard Johard.

2. Optimized Control to Prevent Leaks of Wastewater

Water loss from leaks, often referred to as non-revenue water (NRW), is a silent drain on resources for utilities worldwide. In Europe, average NRW levels stand at approximately 25%, with some countries experiencing rates as high as 40%. In the United States, an estimated 2.7 trillion gallons of treated water are lost annually, costing utilities over $6.4 billion (approximately €5.9 billion) in uncaptured revenue.

- Calejo Smart Water can tackles this issue with real-time analytics to pinpoint the exact location of leaks before they escalate into costly failures. This proactive approach not only preserves precious resource but also prevents the significant financial losses associated with NRW, says Leonard Johard.

3. Achieve Lower Operating Costs Through Increased Efficiency

Operational efficiency is a cornerstone of sustainable water management. Calejo´s smart water networks have been shown to reduce operational expenses by up to 40% through optimized processes and resource allocation.

- Calejo Smart Water can achieve this by providing a holistic view of your entire water system, from distribution networks to treatment plants. By automating routine tasks, predicting maintenance needs, and optimizing energy consumption, says Leonard Johard.

Calejo empowers you to do more with less, driving down operational costs while improving delivery service. For European utilities spending between €0.3 and €4.6 per metering point annually just on leak detection activities, the efficiency gains from smart water management represent substantial savings.

4. Large Energy Savings

The water and wastewater sectors are significant energy consumers, accounting for as much as 3% of the total electricity use in the United States. A large portion of this energy is consumed during the wastewater treatment process, particularly in aeration.

- Calejo Smart Water optimizes energy usage by monitoring and controlling energy-intensive equipment in real-time, says Leonard Johard.

5. Major Environmental Benefits for Communities

The environmental benefits of smart water management extend far beyond energy savings.

- By preventing wastewater overflows, Calejo Smart Water helps protect our natural ecosystems, says Leonard Johard.

6. Reduced Need for New Investments and Reinvestments

With massive funding gaps looming over the water sector on both sides of the Atlantic, extending the life of existing infrastructure is a top priority.

- Calejo Smart Water helps you achieve this by shifting from a reactive to a predictive maintenance model. By analyzing historical data and real-time performance metrics, the system can forecast equipment failures before they occur, allowing for timely repairs and reducing the need for costly emergency replacements, says Leonard Johard.

This proactive approach to asset management helps defer or even eliminate the need for large-scale capital investments, making your water system more resilient and financially sustainable. Given the scale of investment required — €440 billion in Europe and $110 billion in the U.S. — optimizing existing assets becomes not just beneficial but essential.

7. Increased Knowledge of Control Systems and Flow Models

Data is the lifeblood of any smart system, and Calejo Smart Water is no exception. The platform makes it possible to collect and analyze vast amounts of data from across your water and wastewater network, providing you with invaluable insights into your operations. This deep understanding of the water operators control systems and flow models allows for more informed decision-making, from long-term capacity planning to day-to-day operational adjustments. European countries are increasingly collaborating to address shared challenges by focusing on joint research, data sharing, and coordinated infrastructure development.

- Calejo Smart Water facilitates this data-driven approach, putting the power of knowledge in your hands, says Leonard Johard.

8. Improved Cooperation Between Different Municipalities

Water resources rarely adhere to municipal boundaries. Effective water and waste water management often requires collaboration between neighboring communities and authorities, and Calejo Smart Water has an ambition to facilitate this by providing a common platform for data sharing and analysis.

- By breaking down data silos and fostering a collaborative approach to resource management, Calejo can help municipalities work together to address shared challenges, from drought management to flood control. We are now together with CrossConnect and Italian universities also developing standardized SROIs for the water, waste water and investor communities, says Leonard Johard.

This regional approach to water management is essential for building a more resilient and sustainable water future for all. In Europe, where cross-border water management is particularly important, this capability becomes even more valuable.

9. Improved Forecasts and Analyses

The predictive capabilities of Calejo Smart Water are a game-changer for water managers. By leveraging advanced hybrid AI simulations, the system can generate highly accurate forecasts for everything from water demand to wastewater inflow. This foresight allows for better planning and resource allocation, ensuring that you can meet the needs of your community, even in the face of changing weather patterns and population growth. With global water demand expected to grow by 55% by 2050, and Europe facing increasing climate challenges, the ability to anticipate future trends is a key advantage of smart water management.

- Calejo provides the tools you need to stay ahead of the curve, says Leonard Johard.

10. Optimization of Drinking Water Management and the Operation of Water Treatment Plants

From source to tap, Calejo Smart Water also in the next step want to optimize every stage of the drinking water management process.

- By monitoring water quality in real-time, optimizing treatment processes, and ensuring the integrity of your distribution network, it will be possible for Calejo to help the municipals deliver safe, reliable drinking water to their communities. In the treatment plant, it’ill be possible for the system to fine-tune every process, from coagulation and flocculation to disinfection and filtration, ensuring optimal performance and minimal chemical and energy usage, says Leonard Johard.

The result will be a more efficient, cost-effective, and resilient water treatment operation. With European investments prioritizing water supply management and wastewater treatment efficiency, Calejo Smart Water provides the technological foundation for achieving these objectives.

The Future is Smart

The challenges facing the water sector are immense, but so are the opportunities. By embracing smart water technologies like Calejo Smart Water, it will be possible to create a more sustainable, resilient, and equitable water future.

- The nine arguments outlined above are just the beginning. The real power of Calejo lies in its ability to adapt and evolve, continuously learning from your data to unlock new efficiencies and drive further innovation. Whether you're managing water and waste water resources in Europe, North America, or beyond, Calejo Smart Water offers the tools and insights you need to transform your operations. To learn more about how Calejo Smart Water can revolutionize your water management, contact us today, ends Leonard Johard.