Netmore Group's Strategic Position in the UK Smart Water Infrastructure Revolution

The UK’s smart water infrastructure sector is undergoing a transformative shift, driven by sustainability mandates, technological innovation, and regulatory pressures to reduce water waste. At the forefront of this revolution is Netmore Group, a Swedish IoT infrastructure leader that has positioned itself as a critical enabler of the UK’s water utility modernization. With a £200 million contract to deploy one million smart water meters for Severn Trent—the UK’s second-largest water company—Netmore is not only capitalizing on a high-growth market but also demonstrating the scalability of its LoRaWAN and Narrowband-IoT (NB-IoT) networks in addressing global water scarcity challenges [1].

A Dual-Technology Edge in a Fragmented Market

Netmore’s competitive advantage lies in its ability to integrate dual connectivity solutions—LoRaWAN and NB-IoT—into a single, scalable platform. This hybrid approach allows utilities like Severn Trent to optimize data transmission reliability and cost efficiency, particularly in rural and urban environments with varying network demands [2]. By leveraging its existing LoRaWAN network, which already spans 43 of the UK’s 92 counties and serves over 51 million people, Netmore has minimized deployment costs while maximizing coverage [3]. This infrastructure is critical for achieving Severn Trent’s Green Recovery Programme goals, which aim to reduce household water leakage by 16% and consumption by 7% by 2030 [4].

The company’s partnerships with Yorkshire Water, Affinity Water, and South West Water further underscore its leadership in the UK’s smart water ecosystem. These collaborations, which include wastewater monitoring and large-scale meter exchanges, position Netmore as a one-stop provider for end-to-end IoT solutions. In contrast, global competitors like Xylem, Suez, and Itron—while technologically advanced—often rely on single-technology deployments, limiting their adaptability in complex regulatory environments [5].

Financial Resilience and Recurring Revenue Model

Netmore’s financial performance reinforces its investment potential. In Q2 2023, the company reported an 84% year-over-year increase in net sales to SEK20 million, driven by its IoT Networks segment, which grew 825% YoY [6]. While EBITDA figures for 2025 remain undisclosed, the company’s long-term gross margin projections (above 60%) and terminal EBIT margin (over 20%) suggest a robust path to profitability [7]. This recurring revenue model, centered on subscription-based services for utilities, aligns with the sector’s shift toward long-term operational efficiency over capital-intensive one-time investments.

The UK smart water market itself is projected to grow at an 11.9% CAGR through 2030, fueled by government incentives and public-private partnerships [8]. With Netmore’s existing contracts covering over three million smart meters and its expansion into Portugal, Austria, and Norway, the company is well-positioned to capitalize on cross-border demand for IoT-driven water management.

Risks and Market Dynamics

Despite its strengths, Netmore faces challenges. High initial implementation costs and integration complexities with legacy systems remain barriers to adoption, particularly in price-sensitive markets [9]. Additionally, cybersecurity risks in interconnected IoT networks could emerge as a concern, though Netmore’s carrier-grade infrastructure mitigates this to an extent.

However, the company’s first-mover advantage in the UK—where it operates the largest LoRaWAN network—provides a durable moat. Competitors such as Itron and Kamstrup are active in the space, but Netmore’s dual-technology approach and deep utility partnerships create a high switching cost for clients.

Conclusion: A Cornerstone of the Sustainability-Driven Utility Sector

Netmore Group’s strategic alignment with the UK’s sustainability goals, combined with its technological agility and financial resilience, makes it a compelling investment in the IoT infrastructure sector. As global water scarcity intensifies and regulatory frameworks tighten, companies that can deliver scalable, interoperable solutions—like Netmore—will dominate the market. For investors seeking exposure to the green economy, Netmore represents a rare blend of innovation, market leadership, and long-term value creation.

Source:
[1] Severn Trent Selects Netmore to Deploy and Manage Advanced Metering Infrastructure Network for One Million Smart Water Meters, [https://www.businesswire.com/news/home/20250902686646/en/Severn-Trent-Selects-Netmore-to-Deploy-and-Manage-Advanced-Metering-Infrastructure-Network-for-One-Million-Smart-Water-Meters]
[2] Severn Trent Selects Netmore for 1 Million Smart Water Meters, [https://iotbusinessnews.com/2025/09/02/severn-trent-selects-netmore-for-1-million-smart-water-meters/]
[3] Netmore Group Q2 2023: Review, [https://www.redeye.se/research/939490/netmore-group-q2-2023-review]
[4] Global Smart Water Management Market Projected to Reach $437 Billion, [https://www.bccresearch.com/pressroom/mst/global-smart-water-management-market-projected-to-reach-$437-billion?srsltid=AfmBOorym1hQq5IRqLM_L_nGkMJCfT9jJQSgopBzQUn5n1BLNkMs4bWN]
[5] Europe and North America Smart Water Metering Market Report 2025, [https://www.globenewswire.com/news-release/2025/06/11/3097309/28124/en/Europe-and-North-America-Smart-Water-Metering-Market-Report-2025-with-Top-Vendor-Profiles-for-Sensus-Badger-Meter-Itron-Aclara-Neptune-Technology-Diehl-Metering-Birdz-Kamstrup-and-.html]
[6] Netmore Group Q2 2023: Review, [https://www.redeye.se/research/939490/netmore-group-q2-2023-review]
[7] Netmore Group Q2 2023: Review, [https://www.redeye.se/research/939490/netmore-group-q2-2023-review]
[8] UK Smart Water Management Market Growth, Size, Share, [https://www.omrglobal.com/industry-reports/uk-smart-water-management-market]
[9] Smart Water Management Market Size, Share, [https://www.fortunebusinessinsights.com/smart-water-management-market-113556]