U.S. Residential Outdoor Water Management

Part
01
of five
Part
01

U.S. Residential Outdoor Water Management - Market Size

The outdoor water management industry in the US is 28% of the total gardening equipment market valued at $18.8 billion. The total industry size of the US outdoor water management equipment was $5.3 billion in 2018. The residential market is nearly 55% or $2.89 billion of the total water management market in the US. The water management industry includes equipment like automated timers, hoses, DIY irrigation systems, sprinklers, reels, nozzles, rain barrels, among others.


WATER MANAGEMENT INDUSTRY SIZE

  • The total market size of the U.S. outdoor residential water management industry is estimated at around $2.89 billion.
  • The global market size of gardening equipment was roughly $81.3 billion in 2017 and will register a CAGR of 4.1% till 2026.
  • According to a report by Grand View Research, North America has a market share of 30% in the global garden equipment industry.
  • A recent report by Polaris Research, estimates the North American garden equipment market was about $28.2 billion in 2017 and is expected to reach $41.1 billion by 2026.
  • In the North American gardening equipment market, the market size of water management equipment stood at $7.05 billion or 25% for the year 2017 and is expected to reach $10.49 billion or 25.53% by the year 2026.
  • According to a report by Grand View, the US garden equipment market is valued at $18.8 billion in 2019 and will reach $24.39 billion by 2023.
  • In the United States garden equipment market, the market share of water management equipment stood at $5.26 billion or 28% for the year 2019 and is expected to reach $6.58 billion or 27% by 2023.
  • According to Statista, the US gardening water management equipment market size will grow from $5.3 billion in 2018 to $6.3 billion in 2023.
  • The reports by Grand View and Polaris estimate the market share of the residential segment to reach about $3 billion or nearly 55% of the $5.5 billion US water management equipment market in 2019.
  • According to a recent report by the Freedonia Group, the US outdoor residential water management industry equipment include automated timers, hoses, irrigation systems, DIY irrigation systems, sprinklers, reels, nozzles, rain barrels, among others.

RESEARCH STRATEGY

We started the research by identifying the scope of the outdoor residential water management industry in the US. We found a recent report by Freedonia Group detailing the market insights about the garden watering products in the US. We discovered that outdoor residential water management equipment like irrigation systems, hoses, reels, timers, and others, fall in the category of the garden watering equipment. Next, to ascertain the scope of the industry, we tried to identify some typical vendors dealing in outdoor water management solutions in the US. We found numerous profiles of vendors on Thomas dealing in gardening and watering equipment like automated timers, hoses, irrigation systems, DIY irrigation systems, sprinklers, reels, nozzles, rain barrels, among others.

After confirming the scope of the industry, we tried to identify recent market research reports that highlight the market size of outdoor residential water management equipment in the US. We found similar industry figures across research reports from Grand View Research, Polaris Market Research, and Statista; these reports detailed the market size of the gardening water management equipment in the US and North America. Additionally, we found that water management equipment contributes about 25%-28% of the total gardening equipment industry in the US.

To ascertain the market contribution from the residential segment, it was found that recent reports from Grand View and Polaris estimate the contribution of the residential segment to be about 55% of the total gardening industry. Hence, we were able to successfully derive the market size of the US outdoor residential water management industry by using the following triangulation.

Calculation

  • Total US outdoor water management industry = (Total US gardening equipment industry) x (Percent contribution by water management equipment) OR $18.8 billion x 28% = $5.26 billion
  • US outdoor residential water management industry = (Total US outdoor water management industry) x (Percent contribution by residential segment) OR $5.26 billion x 55% = $2.89 billion.
Part
02
of five
Part
02

U.S. Residential Outdoor Water Management - Top Players

The top five players in the United States outdoor residential water management industry, in terms of annual revenue are Toro with a revenue of $2.6 billion, Scott Miracle-Gro with a revenue of $376.7 million, RainBird with a revenue of $120 million, The Swan Products, LLC, with a revenue of $120 million, and Hannay Reels with a revenue of $34 million.

U. S OUTDOOR RESIDENTIAL WATER MANAGEMENT — OVERVIEW

  • The United States' outdoor residential water management equipment recorded a revenue of $5.3 billion in 2018 while the residential outdoor water management market accounts for 55% of the revenue, which amounts to $2.89 billion of the total water management market in the United States.
  • The outdoor residential water management industry includes equipment such as automated timers, hoses, DIY irrigation systems, sprinklers, reels, nozzles, rain barrels, among others


RESIDENTIAL OUTDOOR WATER MANAGEMENT — TOP PLAYERS

#1: TORO

  • Toro specializes in innovative solutions for the outdoor residential environment such as ice and snow management, irrigation solutions, outdoor lighting solutions, rental equipment, landscape, turf maintenance, and specialty construction equipment.
  • Toro was established in 1914 and is headquartered in Bloomington. The company offers residential outdoor water products including valves, timers, drips, pipes, and sprinklers. Toro also works to develop new technologies in a wide range of fields, from biofuel technologies to water-saving products.
  • Toro recorded an annual revenue of $2.62 billion in 2018.

#2: SCOTTS MIRACLE-GRO

  • Scotts Miracle-Gro company was established in 1868 and is headquartered in Marysville. The company offers products for growers and gardeners in various categories such as chemicals and garden innovative technologies such as Miracle-Gro Performance, Gro Watering Solutions, Gavita Pro 1650e LED, Sure Shot Spray Wand, and General Hydroponics FloraPro.
  • Their products for Gro Watering Solutions include outdoor residential water management kits such as controllers, Garden Sprayer Kit, Garden Sprinkler Kit, and Potted Drip Kit.
  • According to Craft.io, Scotts Miracle-Gro recorded an annual revenue of $376.7 million in 2017.

#3: RAINBIRD

  • Headquartered in Azusa, California, RainBird specializes in irrigation and watering solutions, services, and products.
  • RainBird's outdoor residential water management equipment include timers and controllers for commercial projects, arenas, golf courses, farms, and homes; pumps; dripline; sprinklers; and irrigation. The company has a portfolio with over 4,000 different water-saving products and services across the globe.
  • The company reported an annual revenue of $120 million.

#4: THE SWAN PRODUCTS LLC

  • The Swan Products, LLC, specializes in the manufacturing of residential and commercial garden water hoses utilized for rinsing and irrigation across the United States. Garden hoses that are manufactured include heavy-duty hoses that vary in flexibility and are damage resistant, industrial-grade hoses, farm hoses, and hoses that are used for organic growing.
  • The company is headquartered in Marion, Ohio. The annual revenue of The Swan Products, LLC, was reported to have reached $100 million.

#5: HANNAY REELS

  • Hannay Reels manufactures customized residential garden and lawn equipment that include industrial grade garden hose, reels, and water management equipment.
  • Hannay Reels is headquartered in Westerlo, New York and reports an annual revenue of $34.6 million.

Research Strategy:

In order to identify the top five players in the United States outdoor residential water management industry, we began our search by looking through the information on the total market size of the U. S residential outdoor water management industry. We then looked for the top manufacturers of residential outdoor water management equipment from country-specific market reports from websites such as Grandview Research and the Polaris Market Research. An extensive search through these reports provided us with key American companies/manufacturers along with some key international players in the industry such as Jain Irrigation Systems.

The companies identified were then shortlisted by determining their annual revenues. Each company was individually researched by looking into its official website, press releases, annual reports, and financial documents along with profiler websites such as Bloomberg, Craft, and Crunchbase. After a thorough search through these channels, we were able to identify the top five players in the United States outdoor residential water management industry based on revenue. We ensured to exclude any company that deals with manufacturing industrial, indoor, or non-water equipment such as Falcon Garden Tools. For the shortlisted five key players (Toro, Scott Miracle-Gro, RainBird, The Swan Products, LLC, and Hannay Reels) information on their products and services was obtained from their official websites.

While the companies' annual revenue was readily available, their market shares were not found. Triangulation in the determination of the market share of these companies in the United States Residential Outdoor Water Management industry was not possible due to the following reasons:
  • There was no information that would enable us to differentiate revenues generated from the sale of outdoor residential water management products from the rest of the revenue generated from the sale of products under other categories.
  • Also, most of the companies operate globally, thus, the revenues reported do not represent the United States market alone.
  • The revenues provided in the databases were estimated figures.
Notably, the identified companies offer a wide variety of products that are not related to water management including mower, underground pipes, steel reels, landscaping equipment, gardening among other home improvement products, all of which are included in the net revenue estimates. Also, these companies have not delineated revenues acquired from outdoor water management products from the rest of their sales in their annual reports.
Part
03
of five
Part
03

U.S. Residential Outdoor Water Management - Top Retailers

The four most popular retailers/stores that consumers in the United States shop at for residential outdoor water management products include Home Depot, Lowe's, Walmart, and Sears.

1. HOME DEPOT

Products

  • Home Depot provides a wide range of residential outdoor water management stock keeping units (SKU´s).
  • The store offers above-ground watering products, in-ground sprinkler systems and supplies, drip irrigation systems, and watering accessories.

Price Range

2. LOWE'S

Products

Price Range

3. WALMART

Products

  • Walmart provides numerous home outdoor water management supplies.
  • It offers water valves and fittings, nozzles, wands, garden hoses, lawn sprinklers, drip irrigation supplies, hose reels, watering cans, among others.

Price Range

4. SEARS

Products

  • Sears also has hundreds of products to offer in their "Watering, Hoses & Sprinklers" department.
  • They offer hoses, nozzles and parts , hose reels and holders, rain barrels, sprinklers, watering accessories, water pumps, water timers, among others.

Price Range

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY:

In order to identify the most popular retailers/stores that consumers in the U.S. shop at for residential outdoor water management products, we first examined recent sources that could define the industry, as well as provide details of the popular companies in the industry with the biggest market share.

For this, we consulted several reports and official website of retailers such as Home Depot and Lowes, as it was important to first define the industry and have proof that it consisted of water hoses, sprinklers, sprinkler systems, water timers, irrigation systems, water wands, etc. and determine who the key players were. This approach was made due to the fact that the term "Residential Outdoor Water Management" was not found in any report, article, news, or retailer website.

However, by filtering our search to find the most recent sources, we were unable to find information concerning the subject. We only located data on companies that offer installation and irrigation services for contractors and households. We decided to broaden our research to previous years and were able to find the report "Lawn and Garden Equipment in the U.S., 11th Edition" which states that the L&G includes watering and spraying equipment, and that the three major players in the U.S. industry are Home Depot, Lowe's, Walmart, and Sears. By searching each of these companies' sites, we corroborated that all four of them offer a wide range of "residential outdoor water management products".

Also, we included the Home Depot Annual Report from 2018, which states that the company sold $7,257 million in its outdoor garden department, globally, which includes the irrigation or outdoor water products sub-segment.
We concluded that this report is the most recent source available in the public domain, and therefore we included it as a reliable source. Moreover, we tried finding the market share of these companies in the industry. But, as we searched reports (including paywalled data), statistics, and articles on the subject, we were unable to provide it.

In order to find the price ranges, we searched the irrigation or outdoor water products department of each store and filtered the results from lowest to the highest price which provided the lowest and the highest price range.
Part
04
of five
Part
04

U.S. Residential Outdoor Water Management - Current Trends

Some trends currently being used in the US residential outdoor water management industry include the use of artificial intelligence, machine learning, advanced metering infrastructure (AMI), and cellular or IoT-based technologies.


US RESIDENTIAL OUTDOOR WATER MANAGEMENT — CURRENT TRENDS

Trend #1: Artificial Intelligence (AI) and Machine Learning (ML)

  • DESCRIPTION: Artificial intelligence and machine learning are being used for leak detection, pressure management, and workflow management. Further, the solutions providers are using the technologies to assess and operationalize historical data in asset-­centric decision-making for residential outdoor water management.
  • Valor is a San Francisco based company that makes use of machine learning and artificial intelligence technology. The company can identify and pinpoint broken meters that are not registering correct readings for water consumption in homes, thereby, increasing the revenue for the company
  • Companies that are using AI to “smarten” water systems include Pluto AI, EMAGIN, Fracta, and Fathom.
  • Water Einstein’s outdoor water management packages include residential outdoor water management hardware & software services. The company uses artificial intelligence (AI) and intelligent algorithms to save water, labor, money, and reduce damages with a smartphone application customized for use according to residents requirements.
  • HOW WE DETERMINED IT TRULY IS A TREND: We determined that Artificial intelligence and machine learning are trends because they are being featured as an upcoming trend for 2019 across multiple sources and companies in the US.

Trend #2: Advanced Metering Infrastructure (AMI)

  • DESCRIPTION: Advanced metering infrastructure (AMI) solutions aid the residents with engagement tools that enable them to check their consumption data either daily, hourly, monthly, or yearly via their smartphones, computers or tablets.
  • According to the US Energy Information Administration (EIA), the country registered 69,474,626 residential advanced (smart) metering infrastructure (AMI) installations in 2017. Residential customer installations account for 88% of all smart meter installations in the US.
  • The biggest increases in residential smart meters installations were seen in Illinois (+43%), Alaska (+21%), Kansas (+24%), Michigan (+24%), Oklahoma (+22%), and Tennessee (+22%).
  • HOW WE DETERMINED IT TRULY IS A TREND: Advanced metering infrastructure (AMI) has been identified as a trend because AMI is being listed as an upcoming trend for 2019 across multiple sources; Further, the EIA mention it as a key trend owing to rising implementation and acceptance of AMI in the US.

Trend #3: Cellular and IoT based technologies

  • DESCRIPTION: The capabilities of cellular and IoT-based technologies will eliminate the need for traditional fixed-network infrastructure; instead, they will provide a flexible transition towards mobile technology.
  • IoT helps to control and track water consumption at homes with smart water management and monitoring systems. Further, these devices can be used for monitoring leak detection in real-time.
  • According to a market analysis report by Technavio, investment in smart water management solutions is a growing trend.
  • According to Technavio, IoT based smart meters can detect leakage in pipelines and reduce water loss. The use of smart meters has reduced water consumption by 20% and energy consumption by 30% across the US.
  • HOW WE DETERMINED IT TRULY IS A TREND: Cellular and IoT based technologies have been identified as a trend across multiple industry reports, and it has been implemented with great success in the US.


RESEARCH STRATEGY:

  • We scoured through credible industry reports and blog sites that highlight the upcoming trends in the industry, some sites include waterworld.com, IBIS, smartcitiesworld.net, US Energy Information Administration (EIA), among others.
  • We have identified and compiled the latest trends in the US residential outdoor water management industry based on their applications and results delivered for residential outdoor water management.
  • Identifying them as a "Trend":

  • We compiled the above list of trends regarding the US residential outdoor water management industry based on the similarity of trends being listed as an upcoming trend in at least two or more credible industry sources. Also, we considered the trends that are being successfully implemented by the companies or governments in the country.
  • Identifying as a "current trend":

    • We have identified the listed trends as "current" as they have been listed as trends for 2019 among multiple sources and/or have been listed as "growing trend" in reports before 2019. Further, we have also classified the trends as "current" based on their implementations by private and public sectors to deliver results mentioned in the statistics cited.
    Part
    05
    of five
    Part
    05

    U.S. Residential Outdoor Water Management - Future Trends

    Four future trends regarding the U.S. residential outdoor water management industry include local governments imposing fines for wasting water, utilities to offer incentives for switching outdoor plants, increasing adoption of smart water meters, and increasing adoption of smart irrigation controllers.

    1. Local governments imposing fines for wasting water

    • In 2014, the state of California started imposing expensive fines to people who were caught wasting water.
    • Some of the offenses such as allowing landscape watering to flow into streets and hosing driveways were subject to $500 fines.
    • With depleting water resources, more local governments could start imposing fines to discourage water waste in the future.
    • Such policies governing the use of outdoor water would impact the demand for residential outdoor water management products in the future.
    Reason for considering this as a future trend: The actions of local government directly impact the industry and the possibility of similar instances in the future makes this a future trend.

    2. Utilities to offer incentives for switching outdoor plants

    • Watering grass and landscaping often account for half or more of home water use.
    • This offers a new avenue to conserve water and avoid excessive water wastage.
    • Many utilities have been working towards offering incentives for homeowners and businesses to switch from thirsty grasses towards native, drought-tolerant plants.
    • Switching to drought-tolerant plants would change the requirements for outdoor water use and would impact the U.S. residential outdoor water management industry in the future.
    Reason for considering this as a future trend: The incentives offered by utilities would change the requirement of residential outdoor water completely in the future thereby, impacting the demand for residential outdoor water management products in the future.

    3. Increasing adoption of smart water meters

    • According to a report published by Deloitte, smart water management can become an integral part of a connected home.
    • Increasing adoption of smart energy meters would lead to higher adoption of smart water meters in the future.
    • Both energy and water smart meters could become part of the connected home concept.
    Reason for considering this as a future trend: The report states that smart water meters would gain higher adoption in the future. This will impact the U.S. residential outdoor water management industry in the future.

    4. Increasing adoption of smart irrigation controllers

    • 70% of residential water use in the valley occurs outdoors, a lot of which is wasted due to over-watering landscapes.
    • According to the tests conducted by the International Center for Water Technology at California State University and the Irrigation Association (IA), the use of smart irrigation controllers can save up to 20% or more water compared to traditional irrigation controllers.
    • As a result, recently, EPA has endorsed the use of smart irrigation controllers through its WaterSense program.
    • Such endorsement would result in higher adoption of smart irrigation controllers and would impact the U.S. residential outdoor water management industry.
    Reason for considering this as a future trend: Since EPA has recently started endorsing smart irrigation controllers, such controllers would witness higher adoption in the future.

    RESEARCH METHODOLOGY

    We examined industry reports, media publications, government sources, and providers of residential outdoor water management solutions to identify the future trends regarding the U.S. residential outdoor water management industry. We identified four future trends on Seametrics, Pewtrusts, Deloitte, and Srpnet.
    Sources
    Sources

    From Part 01
    Quotes
    • "The global market size for gardening equipment market is estimated to be USD 81.3 billion in 2017 and is estimated to grow at a CAGR of 4.1% during the forecast period. Increasing awareness among people to consider gardening as beneficial for heath rather than a leisure activity, is anticipated to fuel the growth of gardening equipment market."
    • "The major market share is held by North America whereas, Asia Pacific region is projected to witness a noteworthy growth during the forecast period."
    • "Further, the residential construction of the region is also blooming coupled with rising living standards of the people residing in these economies. This is also anticipated to bolster the market growth."
    Quotes
    • "The global gardening equipment market size was valued at USD 74.1 billion in 2015 and is expected to witness significant growth owing to its growing adoption in the residential and commercial construction industries"
    • "The growing demand for lawn tools in landscaping services in the U.S. is expected to be a key driver for the industry growth over the forecast period. "
    • "The residential sector was the largest application segment for these products, accounting for over 50% of the total revenue share in 2015. The growing interest in outdoor activities has triggered the need to maintain the backyard. This also serves the purpose of backyard cooking & garden parties, which further motivates gardeners to purchase this product for the residential complexes."
    • "North America held the largest market share in 2015 and accounted for over 30% of the industry share. However, Asia Pacific is projected to be the fastest growing market for lawn tools and is anticipated to grow at a CAGR of over 4.0% from 2016 to 2025."
    Quotes
    • "This statistic shows the market value of garden equipment in the United States from 2014 to 2025, broken down by product type. In 2015, the U.S. market value of lawnmowers was around 6.3 billion U.S. dollars and it was forecast to reach a value of almost 10 billion U.S. dollars by 2025"
    Quotes
    • "Products such as automated timers designed to save water rose to the fore since 2011 as parts of the US experienced the worst drought in history. "
    • "While sales of most watering products were hurt by the drought, some that focused on conservation like rain barrels, drip irrigation systems, and soaker hoses benefited. "
    • "Developments in “smart” devices, including sprinklers that can be controlled via smart phone, are lauded for their potential ability to water more efficiently."
    • "This study presents historical demand data (2006, 2011 and 2016) and forecasts (2021) by product (hoses, DIY irrigation systems, nozzles, sprinklers, reels, and rain barrels and other accessories) at manufacturers’ level and retail level. It also provides similar data at retail level for lawn and garden watering product sales by retail channel (discount stores, e-commerce, hardware stores, home centers, lawn and garden specialty stores)."
    From Part 02
    Quotes
    • "Hannay Reels is the leading manufacturer of durable hose and cable reels for both OEM and aftermarket applications, offering thousands of standard models along "
    Quotes
    • "The Toro Company is proud to be given the EPA WaterSense 2018 Excellence Award by the U.S. Environmental Protection Agency. "
    Quotes
    • "Toro revenue increased from 2.5 Billion US Dollars in 2017 to 2.6 Billion US Dollars in 2018, a 4.5% increase."
    Quotes
    • "he Scotts Miracle-Gro revenue increased from 0 US Dollars in 2016 to 376.7 Million US Dollars in 2017, a NaN% increase"
    Quotes
    • "Founded in 1946, Melnor® has a long history of innovating lawn and garden watering products. Our first big step came early, with the introduction of the first successful oscillating sprinkler for the home market."
    From Part 05
    Quotes
    • "California made headlines in 2014 when they started imposing expensive fines to people caught wasting water. Offenses like allowing landscape watering to flow into streets and hosing driveways were subject to $500 fines. "
    • "As water resources become more stressed, more local governments may start imposing fines to discourage water waste."
    Quotes
    • "In residential areas, the new conservation frontier is outdoors, since watering grass and landscaping often accounts for half or more of home water use. "
    • "Many utilities, especially in the drier west, offer incentives for homeowners and businesses to shift away from thirsty grasses toward native, drought-tolerant plants."
    Quotes
    • "Smart water management can become an integral part of the connected home. The roll-out of energy smart meters could lead to the adoption of water smart meters. "
    • "Therefore, both energy and water smart meters could become part of the connected home concept, in which a single technology platform allows customers to manage devices and appliances in their homes, and to purchase and consume services. "
    • "Buying utility services, managing water, gas and electricity consumption, as well as selling micro-generated energy, could become typical features of the connected home in the future."
    Quotes
    • "Up to 70% of residential water use in the Valley occurs outdoors, yet much of that water is wasted due to over-watering landscapes."
    • "These systems use weather information and site conditions to determine how much water to apply and when to irrigate. Weather-based smart controllers draw upon a variety of climatic conditions. "
    • "Tests by the Irrigation Association (IA) and the International Center for Water Technology at California State University – Fresno, have shown smart irrigation controllers to save up to 20% more water than traditional irrigation controllers."
    • "These results, and the potential they pose for saving water if widely used, recently prompted the Environmental Protection Agency (EPA) to select smart irrigation controllers as one of the first technologies endorsed by the EPA's WaterSense program , the water equivalent of the Energy Star program."