Xylem Inc. operates as a global water technology company.
The company designs, manufactures, and services engineered products and solutions across a wide variety of critical applications, primarily in the water sector. The company’s broad portfolio of products, services, and solutions addresses customer needs of scarcity, resilience, quality, and affordability across the water cycle, from the delivery, treatment, measurement, and use of drinking water, to the collection, testing, analysis, and...
Xylem Inc. operates as a global water technology company.
The company designs, manufactures, and services engineered products and solutions across a wide variety of critical applications, primarily in the water sector. The company’s broad portfolio of products, services, and solutions addresses customer needs of scarcity, resilience, quality, and affordability across the water cycle, from the delivery, treatment, measurement, and use of drinking water, to the collection, testing, analysis, and treatment of wastewater, to the return of water to the environment.
The company has differentiated market positions in core applications, including transport and dewatering, process water and wastewater treatment, analytics, smart metering, digital software solutions, and comprehensive services.
Business Strategy
The company’s overarching strategy is to help customers solve the world's greatest water challenges with innovative products, services, and solutions to deliver sustainable economic, social, and environmental benefits. The company’s strategies are customer centricity and profitable growth.
Business Segments
The company has four reportable business segments: Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services.
Water Infrastructure
Through two closely linked applications, transport and treatment, the company’s Water Infrastructure segment primarily supports the process that collects water from a source, treats it, and distributes it to users, and then treats and returns the wastewater responsibly to the environment.
The customer base consists of two primary end markets: utility and industrial. The utility market includes public, private, and public-private entities that support water, wastewater, and stormwater networks. The industrial market includes customers that require similar water and wastewater infrastructure applications to support various industrial operations.
Water Infrastructure sells through a combination of direct channels, indirect channels, and service capabilities. Both utility and industrial facility customers increasingly require the company’s teams’ global but locally proficient expertise to use its equipment in their specific applications.
The company’s key competitors in the Water Infrastructure segment include De Nora, Grundfos, KSB Inc., ProMinent, Sulzer Ltd., Trojan (Veralto Corporation), and Veolia.
Applied Water
Applied Water encompasses the uses of water to serve a diverse set of customers in the building solutions and industrial water end markets. Residential consumers represent the end users in the residential market, while owners and managers of properties, such as apartment buildings, retail stores, institutional buildings, restaurants, schools/universities, hospitals, and hotels are examples of end users in the commercial market. The industrial market includes original equipment manufacturers, exploration and production firms, agricultural customers, and developers and managers of industrial facilities, such as chemical manufacturers, marine, food and beverage companies, data centers, and car washes.
In the Applied Water segment, end markets vary widely and, as a result, specialized distribution partners are often preferred. As such, the Applied Water segment provides the majority of its sales through strong indirect channels, with the remaining sales going through its global direct sales channels. The company has long-standing relationships with many of the leading independent distributors in the markets it serves, and it provides incentives to distributors, such as specialized loyalty and training programs.
The company’s distribution through well-established channels and its reputation for quality significantly enhance its market position. The company’s ability to deliver innovative product offerings has enabled it to compete effectively, cultivate and maintain customer relationships, and serve and expand into many niche and new markets.
The company’s key competitors in the Applied Water segment include Franklin Electric Co., Inc, Grundfos, Pentair plc, and Wilo SE.
Measurement and Control Solutions
Measurement and Control Solutions develops advanced technology solutions that enable intelligent use, optimization, and conservation of critical water and energy resources. The segment delivers communications, smart metering, measurement and control capabilities, and critical infrastructure technologies that allow customers to more effectively use their distribution networks for the delivery, monitoring, and control of critical resources, such as water, electricity, and natural gas. The company also provides analytical instrumentation used to measure and analyze water quality, flow, and level in clean water, wastewater, and outdoor water environments. Additionally, the company offers software and services, including cloud-based analytics, and remote monitoring and data management.
At the heart of the company’s leading technologies are automation, data management, and decision support. The company’s communications networks enable customers to automate and optimize meter reading, bill customers, monitor flow rates, and detect and enable rapid response to changing and unsafe conditions. In short, the company’s communications offerings provide insight into operations and enable its customers to manage the entire scope of their operations remotely through their networks and to optimize their operational costs. At the center of the company’s offering is the FlexNet communication network, which provides a common communications platform and infrastructure for essential metering services. This two-way communication technology remotely connects a wide variety of smart points in a given network with protocols, frequently on Federal Communications Commission (‘FCC’) licensed spectrum in the U.S., to enable reliable, resilient, and secure transmissions. These technologies allow the company’s customers to remotely and continuously monitor their water and energy distribution infrastructure, prioritize and manage maintenance, and use data to optimize many aspects of their networks. The company’s digital software solutions complement these offerings with intelligent applications that help utility decision-makers manage and maintain their networks more effectively in real time.
The majority of the company’s sales in the U.S. are conducted through strong, long-standing relationships with leading distributors and dedicated channel partners for the water and energy markets. Internationally, direct sales are often made in markets without established distribution channels; however, some distribution channels are used in more developed markets. A direct sales approach, with key account management, is employed for large utilities and government programs.
The company’s Sensus-branded meters are well positioned in the smart metering sector, the fastest growing sector of the global meter industry. The company sets itself apart in the industry by focusing on its communication network, innovation, new product development, and service offerings that deliver tangible savings from efficiency of operating costs in meter reading and billing, and reduction of non-revenue water through improved meter accuracy, reduced theft, and identification of leaks. The company’s YSI and WTW-branded instruments have a strong position in the analytical instrumentation market and provide critical readings of various water quality, level, and flow parameters for customers. The company provides a differentiated offering in the reliability and accuracy of its products, often in rugged, remote, and hazardous locations.
The company’s key competitors in the Measurement and Control Solutions segment include Badger Meter, Echologics (Mueller Water Products), Hach (Veralto Corporation), Itron, Kamstrup, Landis+Gyr, Neptune (Roper), and Teledyne.
Water Solutions and Services
The company’s Water Solutions and Services segment provides tailored services and solutions, in collaboration with customers, including on-demand water, outsourced water, recycle/reuse, specialty dewatering, and emergency response service alternatives, to improve operational reliability, performance, and environmental compliance. Key offerings within this segment also include equipment systems for industrial needs (influent water, boiler feed water, ultrahigh purity, process water, wastewater treatment, and recycle/reuse), full-scale outsourcing of operations and maintenance, and municipal services, including odor and corrosion control services, and pipeline assessment services, as well as leak detection, condition assessment, and asset management and pressure monitoring solutions. The Water Solutions and Services segment also includes sales and rental of specialty dewatering pumps, scalable products, and related equipment, technology, and services, which provide the safe removal or draining of groundwater and surface water from construction sites or other industrial sites, and bypass pumping for the repair of aging utility infrastructure, as well as emergency water transport and removal during severe weather events.
The company’s Water Solutions and Services segment reaches customers across various municipalities, as well as industrial vertical markets, such as life sciences, microelectronics, food and beverage, chemical processing, and power generation. In order to reach these customers, the company leverages its application expertise in process water and wastewater treatment, its internal and external partners, and extensive service branch networks across the globe, including a rental fleet of transfer and treatment assets.
The company’s key competitors in the Water Solutions and Services segment include Ecolab, MPW Industrial Services, Ovivo, Sunbelt Rentals, and United Rentals.
Research and Development (‘R&D’)
The company incurred $230 million as a result of R&D investment spending in 2024.
Governmental Regulations
The company’s global operations are subject to various laws and regulations governing the environment and climate change, such as those promulgated by the U.S. Environmental Protection Agency and similar state and foreign environmental agencies, including related to the discharge of pollutants and the management and disposal of hazardous substances.
As a company with global operations, it is subject to complex U.S. federal, state, and local, and foreign laws, regulations, and permits in the countries where it conducts business, including related to trade, such as tariffs, imports, and exports; anti-bribery and corruption; antitrust and competition; data security and privacy, such as the EU General Data Protection Regulation (‘GDPR’) and the China Personal Information Protection Law ('PIPL’); use of regulated radio spectrum, including that of the U.S. FCC; lobbying activity; health and safety; the environment; air emissions; potable and non-potable water; wastewater discharge; and the generation, handling, storage, use, transport, treatment, and disposal of non-hazardous and hazardous materials and wastes, among other matters. The company has policies and procedures in place to promote compliance with these laws, regulations, and permits.
History
The company was founded in Indiana in 2011. The company was incorporated in Indiana in 2011. It was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in 2011.