Xylem is a leading innovator of water solutions. This Knowledge Leader harnesses smart technology to provide water, wastewater, and energy solutions to a diverse range of sectors, from agriculture and aquaculture to commercial buildings and energy. The company’s mission is deeply rooted in addressing the pressing water-related challenges that our world faces. With the increasing threat of water scarcity, pollution, and the effects of climate change, the need for efficient and sustainable water solutions has never been more paramount.
The term “Xylem” is borrowed from classical Greek, representing the tissue in plants responsible for transporting water. This name aptly encapsulates the company’s core mission: to facilitate the movement and management of water across the globe. While Xylem’s journey as an independent company began in 2011, its roots trace back to ITT Corporation, a diversified manufacturer. Over the years, as ITT expanded its portfolio, it recognized the need to give its water businesses a unique identity, leading to the birth of Xylem. As Xylem carved its niche in the water technology sector, it was clear that the company was creating its own legacy – one of commitment to sustainability, innovation, and addressing some of the most pressing water challenges of our time.
Credit: Xylem
Groundbreaking Technological Innovations
One of the earliest and most significant technological breakthroughs from Xylem was its advanced water infrastructure systems. These systems were designed to revolutionize the way clean water is delivered, wastewater is transported, and how water is treated on a global scale. This innovation reimagined the entire water management process. The impact of this breakthrough was felt globally. For regions grappling with water scarcity, Xylem’s solutions offered a lifeline, ensuring that clean water could be delivered efficiently and sustainably. In areas where wastewater management was a challenge, Xylem’s infrastructure systems provided a robust solution, ensuring that wastewater was not just disposed of but treated and recycled, minimizing environmental impact. But what truly set this innovation apart was the ripple effect it created in the industry. Xylem’s breakthrough served as a catalyst, prompting other players in the industry to rethink their approach and prioritize innovation to be more advanced, sustainable, and efficient.
Product Portfolio Today
Tailored to maximize crop yield while minimizing water wastage, Xylem’s Agriculture & Irrigation solutions ensure that agricultural practices are both efficient and sustainable. Xylem Boats & RV solutions ensure that recreational activities do not compromise water quality or safety. The firm’s Commercial Pools & Water Parks solutions are designed to maintain water hygiene and safety, ensuring that fun activities remain healthy. Beyond these, Xylem’s portfolio encompasses a wide range of products, from Communications & Data Transfer Devices and Hydro Turbines to Metrology Equipment for Utilities and Pumps & Packaged Pump Systems. While Xylem is a dominant player, the water technology industry is vast and diverse. Companies like Grundfos, Danaher, and Ecolab are some of Xylem’s chief competitors.
Credit: Xylem
Research and Development at the Company
For Xylem Inc., the pursuit of innovation is not just a business strategy; it’s a commitment to addressing the world’s most pressing water challenges. This commitment is deeply embedded in the company’s DNA, driving its relentless focus on research and development (R&D). At the heart of Xylem’s innovation journey is a simple question: how do you prepare for the future demands to solve water challenges? Whether it’s addressing emerging needs, tackling new contaminants of concern, or elevating the standards of wastewater management, Xylem is always on the lookout for the next big breakthrough. Xylem’s global product development centers are the epicenters of this innovation drive. Its interdisciplinary hubs bring together experts from various domains, combining their in-depth knowledge of treating and transporting water with an understanding of the demands of the industries Xylem serves. A few key areas of focus for Xylem’s R&D initiatives include: 1) Sustainable Solutions, developing products that are not only efficient but also environmentally friendly; 2) Energy Efficiency, crafting pump systems that save energy, thereby reducing operational costs and carbon footprints; and 3) Safety and Ease of Operation, ensuring that Xylem’s solutions are user-friendly and adhere to the highest safety standards.
Internationally, Xylem’s R&D activities span across various regions, reflecting the company’s global footprint. Collaborations play a crucial role in this global R&D endeavor. By partnering with leading research organizations and universities, Xylem taps into a reservoir of knowledge and expertise, driving the next wave of water technologies. Recognizing the importance of collaborative innovation, Xylem launched the Xylem Innovation Labs Accelerator. This initiative brings together start-ups with groundbreaking technologies, providing them with a platform to scale their solutions and tackle critical water issues.
AI Initiatives
In the modern era, where artificial intelligence (AI) is reshaping industries, Xylem Inc. has embraced this transformative technology to redefine water solutions. One of the most notable AI-driven initiatives by Xylem is the collaboration with Esri®, a global leader in GIS. Together, they developed an AI-based pipeline analysis model for a mid-sized mid-Atlantic water utility. This model is among the first in North America to reliably predict future pipe failures. By analyzing data within the utility’s Esri ArcGIS® Enterprise system, combined with open-source information, this AI solution offers a proactive approach to water infrastructure management. By leveraging machine learning, the model identifies variables that could lead to pipeline failure, supporting capital improvement planning. This data-driven approach provides a significant advantage over traditional models, ensuring dynamic outputs even when inputs are updated.
Collaborations and Partnerships
Xylem has consistently forged strategic partnerships to drive innovation. Xylem’s partnership with the City Football Group includes renowned clubs like Manchester City, Manchester City Women, New York City FC, and Mumbai City FC, and is a testament to the company’s commitment to raising awareness about water challenges. Through this collaboration, Xylem leverages the global reach of these clubs, their players, and their vast fan base to spread crucial messages about water conservation and sustainability. Recognizing the importance of digital transformation in the water sector, Xylem partnered with Idrica to combine Xylem’s portfolio of digital solutions with Idrica’s GoAigua technology. This partnership aims to accelerate the digital transformation of water utilities, ensuring more efficient and sustainable water management. An initiative called Xylem Together 2023 focuses on fostering sustainable partnerships to create a water-secure Europe. By bringing together water sector channel partners, Xylem aims to advance collaboration and sustainability, ensuring a unified approach to addressing Europe’s water challenges.
This Knowledge Leader spotlight was generated using our AI engine with a series of prompts custom-developed by Knowledge Leaders Capital and designed to uncover the innovation strategies of companies we consider to be Knowledge Leaders. We have edited it for content, style, and length.
The following sources are examples of sources that may have been consulted in the preparation of this spotlight.
- Xylem Company Website
- Wikipedia – Xylem Inc.
- Wikipedia – Gulf Specimen Marine Laboratory
As of 6/30/23, Danaher was held in the Knowledge Leaders Strategy and the rest of the companies mentioned were not.
Disclosures
The information presented here is for informational purposes only and is not to be construed as an offer to sell, or the solicitation of an offer to buy securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. Hyperlinks may be included in this message that provides direct access to other internet resources, including websites. While we believe these links are to reliable sources, Knowledge Leaders Capital (“KLC”) has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up-to-date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Knowledge Leaders Capital.
The information provided on this blog is for illustrative or example purposes only and should not be construed as KLC’s opinion or investment outlook. As of the most recent quarter-end, the named companies may have been held by KLC. For full information including additional policies and full disclosures, please visit our website: KnowledgeLeadersCapital.com.
Any reference to Index performance does not represent the performance of any investment product offered by Knowledge Leaders Capital, LLC. An investor cannot invest directly in an index. The performance of client account may vary from the Index performance. Index returns shown are not reflective of actual investor performance nor do they reflect fees and expenses applicable to investing.
Companies are selected for “Spotlights” based on high levels of innovation activities in their respective industries and illustrate innovation being employed across all sectors and geographies. Spotlight selection is separate from stock selection by the investment team. Spotlights are not necessarily representative of investment opportunities and can be selected regardless of investment performance or inclusion as a KLC holding.
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out our podcasts.
© Knowledge Leaders Capital
Read more commentaries by Knowledge Leaders Capital
