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Global Water Market: Current Environment Supports Growth

The global water market was estimated to be about $591 billion in 2014, with municipal capital expenditure making up $203 billion. The economic downturn led to declines in construction markets, infrastructure projects, and water expenditure growth. However, water scarcity and pressure on limited resources remain key drivers of growth, expected to rebound the water market at a rate of 5-6% over the next 5 years as governments recognize the need to invest in water infrastructure to ensure supply.

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59 views1 page

Global Water Market: Current Environment Supports Growth

The global water market was estimated to be about $591 billion in 2014, with municipal capital expenditure making up $203 billion. The economic downturn led to declines in construction markets, infrastructure projects, and water expenditure growth. However, water scarcity and pressure on limited resources remain key drivers of growth, expected to rebound the water market at a rate of 5-6% over the next 5 years as governments recognize the need to invest in water infrastructure to ensure supply.

Uploaded by

LymePark
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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3.

Global water market: current


environment supports growth
The global water market to rebound following the in industrial production. Public financing for infrastruc-
economic slowdown ture maintenance and upgrades was temporarily post-
Recent estimates put the size of the global water market poned due to budget constraints. As consumers faced the
at about USD 591 billion in 2014. This includes USD 203 prospect of unemployment, it was also politically difficult
billion from municipal capital expenditure, USD 317 bil- to raise water tariffs to cover much needed infrastructure
lion from municipal operating expenditure, USD 1 billion investments, resulting in a decrease in water expenditure
from industrial capital expenditure, USD 37 billion from growth.
industrial operating expenditure, USD 12 billion from
point of use treatment and USD 3.7 billion from irriga- Despite the economic slowdown, various factors support
tion. Market opportunities related to the water sector continued growth in the water market. Governments and
are expected to reach USD 1 trillion by 2025.39 utilities are recognizing that an appropriate level of tariffs
is required to expand and maintain water and wastewater
Over the last few years, the economic downturn has led infrastructure to guarantee a sufficient and safe water
to weak residential and commercial construction mar- supply, while ensuring adequate services and profitability.
kets, delays in large infrastructure projects and a decline At the same time, the increasing rate of private sector
participation in providing funding for infrastructure, tech-
nology and expertise is also supporting growth in the
Water scarcity and increasing pressure on water sector. Most importantly, water scarcity and increas-
limited global water resources remain the ing pressure on limited global water resources remain the
secular drivers of growth in the water sector. As a result,
secular drivers of growth in the water sector. growth in water expenditures is expected to rebound at
an expected CAGR of 5-6% over the next 5 years.40

Figure 17: Global water market

800

700

600

500
in USD billion

400

300

200

100

0
2014 2015 2016 2017 2018

Point of use equipment Irrigation equipment Industry operating expenditure


Industry capital expenditure Utility operating expenditure Utility capital expenditure

Source: GWI, RobecoSAM

39
GWI, RobecoSAM
40
 obecoSAM and GWI
R
2014

20 RobecoSAM Water: the market of the future

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