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COVID-19 Resulted in a Significant Decline in Expenditure in 2020; Rebound is Expected in 2021, as Accelerated Innovation and Deployment of Digitalisation-driven Business Models Drive Resilience in the New Normal
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The COVID-19 pandemic has significantly affected the water sector. Operational resilience and economic sustainability have become key focal points of investments due to the pandemic. The lockdowns due to the pandemic across the globe have severely disrupted supply chains and labour availability for production; both factors have significantly hit the growth of the water market across the globe. On the demand side, customers have become highly price sensitive and are directing their new investments to digital and smart solutions that can enable seamless remote operation and visibility of their systems or infrastructure. The municipal water and wastewater market has shown the highest resilience due to support packages from governments and their criticality across the globe. The hydration treatment systems market has been the worst affected by the pandemic among all segments in the water market. Circular economy and sustainability goals being pursued by the water sector are expected to continue, albeit on a delayed timeline. Overall, due to the pandemic, the global water and wastewater industry is set to shrink at a rate of 17.7 % to $805.31 billion in 2020. The municipal and industrial water and wastewater market covers the total expenditure (TOTEX) of the following: design and engineering, operation and maintenance, water and wastewater technology, process control management, and chemicals. The irrigation systems and solutions market covers the TOTEX of the following: smart irrigation solutions, irrigation pumps, mechanical irrigation, and micro irrigation. The bottled water market covers the TOTEX of the following: still water, sparkling water, flavoured water, and functional water. The hydration treatment systems market covers the TOTEX of residential water treatment systems (WTS), Commercial WTS, and hotels, restaurants, and cafés (HORECA) WTS. Frost & Sullivan has presented the water market expenditure forecast for Asia-Pacific (APAC), North America, Europe, the Middle East and Africa (MEA), and Latin America. Key market predictions for municipal, industrial, irrigation systems and solutions, and bottled water and hydration treatment systems markets for each region, along with revenue are presented in the study. The study also encompasses municipal and industrial technology outlook for various regions, along with revenues for the technology employed in water treatment, wastewater treatment, sludge management, and smart water management.
The study estimates the size of the water and wastewater industry to be $805.31 billion in 2020. The predictions for the year 2020 have been done with 2019 as the base year. The study highlights key market predictions for 2020 for the following water and wastewater markets:
Key Issues Addressed
Author: Paul Hudson
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