This study provides an overview of the global water sector in 2016, highlights key water sector trends and emerging opportunities moving into 2017, and offers broad strategies for capitalization.
The municipal segment continued to dominate the global water sector revenues in 2016. However, the regional revenue contributions underwent significant change as large international participants moved out of the slowing markets in Brazil, Russia, India, and China (BRIC). These participants have set their sights on frontier markets which offer high growth potential, albeit at an increased business risk.
The competitive landscape is being shaped by the push for a circular water sector, the increasing adoption of smart infrastructure, and the emergence of new business models. In 2016, the market witnessed the active consolidation of participants in an effort to capitalize on these trends. Overall, the focus of participants worldwide was on gaining new clients by strengthening and expanding their product and service portfolio. However, their strategies differed based on their current strengths and capabilities.
The market environment is seeing rapid change due to market forces and trends focussed on improving the cost optimization and resource efficiency of water and wastewater services. Increasingly scarce water resources and a lack of investment in the sector have made utilities reconsider the fundamentally flawed system of water rebates. Political factors permitting, utilities are choosing to ensure long term sustainability of operations with more aggressive water pricing and increased metering of water connections. Other measures being adopted by the industry at large include circularization and decentralization of treatment systems, restructuring of utility functions, privatization of utilities, and the adoption of new business models.
The market trends are analyzed for the next year, with the base year being 2016. This study has a global scope and includes the municipal water and industrial water markets and its sub segments including design and engineering, operations and maintenance, and treatment technologies. The market forces have been categorized and discussed under three categories: Transformational Trends, Technological Trends, and Emerging Business Models. Companies mentioned in this outlook study include Arad, Huawei, Sasakura, Sensus, Suez, Veolia, and Xylem.
Key Questions this Study will Answer:
• What did the global water market look like in 2016?
• What are some of the macro and micro trends and what are their implications on the market landscape?
• What are some key growth opportunities for market participants?
• How can companies capitalize on these growth opportunities?