Water Utility Services Market Size, Share, Growth Report 2032

Industry Prospective:

The global water utility services market size was worth around USD 67.30 Billion in 2022 and is predicted to grow to around USD 89.67 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.82% between 2023 and 2030.

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The report analyzes the global water utility services market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the water utility services industry.

Water Utility Services Market: Overview

The water utility services industry refers to the companies and businesses or entities that provide water supply along with wastewater treatment facilities to commercial establishments, households, and industrial units. It also includes the treatment and sale of portable water along with the collection of stormwater and wastewater for treatment. The market is run by both public and private water utility companies that work in coherence with other service providers such as water testing and water conservation programs. The industry is a need of the hour as it ensures public health safety and plays a crucial role in the economic development of the country. During the forecast period, the market players can expect a steady growth rate but they may have to encounter certain roadblocks.

Key Insights: 

• As per the analysis shared by our research analyst, the global water utility services market is estimated to grow annually at a CAGR of around 3.82% over the forecast period (2023-2030)
• In terms of revenue, the global water utility services market size was valued at around USD 67.30 billion in 2022 and is projected to reach USD 89.67 billion, by 2030.
• The water utility services market is projected to grow at a significant rate due to the growing population and urbanization
• Based on application segmentation, residential was predicted to show maximum market share in the year 2022
• Based on type segmentation, the integrated water system was the leading type in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Water Utility Services Market: Growth Drivers

Growing population and urbanization to propel market growth

The global water utility services market is expected to grow owing to the increasing population along with rampant urbanization. With the rise in the number of people across the globe, the demand for water is expected to grow simultaneously. In addition to this, with urbanization, urban cities can expect higher pressure on water utility service providers as they have to deliver more water to the growing number of consumers. This is expected to drive market growth as water supply providers look for measures to meet the exponentially rising demand of its people. Furthermore, the industry growth may be driven by the growing rate of industrialization especially in sectors that work with water on a large scale such as manufacturing and textile along with several other sectors. Water is an essential component for existence and with the mounting pressure on service providers, they are likely to invest more in technologies and systems that allow them to meet the demands.

Water Utility Services Market: Restraints

Regulatory challenges to restrict the market growth

One of the key growth constraints faced by the global water utility services industry players is the changing and dynamic regulatory aspects of water utility services. These laws and regulations change from one region to another leading to a higher state of disbalance as there is a lack of standardization which means that service providers have to change their process depending on the region the service is provided in.

Water Utility Services Market: Opportunities

Digitalization to provide growth opportunities

The global water utility services market may come across more growth opportunities owing to the increasing digitalization of the sector. Companies and service providers are integrating traditional means of water supply and wastewater treatment processes with digital technology by launching applications and software programs that lead to the smooth functioning of the industry. Digitalization can also help in reducing operational costs by making use of information technology. Furthermore, the increasing demand for water recycling is expected to generate higher revenue in the coming years.

Water Utility Services Market: Challenges

Aging infrastructure to challenge market growth

One of the key challenges existing in the water utility services industry is the aging infrastructure surrounding water utility systems and services. Most countries are witnessing high demand for a constant supply of water in larger volumes. The infrastructure that these countries have are extremely old and it is becoming difficult to keep up with the rising demand using these systems. Hence there is a dire need of repairing or rebuilding the systems as per current needs and demand and keeping future requirements in view.

Water Utility Services Market: Segmentation

The global water utility services market is segmented based on application, type, and region.

Based on application, the global market segments are residential, commercial, and industrial. In 2022, the industry witnessed the highest growth in the residential segment as these services are extensively used to meet residential water demands. Another crucial reason for the segmental revenue is the growing influx of people in urban areas resulting in more demand for water for several household purposes such as drinking, cooking, cleaning, and bathing. However, it should be noted that commercial and industrial applications are also significantly high with the growing number of commercial establishments across the globe. Units such as manufacturing plants and mining operations are some of the largest contributors in this segment. According to the New York City Department of Environmental Protection (DEP), the average residential water consumption in New York City is approximately 55 gallons per person per day.

Based on type, the global market divisions are single function water system and integrated water system. During 2022, the latter type of water utility services led the segmental growth. The integrated systems consist of a centralized system that is responsible for treating and distributing water to its customers. This is typically done through a large network of pipes, pumps, and treatment facilities. The integrated water system is known to provide a clean and reliable supply of drinking water to commercial, industrial, and residential units. On the contrary, single function water systems generally supply water to a single person or entity but they are not as efficient as their counterpart. As per the United States Geological Survey (USGS), the mining industry consumed approximately 4.3 billion gallons of water per day in 2015 in the United States alone.

Recent Developments:

• In March 2023, in a joint press release, the Federal Ministry for Economic Cooperation and Development (BMZ) belonging to the Federal Republic of Germany and the Ministry of Foreign Affairs of the Netherlands announced the launch of a joint program that intends to improve water utility services in the growing regions of the global South. The initiative is called the Urban Water Catalyst Initiative
• In August 2022, the water utility service provider for the town of Oro Valley, Arizona launched a new and efficient customer service portal that also features billing systems. The new software program will allow the customer of Water and Stormwater Utility to pay their bills online along with better control over account management

Water Utility Services Market: Report Scope

Water Utility Services Market: Regional Analysis

North America to witness the highest growth

The global water utility services market is expected to register the highest CAGR in North America. The regional growth is likely to be led by the countries of the US and Canada. These regions are home to some of the world’s most efficient water management systems, due to the already existing effective and pre-planned water utilities services and network. Furthermore, the governments and the general population are proactive in ensuring less water wastage and there is a high emphasis on recycling wastewater for further use. The stringent regulations laid by the government on industrial units surrounding wastewater management work in favor of the regional market. The second largest market share was held by Europe in the past year due to the excellent infrastructure of European nations such as the UK, Spain, France, and Germany. Alongside this, the regional governments are working toward the development of new plans for ensuring a constant water supply.

Water Utility Services Market: Competitive Analysis

The global water utility services market is led by players like:

• Veolia Environnement SA
• Suez SA
• American Water Works Company Inc.
• Aqua America Inc.
• United Utilities Group PLC
• Severn Trent PLC
• Thames Water Utilities Limited
• Yorkshire Water Services Limited
• Anglian Water Services Limited
• Scottish Water
• South West Water Limited
• Southern Water Services Limited
• Northumbrian Water Limited
• Welsh Water
• Wessex Water Services Limited
• BHP Billiton Limited
• Rio Tinto Group
• Glencore Plc
• Barrick Gold Corporation
• Newmont Corporation
• Freeport-McMoRan Inc.
• Vale S.A.
• Anglo American PLC
• Teck Resources Limited
• ArcelorMittal SA.

The global water utility services market is segmented as follows:

By Application

• Residential
• Commercial
• Industrial

By Type

• Single Function Water System
• Integrated Water System

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa