Water Utility Services Market Size, Share, and Industry Analysis By Services (Water Supply, Wastewater Treatment, Wastewater Management, Desalination Services, and Others), By End-User (Residential, Commercial, Industrial, and Agricultural), and Regional Forecast till 2032

The global water utility services market is witnessing growth and increasing awareness of water scarcity across the world is a major driving factor for this market. Increasing population, climate change, and inefficient water management practices have resulted in freshwater depletion. As countries across the world face water scarcity challenges, the demand for sustainable water solutions with advanced water treatment technologies and efficient distribution systems has become prevalent.

• According to the Sustainable Development Goals (SDG) Report 2022, about 2 billion people do not have access to safe drinking water.
• The Intergovernmental Panel on Climate Change (IPCC) reported that around half of the world’s population is witnessing severe water scarcity for at least part of the year and these numbers are expected to increase, which is exacerbated by climate change and population growth.

Water Utility Services Market Driver

Utility Sector Adopting Advanced Technologies Due to Strict Regulations 

Governments and international organizations are implementing stricter regulations and policies to protect water resources and promote sustainability. Compliance with these regulations requires investment in modern infrastructure and practices, driving the demand for water utility services.

• In April 2024, the Environmental Protection Agency (EPA) announced the first-ever national regulations for limiting per- and polyfluoroalkyl substances (PFAS) in drinking water. The new standards will reduce PFAS exposure for 100 million people and prevent thousands of deaths and illnesses. For public water utility companies to comply with the new drinking water standards, the EPA is making USD 1 billion available to states and territories to implement PFAS testing and treatment at public water systems.

Water Utility Services Market Restraint

High Capital and Maintenance Cost May Hamper the Market Growth

The capital-intensive nature of water infrastructure projects, including the construction and maintenance of treatment facilities and pipelines, proves to be a barrier to investment, especially for developing regions such as African and Sub-African countries.

• For instance, according to the American Society of Civil Engineers (ASCE), in the U.S., around 6 billion gallons of treated water are lost every day due to leaking pipes, and an estimated 240,000 water main breaks occur each year, which increases the overall maintenance cost of water utility services.

Water Utility Services Market Opportunity

Heavy Investments in Infrastructure Modernization to Open New Avenues

Global water utility services refers to the sector of the economy focused on the provision, management, and distribution of water resources for various uses, including drinking, sanitation, and industrial processes. This market encompasses a range of services and infrastructure needed to ensure the availability, quality, and efficiency of water supply and wastewater treatment systems.

Governments and private entities are investing heavily in modernizing outdated water infrastructure to improve efficiency and service reliability. Investments are also focused on reducing water loss and improving the quality of water supply. Moreover, innovations such as water utility services, advanced metering infrastructure (AMI), and water treatment technologies are revolutionizing the water utility sector. These technologies offer real-time data, predictive maintenance, and improved water quality.

• North American utilities sector has invested over USD 530 million in new water projects, calling out a data-driven focus starting in 2024. With over 3,000 capital improvement plans, it houses over 300,000 unique projects. California, Texas, and Arizona together represent 46%, almost half of all projects calling for data-driven and real-time information in water utility services.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in the Water Utility Services Market
• Key Industry Trends
• Regulatory Landscape for Water Utility Services Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis by Services

Based on service, the market is divided into water supply, wastewater treatment, wastewater management, desalination services, and others.

The water supply segment holds a major share in the global water utility market, as it encompasses the essential provision of clean, potable water to residential, commercial, and industrial users, and it often represents the largest portion of the market due to its fundamental importance and widespread demand.

• In March 2024, the World Bank Group and its partners, including the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the 2030 Water Resources Group, a public-private collaboration platform, collaborated to create the Strategic Framework for Scaling Up Finance for Water. It focuses on four key areas to catalyze financing and innovation for the water supply sector in different regions.

Analysis by End-User

Based on end-user, the market is fragmented into residential, commercial, industrial, and agricultural.

The residential segment holds a major share in the global water utility market due to the large number of residential users and the essential nature of water supply and management for households.

• According to UN estimates, by 2030, the global population will reach approximately 8.5 billion, increasing the demand for residential water services.

Regional Analysis

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Based on region, the market has been studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

North America holds a major share of the global water utility services market. The region benefits from well-developed infrastructure, advanced technologies, and significant investments in water treatment and distribution systems.

• In 2024, the Biden Administration's USD 55 billion allocation for water infrastructure, including initiatives to replace lead pipes and improve wastewater systems, has been a significant initiative to improve the existing water utility infrastructure and to advance the development.

Europe is the second leading region in the global water utility services market. Europe’s emphasis on sustainability and climate change mitigation drives investments in water reuse, conservation technologies, and energy-efficient treatment processes.

• Europe is leading several innovative water management projects, such as the Circular Economy Action Plan, which promotes water reuse and reduces water footprints.
• In June 2024, the EU updated its Water Framework Directive aimed to address emerging pollutants and enhance the protection of water bodies, reflecting Europe’s commitment to environmental sustainability. The Council agreed to narrow down the scope and set EU-wide values only for synthetic substances.
• Member States will have until 2039 to achieve good groundwater chemical status. As groundwater is the main source of drinking water in many member states, the negotiating mandate aligns the PFAS requirement for groundwater with the drinking water directive.

Key Players Covered

The global water utility services market is fragmented, with a large number of group and standalone providers.

The report includes the profiles of the following key players:

• American Water Works Company Inc. (U.S.)
• Anglo American PLC (U.K.)
• ArcelorMittal SA (Luxembourg)
• Aqua America Inc. (U.S.)
• Suez SA (France)
• Severn Trent PLC (U.K.)
• Teck Resources Limited (Canada)
• United Utilities Group PLC (U.K.)
• Veolia Environnement SA (France)
• Vale S.A. (Brazil)

Key Industry Developments

• In November 2022, Anglo-American secured a desalinated water supply contract for the Los Bronces copper mine in Chile from 2025. It will also provide desalinated water to supply the nearby communities of Colina and Til Til, which will benefit approximately 20,000 people.
• In November 2021, SUEZ became a tenderer for the Alliance contract with SA Water to provide production and treatment water and wastewater services to metropolitan Adelaide. Under this contract worth USD 276 million over five years, SUEZ will operate and maintain five drinking water and five wastewater treatment plants catering to the needs of around 1.2 million people. SUEZ will also manage water tanks, water and wastewater pumping stations, and trunk mains.