Figure 21: Water Utilities

Water Utilities Expected annual growth

Regional overview CAGR 2014-2018
Asia ex-Japan 10.1%
Central, South America & Caribbean 5.7%
USA & Canada 4.4%
Eastern Europe 5.5%
Western Europe 2.7%
Middle East / Africa 13.2%
Source: GWI Global Water Market 2014; RobecoSAM

Regional differences: local drivers
Regional differences are significant. Based on economic
growth and the need to catch up with basic infrastruc-
ture, water sector investments in emerging markets
are expected to grow faster than in developed markets,
while growth is likely to be sluggish in a number of
European markets and Sub-Saharan Africa. Other coun-
tries, however, will enjoy above-average growth rates,
especially emerging Asia and the Middle East and North
Africa (MENA). The US market is expected to grow in the
coming years, driven by increased levels of investment
to expand and upgrade an aging water infrastructure
as well as to meet the growing water demand in water-
scarce areas where the population continues to grow,
particularly in Southern California. This market continues
to be heavily influenced by public budgets and water-
related policies. Economic performance in the Middle
East is closely linked to the provision of additional water
through desalination, leading to strong growth rates for
related technologies and services. Areas of more acute
water stress have seen greater investment. In Australia,
problems are concentrated in the southern regions.
Total annual water and sewage capital expenditures
by Australian water utilities have increased by 200%
between 2006 and 2012.47

Figure 22: Global expected municipal water and wastewater capital spending

140

130

120
in USD billion

110

100

90

80
2011 2012 2013 2014 2015 2016 2017 2018

Water capex Wastewater capex

Source: GWI Global Water 2014

47
 ational Water
N
Commission 2012-2013

RobecoSAM Water: the market of the future 27