Growth Potential of Water Industry-Some thoughts

"By 2030, more than a third of the world’s population will live in severely water-stressed areas. We therefore expect water to grow from being a marginal issue to one that is central to all parts of the economy. We also consider water comprehensively, linking the challenge of managing water “upstream” as a critical natural resource, with “downstream” provision of clean water to users."--Mckinsey

The entire world is currently facing a boom in infrastructure construction.The Emerging economies are trying to improve their industrial productivity and raise the standard of living of the people, and developed countries are trying to develop their existing economic standard and modernize their infrastructure.  

Recently, the media has focused on the importance of water as the most vital commodity of future. They feel water will be the most crucial commodity in the future.It is believed that the water industry is a happening industry and in the next twenty years the total investment in the water industry is expected to be around $6 trillion (according to Global Water Services 2007 from Siemens Financial Services).The water sector has also gained importance recently and may become the single largest infrastructure market in due course.Water sector will become the first infrastructure sector in which the politicians shall have to keep aside their ideological concerns around the use of Public Private Partnerships (PPP). The need to provide safe and clean water is much more important than any other infrastructure requirement.
Three types of projects which can be identified while considering the PPP projects are 

• water collection and treatment plants;
• wastewater recycling facilities and 
• water services which governments traditionally look to provide.

Most of the water facilities are not based on the advanced technologies. It will cost large amount of moneys for the set up of the water infrastructure market. The private sector markets are yet to develop. So while water occupies 70% of our planet, its infrastructure still needs specific attention.

( Source:big4.com)

Further Reading : 

Growing competition for scarce water resources is a growing business risk, a major economic threat, and a challenge for the sustainability of communities and the ecosystems upon which they rely. It is an issue that has serious implications for the stability of countries in which businesses operate, and for industries whose value chains are exposed to water scarcity.

-Mckinsey

•  IFC in the Water Sector
• Mckinseyquarterly_Article_on_Next_generation_water_policy_for_businesses_and_government_2481 
• Charting_Our_Water_Future_Exec Summary_Mckinsey 

(This Report offers case studies from four countries with drastically different water issues, which will collectively account for 40 percent of the world’s population, 30 percent of global GDP and 42 percent of projected water demand in 2030: China, India, South Africa and Brazil. The report’s methodology identifies supply- and demand-side measures that could constitute a more cost effective approach to closing the water gap and achieve savings in each country.)