In Q1 2016, we saw an uptick in activity across global water markets — below are a few emerging trends from this past quarter:
M&A activity picks up, signaling water industry consolidation
- M&A activity among EPCs represents ongoing consolidation as leading players seek more expansive capabilities. The Stantec-MWH acquisition has proved the water industry’s biggest shakeup this quarter.
- Investor-owned utilities completed 33 water deals in 2015, representing more than US$297 million in acquisitions. 2016 is on track to far exceed 2015 in total deal value.
- Brazil’s water market is consolidating amid current political crisis, weakening currency, and ongoing corruption investigations.
Increasing investments in infrastructure build-out to address shortfalls, rising water demand
- An EPA survey found that $271 billion investment is needed to improve water infrastructure in the U.S. over the next five years.
- Twenty-nine utilities across 11 states require US$28 billion in infrastructure investment to mitigate storm water overflows by year-end.
- Markets with leading PPPs, including China, India, Brazil, US, Egypt, and Omanare seeing an increase in project activity to address rising water demand and infrastructure shortfalls.
Drought, environmental concerns renew interest in water reuse and desalination
- Reuse remains a key area of growth within the U.S. municipal market with 441 projects in the U.S. pipeline.
- California and Texas continue to focus on wastewater reuse while recovering from droughts.
- Desalination remains strong in the water-stressed Middle East with key projects kicking-off in Egypt and Saudi Arabia. Australia re-invested in desalination to mitigate water supply risk.
Our water market experts analyze industry developments, key events, and signposts to watch across the water industry. Register with Bluefield to stay up-to-date on key water market trends. Follow Bluefield on LinkedIn and Twitter.
