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Digital Water: Key Trends, Project Activity, and Market Outlook, Q3 2022
The US$25.9 billion global digital water market has faced significant headwinds throughout 2022, including ongoing supply chain disruption, rising prices and interest rates, COVID-19 lockdowns in key markets, and the destabilization caused by the Russia-Ukraine war. These challenges have driven a broad downturn in M&A and VC activity across countries and industries, impacting digital water companies despite steady growth in projects and investments.Climate Risk
Water and climate are inextricably linked. From the 1970s to the 2010s, the world has seen an eightfold increase in economic losses from climate-related disasters including drought, stormwater flooding, algae blooms, and winter freezes. The increasing financial and societal impacts, stretching from Cape Town to California, pose significant risks to municipal and corporate entities, globally.
Adapting to this new ‘normal’ requires significant changes for cities and municipalities. Stakeholders are targeting their carbon footprints to minimize the water sector’s footprint—2% to 3% of global emissions—to adopting mitigation strategies like water reuse, energy microgrids, and digital tech. In this context, climate change is driving unprecedented global opportunities for a range of technology & service providers and business models.