The water and wastewater services market in Asia-Pacific: offering great opportunities for European companies.

wastewater services

Water and Wastewater Services (WWWS)

The still emerging Asia-Pacific (APAC) Water and Wastewater Services (WWWS) market is a hotbed of opportunities, driven by region-wide economic development, environment government policies, and the shift in global Foreign Direct Investment (FDI) towards Asia. It is expected to grow at a compound annual growth rate (CAGR) of 5.82 percent in the next five years (until 2025), driving the market from Euro 120  billion to Euro 180 billion. While the Operation & Maintenance (O&M) sector will grow at a CAGR of 6.8 percent, Design & Engineering (D&E) will grow at a bit lower percentage growth. To benefit from this growth, European companies need to identify and partner with local Asian players or invest in on-the-ground presence.

There is an increasing consolidation of the fragmented market happening, which results in the development of new business models such as Water-as-a-Service, Treatment-as-a-Service (TaaS), and Data-as-a-Service, and eager adoption of advanced technology services like predictive analytics.

After European companies have analyzed their current capabilities and gaps, these market participants need to explore partnerships with technology and service providers in Asia for capacity development and to seize opportunities in a circular economy.

The market for D&E and O&M services (delivered to municipal (government) and industrial (private) entities involved in the treatment, supply, management, and use of water and wastewater) is segmented by the key regions of India, Southeast Asia (Singapore, Malaysia, Indonesia, the Philippines, Vietnam, and Thailand), China, East Asia (Japan and South Korea), and Oceania (Australia and Japan).

Water market leaders from Japan, North America, and Europe have already begun to penetrate the under-developed market, making it crucial for other European entrants to have a well-developed merger & acquisition and growth strategy.

China and Japan are rolling out advanced treatment systems, creating opportunities for the D&E segment, whereas the Southeast Asian market is experiencing strong growth in treatment adoption due to the ongoing restructuring of governing bodies and regulations.

In the rapidly growing market end-users are becoming more conscientious and balancing business growth and sustainability. WWWS providers will enjoy higher revenue opportunities by:

  • Identifying, profiling, and shortlisting technology and services providers offering critical circular capabilities for M&A activity.
  • Delivering containerized and packaged treatment solutions through a TaaS model to handle the smaller and transient demand of this segment. Developing a robust distributor and service network will be critical to the success of such distributed solutions.
  • Fostering strong relationships with suppliers and service networks since they hold the key to the market adoption of new business models.
  • Investing in the technical expertise needed to restructure organizational processes and systems to facilitate the switch from a product-based model to subscription-based models such as XaaS.
  • Building new capabilities and creating an integrated product and services portfolio through M&A with key players.

If you like to know more about opportunities in the water and wastewater services market in Asia for your company, and like to develop an effective market entry and business development strategy, please contact us

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