Water & Sewer Utilities
Companies in this industry operate water treatment and water supply systems; sewer systems and sewage treatment facilities; and steam and air-conditioning supply systems. Major companies include American Water, Cal Water, and Essential Utilities (all based in the US), along with Sabesp (Brazil), SUEZ and Veolia (both based in France), and Thames Water (UK).
Europe, Africa, and the Middle East are expected to see growth with the increased adoption of wastewater treatment projects, according to the Fortune Business Insights. The global water and wastewater treatment, which was valued at $301.77 billion in 2022, and is expected to reach $489 billion by 2029.
The US commercial water and sewer utilities industry includes about 4,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $12 billion. The commercial industry is small compared to the water and sewer services operated by many regional and local governments in the US.
Competitive Landscape
Demand depends on commercial and residential water needs, which are related to population growth and to the level of economic activity. The profitability of individual companies depends on efficiency of operations, because prices are fixed by public utility commissions (PUCs). Large companies have economies of scale in operations and the ability to raise capital for infrastructure improvements. Small companies can compete successfully through superior engineering or by serving desirable local markets. The US industry is concentrated: the 50 largest companies account for about 75% of industry revenue.
High barriers to entry, such as capital investments, make the industry resistant to competition; many companies operate as de facto monopolies. The cost of constructing a new water and wastewater system in an existing market is high, and regulatory approval must be secured. Utilities may face competition from industrial customers supplying their own water.
Products, Operations & Technology
Water supply and sewage treatment accounted for about 50% of the industry revenue, followed by water supply, transmission, and treatment, about 45%. Other
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