Serving over 280 million people across 24 countries, the world’s largest private water utilities are estimated to have generated over $53 billion in annual revenue. Facing increasing populations and climate change, will the utility model look different in the future?
By Keith Hays
The private sector’s role in water utilities continues to be debated. In developing countries there is the promise of closing water infrastructure gaps, while in some mature markets governments are buying-back water systems.
At the same time, access to water supplies is increasingly threatened by climate change and inadequate public investment in infrastructure. These factors contribute to a challenging competitive environment, with the result being a significant shake-up in global private water utility rankings.
In 2014, the world’s 50 largest private water utilities served over 280 million people in 24 countries and generated over $53 billion in annual revenue on a net equity basis, according to a report recently released by Bluefield. Entitled Private Water Utilities: Global Rankings & Company Strategies, the report is based on Bluefield Research’s ongoing tracking of over 100 private water utilities.
France, the UK, USA, and Brazil host the largest private water utilities. Yet an increasing number of new players appear in Bluefield’s rankings of population served and water produced from regions where private participation in the water sector is on the rise including Southeast Asia, Latin America, and Africa.
Private participants are placing an increased emphasis on a diverse set of countries, with the US, Brazil, Chile, Italy, and Spain topping Bluefield’s 2015 market attractiveness ranking for private participation.