The global pressure to manage existing water resources more efficiently and to provide sustainable water solutions in terms of water reuse, recycling and desalination plants, adopting smart technologies and reducing carbon footprint, promises attractive upside potential for the water design-build-operate (DBO) market. The demand for integrated water operation and management will further extend outsourcing of water supply and wastewater services, delivering good opportunities for DBO companies specialized in overall project and service provision.
New analysis from Frost & Sullivan (environmental.frost.com), CEO 360 Degree Perspective of the Global Water Design-Build-Operate (DBO) Market, finds that the global municipal water DBO market earned revenues of $84.68 billion in 2011 and estimates this to reach $185.21 billion in 2020.
Rapid urbanization, uneven distribution of water services, poor water quality and myopic exploitation of existing resources are urgent issues that sustainable water management solutions can address. A key factor that has resonated profoundly in the water market in the last few years is the need for local solutions in a globalizing marketplace. These factors increase the pressure for high-quality water and wastewater services, shaping the global water DBO.
"While construction of new water and wastewater infrastructure is expected to expand in emerging markets there are enormous modernization and rehabilitation needs in developed nations dedicated to ageing infrastructure," said Frost & Sullivan Research Analyst Paulina Szyplinska. "Growth in developing markets is expected due to expansion of adequate facilities while that in the developed market will revolve around the improvement of drinking water quality and water reuse."
Due to the complexity of water business, provision of package services is highly beneficial. Implementation of integrated water cycle is the responsibility of local water authorities and can be improved by outsourcing the water supply and wastewater services. This opens new opportunities for DBO water companies specialized in complex project delivery.
"The key part in the formulation of the DBO contracts lies in the assimilation of ‘operation’, aiming at combining it into an attractive package of design, build and operation for the contractor, and allowing for faster and more cost-efficient project delivery," opined Szyplinska.
Overall, companies offering sustainable solutions and packaged services for the global water DBO market can look forward to sharp growth in the years to come. Participants will need to have clear geographic priorities, balanced business models, and state-of-art technologies to constantly stay ahead of environmental challenges and client needs.
If you are interested in more information on this study, please send an email with your contact details to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com.
CEO 360 Degree Perspective of the Global Water Design-Build-Operate (DBO) Market is part of the Environmental Growth Partnership Service programme, which also includes research in the following markets: Analysis of the European Thrombosis Therapeutics Market, European Vaccines Market, among others. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion | Join Us: Join our community | Subscribe: Newsletter on "the next big thing" | Register: Gain access to visionary innovation.