Water is a mainstream investment option
Water is now undoubtedly a mainstream investment option. The global water services market is currently worth more than $500 billion, and it continues to grow at 6% per year. Demand for water worldwide has increased nine-fold since 1900; almost double the speed of global population growth over the same period. And when it comes to predicting future water usage, past performance really is indicative of future results: While the rate of world population growth continues to increase, demand for clean, usable water is growing even faster.
Forecasted growth in water consumption from 2000-2050:
- Agriculture: 200%
- Industry: 100%
- Drinking water: 200%
(Source: United Nations Water Report 2012)
According to a 2005 study by the OECD, an additional $41 trillion of water infrastructure investment is needed by 2030 to meet this increased demand. As more and more of this investment gets picked up by the private industry, the flow of opportunities now open to investors are clear.