Global foreign direct investment towards Asia and $195 billion water and wastewater market


The water and wastewater services market in the Asia-Pacific will record a 5.82% growth between 2017 and 2022, according to research firm Frost & Sullivan.

Revenue generation within the market in the region is expected to increase from $147.58 billion to $195.78 billion during the forecasts period.

The operation and maintenance sector will record a 6.8% growth, whilst the design and engineering segment will record a 5.5% growth during the period.

Factors driving the market growth include:

  1. Wide economic development
  2. Environment government policies
  3. The shift in global foreign direct investment towards Asia

The study further states that:

  1. The market is hotbed of opportunities
  2. Market players should identify and partner with local players or invest in on-the-ground presence to increase the growth rate
  3. End-users are becoming more conscientious and balancing business growth and sustainability.
  4. To enjoy higher revenue opportunities, solution providers need to:
  • Deliver containerised 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.
  • Foster strong relationships with suppliers and service networks since they hold the key to the market adoption of new business models.
  • Invest in the technical expertise needed to restructure organisational processes and systems to facilitate the switch from a product-based model to subscription-based models such as XaaS.
  • Build new capabilities and creating an integrated product and services portfolio through M&A with key players.

Melvin Leong, Director, Energy & Environment, Asia Pacific, Frost & Sullivan, said: “The increasing consolidation of the fragmented market is resulting in 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,” said  “After analyzing current capabilities and gaps, participants need to explore partnerships with technology and service providers for capacity development and to seize opportunities in a circular economy.

“Water market leaders from Japan, North America, and Europe have already begun to penetrate the under-developed market, making it crucial for 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.

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