Water's undeniable usefulness is beyond compare.
In the face of global water scarcity and chronic underinvestment in water infrastructure, a pressing need for modernization has arisen. This shift presents opportunities for companies specializing in various water-related technologies and initiatives.
Companies involved in Atmospheric Water Generation (AWG) are set to benefit from the growing demand for scalable, energy-efficient water solutions. Leading AWG companies, such as Akvo Atmospheric Water Systems Pvt. Ltd., Ray Agua, WaterMaker India Pvt. Ltd., and Watergen, offer multi-stage purification and UV sterilization systems, ideal for off-grid and drought-affected areas.
Desalination technology providers, like those offering reverse osmosis-based desalination and innovations such as solar-powered desalination or brine valorization, are also poised to gain from regions heavily reliant on seawater desalination due to acute freshwater scarcity. The global desalination equipment market is projected to surpass USD 109 billion by 2034.
Smart water management and infrastructure modernization firms, offering AI-driven water efficiency, digital twins for utility maintenance, IoT sensor networks for decentralized treatment, blockchain for water rights transparency, and cybersecurity for water utilities, are benefiting from the drive to modernize aging and inefficient infrastructure. These innovations help reduce losses, improve irrigation, and ensure regulatory compliance.
Large corporations with water restoration and sustainability programs, such as Procter & Gamble, are investing in improving water resources in stressed regions through projects that restore wetlands, replenish aquifers, and enhance water efficiency in manufacturing. Such companies are expected to benefit from regulatory frameworks aimed at water conservation and sustainability.
Energy and water development firms are seeing growing opportunities due to the interconnected challenges water scarcity presents for energy production. Companies offering integrated water-energy solutions and infrastructure improvements are well-positioned to address these challenges.
However, with the rising price of water, companies must factor water consumption and costs more strongly into their budget calculations. This contradiction, known as the Diamond-Water Paradox, is explained by the concept of marginal utility, where water is cheap where it is abundant and diamonds are expensive due to a shortage of supply.
Currently, 2.2 billion people lack access to what the UN defines as "safely managed drinking water." The majority of global water use is in agriculture and industry, indirectly contained in the food we eat and the products we consume. Water is used in wasteful ways in many parts of the world, with global water use increasing sevenfold in the past century.
One of the United Nations' 17 Sustainable Development Goals is to ensure access to safe and affordable drinking water as a basic human right. However, it is crucial to remember that water is not an infinite resource, and its future abundance is not guaranteed.
Xylem, a company addressing the entire water lifecycle, provides products for collection, distribution, use, and return to the environment. Their solutions are used for transport, treatment, testing, evaluation, and measurement.
In the USA, around 23 billion liters of water are lost through leaky pipes every day. Higher prices for water could lead to governments investing in repairs and upgrades of water networks, creating further opportunities for companies specializing in water infrastructure.
Kornit Digital offers digital printing solutions for the apparel and textile industry, using a 100% water-free process that eliminates the need for pre-treatment, steaming, or washing. Their NeoPigment inks are safe, non-toxic, and biodegradable.
In conclusion, companies in atmospheric water generation, desalination technology, smart water infrastructure and management, and water restoration initiatives are poised to benefit from global water scarcity and the pressing need to modernize water systems worldwide. It is crucial for these companies to address the challenges of water scarcity and infrastructure modernization while ensuring sustainable and responsible practices.
- Economic and social policy should consider the role of science, particularly environmental-science, in addressing climate-change, as it directly affects water resources and the global water crisis.
- As health-and-wellness is interconnected with water resources, it's essential for governments to invest in personal-finance-friendly water infrastructures for rural and urban communities.
- Technology plays a vital role in improving water efficiency and reducing wastage, with AI, IoT, blockchain, and cybersecurity solutions leading the way in smart water management.
- The food-and-drink industry, being a significant user of water resources, should adopt sustainable water-use practices through investing in technologies like Atmospheric Water Generation (AWG) or water-free digital printing processes for apparel.
- By adopting sustainable practices and cleaner technologies in their operations, companies can not only reduce their water footprint but also improve their corporate social responsibility and environmental, social, and governance (ESG) ratings.
- Education-and-self-development can play a critical role in raising awareness about the importance of water conservation and the need for investing in water infrastructure to safeguard our future.
- With the rising demand for sustainably managed water resources, companies specializing in investing in water infrastructure, water-related technology, and environmental-science-driven solutions could see significant returns on their investments in the long run.