On the stock market, water is a source of opportunities that today generates $1.4 trillion in annual revenue, with an increase of 3% to 5% per year.
Water and related technologies refer to the various tools, systems, and innovations used in managing, treating, and conserving water resources. This field encompasses a wide range of technologies and practices designed to ensure the availability and quality of clean water for various purposes such as drinking, irrigation, industrial use, and environmental preservation. Some key examples of water and related technologies include water treatment systems, desalination plants, water purification methods, wastewater treatment processes, rainwater harvesting techniques, water recycling systems, and smart water management systems.
Water demand is increasing
Following demographic pressure (in 2050, there will be 9 billion people on earth), demand is increasing, and it will quickly become exponential. The water market is growing continuously, from 3 to 5% per year. For a simple reason: demand is increasing while the amount of water on earth remains the same. Indeed, directly usable water is rare, only 0.25% of the water on earth.
Agriculture, industry and consumers are always asking for more. The population is growing and consumption per person is also increasing (it has doubled in 100 years). Even artificial intelligence uses water to function. At Microsoft, artificial intelligence has caused a 34% increase in water consumption in one year.
Limited offer: the total volume of water is limited.
Despite all the existing infrastructures, 25% of the population still does not have access to drinking water. Seleument 0.25% of the water present on earth is directly usable by man, to increase this volume, it will be necessary to increase in quality and quantity the capacity of water transformation (electrolysis seawater etc...).
Climate change will further exacerbate this imbalance. In the UK, to cope with future droughts, daily capacity will need to increase by 2.7 billion litres by 2050.
How to invest in water on the stock market.
You can invest in water through distribution, technology and environmental services
Water distributors such as: Severn Trent, Pennon, American Water Work, Guandong Investment (China). These companies have stable business models based on long-term concession contracts, offering high visibility.
Invest in water transformation technologies and associated scientific research.
These technologies play a crucial role in addressing water scarcity, pollution, and ineffective water management practices. They aim to improve water access and quality, reduce wastage, and promote sustainable use of this precious resource. Advancements in water technologies have also led to the development of innovative and efficient solutions for water conservation, such as efficient irrigation systems, leak detection and prevention methods, and monitoring tools for water quality.
In addition to technological advancements, water and related technologies also involve research and development efforts to.