* Asia Pacific to see biggest rise in demand, investments
* Veolia, Suez, Hyflux well positioned in emerging markets
LONDON Nov 28 Investment in the global
industrial water sector should reach $80 billion over the next
five years, as demand for water grows, supply becomes more
volatile and quality standards become stricter, HSBC said in a
report on Wednesday.
The rise in investment will take place across areas like
waste water purification, seawater desalination and other water
and waste treatments - swelling the market's size by 65 percent
from 2013 to 2017.
Water shortage has become a global concern due to rising
demand from a growing population and climate impacts. Changes to
industrial processes are increasing demand for better quality
water and there are more stringent regulations around water use
and waste water discharge.
Companies such as Veolia Environnement, Suez
Environnement and Hyflux already have a
presence in emerging markets where demand is growing fastest and
are better positioned to capitalise from investment
opportunities, HSBC said.
They also have technical ability and could gain from the
mining sector in particular, given there are water challenges in
Chile where Suez is located, Australia where Suez and Veolia
have bases, and China where all three companies have a presence.
HSBC said industry's share of global water use would
increase to 22 percent of the total by 2030 from the current 18
percent, with most of that growth coming from China. India's
demand for industrial water will quadruple between 2005 and 2030
and South African industrial demand will rise 120 percent.
U.S. firms could benefit from shale gas opportunities,
particularly Aqua America (WTR), which has the greatest
balance sheet capacity and scope to expand.