2005 - 2006 - Pinsent Masons Water Yearbook 2012

Indicative estimates of the size of the overall and outsourced market, 2004-05:
US$ billion Industrial Water & W & WW
Services Wastewater Outsourced
North America 115-135 25-30 1.1-1.2
Europe 130-155 30-40 0.4-0.8
Rest of the World 80-110 15-25 0.3-0.4
Global total 425-500 80-105 1.8-2.4
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PART 1: 2005-2006 OVERVIEW
The outsourced share of the overall market has been growing at 15-20% pa since 2001, with
the exception of the USA in 2003, which showed little growth. The latter is in part due to the
weak economy and deteriorating environmental standards, and also due to companies needing
to reconsider their approaches after bidding too aggressively for contracts in the 1998-2000
period.
Sources: Veolia, Frost & Sullivan, Ionics & Suez
Companies active in the sector
Twenty companies have been identified to date. Their revenues in 2003 ranged from €1 million
(Nature Tech) to approximately €500 million (Veolia Environnement and Suez Ondeo).
Cascal (Biwater / Nuon) Wastewater, Chile & Mexico
CH2M Hill (OMI) Water & wastewater, USA
Darco (Singapore) Water, South East Asia
Dayen (Singapore) Water, China
Eco Water (Singapore) Wastewater, Malaysia
EMC (BOC) Water & wastewater, USA
Enviro-Logic (Pennon) Water & wastewater, UK
Gelsenwasser (Germany) Water & wastewater, Germany
Global Utilities Alliance
(Thailand)
Water, Thailand
Hyflux (Singapore) Water & wastewater, Singapore & China
Nature Technology Solutions Wastewater, Gibraltar & Norway
(UK)
Northumbrian Water (UK) Water & wastewater, UK
OIS (Suez, France) All services, quasi global
RWE (Germany) Water & wastewater, USA
Salcon (Singapore) Water & wastewater, South East Asia
Sembcorp (Singapore) Water & wastewater, Singapore
STES (Severn Trent) Water & wastewater, USA
Tyco (Earth Tech) Water & wastewater, USA, Hungary, Australia &
Venezuela
United Group (Australia) Water, Australia
UUIS (UU, UK) Effluent treatment, UK & Australia
Veolia Water (VE, France) All services, quasi global
Recent developments
The market is developing strongly in both Europe and South East Asia, although for separate
reasons. In Europe, the EU’s Integrated Pollution Prevention and Control (‘IPPC’) Directive,
along with the Water Framework (WFD) and Urban Wastewater Treatment Directives are
forcing demand for custom ‘compliance packages’ from industrial clients, along with the EU
accession process spurring activity amongst companies operating in the ten accession states.
The WFD also calls for cost recovery in all water provision from 2010. In both the EU and South
East Asia, the need for reliable sources of water of a given quality and price cannot be
underestimated.
2004 was marked by one of the largest outsourcing contract awards noted to date. PSA
Peugeot Citroen has awarded Veolia a €1 billion 10 year contract for outsourcing of industrial
Pinsent Masons Water Yearbook 2005-2006