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The energy landscape is changing rapidly because of economic shifts and geopolitical impacts on water for energy. In tracking ongoing oil & gas exploration and related water management demands across the U.S.- with a specific focus on 14 basins driving unconventional activity-Bluefield identifies key takeaways for the water for energy sector. Market volatility, which has been exacerbated by COVID-19, continued into the second half of 2020. Rig counts have increased slightly, oil prices still remain near the US$40 per barrel level, which is at the bottom-end for hydraulic fracturing economic viability, and... Read More

Topics of discussion in this client webcast include key competitive trends within the fast-growing digital water market, including M&A and venture investment. Learn answers to key questions such as who are the leading players in the global digital water market, and how have they built their product portfolios and strategic positions? What role do engineering consultancies play, and how have they positioned across the digital water landscape? What role do private equity firms play and what is their track record in the sector? Who are the primary "outsiders looking in" to watch in the digital water market, and how might they disrupt the competitive landscape?... Read More

"The financial challenges facing public and private utilities signal increasing opportunities for private participation in water through both system acquisitions and operations & maintenance contracts. This quarter, we saw M&A activity increase in terms of deal flow (28 deals in Q2 2020 vs 20 deals in Q2 2019)."

--Mariel Marchand, Analyst, Bluefield Research 

U.S. Private Water: Key Trends, M&A Activity, and Market Outlook, Q3 2020

Water management strategies across heavy and extractive industries-mining and oil & gas-are mostly shaped by high volume demand, local water scarcity, and environmental regulations, while lower volume water users-food & beverage and beauty & personal care-are swayed by consumer perception and branding.

Bluefield analyzes the water footprints of more than 100 corporate industrial companies to assess topline water intensity and management practices relative to peers.

Industries are ranked based on average water use intensity of water used per US$ of revenue based on reported values from top 10 companies. 

Access to this Data Insight is included with our Industrial Water Insight Service.

Digital water in the U.S. & Canada is forecasted to grow 6.5% annually, far outpacing the growth of the broader municipal water & wastewater sector over the next decade. Annual capital expenditures for digital water solutions will rise from US$5.4 billion in 2019 to US$10.8 billion in 2030, setting the stage for more advanced monitoring and management of critical infrastructure. Utility spending on connected hardware, software solutions... Read More

More than US$234 billion of capital expenditures (CAPEX) are forecasted over the next decade to address aging municipal water & wastewater pipe network infrastructure. Precipitated by decades of underinvestment, municipal utilities are under increasing pressure to address deteriorating linear assets at a faster pace. Bluefield forecasts CAPEX and factors shaping the rehabilitation, replacement, and new build... Read More

"Revenues across the top companies in water have been mostly down the first three quarters of 2020, particularly when compared to 2019. Corporate strategies with greater focus on services and contract operations are proving to be more resilient which is consistent with analysis of historical, recessionary trends."  

--Erin Bonney Casey, Research Director, Bluefield Research

U.S. & Canada Municipal Water: Key Trends, Policy Activity, and Market Outlook, Q4 2020

A global economic transition is underway, resulting from the proliferation of a suite of new technologies and business models for connectivity, mobility, automation, and data analytics. As this digital transformation-referred to by some as "Industry 4.0" or the "Fourth Industrial Revolution"-proceeds apace, the traditionally conservative water & wastewater sector will face mounting pressure to adapt from customers, partners, and stakeholders. This pressure will be compounded by a host of economic, environmental, regulatory, and cultural changes, which will challenge utilities' core business & operating models... Read More

On 19 October 2020, Ontario, Canada-based Algonquin Power and Utilities Corp. completed an agreement to purchase a 93.96% stake (up from the original 53.51% on 11 September 2020) in Chilean water utility Empresa de Servicios Sanitarios de Los Lagos S.A. (ESSAL) from Aguas Andinas. The deal comes amidst political uncertainty partly shaped by an upcoming referendum on Chile's constitution. The total transaction value was reported at US$162.1 million. ESSAL currently operates 48 potable water production systems, 29 sewage plants, and distribution & sewage networks across 33 municipalities in Southern Chile... Read More

"As we head toward the close of 2020, signs of optimism are on the rise, influenced by potential vaccine distribution and economic recovery. Nonetheless, extended shortfalls in customer demand from industrial curtailments are driving strategic pivots towards more sustainable, growth sectors."

--Reese Tisdale, President, Bluefield Research

Top Companies in Water: COVID-19 Impacts, Financial Signals, and Market Trends

It''s been a long, crazy year and water continues to be at the forefront. As we head into 2021, we want to make sure you have access to the water market insights you need to drive your water strategy. We are pleased to offer 50% off of Bluefield''s water market reports for the month of December.

Market & Data Insights were $2,500 now $1,250
Focus Reports were $3,500 now $1,750

All of our reports are available for purchase and immediate download from our website. Enter promocode: NOBRAINER50

For questions or more information, contact waterexperts@bluefieldresearch.com.

Prices in USD. Offer expires December 31, 2020

We've all pivoted a number of times since news of COVID-19 first broke last spring. Whether it be schools opening or closing, remote work, or countless Zoom meetings, the pandemic has forced us to move quickly on our feet. In California, as we close out the year, we find ourselves back in shelter-in-place, seeing many of the same restrictions first initiated in March. Like you, Bluefield Research has also pivoted to better serve our clients and the water industry. We launched monthly webcasts for Insight Service clients in response to the initial news of COVID. Our team established an ongoing podcast series, the Future of Water, to bring water issues to a wider audience. Almost immediately, and partly... Read More

"For regional outsiders like Algonquin, Chile has traditionally been considered a lower risk market, relative to its neighbors, because of well-established roles of private water utility ownership. The most likely opportunities for investment going forward will require another, existing private owner divesting current utility assets. Firms with already established footprints in the Latin America region are likely to be at an advantage." 

--Reese Tisdale, President, Bluefield Research

New Global Water Research Note

Select EPCs are taking on new roles as digital water solutions providers, offering implementation & integration services and, in some cases, selling in-house software directly to utility and industrial end-users. The digital water market segment is on pace to grow three to four times faster than traditional utility expenditures, driven by professional services (e.g., hardware installation, software implementation & integration) that account for more than a third of digital spend. Leading global water EPCs such as Jacobs, AECOM, Black & Veatch, Arcadis, Stantec, and Tetra Tech have carved-out distinct strategic positions... Read More

Uncertainty precipitated by the COVID-19 economic disruption has left utilities in a difficult situation, particularly for those transitioning into a new fiscal year. Bluefield's team examined recently published Capital Improvement Plans of 37 large utilities and compared them to last year's plans to gauge financial implications, if any, created by the COVID-19 pandemic in capital projects. The analysis indicates that municipal utility planning departments are still grappling, if not kicking the can down the road in some cases, with the realities of the current market downturn. The budgetary changes from last year... Read More

"Aquatic Informatics has charted a relatively unique course in its management of scaling demand for IoT device deployment across water systems and networks. With much of the digital water focus on individual point solutions targeting utility silos, Danaher included, the increasing need for tools addressing higher-level integration is expected to scale."

--Eric Bindler, Research Director, Bluefield Research 

Danaher Meets XPV and Aquatic at the Exit Door

Each water utility faces unique challenges that impact utilities' rates. As demonstrated by the data, there is no formula or pattern from utility to utility. Public utility rates are mercurial and influenced significantly at a political and municipal management level.  

In 2019, water rates increased by 1.46%. How much did they go up this year? 

Key trends, policy activity, and market outlook.  The U.S. municipal water sector accounts for approximately US$110 billion in public spend annually, when considering both the capital and operating expenditures. As municipalities, regulators, and vendors seek opportunities in an extremely mature sector, Bluefield's team of water experts tracks changes in business strategies, technology adoptions, infrastructure investments, and policies to measure the implications for market outlooks and forecasts.... Read More

Scaling capital and operational expenditure demands on more than 20,000 wastewater treatment plants across the U.S. were already squeezing municipal and utility budgets prior to March 2020 and the onset of COVID-19. The advent of new technologies and business models, however, present opportunities for utility leaders to transform their wastewater treatment operations. This includes resource recovery of produced byproducts and even the potential generation of alternative revenue streams.... Read More