Flowing nicely: Despite a shift to metered consumption, revenue is expected to rise

The Water Collection, Treatment and Supply industry continuously manages, stores and distributes clean water to ensure all domestic and industrial needs are met. Due to the large start-up costs and equipment required, the industry is dominated by regional monopolies. All industry operators are subject to regulation in terms of prices charged and services provided. Companies in the industry submit a breakdown of their performance and five-year business plan to industry regulators, namely the Water Service Regulation Authority (Ofwat), which then set the prices companies can charge.Over the five years through 2018-19, a growing UK population has stimulated industry expansion, while an increase in the number of households has supported demand for industry services...read more.

Industry Statistics & Market Size
Revenue
£7.3bn
Annual Growth 14-19
2.1%
Forecast Growth 19-24
Profit
Employment
28,964
Businesses
116

Industry Threats & Opportunities

  • Although a shift to metered households has lowered usage, revenue has continued to rise
  • Reduced household usage as customers have switched to metered consumption has weighed on revenue
  • Increased freedom of competition is expected to lead to an ongoing rise in enterprise numbers
  • Industry Report - Industry Locations Chapter

    Industry operators are drawn to regions with local water resources and relatively cheap land. Regions that are highly populated tend to have higher land costs, resulting in narrower profit margins for industry operators.ScotlandScotland has the largest proportion of industry establishments, accounting for an estimated 13.4% of the total. Scotland has a large land mass, estimated at 30,918 square miles. As a result, a large number of water resources are required in Scotland.The South West and the North WestThe South West and North West account for 12.4% and 11.8% of industry establishments respectively. Both regions share similar attributes in that they both have considerable land masses, at an estimated 9,189.2 and 5,469.1 sq...purchase to read more.

    Additional Insights for the Water Collection, Treatment & Supply Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Water Collection, Treatment & Supply Industry are

  • Optimum capacity utilisation
  • Economies of scale
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Population and Level of annual rainfall in the Water Collection, Treatment & Supply industry impact industry performance..

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    What's in this report

    What is the Water Collection, Treatment & Supply Industry?

    Industry operators collect, treat and distribute water to domestic and industrial customers. Companies in the industry collect water from various sources. The water then goes through a series of treatments to remove particles before being supplied to households and commercial clients.

    Industry Products
  • Water treatment
  • Treated water distribution
  • Water collection
  • Raw water distribution
  • Industry Activities
  • Collecting water from rivers, lakes, wells and other sources
  • Purifying water
  • Treating water for industrial and other purposes
  • Desalinating seawater or groundwater
  • Distributing water
  • Operating irrigation canals
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population
  • Level of annual rainfall
  • Public concern over environmental issues
  • Industrial production index

  • Current Performance
  • Environmental concern
  • The household market
  • AMP performance
  • Industry margins
  • Chart: Revenue Growth

  • Industry Outlook
  • The Water Act 2014
  • EU regulation
  • Price caps and profit
  • Table: Water Collection, Treatment & Supply Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Water Collection, Treatment & Supply Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Flower & Plant Growing
  • Crude Petroleum & Natural Gas Extraction
  • Consumers

  • Key Selling Industries
  • Electricity Distribution
  • Inorganic Basic Chemical Manufacturing
  • Pipeline Transport

  • Products & Services
  • Treated water distribution
  • Water treatment
  • Water collection
  • Raw water distribution
  • Chart: Water Collection, Treatment & Supply Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Unmetered households
  • Metered households
  • Other
  • Manufacturers
  • Chart: Major Market Segmentation for the Water Collection, Treatment & Supply Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitDepreciationWagesPurchasesUtilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Water Collection, Treatment & Supply

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Water Collection, Treatment & Supply Industry

  • Industry Globalization
    United Utilities Group plc, Thames Water Utilities Limited, Severn Trent Water Ltd, Scottish Water Ltd, Yorkshire Water Services Ltd, Anglian Water Services Ltd,
  • Table: United Utilities Group plc - financial performance
  • Table: Thames Water Utilities Limited - financial performance
  • Table: Severn Trent Water Ltd - financial performance
  • Table: Scottish Water Ltd - financial performance
  • Table: Yorkshire Water Services Ltd - financial performance
  • Table: Anglian Water Services Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Water Collection, Treatment & Supply Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Water Collection, Treatment & Supply Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Flocculation
  • A method of treating water that causes particles of matter to aggregate into small lumps.
  • Rateable Value
  • A value ascribed to a property based on its size, location and other factors, which is used to determine the water and sewerage charges due.
  • Sewerage
  • The physical infrastructure, e.g. pipes, pumping stations and treatment plants, through which sewage flows.
  • Water And Sewerage Companies (Wasc)
  • There are 12 water and sewerage companies in the industry. These companies are regulated by Ofwat, WIC and the Drinking Water Directorate. These company provide both water and sewerage services.
  • Water-Only Companies (Woc)
  • There are 14 water-only companies in the industry, which are regulated by Ofwat and the Drinking Water Directorate. These companies only provide water services to their clients.
  • What Our Customers Say

    Why buy this report?

    The Water Collection, Treatment & Supply market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Water Collection, Treatment & Supply:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Water Collection, Treatment & Supply market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Water Collection, Treatment & Supply, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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