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California Poised to Lead U.S. Water Reuse Market
Water scarcity is prompting interest in water reuse across the United States, where municipalities are increasingly adopting the practice. Municipal wastewater reuse capacity is expected to grow 58 percent between 2016 and 2026, with drought-weary California leading the way, according to projections from Bluefield Research.
Analysts expect capital investment in reuse to be $11 billion in the next decade based on the semi-annual market study. California currently accounts for 36 percent of the planned water reuse additions in the U.S., with Florida at 26 percent. Although California has a significant share of the planned projects, Florida has the greatest installed reuse capacity to date at 6.3 million cubic meters a day, which Bluefield analysts attribute to the state’s continuing commitment to water reuse.
Erin Bonney Casey, a senior analyst for Bluefield Research, explained:
- California is proving to be the greatest opportunity for reuse market growth, backed by US$4.3 billion of planned activity, an improving regulatory environment, and its well-documented drought. So far projects have taken years to develop, but given the recent supply concerns, we anticipate a more streamlined process going forward, particularly for potable applications.
A remarkable finding is that 581 of the 607 projects — more than 95 percent — are in only four states: Florida, California, Colorado, and Texas. In Colorado alone, 51 projects are planned.
Dwindling Freshwater Supplies
California entered its fifth year of severe drought in 2016. California Gov. Jerry Brown declared a drought emergency in 2014. The state has been turning to groundwater supplies to meet its water needs, but with decreasing supplies, regional lawmakers are expanding beyond conservation, and looking at reuse to address residents’ ongoing water needs.
Water reuse is increasingly important worldwide as freshwater supplies dwindle. Although its most frequent use has been in a range of non-potable applications, saving drinking water supplies, potable reuse projects — both direct and indirect reuse — are also increasing. The study projects there will be 2.6 million cubic meters a day in additional capacity, requiring $2.9 billion investment in advanced treatment technology.
Revenue Growth in Water Recycling
A 2015 projection expected a 19.2 percent compound annual revenue growth rate for the global market for water recycling and reuse between 2014 and 2019. This Research and Markets analysis expected the volume of water recycled and reused to increase at a compound annual growth rate of 22.39 percent.
Bonney Casey told Water Online:
- We expect the reuse pipeline to continue to grow as states continue to face drought conditions. Longer-term water planning cycles and regulation standardizing projects demonstrate greater support for the expansion of reuse systems and contribute to the growing pipeline of planned projects
Bluefield Research is a firm providing data and analysis on global water markets. The findings in this latest forecast are based on the company’s dataset of more than 607 municipal water reuse projects being developed across the U.S. The market projections announced by the company are taken from its report U.S. Municipal Wastewater Reuse Update: Project Pipeline and Market Forecast, 2016-2026.