The sewer network management market - Italy (2024)

1.2 The global sewerage management market

The global water and wastewater treatment market was worth $***.* billion in **** and is expected to grow to about $***.* billion by ****, with a compound annual growth rate(***) of *.* percent over the period ****-****. Water and wastewater treatment is about improving the quality of wastewater, turning it into an effluent that can be recycled or returned to the environment with minimal impact.

Global water and wastewater treatment market value World, ****-****, in billions of USD (***) Precedence Research

Regional Analysis

TheAsia Pacific region, which includes countries such as China, India, Japan, South Korea, Australia, and many Southeast Asian nations, dominated the water and wastewater treatment market in ****, followed by Europe and North America. Growing concerns about water scarcity and environmental pollution are key factors supporting market expansion in many Asian countries. Rapid urbanization, inadequate infrastructure, and increasing health risks further contribute to the sector's expected growth in the coming years. Countries such as China and India have already initiated advanced wastewater treatment programs, encouraging the integration of cutting-edge technologies in this area. In addition, nations with high population densities in Asia are expected to upgrade their water treatment capacities to modernize their existing infrastructure. In parallel, the expansion of industrial sectors in Asia offers ...

1.3 The Italian market

Turnover value

The value of turnover of companies active in wastewater collection and purification is shown below; as shown in the graph, the market has seen a significant increase from **** to ****, with a growth in the value of turnover of **.* percent. There is also a slight decrease in **** from the **** value of *.*%.

Value of turnover companies active in wastewater collection and purification Italy, ****-****, in billion euros (***) Istat, Companies Register

Future outlook

The Italian sewage management market is set to grow in the coming years, mainly due to investments in infrastructure improvement and technological innovation. The National Recovery and Resilience Plan (***) has allocated significant funds for the modernization of water and sewerage networks, with the aim of reducing water losses and improving the sustainability of the sector.[***]

1.4 Import and Export

As part of the analysis of the value of imports and exports related to wastewater management, HS codes for materials and equipment used in this sector will be considered. These include wastewater treatment equipment, such as purification machinery, which can be classified under HS Chapter **. For example, water filtration or purification equipment may fall under code ****.**. These references provide a more comprehensive view of the trade in products associated with wastewater management and related infrastructure.[***]

The value of Italian exports is significantly higher than the value of imports. From **** to ****, the value of exports grew by **.* percent; imports also increased by **.* percent in the years under analysis.

Imports, Exports and Coverage Rate (***) Italy, ****-****, in millions of dollars (***) UNComtrade

The composition of Italian exports to the top five partner countries is shown below. As the chart below shows, the country with which Italy exports the most wastewater treatment equipment is France, with a relatively low value of *.* percent of total exports. This figure indicates that although France is the main trading partner in this sector, Italian exports are rather fragmented and spread over many other countries, with no high concentration on a single market. This is followed by Germany(***).

Value of ...

1.5 Inflation suffered by the sector

Inflation in the water collection, treatment and supply industry in Italy has been influenced mainly byrising energy and raw material costs, which are necessary to operate treatment plants and maintain water networks. Increased energy costs, in particular, have weighed heavily on operating costs, resulting in higher rates for consumers. In addition, the need for constant infrastructure investment to improve network efficiency and reduce water losses has further affected tariffs.

In addition, the efficiency of the water distribution network in Italy is relatively low, with a leakage rate close to ** percent, leading to higher operating costs for the companies involved. These factors, together with the general inflation of goods and services, have led to higher water tariffs in many Italian regions, especially in southern areas, where network inefficiencies are more pronounced.[***]

Producer price index of the water collection, treatment and supply industry - monthly data - base ****=*** Italy, ****-****, index Istat

The producer price index for the water collection, treatment and supply industry showed a significant increase between June **** and July ****. Starting from an initial value of ***.* in June ****, the index reached ***.* in July ****, marking an overall increase of *.* percent. This increase mainly reflects the increase in energy costs, raw materials, and ...

2.1 Demand in Italy

To build a comprehensive overview of the demand for sewage networks in Italy, reference is made to data provided by ISPRA through the UWWTD **** Reporting, which offers a clear view of the state of sewage treatment in Italy up to ****, allowing progress to be assessed. [***]

Agglomerations

European Directive **/***/EEC defines agglomerations as areas where population, economic and industrial activities are concentrated to the point of producing a significant pollutant load, requiring the use of urban wastewater collection and treatment systems. An agglomeration, therefore, is a portion of territory that includes one or more municipalities or hamlets, in which wastewater must be conveyed to treatment plants. This definition makes it possible to assess the capacity and effectiveness of sewer systems and treatment plants, ensuring that they are adequate to treat the pollutant loads of each agglomeration.

Sewerage systems and collection works

Compliance of the sewer system with the regulations depends on the presence of a sewer network or appropriate individual systems (***) that provide the same level of environmental protection. The Directive allows the use of IAS when environmental or economic conditions do not allow the installation of traditional sewer systems. In Italy, about **.* percent of wastewater is collected in sewer networks, *.* percent ...

2.2 Geographical distribution of demand

The total generated load divided by region is shown below:

2.3 Sensitive areas

Directive **/***/EEC requires member states to identify sensitive areas in relation to the type of wastewater discharge. Sensitive areas include natural lakes, estuaries, coastal waters, surface fresh waters intended for drinking water production, and all those areas where advanced treatment (***) is required to comply with regulations of other environmental directives.

The data show that the Northeast and Northwest territories have the largest number of facilities discharging into sensitive areas.[***]

Number of facilities discharging into sensitive areas - divided by macroarea Italy, ****, in number Mase.gov

2.4 Wastewater treatment

Wastewater conveyed to sewage treatment plants can be treated through three distinct stages: primary, secondary and tertiary treatment.

Primary Treatment aims to remove suspended solids, mainly of organic origin, present in the incoming sewage. This process represents the initial stage of purification, which is essential to reduce the organic load before subsequent treatments. The percentage distribution of plants performing only primary treatment, on a national scale, is shown below.

Percentage distribution of sewage treatment plants with only primary treatment Italy, ****, % Mase.gov

The main purpose of Secondary Treatment is to reduce biodegradable organic matter and remove non-settleable suspended solids, which cannot be separated by physical treatment. Below is the percentage distribution of sewage treatment plants in the country that adopt secondary treatment.

Percentage distribution of sewage treatment plants with only secondary treatment Italy, ****, % Mase.gov Tertiary Treatment aims to complete and optimize the purification process by further reducing the concentration of nutrients, such as phosphorus and nitrogen, in the effluent from secondary treatment. In some cases, this advanced stage also allows the removal of poorly biodegradable substances that were not removed by standard biological processes. Breakdown in percentage of sewage treatment plants with only Nitrogen and/or Phosphorus removal treatment Italy, ...

2.5 Demand drivers

Environmental laws and regulations concerning wastewater aim to protect water quality and public health by setting strict standards for wastewater treatment and disposal. Among the main regulations is the European Urban Wastewater Treatment Directive, which requires member states to ensure that all urban wastewater is collected and properly treated. The Clean Water Act in the United States, implemented by theEnvironmental Protection Agency (***), imposes limits on wastewater discharges to protect water bodies. These regulations set parameters on effluent quality, management of hazardous substances and treatment methods to ensure compliance with environmental standards and prevent pollution. Environmental regulations also require investment in infrastructure and ongoing monitoring to ensure that treatment facilities meet requirements and promote the sustainable reuse of treated water.

These regulations are constantly evolving and seek to incorporate new technologies and sustainable approaches such as wastewater reuse and resource recovery, aligning with circular economy principles. Compliance with these regulations brings both environmental and economic benefits by improving water management and reducing the ecological impact of human activities.[***]

2.6 Relationship between housing stock and sewerage networks

The relationship between the housing stock and sewerage networks is fundamental to sustainable and well-planned urban development. The expansion of the housing stock, which includes new housing and commercial facilities, leads to an increase in demand for essential infrastructure, such as sewer networks, which are necessary for wastewater management. The effectiveness and capacity of these networks affect the quality of life in urban areas, as well as the value of the properties themselves.

When sewer networks are adequate, they can support real estate expansion without compromising the environment or public health by ensuring effective wastewater management. Otherwise, problems of overloading, contamination, and flooding can occur, which can cause a reduction in property value in affected areas. it is therefore essential that city planners and real estate developers work together to coordinate the growth of real estate stock with the expansion and improvement of sewage systems.

In addition, urban planning must also consider long-term sustainability by integrating green infrastructure and technologies to reduce the environmental impact of new construction. This approach is particularly relevant in the context of increased urban densification, which requires more robust sewer systems capable of adapting to growth in population and economic activity.[***]

Italy's housing stock in **** increased ...

3.1 The market structure

To assess the market structure, an analysis of the number of enterprises active in the wastewater collection and treatment sector is proposed. An examination of the latest years available in the ISTAT database shows that the number of enterprises has remained essentially stable in recent years, growing by **.* percent, suggesting a certain strength in the sector.

Number of active enterprises (***) Italy, ****-****, in numbers (***) Istat

In terms of legal form, it is noted that the majority of enterprises are Limited Liability Companies (***) and Limited Partnerships. In general, the distribution of legal forms indicates that the market is fairly consolidated, with a prevalence of corporate forms that aim to reduce personal risk, but also with the presence of more traditional or flexible companies operating with different structures. This reflects a certain maturity in the sector, where different business strategies can coexist.

Legal form active companies (***) Italy, ****, % Istat As noted earlier in the analysis of the size of active enterprises, the number of employees of enterprises also shows some stability, with a growth of *.* percent from **** to ****.

Number of employees active enterprises (***) Italy, ****-****, in numbers (***) Istat

3.2 The value chain

The value chain in the sewer management market consists of several stages, each of which contributes to the collection, treatment and disposal of wastewater.

Design and construction of sewer networks: this stage includes the planning of sewer networks, taking into account geographical conformation and hydraulic load. The actors involved are civil engineering firms and designers specializing in the construction of sewer infrastructure. These networks are essential for conveying wastewater to treatment plants. [***] Wastewater collection and transport: wastewater from homes, industries, and stormwater is collected and transported through sewer networks, collectors, or specific means of transport. Specialized transport companies manage the movement of water, especially in areas that cannot be reached by urban sewer systems. [***] Wastewater treatment: one of the most critical stages in the value chain, wastewater treatment takes place in sewage treatment plants where pollutants are removed through physical, chemical and biological processes (***). Companies that specialize in the operation and maintenance of plants are critical at this stage. [***] Infrastructure maintenance: the cleaning, draining and maintenance of sewer systems and septic tanks are essential to ensure the smooth operation of the infrastructure. This includes purging sewers, cleaning pipes, and maintaining equipment, with the involvement of specialized service companies. [***] Reuse and disposal: ...

3.3 Maintenance: routine and extraordinary

Sewerage maintenance can be divided into two categories: routine and extraordinary. Routine maintenance should be performed periodically and systematically, while extraordinary maintenance is required only in special and non-recurring circumstances. Let's examine how to handle sewer maintenance and which solutions are best suited for each type of operation.

In fact, sewer maintenance includes two main types of interventions:

Routine maintenance, which involves regular and preventive operations to ensure the proper functioning of the system. Extraordinary maintenance, which involves occasional interventions made necessary by unforeseen situations or emergencies.

Routine maintenance of the sewer system

Routine maintenance of the sewer system is crucial to ensure the efficiency and longevity of the system. it is essential to carry out periodic checks on the blackwater pipes to ensure that they are operating at maximum capacity.

In particular, it is necessary to check for debris buildup at certain critical points in order to prevent blockages. It is also necessary to make sure that the pipes are in good condition, that fittings and joints are intact, and that there is no stagnation.

If inspections reveal problems, it is necessary to:

Disassemble the pipelines using hand tools or equipment provided by the operator; Clean the pipelines to remove ...

3.4 Main actors

Below we consider the major players, both public and private, involved in wastewater management, treatment, and distribution, with a specific focus on efficiency and innovation in water infrastructure. Prominent among these companies are names such as Acea, Gruppo Hera, Iren, and A*A, which play a leading role in the provision of water and sewerage services nationwide.

The following are the Italian companies organized in the Ateco category "Wastewater collection and treatment" (***).[***]

4.1 The offer

Sewerage systems can be classified primarily according to the type of water they carry and the structure used to manage them. Here is an overview of the main types:

4.2 The prices

Prices for sewer construction vary widely depending on the complexity of the project, the materials used and the geographical location. Here is a general overview:

Focus

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4.3 AI and sewerage management

The adoption of artificial intelligence (***) in sewer management is transforming the industry with a focus on automation, efficiency and sustainability. With AI, it is possible to prevent failures before they occur as well as decrease operating costs. Artificial Intelligence enables decisions based on real-time processed data, improving planning and resource allocation.

Predictive maintenance and network optimization

AI is used to monitor sewer networks in real time and for predictive maintenance. Sensors installed in sewer pipes collect data on pressure, flow, and vibration, which are analyzed by AI algorithms to identify any faults or leaks. For example, HERA, a large Italian multi-utility, has adopted AI tools to predict failures in water pipes. Using advanced predictive models, which include historical data and environmental variables such as soil type and temperatures, the company is able to accurately identify the stretches of network most at risk, improving investment planning and reducing water losses. [***]

Water resource efficiency and leakage reduction

AI is also being used to optimize the use of water resources and minimize losses. The Water*All project demonstrates how AI can analyze data collected from IoT sensors to predict potential problems in water and sewer networks. Using machine learning techniques and predictive analytics, AI ...

5.1 Rules and regulations

European Legislation

Council Directive **/***/EEC of May **, **** on urban wastewater treatment: requires member states to ensure the collection and adequate treatment of urban wastewater. The main objectives are to protect the environment from the harmful effects of the discharge of untreated wastewater. The directive stipulates that urban areas must have wastewater treatment plants and prescribes specific treatment based on the size of the urban agglomeration and the type of sensitive area (***). Water Framework Directive ****/**/EC: adopted in ****, introduced a general framework for the protection of surface water and groundwater in the European Union. The aim of the directive is to achieve "good ecological status" of waters within defined timeframes through integrated water resources management, including monitoring and pollution reduction. Member states are required to draw up river basin management plans and establish programs of measures to improve water quality. REACH Regulation (***): this regulation covers the registration, evaluation, authorization and restriction of chemicals. In the area of wastewater management, REACH regulates the use of chemicals and hazardous substances that may be present in wastewater and provides guidelines for their safe management to avoid environmental contamination. Industrial Emissions Directive ****/**/EU (***): establishes a regulatory framework to reduce industrial emissions, including water discharges, by setting ...

5.2 Zero Pollution Plan

The Zero Pollution Action Plan is a key part of the European Green Deal, the European Commission's initiative to make Europe the first climate-neutral continent by ****. The plan aims to reduce air, water and soil pollution to levels that are no longer considered harmful to human health and the environment. The Action Plan is structured around a number of key objectives, including: limiting the presence of toxic and harmful substances in all major environmental sectors; reducing the production of pollutants through technological innovation and the promotion of the circular economy; and strengthening regulations.

By ****, the plan sets a series of intermediate targets:

Reduce plastic pollution in oceans and rivers by ** percent. Halve the number of premature deaths caused by air pollution. Reduce nutrient inputs to freshwaters by **% to counter phenomena such as eutrophication. Improving soil quality by reducing the use of pesticides and chemical fertilizers.

To implement the plan, the European Commission will use implementation tools, such as:

Updated regulations and legislation: reforms of environmental regulations to align them with the goals of the Green Deal. Monitoring and evaluation: use of advanced monitoring tools to track pollution and assess its impact at the European level. Funding: promotion of sustainable projects through ...

5.3 Bonuses and Incentives

Incentives for citizens

Water Bonus in Italy: this bonus provides relief for the replacement of old faucets, showerheads, and sanitary fixtures with more efficient systems that contribute to the reduction of drinking water consumption and, therefore, to the lower load on sewer networks. This measure, introduced in ****, offers a reimbursement of up to *,*** euros for expenses incurred. Tax breaks for wastewater recovery: in some cases, tax breaks are available for the installation of systems for the recovery and reuse of treated wastewater, such as domestic phytodepuration plants.

Incentives for businesses

***% Superbonus (***): can include interventions to improve the water efficiency of buildings, such as the installation of wastewater treatment and reuse systems. European innovation funds: companies developing innovative wastewater treatment solutions can access funding from the Horizon Europe program or the Just Transition Fund to promote environmentally friendly technologies.

Incentives for States and Local Authorities

At the European level, the European Commission provides various forms of funding for member states and local authorities aimed at improving wastewater management:

Structural and Cohesion Funds: these European funds are intended to support investments in wastewater treatment infrastructure, especially in less developed regions. LIFE program: another major European program that funds innovative projects in the ...

6.1 Segmentation

Market leader

Other actors

• Acea S.p.a.
• Gruppo Hera
• Gruppo Hera
• Iren
• A2A
• Gruppo Marazzato