The water treatment market - France (2024)

1.2 Key figures for the global market

The world water treatment market is experiencing strong growth, driven by growing needs in agriculture, but also by sectors that are relatively small today but will become very strategic in the years to come: seawater desalination and wastewater treatment.

According to Market Research Expertz The water treatment market is worth $*** billion in **** and is expected to reach $*** billion in ****.

  Market value of water treatment World, ****-****, USD billion Source Market Research Expertz  

Global demand for clean water and environmental concerns make water and wastewater treatment systems more relevant than ever. There are many factors contributing to market growth. Among them are :

Population growth and rapid urbanization ; Increased attention to water quality and public health ; The increasing prevalence of water-borne diseases ; The increase in industrial demand ; Strict government regulations for wastewater treatment.

1.3 The French water treatment market

To get an idea of the size of the water treatment market in France, we will focus this study on two NAF codes

**.**Z: Water collection, treatment and distribution **.**Z: Wastewater collection and treatment.

Let us first note that in France water services are activities recognized as "essential to the life of the nation", and are therefore protected by the public authorities.

Water collection and treatment revenues France, ****-****, million euros Source: ****

This market is therefore very stable. The capture, treatment and distribution segment has been very stable in recent years. The collection and treatment segment is growing. This growth is correlated with the growth of the various French industries. (***)

2.1 Water consumption in France

The different uses of water in France

In ****, the BIPE and the FP*E published the results of the * ᵉ edition of the BIPE study on public water and sanitation utilities. The study draws up a typology of the different uses of water withdrawn in France. Thus, in France, water consumption is divided between :

Domestic uses which bring together the aims of public water services. As such, it includes: household uses, municipal uses (***); Agricultural uses They concern the entire agricultural sector, from field irrigation to livestock feed and aquaculture; Industrial uses that meet the needs of the extractive and productive industries. Here water is used for heating, cooling, as a direct component or as a reagent. Within industrial uses, we often exclude energy uses: which include the cooling of power plants

The graph below shows the evolution of the distribution of water withdrawn by use, excluding energy production

Changes in the use of water withdrawn France, **** - ****, in % Source: ****

The vast majority of water withdrawn in France is intended for households, whose share in consumption is very stable. Similarly, the share of industry is relatively stable from one year to the next. It is the share of agriculture that varies the most. ...

2.2 Domestic consumption

Annual abstraction of drinking water for domestic use

The report reveals that the volume of drinking water withdrawn in France has been declining since the ****s. Domestic consumption of water in France is declining even as the population increases.

Evolution of water withdrawals for domestic uses of the population France, ****-****, billions of m³ Source: ****

In ****, *.* billion m³ of drinking water will be abstracted for metropolitan France. This is one of the lowest levels reached in ** years. The report details the trends that are influencing this downward trend

New generations of equipment, more economical in water consumption; Greater environmental awareness, which motivates more respectful consumer behaviour ; A decline in the weight of the manufacturing sector in national value added, with a loss of ***,*** jobs in the productive structure between **** and ****.

Finally, the report states that this decline is not only in domestic use but also in agriculture and industry (***)

Household consumption on the territory

In France, household consumption amounts to *** litres per day per inhabitant. This figure is in line with the European average and remains far behind other countries such as the USA. This consumption varies greatly depending on where the water is consumed. As shown on the map ...

2.3 Industrial and agricultural demand

Water uses in industry and agriculture

Industries are one of the main outlets for the water treatment market since **% of the volumes captured in France in **** were intended for industrial use [***] . Within the industry sector, the main consumer sub-segments are reported in the graph below

Distribution of freshwater abstraction for other, mainly industrial, uses among the different economic activities concerned France, ****, % % of Source: ****

The chemical industry is therefore the industrial segment that consumes the most water, ahead of gas distribution and waste treatment.

Within agriculture, the report reveals that **% of water withdrawals are for crop irrigation, and the remaining **% is used for animal feed

Factors influencing the development of these uses

Let's take a look at recent developments in the chemical industry in France

Production trends in the main water treatment market outlets France, ****-****, % % Souce Insee

There is a steady increase in production between **** and ****, followed by a slight decrease in **** and stagnation in ****. However, the good health of the sector observed over this decade will surely be difficult to maintain in ****. The chemical sector will be strongly impacted by the decline in activity in the transport equipment (***) and construction equipment sectors

The demand for agriculture appears stable if we ...

2.4 Demand trend: towards a decrease in overall water consumption by 2030

The downward trend in domestic water consumption is also being felt in agricultural and industrial uses.

According to the report The water of the future, it is the tertiarisation of the economy that will be responsible for the decline in industrial use between now and ****.

With regard to agricultural uses, the report explains that this will obviously depend on climatic conditions, but also on State authorizations. Indeed, as the pressure on drinking water resources increases, they will be forced to establish strict control over the share of this resource devoted to irrigation and animal feed.

Finally, the report is least pronounced in favour of energy production. This will depend on the energy mix, but above all on the share of nuclear power in that mix. Nevertheless, if this share remains similar to today, then the share will not decrease until ****, when French power plants will switch to closed-circuit operation. (***)

Thus, it is difficult to predict the demand for water, but it is possible to identify the factors that will cause a change in this demand in the coming years

3.1 The water treatment market value chain step by step

The value chain

Source: ****

Drinking water catchment

According to the * ᵉ edition of the BIPE study on water and sanitation utilities There are **,*** water withdrawal structures (***) to avoid water quality being impacted by pollution in particular. In ****, **% of the water produced will come from catchments that benefit from a protection perimeter.

The wastewater collection network

The total national network is estimated at ***,*** km in ****. This network is managed either by companies (***) or by public operators. The companies are responsible for ***,*** km of a unitary and separate network for collecting wastewater and rainwater. The maintenance of these networks is essential to avoid direct discharges of untreated water into the natural environment

Wastewater treatment plants

In France, there are **,*** wastewater treatment plants. Together they represent a treatment capacity of *** million p.e. (***) spread over **,*** municipalities.

Number of wastewater treatment plants by size class EH and type of operator France, ****, in units Source: ****

It is noticeable that the majority of stations are small in size. Thus, **% of the plants have a capacity of less than **** p.e. and treat only *% of the wastewater generated. Between **** and **** the number of treatment plants increased faster than the treatment capacity. France therefore has a large-scale network of small ...

3.2 Management of water catchment and treatment facilities and distribution of jobs

The management of water catchment installations

Drinking water and wastewater treatment plants are not all managed in the same way: they are either managed or delegated (***). Public operators are managed by public authorities, while private operators are managed by delegation

The breakdown shows a preference for management under a management structure for both drinking water and wastewater treatment plants. This is most certainly explained by the fact that water services are a service considered "Essential to the life of the nation".

Modes of management of drinking water plants, France, ****, in % Source: ****

For example, **% of French catchment sites are managed by public operators, compared with **% for private operators

The management of wastewater treatment plants

Also the open data of the site service.eaufrance allows to visualize the distribution of the purification plants according to the management mode

Management of wastewater treatment plants France, ****, in % Source: ****

It should be noted that the management of water and wastewater treatment plants is carried out by the public authorities, representing **.*% of the drinking water plants and nearly **% of the wastewater treatment plants.

Distribution of jobs in the sector

The BIPE study provides an overview of the different uses of the sector according to the way structures ...

3.3 Number, number of employees and territorial distribution of private operators in the sector

Nombre d'entreprises

Le nombre d’entreprises de la filière a globalement augmenté entre **** et ****, passant de **** à ****. Cette hausse est largement due à la filière du traitement des eaux usées, qui a vu son nombre d’entreprises passer de *** à ****, alors que la filière de captage et distribution d’eau potable, en amont de la chaîne de valeur, a perdu ** entreprises sur la période. 

Nombre d'établissements dans la filière du traitement de l'eau France, ****-**** Source: ****

Effectifs

En ce qui concerne les effectifs, on observe une évolution similaire, avec le segment du traitement des eaux usées qui prend de plus en plus d’importance. En effet, si en **** le traitement des eaux usées employait **% des effectifs totaux de la filière, en **** ce chiffre est de **%. La catégorie production et distribution d'eau potable concerne aussi bien les canalisateurs que les employés des stations de captage. 

Effectifs de la filière France, ****-**** Source: ****

Répartition par région

Source: ****

Les effectifs ainsi que les entreprises sont plutôt bien répartis sur le territoire. Aucune région ne concentre plus de **% des entreprises ou plus de **% des effectifs. En termes de nombre ...

3.4 Financing water consumption and business investment

Breakdown of funding

This sector is extremely supported by the state. As a result, funding for the sector relies heavily on economic inputs from communities and the government

Breakdown of funding for wastewater management services France, ****, % of total expenditure Source: ****

Households and companies are therefore responsible for the major part of sanitation needs since they represent respectively **.*% and **.*% of the financing of management services.

Financial flows

The BIPE study reports this scheme, which explains the financing of the sector by the various stakeholders. The diagram describes the financial flows (***) of water and sanitation services in France in ****:

Consumers are responsible for financial flows amounting to ** billion for national water consumption. This represents a benefit for private operators under delegation, after the municipal share of * billion, and for local authorities of * billion (***).

Finally, this second diagram represents the financial flows (***) in France in ****:

Thus, the amounts of French water consumption are divided between the delegated operators, local authorities, water agencies and the State. It is interesting to note that the delegated operators account for the largest amounts of all invoicing. Nevertheless, the latter are subject to a communal share which readjusts the flows in favour of the delegating commune. The latter also ...

3.5 The main market players

The market is structured between a few players who operate in the sector in a monopolistic situation. Among the private players: Veolia, Suez and Saur alone supply water to nearly **% of the French population.

Breakdown of drinking water services by operators France, ****, as % of population served Source: ****

For water treatment, the distribution is more equitable between public and private actors, since each management method treats the water of nearly **% of the French population

Breakdown of collective sanitation services by operator France, ****, as % of population served Source: ****

For your information: French water companies are above all extremely dynamic abroad. Thus, they generate **% of their turnover and employ **% of their staff abroad.

Towards a potential merger between Suez and Veolia

In September ****, the giant Veolia offered to buy ENGIE's stake in its historical competitor: Suez. With a stake of **%, this buyout should then give rise to a takeover bid to form a new national champion. Veolia took advantage of the opportunity offered by the economic difficulties encountered by Engie. Indeed, the firm, in search of capital, presented real potential. The proposal was initially rejected by the board of directors of Suez, which denounced a price that was too low. In the eyes of ...

4.1 The different types of water treatment

Different types of processes are used to treat water. These processes can be grouped into four categories: physical processes, chemical processes, physical-chemical processes and biological processes.

Physical processes :

Screening: the water passes through mesh screens to remove any detritus that may be present Simple settling: heavy particles settle to the bottom of the basin naturally Filtration: the water circulates through different filters (***) that retain different types of particles Flotation: pressurised air is blown through the basin to push the particles upwards

Chemical treatments are also necessary to act on heavy metals and other materials and germs present in the water:

Lime can be used to modify the pH of water Chlorine oxidation removes ammonia, iron and prevents algae growth Ozone oxidation removes iron, manganese and micropollutants Chlorination and ozonation are used to disinfect the water at the end of the process

Physico-chemical processes: during settling, this type of process accelerates the deposition of particles at the bottom of the basin. Two main methods exist:

Coagulation, carried out by adding iron or aluminium salts to the water Flocculation: the water is slowly stirred to form larger and larger clusters of particles

Biological processes use microorganisms that are naturally present in the water, ...

4.2 Le prix des services d'eau potable et d'assainissement collectif

La facture d'eau moyenne en France en **** est estimée à ***.* €/an, soit **.* €/mois. La facture d'eau comprend à la fois un coût d'eau potable et un coût d'assainissement collectif et se répartit en * composantes : une part fixe et une part variable. La part fixe est indépendante du volume d'eau et sert à alimenter le financement des charges fixes du service d'eau potable et d'assainissement. Depuis le *er janvier ****, cette part fixe est plafonnée à **% du coût du service sur la base d'une consommation annuelle de ***m* hors taxes et redevances. 

Ce tableau indique la répartition de la part fixe et variable du prix moyen de la facture annuelle d'eau en ****, qui comprend à la fois l'eau potable et l'assainissement collectif. En ****, cette facture annuelle s'établissait alors à *** €.

Répartition de la part fixe et variable du prix moyen TTC de la facture annuelle d'eau (***), France, ****

Source: ****

Ce tarif prend en compte les taxes (***). Ces taxes et redevances comptent pour **% du prix total, comme l'indique le graphique ci-dessous : 

Répartition du prix total entre charges directes des services et taxes/redevances France, ****, en % Source: ****

4.3 Réduction de l'empreinte écologique et de l'utilisation des ressources

Véolia s'engage à recycler **% de l'eau sur ces usines d'eau potables d'ici à **** et **% de l'eau usée sur ces usines d'assainissement. En outre, Véolia se donne pour objectif de diminuer de **% ces fuites. Tous ces objectifs lui permettraient de réduire de **% ces prélèvements d'eaux d'ici ** ans. Enfin, Véolia accompagne des industries et des agriculteurs afin d'optimiser leur utilisation de l'eau. [***]  La réduction de l'empreinte écologique passe par la réduction d'utilisation d'énergie fossile. *% de l'énergie mondiale est utilisée pour le pompage, le traitement et la distribution de l'eau. Pour le Géant Véolia, la réduction d'énergie fossile passe par la réutilisation des boues issues des eaux usées comme combustible et le suivi précis de la consommation d'énergie afin de réduire cette dernière. Véolia propose également ce service aux municipalités souhaitant réduire la consommation d'énergie de leur station d'épuration.

Saur propose aussi un service de réduction de la consommation d'énergie pour les centrales de prélèvement des eaux usées. L'entreprise a pour cela développé un outil permettant de suivre l'efficacité des pompes à eau, pouvant ...

5.1 Regulations

Mandatory security perimeter around catchment sites

Each catchment in France must have a PPC (***). It defines the limit of the space reserved by regulation around a catchment, under the advice of a certified hydrogeologist

This measure is supplemented by the **** Water Law in the context of environmentally constrained areas (***). The areas under consideration are generally larger than the CPAs and concern all surfaces where any drop of water that falls to the ground is likely to reach the catchment by infiltration or runoff. [***]

Sanitation techniques

Order of ** July **** on sewerage systems and non-collective sanitation facilities

This decree repeals the redefined technical prescriptions as well as the monitoring and control procedures for sewerage systems. This text has been completed by the decree of ** September **** which removes the requirement for a minimum distance of *** metres between wastewater treatment plants and homes.

The major consequences of these decrees are increased monitoring of the installations, a more in-depth diagnosis of the installations every ** years, administrative simplification (***), and the establishment of a daily flow rate beyond which the required level of treatment is not guaranteed.

The Equality Act

The Law for the balance of trade relations in the agricultural and food sector, known as the "Egalim" ...

5.2 The need to invest calls for a rethink of regulation

Only *.**% of the network is renewed each year, so it would take *** years to renew the entire network. The ****-**** edition of Les Assises de l'eau ****-**** recognized this need for renewal, and also stated that this need would increase considerably in the coming years. A study UIE "water issues" * billion on average in drinking water services.

Multi-annual programmes of the Water Agencies

The water agencies were created in ****, they establish programmes for the implementation of water policy over * years. These programmes, financed by the charges levied on users, are capped by a legislative framework in order to reduce the fiscal pressure on households. However, this is detrimental to the funds available. Thus, the **ᵉ programme (***) will see its revenues limited to €**.* billion, i.e. €*.* billion annually and a *% drop compared to the previous programme.

Master plans for water development and management

Each river basin is subject to a very specific objective for managing the status of water bodies. Thus, it adopts a SDAGE for a period of * years. In this respect, the ****-**** programmes are established on a global envelope of **.* billion euros. This envelope is **% lower than in the previous cycle. This decrease is another indicator that investment strategies need ...

6.1 Segmentation

• Suez Groupe
• Saur
• Sogedo
• SCP– Société du Canal de Provence
• Agur (Groupe Etchart)
• BRL
• RWE - Thames Water
• BWT
• Wel Enterprise
• BIO UV Group
• Véolia Groupe
• Azuvia
• Valgo
• NKE Groupe
• Aquatech Innovation
• SIAAP Syndicat interdépartemental pour l'Assainissement de l'Agglomération Parisienne
• Diamidex
• KF Unternehmenst Group
• Dupont De Nemours France
• UV Germi
• EMO France
• BE WTR
• Chemdoc Water rechnologies
• NGE Groupe
• BATTAKARST