Water Utilities in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Water Utilities in the UK industry analysis

Revenue generated by water utilities is largely determined by the water supply needs of commercial, residential and public customers, which are dictated by weather conditions and production volumes. Revenue in the Water Utilities industry is anticipated to inch upwards at a compound annual rate of 0.3% over the five years through 2025 to €115.9 billion, including a projected 0.1% growth in 2025.  With customers across Europe striving to consume less water and using smart meters to track water use, revenue has remained relatively stable. A sizeable drop in revenue in the two years through 2020 can be attributed to the COVID-19 outbreak hitting manufacturers’ production and leading to a decline in demand for water suppliers. Extreme weather and high inflation levels have pushed up operating costs, constraining profit growth. At the same time, growth in the number of data centres across Europe in recent years has contributed to growing water demands as data centres require vast amounts of water for cooling systems.

Trends and Insights

• Water meters make consumption tracking much easier. Knowing how much customers are using means suppliers have been better placed to meet growing demand, while customers are able to be more environmentally conscious.
• Meters make it easier to monitor water consumption. Environmental awareness has ticked up across Europe. Customers with smart water meters often use them to limit their water usage, while utility companies get help with billing customers more accurately.
• Regional monopolies mean there’s limited price competition. The industry’s dominated by strictly regulated regional monopolies. Prices are predetermined and water utilities have to provide the best possible service to customers.