The Dutch water sector achieved an impressive export value of close to EUR 10 billion, as shown in the recent ‘Water Sector Export Index’ (WEX) report. This is an increase of 23 percent compared to 2021 when the export value of the Dutch water sector was over EUR 8.1 billion.
The export quotient, which shows the importance of exports for the sector, was estimated at over 45 percent for 2022 and more than 50 percent for 2023. It shows that exports for companies in the Dutch water sector are increasing strongly and it is crucial for economic forecasts and employment opportunities in the sector. The WEX report was carried out by Panteia, commissioned by the Netherlands Water Partnership, in collaboration with Water Alliance and Top Sector Water & Maritime. Funding was provided by the Ministry of Infrastructure and Water Management. The results and conclusions have been presented to the Ministry of Infrastructure & Water Management.
The WEX report identifies the most promising geographic markets for exports and covers areas and subjects that are crucial for the growth of the Dutch water sector. The Water Sector Export Index (WEX) is an index that shows the development of the Dutch water sector’s exports. In 2022, the WEX index achieved a value of 229 (on 100, with 2000 being the baseline year).
Increasing importance of exports for the Dutch water sector
The water sector has benefited from the worldwide growth of the world economy and the increased demand for water expertise abroad. The Dutch water sector’s exports has grown by 248 percent over the last 20 years and by 151 percent over the last 10 years. The gross added value of the sector – the income earned through the production of goods and delivery of services – amounted to almost EUR 10.9 billion in 2022 and is estimated at about EUR 12 billion for 2023.
Climate problems responsible for increasing demand
A large number of companies in the Dutch water sector filled in a questionnaire in which they were asked about their expectations for the coming years. Companies are optimistic about the market and see an important role for the sector in dealing with climate problems. Two out of three companies expect an increase in international turnover in 2024 and an average growth of almost 25 percent. The demand for Dutch water expertise lies in climate problems and the energy crisis.
Areas of focus for exports
Most of the international turnover is generated in the EU (33 percent) and North America (34 percent). Significant amounts in the delta technology sector are generated in the EU (32 percent). Of note is the water technology sector’s interest in the MENA region (Saudi Arabia and the United Arab Emirates). In the delta technology sector, Bangladesh and Indonesia stand out as recipients in the sector.
Various crises in the world have led 21 percent of the companies to shift their regional focus to other areas such as the USA, West Europe, and Central and East Asia.
Important international water themes
The drinking water supply, water & green, and industrial wastewater sub-sectors show great potential. The most important international water themes for the next few years named are mostly related to climate and sustainability: climate change, nature-based solutions, the energy transition, and water reuse. There are also themes on the agri-water nexus such as soil and agriculture, drought, water quality, and water scarcity which are becoming more prominent.
International collaboration is the key to success
The companies in the WEX stress the importance of collaboration with international companies and organisations in the sector to take advantage of international opportunities. Market knowledge, understanding the users’ needs, and financial resources are also seen as important factors in international success.
About the Water Sector Export Index (WEX)
To show the development of the Dutch water sector’s exports, an index was designed for the export of water activities. This is the Water Sector Export Index (WEX). The WEX is based on the water technology and delta technology sub-sectors. The baseline year for the WEX is 2000 when the WEX equated to 100.
In 2022 the WEX was 229 (2000=100), which means exports amounted to almost EUR 10 billion. However, the WEX is not only based on statistics. Many companies from the Dutch water sector filled in a survey, making it possible to produce a preliminary forecast for WEX 2022, expected figures for 2023, and a forecast for 2024.
