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Sewerage in the UK - Market Research Report (2014-2029)

Yusuf Allinson Yusuf Allinson London, United Kingdom Last Updated: August 2024 SIC E37.000

Revenue

£12.1bn

2024-25

£12.1bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

33,546

Businesses

1,267

Wages

£X.Xbn

Sewerage in the UK industry analysis

Concerns regarding public sanitation have grown over the past decade, while the UK population has continued to expand, elevating pressure on companies in the Sewerage industry. There's a growing number of UK households, because of a rising population and housebuilding activity, which is aiding the need for industry services. Rising industrial production activity and a steady expansion in the number of businesses is raising revenue for commercial wastewater drainage services. Sewerage revenue is forecast to swell at a compound annual rate of 1.9% to £12.1 billion over the five years through 2024-25, including a forecast revenue growth of 1.8% in 2024-25.

Trends and Insights

  • Raw sewage dumps lead to fines but enhance investment in treatment works. There was a 105% increase in sewage leaks in 2023 compared to 2022, leading to significant investment in pipes and upgrades in capacity to reduce leakage.
  • Foul water drainage is the leading industry service. The removal of wastewater accounts for the bulk of revenue. The UK’s rising population will compound this, lifting this segment’s share of revenue.
  • The South East and South West are home to many establishments. This is because the regions have high populations, so there’s more of a demand for sewage services.
  • Big companies that are linked to regions have an advantage. The UK has 12 regional water and wastewater companies serving a specific area with established networks. For these companies, revenue growth is linked to these regions’ populations.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated £12.1bn in 2024.

Trends and Insights

Raw sewage dumps lead to fines but enhance investment in treatment works

  • According to the Environment Agency, there were 3.6 million hours of spills in 2023, compared to 1.75 million hours in 2022.
  • Additional trends and insights available with purchase
Sewerage in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Regulatory pressure will hinder revenue growth in favour of better services

  • Water and wastewater companies are currently in the fourth year of AMP7 between 2020 and 2025, requiring investment in upgrading the network and reducing raw sewage dumps into rivers and seas.

Biggest companies in the Sewerage in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Thames Water Utilities Limited
1,360.0
United Utilities Group plc
1,043.4
Anglian Water Services Ltd
1,001.6

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Sewerage in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Foul water drainage, Surface water drainage and Highway drainage. Foul water drainage is the largest segment of the Sewerage in the UK.

Trends and Insights

The expanding population elevates household wastewater volumes

  • Foul water drainage carries used water from toilets, sinks, baths and showers through sewer pipes to treatment plants.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry operate sewerage systems for the collection, treatment and disposal of sewage, including household and industrial wastewater and rainwater runoff. The industry is responsible for maintaining sanitation services for customers and meeting statutory obligations with respect to system overflows and wastewater quality through the stages of treatment.

What's included in this industry?

Foul water drainage Surface water drainage Highway drainage

Companies

Thames Water Utilities LimitedUnited Utilities Group plcAnglian Water Services Ltd

Purchase this report to view all 4 major companies in this industry.

Related Terms

OFWATWATER TREATMENTSEWAGESEWERAGEASSET MANAGEMENT PERIOD

Industry Code

SIC 2007

SIC 37.00 - Sewerage in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Raw sewage dumps lead to fines but enhance investment in treatment works. There was a 105% increase in sewage leaks in 2023 compared to 2022, leading to significant investmen...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Foul water drainage is the leading industry service. The removal of wastewater accounts for the bulk of revenue. The UK’s rising population will compound this, lifting this s...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The South East and South West are home to many establishments. This is because the regions have high populations, so there’s more of a demand for sewage services.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Big companies that are linked to regions have an advantage. The UK has 12 regional water and wastewater companies serving a specific area with established networks. For these...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The industry is dominated by 12 companies operating as monopolies. Ofwat regulates the 10 of these companies situated in England and Wales, with the remaining two operating i...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Thames Water Utilities Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of United Utilities Group plc's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Anglian Water Services Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Thames Water Utilities Limited, and factors influencing its performance in the industry
  • Description and key data for United Utilities Group plc, and factors influencing its performance in the industry
  • Description and key data for Anglian Water Services Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The industry depends on the number of UK households. When there’s a greater number of UK households, there’s a higher demand for foul water drainage services.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Sewage services are essential so profitability is high. Plus, the lack of industry competition means profit can stay relatively high.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Sewerage in the UK industry in United Kingdom in 2024?

The market size of the Sewerage in the UK industry in United Kingdom is £12.1bn in 2024.

How many businesses are there in the Sewerage in the UK industry in 2024?

There are 1,267 businesses in the Sewerage in the UK industry in United Kingdom, which has grown at a CAGR of 3.9 % between 2019 and 2024.

Has the Sewerage in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Sewerage in the UK industry in United Kingdom has been growing at a CAGR of 1.9 % between 2019 and 2024.

What is the forecast growth of the Sewerage in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Sewerage in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Sewerage in the UK market in United Kingdom?

The biggest companies operating in the Sewerage market in United Kingdom are Thames Water Utilities Limited, United Utilities Group plc and Anglian Water Services Ltd

What does the Sewerage in the UK in United Kingdom include?

Foul water drainage and Surface water drainage are part of the Sewerage in the UK industry.

Which companies have the highest market share in the Sewerage in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Thames Water Utilities Limited.

How competitive is the Sewerage in the UK industry in United Kingdom?

The level of competition is low and increasing in the Sewerage in the UK industry in United Kingdom.

Related Industries

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Competitors

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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