As climate change causes global temperatures to rise, water scarcity is becoming an increasingly urgent issue. In 2023, glaciers lost more than 600 gigatons of water, the largest loss in the last five decades, according to the United Nations (UN). The prospect of water shortages matters because as many as one in four people globally still live without safely managed drinking water, while more than two billion people live in countries that are under water stress. At the same time, only 27% of industrial wastewater is safely treated, the UN says, while 42% of domestic wastewater globally is untreated1. This underscores the need for water technology innovation to ensure an ever-expanding population has sufficient clean water supplies.
Investment in water technology is growing. By 2030, the global water market is expected to be valued at more than $430 billion, up from $302 billion in 2022. When adding wastewater treatment, the market size is predicted to hit $652 billion by 2034. With eyes on the future and recognizing both the environmental and economic importance of well-managed natural resources, the Canadian government recently committed $100 million in strategic investment to fund research and advancements in water security technology2.
To better understand the scale of the opportunity, Foresight Canada tapped UnitedLex to provide a comprehensive overview of the global and Canadian water technology landscape by using patent intelligence to identify key market and innovation trends. To do this, UnitedLex experts used their advanced IP analytics platform to analyze, map, and categorize thousands of global water technology patent filings, which generated actionable insights that Foresight clients could leverage to grow their business and attract additional investors.
Key patent categories
The analysis spans more than 180,000 global patents across four key areas of water technology:
- Raw Water: Surface and groundwater extraction, desalination, rainwater, and atmospheric water capture (54,000 patents)
- Use: Industrial, agricultural, aquaculture, and potable water applications (22,000 patents)
- Outflows: Wastewater treatment and management, sludge management, and resource recovery (116,000 patents)
- Environmental Water Cycle: Groundwater remediation and water quality monitoring (17,000 patents)
Competitive Intelligence
By combining patent analytics with market indicators such as merger and acquisition (M&A) activity as well as partnerships and policy developments, the UnitedLex patent landscape study reveals the areas where innovation is most concentrated and who is driving that transformation. As a result, the report also identifies whitespace opportunities where patent activity is low, but growth potential is high, enabling innovators to fine-tune their R&D strategies and unlock a potential competitive advantage.
High Patent Concentration in Outflow Technologies and Raw Water Patents
The analysis highlights that outflows-related innovation accounts for the most water technology patents globally, with 75% of those focused on wastewater treatment and reuse. Those include physical treatment methods (notably sedimentation, adsorption and membrane-based technology) and sludge dewatering techniques. Given how much industrial and domestic wastewater goes untreated, this exposes an opportunity gap for innovators to meet that demand.
Raw water-related tech holds the second most patents globally, with rainwater and atmospheric water extraction accounting for the most active patent families (60%). Most of those filings are related to rainwater harvesting systems, which are pertinent for urban areas given the amount of rainwater that goes to waste. As much as 55% of rainfall in metros can be lost to runoff, according to RiverLink, a US non-profit3.
White Space Opportunities
As with many patent landscapes, a big question lies in whether there are areas with low patent activity but high commercial potential, indicating open waters that can convert innovators into industry leaders. For example, nanoremidiation for soil and groundwater to remove contaminants from natural environments has very little patent activity despite high pollution risk from agricultural runoff, even in high-income countries4. The market around this is projected to reach around $4.9 billion by 2031. Pair that information with the patent filing data and it sheds light on the open space that has yet to be filled.
Other areas potentially prime for economic growth include water transport via smart drones that help bring water to remote communities, such as rural Africa, where about 80% of households lack direct access to water5. And while there is significant focus on rainwater harvesting IP, there is only sparse coverage around real-time adaptive stormwater drainage systems, which help manage drainage networks more efficiently. Given that the global stormwater market is projected to grow to around $30 billion by 2030, the data makes this white space attractively vacant.
Geographic Depth
When looking at the patent landscape across the global jurisdictions, China is by far the most active patent filer in the global water technology market, with more than 150,000 patent assets. South Korea is the next most active, with just over 10,000 patent assets, while the U.S. is third with just over 8,000. China’s activity tracks the broader patent filing trend, with most of their filings in outflows and raw water. Despite the volume of patents, the U.S. and China are among the top countries globally with the most freshwater resources (ranking fourth and fifth respectively). South Korea, by contrast, ranks 66th6, making water security a more urgent priority and driving innovation.
Next-gen Technology
The game-changing innovation that is driving transformation across the water sector is seen in a few key areas: metal-organic framework (MOF)-based atmospheric water harvesters, AI-directed fog meshes, IoT-enabled smart water ATMs, and floating solar-powered desalination pods. Patent data shows that these technology areas are leading the way in redefining how water is sourced, treated, and distributed. The innovations are creating R&D collaboration opportunities between leading universities and startup accelerators, such as the Xylem Partnerships Accelerator and Imagine H2O Accelerator, with more likely to come as the impacts – both environmentally and economically – come to fruition.
Real-World Application
As the world’s population grows and the pace of life accelerates; the global water crisis will continue to intensify. Innovation in water technology is key to extending and optimizing how we use this essential and precious resource. This analysis and supporting patent data make the case for organizations to invest in clean water tech, from each of the commercial, health, and environmental perspectives.
Organizations that are trying to understand the smartest way to invest and secure positive ROI should consider an aggressive patent strategy in whitespace areas, using early filings to build a commanding IP position and avail the first-mover advantage. There is also great potential to expand global patent coverage with bundled, patent-backed innovations for pilot projects. Such programs benefit the innovators (think spreading risk, pooling funding, sharing proven ideas) in ways that also attract venture capital investment, strategic partnerships, or acquisition interest. Collaboration with academia should also be heavily considered, given around 15,000 – 18,000 patents globally are filed by universities and other institutions.
With the vast range of water technology opportunities, the need for data-driven IP intelligence to support smarter R&D decision making is essential to accelerate innovation and create a sustainable global water ecosystem. The full “Water Technology Landscape Study” exhibits the forward-thinking of Foresight Canada and how UnitedLex patent analytics and data insights can lead to savvier business strategy and give any innovator in any industry a commercial edge.
