By Dr. Thomas D. Krom, Seequent Segment Director, Environment, Bentley Systems
Water is the lifeblood of our economies, societies, and ecosystems. Yet, for decades, we have undervalued and mismanaged it. Today, the stakes could not be higher. The Global Commission on the Economics of Water (GCEW) has sounded the alarm: water scarcity, climate change, and biodiversity loss are destabilising the hydrological cycle that sustains life on Earth.
The question is not whether we need to act, it is how quickly we can scale solutions that work. And here is the good news, water is not just a challenge; it is also an opportunity. With billions of dollars flowing into water-related projects globally, there is a growing market for innovative solutions, particularly in the digital area, that can transform how we manage this critical resource.
Massive funding gap and a chance to close it
Let us start with the numbers. Achieving Sustainable Development Goal 6 (clean water and sanitation for all) will require an additional $500 billion annually in investments in low- and middle-income countries alone. That is just the tip of the iceberg. To stabilise the global water cycle, blue water (rivers and lakes) and green water (soil moisture), we will need even more. The World Bank has estimated that up to 80 per cent of climate adaptation costs are related to water.
In Europe, the EU Recovery and Resilience Facility (RRF) has already committed €12.92 billion to water-related projects across 15 member states. Spain and Italy are leading the charge, investing heavily in reducing leakage, improving wastewater treatment, and modernising infrastructure. These efforts are not just about compliance, they are about building resilience in a world where water risks are becoming increasingly unpredictable.
In India, the Jal Jeevan Mission, which aims to provide piped water to every rural household by 2024, has become one of the largest water infrastructure programmes globally. Yet, implementation challenges, groundwater depletion, and climate impacts continue to pose significant risks, pointing to the urgent need for digital and data-driven solutions at scale.
This significant funding gap represents a call to action, and an enormous opportunity to lead.
Digital can make waves
Technology is rewriting the rules of water management. From real-time monitoring to predictive analytics, digital approaches are enabling smarter, more timely decisions and more efficient operations across industries and sectors. Here are three areas where digital is already making a difference and where investment opportunities are ripe:
Digital water management
Imagine being able to monitor an entire city’s water network in real time, detecting leaks before they happen or optimising distribution based on demand patterns. That is not science fiction; it is happening now at utilities like Evides, Agea and Sabesp.
Why it matters?: In some cities, up to 40 per cent of water is lost due to leaks. Fixing this is not just about saving water, it is about saving money.
Who is investing?: Venture capital firms and corporate players like Bentley Systems are pouring millions into start-ups that specialise in IoT-enabled sensors, AI-driven analytics, and smart water platforms.
India Spotlight: Indian start-ups such as WEGoT and Fluid Robotics are using IoT and AI-based platforms to reduce water leakage and enable efficient water usage in urban settings. Municipal corporations are increasingly partnering with private players for smart metering solutions.
Wastewater treatment and reuse
In a world where freshwater is becoming scarcer by the day, wastewater is not waste, it is a resource waiting to be tapped.
Why it matters?: Treating wastewater could reclaim about 8 per cent of the global freshwater withdrawals, equivalent to all municipal water use worldwide.
Who is investing?: Start-ups like Gradiant have raised over $392 million to scale advanced treatment technologies that recover nutrients and energy from wastewater.
India Spotlight: The Namami Gange programme and the AMRUT mission both focus on large-scale sewage treatment infrastructure. Cities such as Indore and Surat are emerging as models in wastewater reuse for urban greening and industrial usage.
Agricultural water efficiency
Agriculture accounts for 70 per cent of the global freshwater withdrawals, and much of it is wasted due to inefficient irrigation systems.
Why it matters?: Scaling precision irrigation could save up to 25 per cent of irrigated water consumption by 2050 while boosting crop yields.
Who is investing?: Agri-tech startups like Kilimo are using SaaS platforms to optimise irrigation schedules and verify water savings that can be monetised as offset credits.
India Spotlight: The Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and the National Mission on Micro Irrigation are promoting efficient irrigation across the country. Companies like Fasal and BharatAgri are using AI to help farmers make informed irrigation decisions.
Leadership on water resilience
India is also taking progressive steps through a combination of federal and state-led schemes to ensure water security, from river rejuvenation projects to water budgeting in drought-prone regions. However, greater emphasis on digital transformation, data interoperability, and public-private innovation ecosystems could help accelerate progress.
But what is in place now is not enough when one considers the urgency of the problems and the funding gap. Therefore, policymakers and business leaders alike should work together, as this presents a unique opportunity to solve a strategic global challenge while tapping into one of the fastest-growing markets in sustainability.
Who is funding this revolution?
The funding landscape for water solutions is diverse and growing:
1. Private Venture Capital
Firms around the world are betting big on early-stage start-ups developing game-changing technologies. Corporate venture capital initiatives are targeting scalable solutions for utilities and industries. Venture capital investments are expected to nearly double in 2025 vis-a-vis 2024.
2. Development Finance Institutions (DFIs)
Many organisations like the European Investment Bank, European Bank for Reconstruction and Development, World Bank and African Development Bank are providing concessional loans to de-risk investments in emerging markets. DFIs are increasingly backing Just Water Partnerships to mobilise private capital for underserved regions.
In India, NABARD, SIDBI, and the National Investment and Infrastructure Fund (NIIF) are instrumental in channelling funds towards water resilience and rural water infrastructure.
3. Public-private partnerships (PPPs):
Governments are teaming up with private entities to modernise infrastructure through performance-based contracts. Examples include leak detection systems funded by municipal utilities in Sub-Saharan Africa and South Asia.
India has seen successful PPP models in cities like Nagpur and Bengaluru, where private partners assist in water distribution, billing, and NRW (non-revenue water) management.
4. Multilateral initiatives
Programmes like the UN System-wide Strategy for Water and Sanitation aim to accelerate progress towards SDG 6 by fostering innovation at scale.
Conclusion
The intersection of technology, funding, and policy presents an unprecedented opportunity to transform how we manage water, a resource that underpins everything from food security to climate resilience. For decision-makers in government or business, this isn’t just about solving problems; it is about seizing opportunities.
By investing in digitally-driven solutions, whether it is digital monitoring platforms for utilities, advanced wastewater treatment technologies for industries, or precision agriculture tools, you can drive measurable impact while unlocking long-term economic value.
Given the massive funding gap and the strategic nature of these challenges, now is the time to lead boldly. Together, we can reshape the future of water management, whether in India or globally, and ensure that water security becomes a cornerstone of sustainable development for all.