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Although the Earth is 70% water, less than 1% is usable with 97.5% of the world's water being salt water and 2.5% fresh water. Most of the latter is trapped in polar icecaps. Today, 1.2 billion people (20% of the world's population) lack adequate access to clean water and 2.4 billion do not have access to adequate sanitation.

The total world water and processing market is estimated at $400 billion in 2007, and is expected to grow at a compounded annual growth rate (CAGR) of 4.9% to $544 billion by 2013. The global market for UV and ozone disinfection is estimated at $4.6 billion in 2007, and is expected to grown at a rapid CAGR of 13.7% to $10 billion by 2013.

(The information above is derived from United Nations Educational, Scientific and Cultural Organization, World Health Organization, ITT Industries, and Advanced Water Technologies Inc. estimates)

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Several key drivers contribute to the demand for water related products and services. These key drivers include:

• Limited supply of clean fresh water to meet human, industrial and commercial demand.
• Rapid destruction of scarce critical commodity by pollution not only in the U.S. but especially in China and other emerging countries.
• Global Warming disrupts weather patterns causing drought and desertification randomly.
• Insufficient and dilapidated infrastructure. According to the EPA, the U.S. alone with its 700,000 miles of water pipes (more than 4 times the length of the National Highway System) needs to spend over $250 billion over the next 30 years for infrastructure work. China alone, in its recent 5 years plan, cited $128 billion of essential water infrastructure improvements.
• Global water usage has increased six-fold since the last century, drawing from an unchanged, limited water supply.
• 55% more food is required to feed the growing population. Irrigation already claims nearly 70% of all freshwater currently in use globally. For example, 1,900 liters of water is needed to produce 1Kg of rice; 15,000 liters of water produces 1Kg of beef. There are 2,400 liters in a hamburger; 4,000 liters of water in a cotton t-shirt, and 8,000 liters of water in a leather shoe.
• Increasing stringent regulatory environment. The Clean Water Act and Safe Drinking water Act have increased monitoring and removal requirements for newly discovered hazardous minerals, like selenium and perchlorate, and bacteria in the United States. The China Ministry of Health recently announced 71 new standards to monitor for microbe content, organic matter and disinfectants.*

(Sources: The Case for Water Investing © 2007 by John Dickerson and Rob Anfuso, Summit Global Management Inc.)

• Increasing awareness and perception of an impending water crisis as affected by news and the internet and financial/business world.
• Freshwater consumption drives demand for water treatment and water delivery systems. For every kilogram of beef consumed, there is an additional need for 15,000 liters of water. Through 2013, worldwide meat consumption is projected to grow at a compound growth rate of 2.4% per year: increasing from 271 million tons per year in 2007 to approximately 313 million tons per year in 2013. Meat consumption in China is projected to grow at a similar annual rate: increasing from 64 million tons per year in 2007 to 71 million tons per year in 2013.**

(Sources: Feed Market Analysis Report, Potash Corp: OECD;FAO; Brilliant Pioneer Consultants)