The amount of water we have on Earth is deceptive. Even though it falls from the sky and covers 72% of the Earth’s surface, we are at real risk of the well running dry. This is because the Earth’s natural systems are increasingly challenged by the growing demand for clean freshwater in agriculture and industry.
According to 2022 UNESCO data, only 2.8% of the total 1.4 billion km3 of water on the Earth’s surface is fresh, and that accounts for both blue and green water. “Blue water” is the water we find in rivers and lakes, groundwater, glaciers and the polar ice caps. “Green water” is the water found in plants, the soil and rain.
Using UNESCO data, an MITTechnology Review Insights (commissioned by Schneider Electric) calculated that the increase in the global consumption (abstraction) of fresh water is approximately 1% a year. Although agriculture accounts for the vast majority (70%) of water consumption, the next largest consumers are industrial users (20%), followed by domestic users (10%).
No water, no chips: Water scarcity’s impact on global industry
What do all these statistics mean for you and your business? Mounting risks and costs. In addition to the impacts caused by growing demand, and water emergencies (including flooding, water scarcity, regulatory restrictions, drought, and pollution) will continue to pose increasing risk to global industries and critical supply chains if not addressed.
The impact of localized water scarcity on critical, water-intensive industrial supply chains can be dramatic and long-lasting. In 2021 for example, drought virtually stopped the manufacture of semiconductors in Taiwan. Responsible for producing about 90% of the global demand for advanced semiconductors, major chip manufacturing hubs across Taiwan were ordered to reduce water consumption by as much as 15 percent,
Taiwan’s brush with water stress-induced supply chain collapse is far from over. Asia’s Diplomat reports that for one of Taiwan’s largest fabricators, inefficient water supply management could result in a 10% decline in output compared to its 2030 projection.
Before the well runs dry: Managing industry’s seemingly unquenchable thirst
A broad coalition of government, industry, as well as public and private entities are closely collaborating to understand water scarcity’s risks and explore economically feasible solutions that industries in key sectors can adapt to reduce consumption now as well as manage future costs.
A recent study by Water Europe analyzed current and projected market size identifying four priority sectors (Semiconductor, Data Centers, Renewable Hydrogen, and EV Battery) along with forecasts of each sector’s water demand. Study data showed advanced technologies for each sector have the potential to generate significant cost savings while reducing water consumption and operational costs:
For the Data Center sector, the 52% growth in water consumption (94 million m3 in 2030 compared to 62 million m3 in 2024) would cost almost €10 billion using traditional mechanical cooling systems compared to €7.3 billion deploying innovative cooling technologies such as adiabatic or liquid cooling.
Economic innovation in these sectors, notably AI and batteries for EVs, are contributing to the rising industrial demand for fresh water. Advanced manufacturing from chip fabrication to biopharmaceuticals is also demanding ever higher volumes of ultrapure water (UPW)—as much as 5 million gallons of high-quality UPW every day.
Facing the challenges of water scarcity with water-smart technologies.
All the demand and economic impact data points to one thing: Water-intensive industries are under tremendous pressure to address water risk locally and throughout critical supply chains. The data also shows that the more information and control you have over critical fresh water supplies, the easier it is to consume and reuse it efficiently. To be effective, most of the technologies outlined by Water Europe’s report increasingly depend on digital technologies—from AI, machine learning, digital twins, and remote sensors to advanced cloud-based data management and analytical systems—to help water-intensive industries root out waste and shape more sustainable processes and systems for water management.
Integration of AI, machine learning (ML), data analytics, internet of things (IoT) and sensors, digital twins, and social media can enable not just quick data analysis but also allow industry and society to accurately measure water quality, as well as make predictions using demand forecasting and analytics to support financial and sustainability goals.
Creating data-driven circular water economies
Data-driven industrial water management technologies are revolutionizing how enterprises approach conservation and sustainability. Water users and suppliers around the world are harnessing digital innovation to optimize physical water systems and create the circular water economies necessary to manage consumption sustainably.
The concept of a circular water economy emphasizes the three “R’s” resource conservation: reuse, recycling, and regeneration. When applied to water management, it offers a powerful framework for reducing waste and enhancing sustainability to close the loop on water use, such as:
- Water recycling
- Industrial symbiosis
- Zero liquid discharge (ZLD)
Digitally driven solutions driving sustainability goals around the world
Leading pump manufacturer Wilo recently partnered with Schneider Electric to develop and implement a green hydrogen plant encompassing circular concepts in Dortmund, Germany. With the H2Powerplant, water is purified using reverse osmosis and then fed into an electrolyzer, which splits it into hydrogen and oxygen using renewable energy. Schneider Electric’s EcoStruxure™ Automation Expert manages the entire process, ensuring a fully automated, efficient, and reliable operation.
In Brazil, Latin America’s largest wastewater plant—Aquapolo treatment plant—handles wastewater from a large urban area in São Paulo. Instead of discharging treated water back into the river, it supplies a nearby petrochemical industrial area. They then process the wastewater via a tertiary treatment to meet high-quality industrial-use standards. For Aquapolo, technology is crucial to ensure fully automated operations for process management and quality monitoring. Schneider Electric’s technology helps Aquapolo deliver reliable and sustainable water resources to industrial users despite challenging water and climate scenarios.
Investing in sustainable, circular water economies
Most in the industrial sector agree that water scarcity is driving meaningful innovation across industry aimed at ensuring a plentiful and clean water supply. Investments in systems and data-driven processes that promote circular water economies have the great potential to quench industry’s seemingly insatiable thirst.
Schneider Electric’s commitment to successful, efficient water stewardship and sustainability continues. Providing industry access to a broad range of digital technologies, including AI, machine learning, digital twins, sensors, the cloud, and more. From semiconductor manufacturing, mining, energy, and chemicals to consumer packaged goods, Schneider partners with water-intensive industries to reduce waste, optimize engineering processes, and implement smarter, more effective water management strategies.
Discover how leading industries are turning the challenges and costs of managing water risk into opportunities through innovative investments in digital technologies and data-driven approaches. Learn more about how we can help you reduce consumption, promote circularity, and manage water risk effectively – before the wells run dry.
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