Water shortages will threaten growth within five years, say over half of European industrial leaders
Of industrial respondents, 44% believe their operations would start to suffer within 24 hours of a serious water supply disruption.
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Rhea-AI Summary
Schneider Electric (SBGSY) released European research showing that industrial leaders expect water constraints to become a barrier to business growth. Among industrial respondents, 52% expect water quality or availability to become a serious growth barrier within five years, by 2031. Over the past two years, 44% reported higher operating costs from water stress, while 30% reported supply-chain disruption.
The adoption gap persists: 58% of industrial leaders know about digital twins or network modelling tools but have not installed them. Meanwhile, 47% have increased investment in water efficiency, and 43% have taken water risk to board level. Censuswide conducted the Schneider Electric-commissioned survey in June 2026 across the UK and European markets, covering 210 industrial leaders at large enterprises and 130 water system decision-makers.
News Explained
The survey adds evidence beyond longer-term expectations:
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Water stress is already hitting operating costs, supply chains and infrastructure across European industry
- Water shortages now rank as high as cyber-attacks and supply chain disruption for industrial business continuity
- Nearly
60% of leaders admit to not installing the technology they know could cut water risk
PARIS, Oct. 20, 2026 (GLOBE NEWSWIRE) -- Schneider Electric, a global energy technology leader, today released The Water Crunch Report, new research revealing that water is now one of the biggest risks to industrial business continuity across the UK and Europe, ranking as highly as cyber-attacks and supply chain disruption. This echoes last year’s US-focused research from Schneider Electric, where over half (
The Water Crunch Report surveyed senior leaders at industrial companies and decision-makers at water utilities and municipalities across Europe. In the past two years, industrial leaders say water stress has already pushed up their operating costs (
The findings land against the backdrop of Europe's most severe drought conditions in decades, with the knock-on effects on the freight, energy and agriculture sectors providing a stark reminder that these pressures are no longer hypothetical.
“Europe cannot afford to treat water as an environmental issue alone. It is now a competitiveness issue," said Gwenaelle Huet, Executive Vice President, Industrial Automation, Schneider Electric. "Just as the energy transition reshaped industrial strategy over the past decade, water efficiency will shape the next one. AI-powered industrial intelligence gives companies unprecedented visibility into how water is used, wasted and recycled. The challenge is no longer understanding the problem, but acting at the pace required to secure Europe's industrial future."
“It’s easy to write off this summer’s droughts and impact on industry as a one-off, but this is now a structural feature of operating in Europe,” said Sophie Borgne, Water & Environment Segment President of Schneider Electric. “Right now, around half of the EU and UK are under some level of drought, according to the EU's European Drought Observatory. Reusing water can reduce our dependence on rivers and reservoirs already under strain, yet only
Awareness vs. adoption
Smart water technology is widely recognized as a solution to water management, but implementation is not keeping up with awareness. The gap isn't down to skepticism. Belief in these tools is close to universal:
Despite this, industrial leaders show particularly high awareness of technologies they haven't yet deployed:
The encouraging news is that industry isn't waiting for the problem to worsen. Nearly all organizations surveyed (
Cybersecurity is climbing up the agenda too, with over half of both industrial leaders and water utilities naming it among the top risks to manage as water systems become more connected and digital.
But there is clear headroom for growth: many leaders are aware of technologies designed to optimize operations but haven't yet installed them, meaning the biggest gains may still be ahead. For European business leaders, the takeaway is straightforward: water risk now needs the same active management as energy or cybersecurity. Closing this gap is likely to matter most for the industries already feeling the cost of water stress.
"For nearly two decades, water has been overlooked in the climate conversation, attracting a fraction of the investment given to energy or carbon. With Europe warming more than twice as fast as the rest of the world, pressure on water supply is intensifying, and The Water Crunch report confirms the mindset is shifting:
Forward-thinking utilities are leveraging existing technologies to minimize impact on their customers. To ensure the supply security of its water network, the Danish utility, Aarhus Vand, relies on the forecasting capabilities of a digital twin. Schneider Electric’s EcoStruxure™ Water Advisor – Water Simulation was deployed to help the utility remotely monitor its water supply network to easily and precisely identify potential leaks and supply fluctuations. Using data from points on the network, Water Simulation anticipates the impact of planned and unplanned events so Aarhus Vand can take the best actions to address them quickly, minimizing waste and providing a reliable supply of high-quality water for its customers. The provider also benefits from lower energy use and costs thanks to improved efficiency.
Notes to Editors:
Schneider Electric is helping cities and businesses digitalize water infrastructure, transforming it from a hidden risk into a strategic advantage. From real-time leak detection to digital twins that simulate and optimize water flow, Schneider’s smart water solutions reduce losses, improve reliability, and strengthen operational performance. More information on Schneider Electric’s Water and Wastewater solutions can be found here.
Survey Methodology
The research was commissioned by Schneider Electric and conducted by Censuswide, with the survey questions designed in collaboration with independent water industry journalist and analyst Tom Freyberg, Founder of Atlantean Media. It explores how industrial leaders and water system decision-makers across the UK and Europe are experiencing water stress today, the strategic priorities related to water management and infrastructure, and the gap between recognizing water risk and acting on it.
The research was conducted in the UK, Ireland, Italy, France, Spain, Germany and the Nordics (Sweden and Denmark) in June 2026 and surveyed a total of 340 leaders comprised of two key groups:
- 210 industrial business leaders (Director-level and above) from large enterprises (1,000+ employees) across key industries including Energy & Chemicals, Manufacturing, Life Sciences & Pharmaceuticals, Industrial Machinery & Equipment, Semiconductors & Electronics, Construction and Food & Beverage.
- 130 water system decision-makers from utilities, municipalities/local government and public water infrastructure providers.
Additional sources:
- Closed-loop industrial water recycling systems can recover up to
90% of process water: Envisioning/Stratum research on closed-loop water systems. - Only
2.4% of treated wastewater is currently reused across the EU: Interreg Europe/Europe's Freshwater portal. - Since the 1980s, Europe has warmed at more than twice the global rate, and European land temperatures are now roughly 2.3–2.5°C above pre-industrial levels, versus about 1.3–1.4°C globally: Copernicus Climate Change Service
Press contact: mediarelations@se.com
About Schneider Electric
Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory. With 160,000 employees and 1 million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.
Learn more about Advancing Energy Tech on Schneider Electric Insights.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/23e21f40-d631-42e7-96b0-bb092bd518c9
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Schneider Electric’s Water Crunch Report find about water risks to industrial growth?
52% of industrial leaders expect water quality or availability to become a serious barrier to their organization’s growth within five years, by 2031. Another finding is that 14% say water is already a barrier to their operations or growth today.
What technology adoption gap did Schneider Electric’s Water Crunch Report identify?
58% of industrial leaders are aware of digital twins or network modelling tools but have not installed them. Among water utilities, 57% are aware of predictive analytics or AI-enabled water management but have not installed those technologies.