By 2040, an estimated €4.8 trillion will need to be invested to renew water infrastructure, with the aim of strengthening infrastructure resilience and addressing climate-related risks. Priority investments will focus on three critical areas: reducing water losses to improve efficiency and reliability, replacing and modernizing ageing networks to ensure continuity of service and enhancing resilience to floods and droughts. Water losses within distribution networks represent a critical vulnerability for the entire sector. Globally, around 30% of water is lost before reaching consumers.11 Lost water, classified as non-revenue water (NRW), arises from leaks, unauthorized use and metering inaccuracies. Outdated infrastructure and limited maintenance exacerbate these losses, straining utilities already under pressure from rising demand and declining water availability.2.2 Infrastructure resilience Percentage of water lost in the distribution network (non-revenue water*) FIGURE 7 0%10%20%30%40% Latin America Asia Middle East Europe Africa North America Oceania36% 30% 22% 22% 19% 16% 13% * Water that is pumped and then lost or unaccounted for before reaching the consumer Source: Global Water Intelligence One of the most effective strategies is segmenting the distribution network into district metered areas (DMAs), creating smaller zones where flow and pressure can be closely monitored and controlled. Through a combination of smart sensors and meters coupled with advanced technologies, such as analytics and digital twins, DMA enables utilities to respond to leaks in real time. Depending on local conditions, leakage reductions achieved through DMAs can range from 26 to 59%.12 Importantly, such innovative approaches can deliver major efficiency gains without the need for large-scale pipe replacement, extending asset life while cutting costs and losses.Reduce water leakages Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook 17

Bridging the %E2%82%AC6.5 Trillion Water Infrastructure Gap A Playbook 2025