Combined factors offer strong growth prospects, according to report
Driven by growing world population, economic expansion, scarcity of water resources, environmental regulations and increasing awareness about the importance of preserving and maintaining water quality, the market for water treatment equipment and supplies is projected to reach $34.9 billion in 2010, according to a new report by Global Industry Analysts, Inc.
Dwindling water sources, growing industrialization, increased water pollution and greater attention towards water quality together offer strong growth prospects for drinking water and wastewater treatment equipment, according to the report.
The water supply and wastewater treatment industry is regulatory-driven, and is characterized by intense involvement of companies in environmental laws and regulations that ultimately determine demand for their products. The overall market is poised to experience steady growth due to stringent environmental regulations. Public water departments and private companies that supply potable water are one of the major users of water treatment technology. In developed countries, the major market driver is the need to conform to regulations, whereas in developing countries, poor public health amenities and the urgent need to improve it drives the market for treatment equipment.
The U.S. is the largest market for water treatment equipment worldwide. The market is estimated at $6.3 billion in 2007 as stated by Global Industry Analysts, Inc. Europe is the second largest market, followed by Asia at third position. Collectively, the U.S., Europe and Asia account for over 68% of the global water treatment equipment market. The global and regional markets are expected to register CAGRs ranging between 3% and 11%.??
Industrial water treatment equipment is projected to gross sales of about $11 billion by 2010. Municipal water treatment equipment is forecast to register a compounded annual growth rate exceeding 6%. Residential and commercial water treatment segments are expected to grow at a CAGR of 5% - 5.5% over the 2001-2010 period.
The marketplace is highly fragmented, and is characterized by the presence of several small regional players and few multinational water giants.