The Water and Wastewater Treatment Industry

Interview conducted by Alessandro PiroliniJun 24 2015

 

Water and water recycling is a booming industry sector. How do you believe the market will develop over the next decade?

The water and water recycling industry primarily covers water treatment, ETP (Effluent Treatment Plant), STP (Sewage Treatment Plant) and water recycling. Economic development in conjunction with fast-paced urbanization especially in emerging countries is impelling the need for efficient water management solutions.

Moreover, a resurgence in the global manufacturing sector is furthering demand, as escalating production in various manufacturing industries stimulates the need for water and water recycling, given the growing need for water conservation and tightening environmental regulations. Replacement of old water infrastructure in regions such as North America and Europe is also catalyzing the market growth.

A modern urban wastewater treatment facility Image credit: gyn9037 / Shutterstock.com

Global water & wastewater recycling solutions and services (including equipment and chemicals, operation services, build/infrastructure, design/consulting and maintenance and monitoring) market generated revenues of about $185 billion in 2014, which is projected to grow at a CAGR of about 10% during 2015-2024.

Equipment and Chemicals are the largest segment of global water & water recycling solution and services market. The growth is stemmed by growing population, urbanization, improving manufacturing activity, and rising oil and gas production, amongst others.

Why do you believe the water and water recycling industry is such an expanding market?

Rising standards for process water in manufacturing industries such as pharmaceutical and semiconductor in conjunction with increasing government focus on water reuse and recycling with the help of programs such as zero liquid discharge and non-revenue water is increasing the capital expenditure in both developed and developing markets. This is making water and water recycling an expanding market.

Countries are increasing their water reuse capacities between 2009 and 2016; capital expenditure on water reuse is expected to grow at a CAGR of 19.5% while the global installed capacity of high quality water reuse plants is expected to grow from 28 million cubic meters per day to 79 million cubic meters per day.

The following countries are leading the way, Kuwait, Israel, Singapore and Egypt with 91%, 85%, 35% and 32% of its wastewater reuse respectively. The water reuse market still holds huge opportunity in countries like Australia, USA, India and China, where the water recycling rate is less than 20%.

Globally about 3,000 water reuse facilities are operating which is projected to increase further. China announced the installation of an additional capacity of 10.7 million cubic meters between 2009 and 2016, whereas the US is expected to install an additional capacity of 5.9 million cubic meters during the same period of time.

Water reuse equipment revenue growths, 2013-2015. Sourced from: TechSci Research

How can TechSci Research assist customers across the world in understanding the trends and patterns in the Water & Water Recycling industry?

TechSci does market intelligence of the water and water recycling industry by tracking frequent movements and charter history information in the form of organized data. We provide our customers with trends and patterns of the industry by fetching industry insights from world-class experts. TechSci focuses on industry professionals in pivotal roles such as technology development, energy and cost optimization, regulatory compliance and related issues, OEM’s, etc.

Water and water recycling related reports published by the organization provides detailed analysis of the data, topical insights, growth, and upstream and downstream analysis relating to supply/value chain that in turn helps to understand the conventional pattern of the industry. We have been continuously tracking and analyzing the industry at micro level.

In addition, we focus on development, events of the industry and emergence of state-of-art technology that is currently adopted or could be adopted in the water and recycling industry over the coming years. Hence, overall market trend and pattern analysis helps the customer in understanding the potential and scope of the industry.

Table 1. Countries investing heavily into Water & Water Recycling programs

Why is it important for the countries highlighted in Table 1 to invest heavily in water purification?

China - Intensifying demand for water recycling and reuse technologies at China’s power plants are driving the growth of the market. The water and water reuse equipment market of China stood at $723.13 million in 2011 which is expected to reach $1.18 billion by the end of 2020.

Apart from power; steel, chemicals, paper manufacture, leather, and pharmaceuticals are the other major industries driving the growth of water and water recycling market in the country. In 2014, China held 4,295 wastewater treatment plants which is anticipated to grow at a CAGR of 6% over the next five years.

Industrialization in some major provinces of China such as Guangdong, Jiangsu, Shandong, Zhejiang, Henan and Fujian is the key growth driver for the Chinese water reuse market. During 11^th FYP the average water reclamation utilization rate of China was 8-9% which is expected to reach to 11% after the end of 12^th FYP.

Projected urban wastewater expenditure under China's 12^th FYP (USD Billion). Sourced from: TechSci Research

India - Erratic rainfall patterns due to climate change, depleting water resources because of extreme groundwater extraction, contamination of available surface/groundwater resources due to the discharge of untreated sewage, and/or industry effluents have had an impact on water quantity and quality in India.

In India, per capita water availability is declining continuously which in turn is generating strong growth opportunities for the water & wastewater recycling market. In 2001, per capita water availability was 1,820 cubic meters which is projected to decline to 1,140 cubic meters by 2050.

In order to fulfil the rising water demand, two sustainable options are available; one is desalination and the other is wastewater recycle and reuse. The wastewater recycling and reuse industry is still at its nascent stage.

India wastewater capital expenditure (USD Million). Sourced from: TechSci Research

United States of America - Water recycling and reuse is gaining popularity in the U.S. due to the growing demand for water in industries and municipal applications like agricultural irrigation, lawn watering and other non-potable applications. 40 new water reuse plants are expected to be operational in the US in next three years.

Vietnam - Water recycling and reuse is an emerging issue in Vietnam. Country generated about 1,500 million cubic meter of wastewater majority of which is from urban areas.

South Korea- The Korean environmental market is one of the fastest growing market growing at annual growth of 10%. Water & water recycling is one of the largest segment of environmental market. Country holds more than 300 wastewater treatment plants which is growing at annual growth rate of 4%.

Mexico - The wastewater treatment market of Mexico is growing at growth rate of around 8%. Growing industrialization in the country is driving the growth of wastewater treatment plants. Country hold more than 1500 wastewater treatment plants which is anticipated to grow at a CAGR of 5% during next five years.

In 2013, addition of 10 new water reuse plants is announced by the government. The government has set to targets to improve Mexico's water supply and water reuse systems. They aim to achieve 100% wastewater coverage and reuse by 2030.

Remaining countries - Increasing industrialization and lack of water resources is the key reason behind the growth of water & water recycling market.

About Karan Chechi

Mr. Karan Chechi is a seasoned market research and consulting professional specializing in creative and innovative strategies and methods of new market penetration, new product development, and product introductions with over a decade of experience.

This experience coupled with research and interfacing with customers, gives him the ability to spot new market and product opportunities for his clients.