Water and Wasterwater Management

Use of water over the last three centuries witnessed a 35-fold increase. Water is emerging as the 21st century's oil and sustainability is the core requirement. Dwindling water sources, growing industrialization, together with pollution, necessitate immediate and effective measures to tackle the problem. 

Geographic markets will need to address the growing demands for water and begin implementing regional water resource supply plans. Water availability has the power to cripple economies, suppress personal standards of living, and eliminate the intrinsic aesthetic qualities of admiring a pristine lake. Innovative products and technology, policy making authority, financing, true cost pricing, creative business models, and borderless resource management will drive the public/private water industry strategies to implement sustainable business models to efficiently supply water. 

What drives water treatment market 

The water treatment market is driven by increasing demand for fresh or potable water from industrial and agricultural sectors. Growing population and industrial activities are constraining drinking water resources, which are declining at an alarming rate. As the world population approaches 7.8 billion by 2030, the demand for potable water will stress the finite closed-loop water-cycle responsible for supplying freshwater. 

The market for sustainable technologies in water as well as wastewater treatment is driven by new opportunities arising due to the global economic meltdown, mainly in areas such as energy efficiency, recycling, resource recovery, reuse, and wastage reduction. Power and industrial companies use significant amounts of water in production processes and as a coolant—16 percent of global demand today, rising to 22 percent by 2030, with about 40 percent of this growth in China. 

Considering the scenario in India, with a market size of over $4 billion, the Indian water and wastewater market is growing at a rate of 10-12 percent every year. Government related projects contribute over 50 percent of revenues in this market while the private sector contributes the rest. Imports constitute approximately $110 million of the $690 million market for municipal and industrial water treatment equipment. 

In developed countries, the major market driver is the need to conform to environmental regulations. European Union features one of the most stringent norms in drinking water quality and wastewater treatment standards.

Market growth

Significant opportunities exist to be more efficient in the use of water, but they are dependent on valuing water at its true natural resource price. Until pricing is implemented, no incentives are in place to utilize technological advances in irrigation systems, water reuse initiatives, infrastructure supply and storage, and treating secondary water sources. The projected annual expenditures in the global market are in excess of $90 billion

The global market for wastewater treatment delivery equipment, instrumentation, process equipment, and treatment chemicals will increase at a 10.4% compound annual growth rate (CAGR) to exceed $93 billion in 2016, from a 2011 value of nearly $57 billion.

The most rapid growth will occur in the delivery equipment product group. This sector is estimated at $20 billion in 2011 and is expected to increase at an 11.4% compound annual growth rate (CAGR) to reach $34 billion in 2016.

Although the smallest increase will be in the treatment chemicals group, the 9.4% compound annual growth rate (CAGR) nonetheless represents solid growth. This sector is estimated at $12 billion in 2011 and is expected to reach nearly $19 billion in 2016.

Future potential

Wide application of sophisticated membranes in desalination; development of easier-to-use products for recreational water treatment; and use of specialty chemicals in industrial water treatment, will further help the market score gains in the upcoming years, especially so in developed countries.

Studies reveal that the North American market is the undisputed leader as far as the water treatment industry is concerned, the main growth drivers in the US market include rising environmental concerns and strict regulations at the national and state levels, pertaining to water borne organic content, suspended solids and contaminants. However in terms of highest growth prospects, Asia-Pacific is forecast to emerge as the clear winner, expanding at the fastest CAGR of about 3.9% through 2015. Factors contributing to growth in the region include poor public health amenities, food requirements to meet the ever-increasing population and accelerated demand for potable water.

The US continues to represent the key global market for both industrial and as well municipal water treatment products. However, Asia flaunts the potential to drive future growth in the world market.

In developing countries such as India, the government is taking initiatives to implement a $100 billion project to interlink all major river networks in India. This initiative would connect water-deficient areas to water-abundant ones by interlinking 37 Indian rivers. One of the largest projects anywhere in the world, it would transfer water through 30 links across 9,600 kilometers. It would connect 32 dams and use 56 million tons of cement and 2 million tons of steel. It would bring with it a huge requirement for water management, transmission and distribution.  The Planning Commission, Government of India has estimated the water demand increase from 710 BCM (Billion Cubic Meters) in 2010 to almost 1180 BCM in 2050 with domestic and industrial water consumption expected to increase almost 2.5 times.

India’s water transmission and distribution networks are outdated and poorly maintained. The government has recently viewed privatization of these networks as the only option. Water companies from all over the world have established a presence in India to pursue an estimated 70 projects worth several billion dollars in 20 Indian cities.

Some water treatment technologies

  • Physical/chemical treatment
  • Biological treatment
  • Mechanical equipment
  • Membrane filtration including reverse osmosis
  • Natural treatment systems, including wetlands
  • Solids/residuals management
  • Thermal systems and energy conservation
  • Effluent recycling and integrated water cycle management

Glimpse of type of business opportunities

  • Companies can find opportunities in sanitation, urban water supply improvement and municipal/ industrial wastewater treatment (recycling).
  • Additional opportunities exist in providing consulting and design services to the water industry. Many world companies have limited capabilities and technology for the design of water treatment plants. There is a distinct opportunity for companies to offer technical consulting through contractual and/or joint venture arrangements.
  • Opportunities exist in providing integrated solutions in water treatment market. These solutions could include performing feasibility studies, designing, technical consulting and providing operation and on-line maintenance services.
  • The global water treatment market keeps pulsating, generating undeterred revenues for water treatment chemical, and as well as for equipment makers. Demand in matured regional markets, will be driven by equipment replacements, technology up gradation, and introduction of new and innovative products.
  • Use of chemicals to treat the waste water pose a great opportunity, for example, several markets for water treatment chemicals across the globe are expected to witness muted growth largely due to the after effects of the global financial crisis. Demand for chemicals began to decline 2008 and the trend continued through 2009 as well as in the first few months of 2010. However, the market is expected to get back on healthy growth track by 2012-13, backed by factors such as rising environmental protection initiatives, increasing industrialization, and growing population.

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