Abstract
Lack of User Confidence Hampers Utilization of Advanced Treatment
Technologies
Advanced water treatment methods such as ultraviolet (UV) radiation for water
disinfection, among others, offer solutions that are much superior to
conventional methods. Yet end users are not very enthusiastic about these novel
technologies due to lack of confidence in their reliability and treatment
capabilities. This places the new methods at a certain disadvantage while
traditional methods continue to be employed. Manufacturers need to demonstrate
the efficiency and dependability of these technologies and bring to the market
proven products to win customer confidence and capture market share.
This Frost & Sullivan research focuses on key technologies currently
available in the advanced water treatment equipment market in the United States.
It provides an in-depth examination of current market trends, market size and
growth potential of different technology segments in various end-user sectors,
as well as a thorough competitive analysis.
Rigorous Regulations and Fast Disappearing Fresh Water Supply Drive Market
In addition to existing government regulations, new ones are being enforced
to ensure the safety of public water supplies. General awareness of drinking
water quality is also high and facilities are under pressure to supply drinking
water free of pathogens such as cryptosporidium. As rapid developments in
scientific research reveal the extent to which man-made and natural pollutants
can harm human health, increasingly more facilities are turning to advanced
water treatment methods for their superior performance. The public?fs aversion
to chemically treated water also favors physical treatment alternatives such as
membrane filtration and UV disinfection.
"In addition to this impetus, the dwindling supply of fresh water, not
just in the drought prone southwest, but across the world, is driving demand for
these new treatment technologies," says the analyst. Lack of freshwater
prompts the use of water from less desirable sources, and without treatment,
brackish ground water and seawater are not potable. Conventional treatments are
incapable of purifying water from these alternative sources, offering
significant growth potential for the new technologies. States along the west and
southwest of the United States, facing acute water scarcity, are forced to reuse
water and are proactively encouraging water treatment methods such as membrane
filtration.
Expanding Markets Call for Increased Investments
A growing population and mounting industrial needs continually expand the
market for water treatment equipment and increasing investment in this sector is
necessary to maintain a constant supply of clean water. An estimated 38 billion
will be needed over the next 20 years, according to the Environment Protection
Agency (EPA) survey, to meet rising treatment needs. There is also a strong
market for upgrading and retrofitting old facilities, which have outdated
equipment that do more harm than good. Among end-user segments, the municipal
sector offers the greatest potential for market expansion due to the large
volume of water to be treated.
Overall, there is a drastic price decline due to economies of scale and
technological advancement, which have reduced equipment production cost. Intense
competition in the market due to new entrants has also contributed to this
decline as bigger participants can afford to sell at reduced prices.
"However, market consolidation through recent mergers and acquisitions is
likely to stabilize prices," says the analyst. "At the end of the
forecast period (2000 to 2010), prices are expected to recover as a result of
reduced competition and increased demand."
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