Research Overview
Privatisation Drastically Alters the Competitive Situation
The increasing trend towards privatisation is significantly altering the
competitive road map of the desalination plants market in Europe, the Middle
East and North Africa (EMEA). Due to this trend, a whole new set of participants
is entering the market, looking to fulfil specific needs. A good case in point
is the strong presence of developers, traditionally not a part of the
desalination market. Developers generally come in the form of financially sound
companies such as CMS Energy, Tractabel and International Power who can secure
and guarantee the all-important funding aspect. On the other hand, existing
participants find themselves taking on new roles. For instance, traditional
equipment suppliers such as Weir Westgarth and IDE Technologies have taken on
the operation and maintenance of the desalination plants in addition to
obtaining the financing when required.
This research from Frost & Sullivan provides a realistic outlook on the
EMEA desalination plants market, which will help participants devise both short-
and long-term business plans. A detailed analysis of the challenges facing the
market and in-depth competitor profiles will enable participants to formulate
strategies as well as assess the competitive environment.
Rising Water Shortages are One of the Biggest Drivers
Water scarcity is increasing in many parts of the world due to increasing
population, drought conditions, and greater per capita water demand. Having a
reliable source of water for the future is now, more than ever, a high priority.
This is perhaps particularly relevant in Southern Europe, the Middle East and
North Africa, where freshwater is scarce and the water situation is often
uncertain.
"Desalination is increasingly being touted as the answer to the world
water crisis in the 21st century. This method of removing salts to produce a
virtually limitless supply of water has become a mainstay of water production in
many parts of EMEA," says Mili Shah, the analyst of this research service.
Growing Desalination Plants Market Offers Many Opportunities
The desalination plants market in EMEA is growing and holds significant
prospects both for existing participants and new entrants. Although desalination
was previously regarded as a prohibitively expensive solution, a dramatic cost
reduction has led potential customers to view it more favourably.
"Given a compound annual growth rate (CAGR) of 9.6 per cent from 2003 to
2010, the opportunities for growth within this market are substantial. This is
illustrated further by the increase in revenues from $1.32 billion in 2003 to
$2.50 billion in 2010," explains Mili Shah. After a slow year in 2003
mainly due to the war in Iraq, many plants are now expected to come online in
2004, thereby boosting market revenues by almost 50 per cent in this year.
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