Global Competitive Environment for Residential Water Treatment Equipment Markets

Abstract

Increasing Consumer Awareness Boosts Market for Residential Water Treatment Equipment

Growing health consciousness amongst people brings along awareness about the quality of drinking water, spurring the development of water treatment products. Apart from bacterial and viral contamination, myriad chemicals, fertilizers, pesticides, heavy metals, which cannot be removed by boiling, also pollute water. Manufacturers of residential water treatment equipment are educating consumers about the efficacy of their products in resolving these problems. As a result, residential consumers are beginning to prioritize water treatment, pushing up the sales of water treatment equipment.

This Frost & Sullivan research analyzes the global competitive environment for the residential water treatment equipment markets. It provides detailed insights into recent developments and trends. The study also discusses the prevailing market drivers and industry challenges and gives an overview of the market revenues and shares.

Certification of Quality Equipment likely to Determine the Growth of the Market

The presence of many water treatment technologies in the market, all of which provide similar options and capabilities, confuses the consumer while choosing a system for their specific need. "If a water treatment unit is not properly sized or is not the right solution, the end user will be disappointed with the results," says the analyst. "As a result, consumers may begin to distrust the technology, dismissing residential water treatment methods entirely."

A certified residential water treatment unit that has met the strict standards and tests of an independent testing agency is likely to change this perception. National Sanitation Foundation (NSF), the leading certifying agency for residential water treatment systems, has various standards to certify technologies. For instance, Standard 42 certifies water treatment to address aesthetic effects and Standard 44 certifies that water softeners effectively remove hardness from the incoming water. Certification is set to remain an important aspect in determining the growth of the global market.

Aggressive Competition and Price Pressures are Key challenges

Investing in user education as well as advertising to increase awareness about the water purifiers' price, aesthetics, and technology has stepped up competition among existing market participants. Though this has boosted the sales of equipment, the lack of radical improvements in technology has made price the main differentiator in the water purification equipment market.

Larger participants offering products that have been manufactured in Asian countries at lower costs further intensify pricing pressures. These participants are able to capitalize on the low cost of manufacturing and distribution, making it difficult for smaller participants to face the price wars. "As the end users are price sensitive, cost becomes an important factor in the purchase decision of water purification equipment," notes the analyst. This restraint is expected to have a high impact on the revenue growth of global residential water treatment equipment market.