Abstract
Research Overview
Lower Prices Leads to Intense Competition, Giving System Providers Little Scope of Error
This is one of the significant challenges facing the market participants. When prices are low, the competition is intense and it becomes harder to gain market share. Lower prices also imply lower profit. This directly affects research and development (R&D) expenditure; with lower profit margins there is skepticism with regard to spending money on R&D. The prices of membrane systems are expected to stabilize in the short term reducing the significance of prices as a competitive factor. The forecast period will witness support services as an emerging criteria for competition.
Falling Cost of Membrane Separation Systems/Technology Makes it More Affordable
The price of membranes has reduced significantly over the last several years. Although it is beginning to stabilize, price is still very competitive. In conventional drinking water systems, the treatment process involves coagulation, settling, and sand filtration, followed by chlorine disinfection. At present, membrane technology that guarantees the consistent removal of all particles including small microbes such as viruses and large microbes such as cryptosporidium and is available at reasonable prices. It is, therefore, a very attractive water treatment option for public utilities, especially among outdated infrastructure that must be retrofitted to meet new regulatory standards. By upgrading aging infrastructure with membrane treatment systems, municipalities can achieve cost savings in the long run.
Accepting Membrane-based Technologies
As membrane technology widens its scope, end-users are becoming more aware of the importance of accepting membrane technology at every level. It is true that with new technologies being introduced in the marketplace there is always a probability of underperformance. However, this is not hindering the end-users from using these new technologies, and implementation of emerging technologies and practices is now being considered more as an opportunity for better performance.
In such cases, end-users expect total support from system manufacturers, and generally look at ones with an established track record, who are committed, and who have the financial resources to back such projects.