Report: Residential water treatment shows major growth in developing world

SAN ANTONIO, TX, May 16, 2012 -- Verify Markets has released the "Analysis on Select Global Residential Water Treatment Market" report for 2012, which finds the global residential water treatment (RWT) market very dynamic, generating revenues of over $9.0 billion in 2011. The RWT market varies by country and region. North America and Western Europe are mature markets, while Asia, Latin America and Eastern Europe are fast growing markets.

Analysts found that in 2011, some of the largest markets were Japan, U.S., China, Russia, India, Germany, France and South Korea. Most of these markets are dominated with local market participants and are very fragmented.

The report indicates that the South Korean market is expected to grow at a compound annual growth rate (CAGR) of over 6 percent through the forecast period. Several companies sell as well as rent out water treatment systems in South Korea. Several multinational companies are looking to enter the South Korean residential water treatment market. LG entered the market in 2009 and has already established a significant presence in the marketplace. Several companies use the direct selling method to sell water treatment systems and sell door to door. Some of the leading companies in South Korea include Woongjing Coway, Chungho Nais, Tong Yang Magic, and Kyowon L&C, among others. Point-of-use systems are highly popular in South Korea.

Analysts expect the Chinese residential water treatment market to show tremendous growth with no signs of slowing down. Poor water quality, rising incomes and improved consumer awareness is driving the market in China. In 2011, the Chinese RWT market garnered revenues of over $1.5 billion. The market is expected to show a double-digit growth rate through the forecast period. Some of the key players in the Chinese market include Midea Group, Pentair, Ecowater, Shenzhen ChengDeLai, Ningbo Qinyuan, Shenzhen Angel Drinking Water Industrial Group Corporation, Paragon Water Systems, Inc, and Litree. The sales of water treatment systems were the highest in Beijing, Shanghai, Guangzhou, and Suzhou. The Chinese residential water treatment market is getting highly competitive with several international companies entering the market. Most companies offer a diverse product line, like point-of entry, point-of-use and pitcher systems. Some of the key international players include AO Smith, Pentair, Ecowater, Culligan, BWT, Panasonic and 3M. Several new entrants are likely to enter the market through the forecast period.

The report suggests the Indian residential water treatment market will show a double-digit growth rate through the forecast period. Historically, UV technology has been popular in India. However, with several new entrants, the market dynamics seem to be changing. Reverse osmosis technology has been gaining traction. Some of the dominant companies in India include Eureka Forbes, Kent, Hindustan Unilever, Ion Exchange, Whirlpool, Usha Brita and Alfaa. Most companies have started selling a diverse product portfolio catering to middle as well as low end consumers. Large multinationals, like LG and Panasonic, have also entered the Indian market and several new entrants are expected to enter the market through the forecast period.

The Russian market generated revenues of over $300 million in 2011, the report finds. The Russian residential water treatment market is dominated by local participants. The popular technologies used for under the sink segment include carbon/multistage filtration, reverse osmosis and ultraviolet. Reverse osmosis is the dominant technology for under the sink systems in Russia. An estimated 50-60 percent of under the sink systems sold in 2011 were based on reverse osmosis technology. In counter top systems, carbon filtration is the popular technology in Russia. Key companies that play in the Russian market include Aquaphor Corporation, Mettem Technologies Ltd, The Geyser Company and Novaya Voda, among others.

The Brazilian market was the largest market in Latin America with estimated revenues of over $200 million in 2011. The Brazilian market is dominated with local companies like Lorenzetti S.A., Impac, Europa, and Hoken.

The Western European market was hit by the economic recession and showed slow growth. Point of entry systems and pitchers are highly popular in Western Europe. Key players in Western Europe include Brita and BWT, among others.

This detailed study also provides revenues and market share analysis by individual segments like point-of-entry systems, point-of-use counter top systems, point-of-use under the sink systems, pitchers, faucet mount systems and replacement filters. It also includes quotes by key industry participants that were captured during the interview process. More than 25 countries were analyzed.

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