Study: Legislative guidelines set tone for growth of European industrial, municipal water and wastewater treatment equipment markets

Frost & Sullivan estimates the total European industrial process water and wastewater treatment equipment market to be worth US$2.30 billion in 2003, and pegs the municipal market at US$2.33 billion. Currently facing challenging times, these maturing markets are set to achieve higher growth -- 4.3% and 4.1%, respectively, as compliance with numerous legislation increases...

LONDON, Feb. 7, 2005 (PRNewswire) -- Legislative directives have emerged as the primary drivers of both the industrial wastewater, as well as the municipal water and wastewater treatment equipment markets in Europe. Currently facing challenging times, these maturing markets are set to achieve higher growth as compliance with numerous -- and determining -- legislations increases.

For instance, the implementation of the Integrated Pollution and Prevention Control (IPPC) directive has placed enormous pressure on industries to clean up their wastewater treatment and has revitalized the otherwise sluggish market for treatment equipment.

"Due to this directive -- which compels industries to demonstrate implementation of best available technique (BAT) in tackling wastewater discharges -- interest in advanced wastewater treatment equipment is rising," notes Frost & Sullivan research analyst Fredrick Royan. "The allied element of promoting water conservation in industry by encouraging reuse and recycle of treated wastewater is definitely expected to boost growth prospects, especially for secondary and tertiary treatment equipment."

Frost & Sullivan estimates the total European industrial process water and wastewater treatment equipment market to be worth US$2.30 billion in 2003. The market is forecast to increase at a compound annual growth rate (CAGR) of 4.3% to reach a size of about US$3.08 billion in 2010.

As the IPPC directive's 2007 deadline fast approaches, opportunities for enhancing sales in high-growth regions and equipment segments are increasing. Despite the looming deadline, only around half the required number of guidance documents -- known as best available technique reference documents (BREFs) -- have been issued for the various industrial sectors. This is likely to hinder growth in the short term but will provide impetus of market growth in the medium to long term leading up to 2010.

"With the IPPC Directive emerging as the major driver for industrial wastewater treatment, forward looking equipment suppliers should seize the growth opportunities," remarks Fredrick Royan. "Success depends on targeting industries such as the food & beverage sector, which is expected to increase their spending to enhance treatment levels and to install BAT qualified processes."

At present, the two conventional equipment segments in industrial process water treatment, demineralization and activated carbon filtration equipment, are ahead of the advanced equipment types such as UV and ozone. However, the rising demand for high purity process water combined with the increasing acceptance of technology is likely to drive growth in the advanced treatment solutions segment, with the key contributors being the pharmaceuticals and food and beverages.

Additionally, due to the growing preference for non-chemical treatment processes, suppliers of UV and ozone equipment in process water treatment and advanced systems such as membrane bioreactors in wastewater treatment are likely to benefit.

As in the industrial market, the municipal water and wastewater treatment equipment market is also being driven by legislative guidelines, prompted by strong environmental and public health concerns. The EU Urban Wastewater Treatment Directive (UWWTD), for instance, has played a vital role in shaping the market, especially that of secondary and tertiary equipment segments.

Similarly, the EU Drinking Water Directive has induced substantial growth of advanced water treatment equipment such as membrane systems and UV and ozone disinfection equipment.

Membrane systems seem set for further growth since they provide high levels of reliability and are becoming increasing relevant in treating complex contaminants such as insecticides for safe supply of drinking water.

Frost & Sullivan estimates the total European municipal water and wastewater treatment equipment market to be worth US$2.33 billion in 2003. It is expected to grow at a CAGR of 4.1% to reach a size of US$3.09 billion in 2010.

Emerging markets such as Italy and Iberia show significant potential, with substantial investment planned for the development of municipal sector in Ireland, UK, France and Belgium markets. While the present pace of growth favors water treatment equipment, the bulk of investment is likely to be in the wastewater treatment market.

Currently, the most critical challenge facing the municipal water and wastewater treatment equipment market is the need for innovative and effective solutions. The water treatment market needs solutions that can address the growing incidences of complex contamination and public health concerns, while the wastewater treatment market requires inventive solutions that promote recycling, capable of reducing nutrients and eliminate operational inefficiencies.

"Equipment supplying companies that embrace this challenge and are able to offer a cost-effective and secure treatment process can gain substantially," says Fredrick Royan. "Innovative solutions -- such as membrane bioreactors that have helped revolutionize wastewater treatment -- are the need of the hour to keep the market firmly on the growth path."

If you are interested in a summary of this research, please send an email to Magdalena Oberland, Corporate Communications at magdalena.oberland@frost.com. The studies that should be cited are:
-- Title: European Industrial Process Water and Wastewater Treatment Equipment Markets - Code: B390
-- Title: European Municipal Water and Wastewater Treatment Equipment Markets - Code: B391

Additional information is available at http://environment.frost.com, but you may need to register -- which is free.

Frost & Sullivan (www.frost.com), a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. With a client list that includes Global 1000 companies, emerging companies as well as the investment community, it has evolved into one of the premier industry research and management consulting companies in the world.

***

Another recent study from Frost & Sullivan can be found at:
-- EU Directives compliance to promote water treatment chemical demand: Report
.

###

More in Home