Analysis: Seawater desalination remains critical to meet water requirements across Middle East, North Africa
DUBAI, UAE, Oct. 21, 2009 -- New analysis from Frost & Sullivan estimates that the Middle East and North Africa (MENA) region needs to add about 2.7 million Cu m/day of desalination capacity every year to meet the rising water demand in the region...
DUBAI, UAE, Oct. 21, 2009 -- It is estimated that the Middle East and North Africa (MENA) region needs to add about 2.7 million Cu m/day of desalination capacity every year to meet the rising water demand in the region. Considering this, the desalination plant market in the MENA, which experienced spectacular growth in recent years to emerge the largest market for desalination plants, can be expected to sustain its impressive growth momentum. In fact, it is likely to gain investments worth $15.5 billion between 2009 and 2013.
New analysis from Frost & Sullivan (http://www.energy.frost.com), The Middle East and North Africa (MENA) Desalination Plant Market, finds that the market earned revenues of $3.79 billion in 2008. Of this, 18.7 percent, that is $710.0 million, is the revenue for small-capacity plants (capacity less than 40 MLD) market. In terms of technology, reverse osmosis is likely to increase its market share.
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"More significantly, the growth has not only occurred in the Gulf Cooperation Council (GCC) countries that have practiced desalination for long, but also in countries such as Algeria, which has awarded several contracts for large-scale desalination plants," says Frost & Sullivan Senior Research Analyst, Vivek Gautam. "Though the current economic environment has delayed several investment decisions, the long-term drivers of the growth of desalination remain strong in the region as the gross domestic product (GDP) of most countries in the MENA region is expected to increase."
The rapidly growing population, fast-improving living standards, and rising concerns about climate change are likely to sustain the demand for desalinated water in this region. Besides, the scarcity of fresh water resources are compelling governments and planning agencies to invest in enhancing desalination capacities to meet the soaring water demand.
The market has attracted numerous new participants in recent years, intensifying competition, particularly in the small capacity plant segment. In such a packed market, the competitive advantage will rest with the plants that can better manage project risks and the associated costs.
"However, as most of the desalination technologies are relatively mature, solutions provided by the suppliers tend to be similar, which then makes competition a price-based one," notes Gautam. "Hence, organizational capabilities such as value engineering, strategic sourcing of components, and better management of project risks are becoming increasingly important for being competitive on the price front."
The Middle East and North Africa (MENA) Desalination Plant Market is part of the Environmental Growth Partnership Services program, which also includes research in the following markets: analysis of Middle East (GCC) water and wastewater treatment equipment market, study on the Indian waste management services market, and Indian air pollution control equipment market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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