Aging U.S. water infrastructure offers positive financial outlook for market

Frost & Sullivan's Financial Services group just released a strategic investment analysis evaluating the "U.S. Municipal Water Equipment Markets" and its growth opportunities. The new analysis reveals that revenue in this market (excluding the pipes and fittings sector) totaled $4.09 billion in 2004 and projects to reach $5.22 billion by 2011...

Jul 28th, 2005

PALO ALTO, CA, July 27, 2005 -- Frost & Sullivan's Financial Services group just released a strategic investment analysis evaluating the "U.S. Municipal Water Equipment Markets" and its growth opportunities.

The new analysis reveals that revenue in this market (excluding the pipes and fittings sector) totaled $4.09 billion in 2004 and projects to reach $5.22 billion by 2011.

The municipal water sector accounts for 40 percent of the total water usage in the Unites States. While water safety and quality concerns are the primary drivers for many investments made at the municipal level, the need to disseminate drinking water efficiently through structured water mains is drawing considerable industry focus.

"Water, a basic necessity, is turning out to be an investment necessity," notes Frost & Sullivan research analyst Santosh K. Ejanthkar. "The Environmental Protection Agency (EPA) estimates that heavy investments will be required in the United States to upgrade or replace the water infrastructure to ensure compliance with the safety standards prescribed by the Safe Drinking Water Act."

In order for water equipment manufacturers to take advantage of the increasing opportunities in the municipal water treatment and distribution sector, they must develop new technologies to treat emerging contaminants and upgrade aging infrastructures with membrane treatment systems.

As the government looks to increase its focus on improving the national water infrastructure, water equipment vendors stand to benefit from resultant opportunities and display solid growth. Water meter companies may fare even better on account of the increased demand for advanced meter reading equipment.

"Until recently, the water sector had been largely ignored by the financial community," says Ejanthkar. "However, with conglomerates buying out smaller companies and a growing number of investors eyeing this sector, the water equipment market promises healthy opportunities for vendors."

"U.S. Municipal Water Equipment Market: Investment Analysis and Growth Opportunities," part of the Financial Benchmarking & Analysis in the Water Industry subscription, provides insight into the various segments of the municipal water markets: water treatment equipment, water meters & accessories, water pumps & components, and water pipes & fittings. The study provides a comprehensive financial analysis of leading U.S. water equipment firms to support the investment and financial analysis needs of decision makers in the water arena. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan's Business and Financial Services group serves clients around the world in all aspects of financial analysis, market research and monitoring, due diligence, idea generation, opportunity analysis, investment valuation, and other proprietary research.

Frost & Sullivan (www.frost.com), a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.

For more information, see: www.frost.com/prod/servlet/press-release.pag?docid=39661356.

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