Incessant global demand for ‘safe drinking water’ is the foremost driver of water treatment systems market growth; inexpensive systems to leverage the untapped opportunities prevailing in economically marginalized nations
Deterring condition of existing usable water sources and lack of safe drinking water for the increasing population that is unmatched with the preset regulations by governmental bodies is creating an alarming situation globally. The situation has worsened due to rapid industrialization that has augmented an array of industrial infrastructures failing to meet the ethical standards of disposing of wastewater. Moreover, the industrial sector is further adding to the global water treatment systems market demand as it requires conditioned or treated water for specific applications such as cooling, rinsing, and product formulations. Along with the industrial sector, the rapidly expanding agricultural sector is also in dire need of effective water treatment facilities to diminish the contaminant level of wastewater released by plants as well as animal farming. However, the global water treatment market growth is gaining substantial impetus from the undying global demand to provide safe drinking water to the majority of the population. For instance, 2.1 billion people globally are deprived of safe drinking water at domestic spaces, and 4.5 billion individuals lack safely managed sanitation, according to WHO. The market is also witnessing exuberant growth as the treatment of waste water has gained a top mark in the list of priorities by elite organizations such as the United Nations. A global status report on wastewater treatment by WHO and UN indicates that only 59% of the domestic wastewater flow is treated, whereas the International Water Association indicates that an 80% of all wastewater is discharged into the global water bodies further augmenting the cases of hazards relevant environment, climate and health. Therefore, water treatment systems have established itself as an imperative apparatus for domestic as well as industrial application. As a consequence, the global water treatment systems market size is evaluated to be $5.85 billion. And with global trends such as packaged water treatment, ultra-pure water generation, and portable water purifier, opportunities in the market is progressing at a global CAGR of 7.56% during the forecast period of 2019-2025.
Kent Ro Systems Limited, leading domestic RO water purifier manufacturer targets 1 million units per year:
By the type of systems, the market is mainly bifurcated into Point of Use Systems (POU) and Point of Entry Systems (POE). POU systems refer to the installations at places where the water is being used, such as a sink. Whereas the POE systems refer to installation at the direct point of water lines where water enters a facility. Demand for POU systems is rapidly progressing owing to the demand for treated drinking water at domestic spaces such as homes, schools, residential and non-residential facilities. POE systems find the majority of application at industrial spaces where the entire water-supply is treated for specific industrial applications. The global water treatment systems market is full of variants in terms of filters, to provide apt solutions depending on the type of water treatment required in different settings. Some of the dominant variants are reverse osmosis (RO) filter, UV water purifier, inline water filter, countertop water filter, and charcoal water filter. Reverse osmosis systems are estimated to be the fastest-growing segment progressing with an application CAGR of 7% going through to 2025. The demand for RO systems is witnessing an exuberant growth due to its application in purifiers employed majorly at domestic spaces to treat drinking water. As the global population is a multiplying year on year, RO water purifiers demand is increasing to provide safe drinking water in developing as well as developed economies. An example of the RO systems deeply penetrating the market can be derived from India, the global leader in population. Kent Ro Systems Limited, the leading RO water purifier manufacturer in India grew from $1m in 2011 to approximately $123 million in 2018. The company, during the tenure of 2016-2017, witnessed an exuberant growth of 15% in its revenue. It has also established itself in the global market and export its Domestic RO water Purifier systems to more than 30 countries globally. The firm already has 3 production facilities with a production capacity of more than 50,000 units per month and has also invested ($21.7 million approximately) to launch another facility to expand the production capacity of water purifiers to 1 million units per annum. The enterprise has ventured into various verticals that include gravity purifiers, air purifiers, water softeners, but an RO water purifier have more than half of the overall revenue shares. Tracing similar opportunities for RO purifiers in the Middle East, the company has collaborated with UAE's Sands International for distribution in hypermarkets, and it also aims to expand up to North Africa.
The industrial revolution in APAC mandates application of effective water treatment systems to control ecological hazards:
According to an analysis by the Population Reference Bureau (PRB), the global population will be 9.9 billion by the year 2050. Additionally, as per the Industrial Development Organization (IDO), UN, there is a demand for industrial development in order to provide the world population with affordable and sustainable goods. Since both of the above scenarios mandates the application of effective water treatment systems and APAC being the center of the rising in global population as well as industrialization has emerged as the leading source of global water treatment systems market demand. This region with densely populated and intensely industrialized economies of India and China accounted for 36% of global demand in 2018. Several factors in support of the above argument-
· According to the International Council of Chemical Associations (ICCA), APAC is the global leader with 51% share in the global chemical industry’s GVA of $1.1 trillion (2017). The GDP contribution that was recorded to be $2.6 trillion was also the highest in APAC for the same year. Water treatment systems market is gaining substantial traction as such systems are of utmost importance in chemical industries to ethically dispose of hazardous chemicals in liquid form. Apart from wastewater treating systems, numerous types of water treatment systems employed in chemical industries for various applications includes raw water treatment systems, boiler feedwater treatment systems, and cooling tower water treatment systems.
· According to International Organizing Committee for the World Mining Congresses, out of 16.9 billion metric tons of world mining production in 2016, Asia had a share of 58.2%. Sustainable water treatments systems are an asset in the mining sector to diminish the environmental footprint caused by instances such as acid runoff from mine drainage during rainfall and toxic wastewater generated during coal and ore processing. Hence, demand for effective solutions such as energy-efficient wastewater treatment, decentralized water treatment, and wastewater treatment for reuse at mining facilities is gaining substantial impetus in APAC, eventually leading to water treatment systems market growth.
Water Treatment Systems Market Developments:
· The crisis of safe drinking water mainly persists in an underdeveloped economy. As the majority of such population cannot afford efficient water treatment systems, price of the technology and installation is a major factor hindering the market growth. As a consequence, novel and inexpensive technologies such as membrane filtration are gaining attention as a replacement for customary chemical treatment of water for the economically marginalized population. In 2017, a technology that uses sunlight energy to transform salt water into fresh drinking water was developed by the Center for Nanotechnology Enabled Water Treatment (NEWT).
· The demand for the generation of ultra-pure water is assisting in proliferating the global water treatment systems market size. Ultrapure water is treated through multiple stages to meet the quality standards for various flourishing end-user verticals, including semiconductors, pharmaceuticals, and power generation industry. Application of ultrapure water treatment systems in several processes such as cleanroom practices and wafer fabrication in the semiconductor industry is adding impetus to the market demand. According to the Semiconductor Industry Association, global semiconductor sales were recorded to be $468.8 billion in 2018, with 1 trillion units shipped for the first time in the same year. As the global semiconductor industry is developing voluminously as well as technologically, the demand for ultrapure water treatment processes will also flourish.
Water Treatment Systems Market Companies:
Some of the major companies with substantial shares in the global water treatment systems market are Global Water Solutions Ltd., Unilever PLC, EcoWater Systems, A. O. Smith Corporation, Koninklijke Philips N.V., The 3M Company, Watts Water Technologies Inc, Aquasana, Inc., Pelican Products, and General Electric Company.
The strong and diverse supply chain is imperative to survive in this marketplace and most importantly, to leverage the broad array of clientele. Hence in 2019, Water technology company A. O. Smith Corporation acquired Water-Right, Inc., a water treatment company. As A.O Smith has already established itself in direct-to-consumer and retail spaces, this acquisition will add wholesale and independent water quality dealer channels into the company’s portfolio.
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