The European market for water and wastewater treatment equipment is currently undergoing a transitional phase, characterised by consolidation and maturing markets. A new study by Frost & Sullivan, the international market consulting company, calculates total revenues amassed in 1998 at $4.14 billion.
At the dawning of the new millennium, demands for wastewater treatment plants to comply with the Urban Wastewater Treatment Directive is expected to remain the prime driver behind revenue growth.
Rising discharge costs, increasing environmental awareness and public concern, as well as industrial investment are further factors pushing total revenues in this market to a level of $5.52 billion in 2005.
Frost & Sullivan's study observes a significant degree of public concern over the quality of mains water for human consumption across Europe. A considerable number of consumers express scepticism over both the adequacy of water in terms of health and the aesthetic characteristics of the water.
Factors such as chlorine content, lead levels, taste, smell, colour, as well as several health-related issues, can all serve to raise public concern over water quality, frequently stimulating investment in treatment systems.
It is also due to public pressure and influences that an increasing number of industrial water and wastewater treatment plants are being built. Large multinational food & beverage and chemical companies are installing effluent treatment works at many of their sites across Europe. This investment is both due to the legislation in the countries where the factories are located and also to provide them with an enhanced environmental image. The latter is more important for the chemical companies who may be suffering from a negative environmental image.
The most significant sector in terms of revenues is constituted by biological treatment equipment, comprising all the various equipment types for both aerobic and anaerobic treatment systems. This market is at the exploitation stage of its lifecycle, with good growth anticipated in future years. Demand for both secondary treatment and denitrification equipment is forecast to stimulate sales in the biological treatment equipment market.
As with the traps and screens market, sales for separation equipment have been primarily triggered in an effort to comply with the Urban Wastewater Treatment Directive. With many countries nearing completion of their required wastewater treatment plants, the growth rates are projected to peak in 2000 at 3.7 per cent.
Meanwhile, the high purification systems market is forecast to experience the most dynamic growth over the forecast period. Demand is anticipated to mainly stem from the mature markets where, in some cases, the high purification systems market is defying the negative growth rates of the more traditional markets.
Frost & Sullivan's study expects price to continue to act as the most important competitive factor. The most important strategies employed by market participants are those concerned with cost reduction, targeting specific end-user groups and public/private partnership, the study concludes.
Frost & Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of high-tech markets, including the water and wastewater industry, for market trends, market measurements and strategies. This ongoing research is utilised to complement a series of research publications--such as the European Water Pollution Monitoring Instrument Markets (report #3785-15)--to support industry participants with customised consulting needs. Free executive summaries of all Frost & Sullivan reports are available to the press.
Research Publication: 3788-15 - European Water and Wastewater Treatment Equipment Markets
Publication Date: November 1999
Price: $4150 USD
