April 2006

Projections of double-digit growth encourage investments

London— Water shortage is becoming a pressing global issue, especially in Southern Europe and the Middle East.

Consequently, the industrial water recycling and reuse equipment market is likely to expand tremendously in the next five to ten years. With ever-tightening legislation, participants are becoming increasingly keen to consider more onsite water solutions to avoid rising water supply and effluent discharge costs.

In order to seize market share, market participants are targeting various lucrative end user segments such as organizations that use high volumes of water and those that reclaim valuable materials by recycling and reusing water such as the pulp and paper and microelectronics sectors.

Besides the enforcement of strict regulations regarding waste disposal and resource consumption is set to bring in a more convincing economic business case for industrial water recycling and reuse equipment between 2010 and 2015.

The industrial market for water recycling and reuse equipment in Europe and the Middle East earned revenues of $279 million over a three-year period from 2003 to 2005. With anticipated annual of growth of 7 percent, this market has the potential to earn $531 million from 2012-2014.

The drought experienced during recent times in Spain, Portugal, Italy, France, Greece and the United Kingdom as well as continued short supply of fresh water in the Middle East is further propelling water recycling and reuse, thereby increasing the demand for the necessary solutions and equipment.

Both industry participants and end users recognize the use of effective water recycling solutions and reuse equipment as a long-term measure to ensure improved quality of life. However, many vendors find such solutions inaccessible and are concerned about return on investment.

Vendors can expect to drive sales by approaching sectors that consume high quantities of water and accordingly have a more compelling need to manage water-related costs.

Therefore, these vendors can make available recycling solutions in a user-friendly package. For instance, a solution that addresses the sector-specific needs, such as material reclaim functionality for the pulp and paper or microelectronics sectors, is likely to have greater uptake.

While industries are upgrading wastewater treatment facilities, the Industrial Pollution Prevention Control (IPPC) directives are focusing on promoting water recycling and reuse technologies for sustained growth. For relatively small percent- 10-20 per cent extra costs, end users can invest in water recycling and reuse capabilities to improve their quality of life.

The long-term growth map is marked with water reduction measures brought in across Europe such as hosepipe bans. In addition, U.K, constrained by water restrictions until now due to dry conditions, is offering tax credits for industries that invest in water saving technology.

Manufacturers, end users and other industry participants interested in an overview of the latest analysis of the Industrial Water Recycling and Reuse Equipment Markets in Europe and Middle East, should contact magdalena.oberland@frost.com.


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