Frost: Industrial Sector, EU Regulations Spur for Polish Water, Wastewater Treatment Market

March 26, 2008 // Published as a news service by IHS

According to Frost & Sullivan, a wide range of opportunities exists for contractors, service providers, consultants and equipment and technology suppliers.

Recent analysis from Frost & Sullivan of the Polish water and wastewater treatment markets found that the market earned revenues of $344 million in 2006, with estimates to reach $639.1 million in 2013.

"The Polish water and wastewater sector is experiencing high growth due to a robust economy which has driven the industrial treatment sector," said Frost & Sullivan research analyst Jenny Lieu.

"Compliance with EU directives obliging the municipal and industrial sectors to address effluent quality coupled with a large influx of EU funds to finance the development of the water and wastewater sector are also positively impacting market expansion."

Wastewater treatment is the most dynamic segment in the Polish water and wastewater treatment market, accounting for the majority of revenues.

Analysts said strong industrial performance and EU directives are promoting high growth in secondary, tertiary and sludge treatment technologies, a trend that is projected to continue over the long term.

Water technologies also exhibit growth potential, with the membrane technologies market anticipated to grow significantly due to the continued expansion of the industrial and manufacturing sector and their requirement for advanced treatment solutions, analysts said.

Fierce competition and a fragmented competitive landscape are, however, pushing down equipment costs, while squeezing profit margins. Analysts said the lack of support for public-private partnership projects is hindering the progress of firms wishing to enhance their penetration in the municipal market.

"Mounting interest in the market's potential has created a challenging situation for firms wishing to expand their share in the water and wastewater sector," said Lieu. "However, large unmet needs in the sector indicate that numerous opportunities exist for companies that can offer needed technologies at competitive prices."

Foreign companies entering the Polish water and wastewater treatment market will confront difficulties if they are unprepared for the particular challenges that define this market. Analysts said one of the methods of overcoming this barrier is to create strong partnerships or alliances with well-established local firms.

Source: Frost & Sullivan.