Frost: Water Treatment Market Riding on Wave of Health, Water Quality Concerns

April 5, 2007 // Published as a news service by IHS

Recent analysis from Frost & Sullivan of the Southeast Asian Residential Water Treatment Equipment Markets found earned revenues of $193.6M in 2005, with estimates to reach $390.2M in 2012.

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"Several health problems in Southeast Asia are linked to the deteriorating quality of drinking water, and the escalating health care cost is a prime driver for the installation of water treatment systems at home," said Frost & Sullivan research analyst Sundhar Parthasarathy.

"Discoloration of water due to corroded, inadequately maintained pipes and failing internal plumbing systems are also boosting the installation of point-of-entry water treatment systems in homes."

Analysts said another major market driver is growing awareness about the harmful by-products of water treatment in municipal plants. Volatile organic compounds (VOCs) and disinfectant by-products (DBs) are harmful pre-treatment by-products found in public water supplies.

Besides the low quality of drinking water, the active campaigning of water purification equipment marketers is also encouraging apartment and homeowners to invest in residential water treatment equipment.

Analysts said while marketers are raising consumer awareness about health care and well-being needs, they should also focus on the purifying capabilities of home treatment systems, particularly the ultraviolet (UV) and carbon block systems.

The residential water treatment equipment market in Southeast Asia faces stiff competition from the well-established bottled water market. Analysts said bottled water is preferred for its convenience, safety and health benefits, despite the relatively higher price by comparison. The region recorded a 12.0% increase in bottled water consumption from 2004 to 2006, affecting the water treatment market, specifically the drinking water segment.

"Despite such restraints, the market possesses immense growth potential and is expected to draw new participants from the Asia-Pacific region, particularly from China, North America and Europe," said Parthasarathy. "To ensure greater success, market participants need to address crucial issues such as product pricing and product and technology differentiation."

Source: Frost & Sullivan.