Frost: Market for Residential Water Treatment Systems Grows in India
January 29, 2009 // Published as a news service by IHS
The growing market for residential water treatment systems in India, estimated to have a potential of nearly 15 billion Indian rupees (INR), has new participants vying with well-established participants for a slice of this lucrative market, according to Frost & Sullivan.
Contaminated water is still a menace in India, with scant regard for environmental standards and the inability of cash-crunched municipalities to effectively treat the piped, potable water supplied to consumers.
To add to consumers' water woes, naturally occurring salts and metals in the water are compelling them to purchase and use point-of-use water treatment systems.
Recent analysis from Frost & Sullivan of the Indian residential water treatment systems market found earned revenues of INR 16,486.00 million in 2007, with estimates to reach INR 41,202.50 million in 2012.
"Indians have become more health and hygiene conscious with a growing awareness that mere boiling of water is not enough to remove dissolved salts and metals detrimental to their health," said Frost & Sullivan industry analyst Sasidhar Chidanamarri.
"UV-based systems, which dominated the market earlier, are now being overtaken by reverse osmosis (RO)-based systems, which are growing at a significant pace."
The point-of-use countertops system goes a step ahead with its purifying abilities by removing microbes and dissolved contaminants, compared to the conventional ceramic/candle/drip filters. As a result, analysts said this market is attracting new participants. The market for traditional candle filters was already hit by the ultraviolet (UV)-based systems and now, the new RO-based system is expected to snuff out whatever remains of the candle filter market.
On the other hand, there is a dearth of timely and efficient after-sales support in both the organized and unorganized segments. Several small and regional participants lack quality and reliability, though their products are inexpensive. Analysts said there should be greater focus on after-sales service and personnel training to efficiently handle consumer complaints.
Source: Frost & Sullivan.