When it comes to industrial water and wastewater trends in the United States, Mexico, China, and around the world, all signs are pointing toward sustained growth. A 2017 report by Frost & Sullivan pegged growth in the global industrial water and wastewater market at 5.7% for the year. That same year the global water and wastewater treatment technologies market had an estimated value of $5.34 billion and is expected to grow at a CAGR of 9.00% during the forecast period 2018-2023. These figures also include the municipal markets as well. Key factors driving this upward trend include growing environmental awareness and water stress in some regions, both of which are prompting industries to integrate sustainable and energy-efficient solutions.
The resurgence in the Oil & Gas exploration market is simultaneously helping to fuel growth in industrial water and wastewater treatment, with the industry expected to rebound from its 2014 low by 2019. Estimates for expenditures in the North American industrial water market were forecasted to rise 5.1%, from $27.89 in 2016 to $29.33 billion in 2017. A 27% increase in investments at the beginning of 2017 is powering R&D and driving adoption of energy-efficient membrane-based filtration solutions. Chemical treatment is also experiencing a similar boost. North America has been a leader in the integration of smart water meters, and now is driving adoption of smart process solutions including digital monitoring, diagnostic software, remote operation, and sensors. Additionally, increased water stress in some areas is encouraging industries to integrate water reuse solutions.
As the economies of Mexico and the Latin American market continues to revive, growth in the industrial water market is expected to also enjoy a similar upward trajectory. Estimates for expenditures in the LATAM industrial water market were forecasted to rise 5.1% from $14.93 in 2016 to $15.69 billion in 2017. Continued calls for water conservation, especially in areas facing water stress, are leading to stricter environmental regulations in the region. Although lower international commodity prices have caused a slowdown in the mining industry, investment in water treatment and efficiency is expected to continue as regulatory agencies are stepping up enforcement following a spate of environmental accidents in Brazil, Chile, and Argentina. The emergence of innovative financial solutions such as BOOT (Build Own Operate Transfer) will likely be used to finance industrial water and wastewater projects, which will serve to enhance market potential.
The Asia-Pacific market represents the largest industrial water and wastewater treatment market in the world with 2016 expenditures topping $44.32B. The 2017 figure is expected to rise to $47.38B, making Asia-Pacific also the fastest growing market with a growth rate of 6.4%. The booming Indian and Chinese economies along with renewed efforts to mitigate water stress and pollution are propelling expenditures in the region. Government initiatives, favorable policies, subsidies and expanded investments in textile and pharmaceutical industries are seen as key drivers in industrial water growth.
Around the world, the demand for water suitable for drinking, industrialization, and agriculture is only accelerating. It’s worth noting that the Asia-Pacific market is the fastest growing market for industrial water and wastewater treatment with a growth rate forecasted at 6.4% as growing Indian and Chinese economies lead the way. The Middle East & Africa market isn’t too far behind at 5.7%, largely attributed to growth in Oil & Gas and mining industries. Increased EU investment through Horizon 2020 is helping to sustain a growth rate of 4.8%. The largest manufacturing sector in Europe is the food and beverage industry. That industry is expected to continue to drive the industrial wastewater market.
DMP Corporation takes a holistic approach to wastewater treatment. We design and manufacture turnkey and cost-effective industrial wastewater treatment systems and chemicals. Learn more about our industrial wastewater treatment solutions. DMP Corporation: Taking the worry out of wastewater.