The use of traditional water treatment methods is declining owing to the rapid industrial development and population growth. To meet the growing demand and sustain to the pace of the rapidly mounting market, major players in the water treatment industry are emphasizing on producing innovative treatment products for domestic as well as the global market. Some of the key growth drivers for the water treatment chemicals market are declining freshwater availability, aging water infrastructure in the developed regions, and stringent regulations.
Factors restraining the water treatment chemicals market are volatility in commodity chemical prices, and advent of several other water treatment technologies which require less chemicals. Moreover, commissioning water and waste water treatment facilities is a capital-intensive practice and both chemicals and equipment demand are directly proportional to the number of facilities being tendered and established. The lower and middle-income countries lack a proper infrastructure for an integrated approach towards water treatment as compared to the high-income countries.
According to a new market intelligence report by BIS Research, titled ‘Global Water Treatment Chemicals M…ecast (2017-2021)’, the global water treatment chemicals market is expected to reach $24.33 billion by 2021, growing at a CAGR of 5.3% from 2016 to 2021.
The high growth rate of the market is due to the increasing demand from high end sectors like oil & gas, pulp & paper, and mining industries. Additionally, high demand in the market is also aided by the burgeoning demand growth for biocides & disinfectants. During the forecast period, the water treatment chemicals market is expected to witness growth backed by the rampant demand in the end uses and rising environment regulatory concerns.
Major cost driving factors in the water treatment chemicals industry are cost of raw materials, labour cost, type of production technology used, and transportation costs (both for raw materials and finished products). Continuous improvement in product quality and capacities of existing products to meet the growing demand is one of the key strategies followed by the industry players. The companies are taking solid measures to lessen manufacturing costs and yet provide superior quality products.
Financial barriers and lack of infrastructure for the solid waste management can be tackled by the involvement of private players. Thus, they have an immense opportunity to expand their business throughout the value chain. Numerous water treatment chemicals manufacturers are shifting their production bases to the developing countries in Asia Pacific because of lower labour costs, and the absence of stringent environment regulations, which will augment future domestic demand. Stringent regulations, and cost of investment are key factors attracting the companies to invest in the region. Moreover, companies are coming up with various sustainable options to treat water involving green chemistry.
Corrosion inhibitors & systems held approximately 28% of the total water treatment chemicals market, by value in the year 2016. Corrosion inhibitors are the most widely used water treatment chemicals globally, as they form a significant part in the water treatment in various end-user industries like oil & gas, power, and pulp & paper sectors. The Water treatment chemicals have applications in a vast range of allied end markets including municipal, power, oil & gas, pulp & paper, chemical, food & beverage, and mining, among others. During the forecast period, industries like oil & gas, power, and paper & pulp are expected to witness high gains in the water treatment chemicals market. Rapid industrialization, growing GDP in the developing economies and stringent regulations are some of the factors which are expected to drive the market for the industrial water treatment.”
Presently, Asia Pacific is at the forefront of the water treatment chemicals market, with high market penetration in countries like China, Japan, South Korea, and India, among others. Asia Pacific generated the highest revenue of $6,371.6 million in 2016. The water treatment chemicals market is highly fragmented due to the presence of large number of players, both established as well as locally operating companies. Factors such as water scarcity, urban population growth in megacities and developing countries, and climatic changes issues, among others, have triggered the demand for water treatment chemicals in the region. During the forecast period, Asia Pacific is expected to be a lucrative market due to the high number of developments in the water infrastructure sector in several emerging countries, high urban population growth, and increasing government investments in the water treatment sector.
The major established players in the market are focusing on product launches and developments to introduce new technologies or further enhancing their existing product portfolio. Ecolab Inc., Kemira OYJ, Kurita Water Industries, BASF SE, K+S AG, Chembond Chemicals, Solenis, SNF Floeger, Buckman, Suez, Akzo Nobel N.V., and Organo Corporation, among others, are the prominent players in the water treatment chemicals market.
Key questions answered in the report:
- What is the size, in terms of value ($million) and volume (Kilo Tons) of the water treatment chemicals market in 2016, and growth rate during the forecast period, 2017-2021?
- What are different types of water treatment chemicals and developments by respective manufacturers?
- What is the revenue generation ($million) and volume consumed (Kilo Tons) by water treatment chemicals for different end-user industries in 2016 and their growth prospects?
- What is the water treatment chemicals market size for different regions, on the basis of various end-user industries in terms of value and volume?
- What are the key trends and opportunities in the market, pertaining to countries included in different geographical regions?
- How attractive is the market for different stakeholders present in the industry by analysing the futuristic scenario of the water treatment chemicals?
- What are the major driving forces that tend to increase the demand for water treatment chemicals during the forecast period?
- What are the major challenges inhibiting the growth of the global water treatment chemicals market?
- What kind of new strategies are being adopted by existing market players to expand in the industry?
- What is the competitive strength of key players in the water treatment chemicals market by analysing through market share analysis?
- What is the market share analysis of the leading players in the emerging countries like China and India?
- What are the key market players in the market, along with their detailed analysis & profiles (including company snapshots, their financials, key products & services, and SWOT analysis)?
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