The recent announcement of GE Water striking a strategic alliance with BHEL in India is very much a masterstroke in the booming Indian power sector- http://www.bhel.com/press_release/press_pop.php?press_id=458. Specialist water & wastewater treatment companies in India and even from overseas are gearing up for the windfall of opportunities in the rapidly growing power sector in India. However, alliances such as this are bound to further accentuate the already intense competition in the water & wastewater treatment solutions market of the Indian power sector.
Our current market analysis of the Water Management Opportunities in the Global Power Industry and the overall market for water & wastewater treatment systems is estimated to be around $2.5 billion in 2010. With close to 160 GW of nuclear power planned over the next 10 years triple that in capacity to be added for coal power plants, the prospects for water and wastewater treatment systems are certainly on the high.
Majority of the new build opportunities will be in emerging markets of China and India, both with their own entry related challenges for overseas suppiers to tap into the process water & wastewater treatment opportunities in the power sector.
This strategic alliance struck between GE Water and BHEL will most certainly aim to target the high potential power market in India for the near term and expand the focus into other industrial sectors that are also served by BHEL.
Game on in the Global Membrane Bioreactor (MBR) Market with the entry of LG with its Green MBR product
The Global MBR Market has received a rather expected member in the form of LG Electronics, which has announced the launch of its Green MBR system (http://www.lg.com/global/press-release/article/lg-unveils-first-mbr-process-for-wastewater-treatment.jsp)
The key features of the LG Green MBR is the flat sheet MF membrane configuration and claims to be have a significantly smaller footprint but the full details of the MBR product are yet to emerge.
We have been tracking the evolution of the MBR market since 2005 when we published the European MBR Market study and estimated the market to be about $62.5 million in 2005 with a double digit CAGR of around 11 percent. We further upgraded our MBR analysis with the Global MBR Market study in 2008 and estimated the global market to be around $500 million and still continuing with a strong double digit CAGR.
The growth momentum of the MBR has continued to have the committment of the established players with increased investments in improving the MBR products and development of new innovative variations. The increasing success of MBR in the industrial sector has further upped the appetite of both industry, suppliers and investors alike.
In the case of LG Electronics, the launch of the new Green MBR is seen a first stepping stone in the Global Water Market and the focus on the near term appears to be on technology solutions for water & wastewater treatment in the industrial sector. The success in this sector is expected to influence its planned progression into the municipal sector and also further up the value chain to shift its image from a OEM/water technology supplier to more an EPC player in the Global Water Market.
The entry of companies such as LG Electronics will most certainly stir up the competition but will also bring in a breath of fresh air and the much needed urgency of innovation in this otherwise conventional set-up.
Frost & Sullivan had earlier this year published a report on the Global Ballast Water Treatment market and indicated a sizeable market opportunity of more than $30 billion over the next 10 years.
The International Maritime Organisation (IMO) International Convention on for the Control and Management of Ships Ballast Water and Sediments adopted in 2004 is the key driving force of this high potential market. The convention is still in the ratification process and could soon gain the necessary numbers in terms of signatory nations and turn into binding legislation.
However, there appears to be a sign anticipation, especially in the large tankers/vessels segment of the shiping industry that is leading to ship owners taking the plunge and placing contracts to install ballast water treatment systems aboard the vessels. Oceansaver has proved to be highly successful in this segment by securing contracting of providing ballast water treatment systems for 17 vessels in the large tankers category.
With less than 5 countries neeeded to complete the ratification of the convention, it is the right time for ballast water treatment system suppliers to position themselves in the appropriate segments of the shipping industry. The certififying agencies of ballast water treatment systems have been kept very busy over the first half of this year and as we head into the autumn, we could see some of the established ballast water treatment systems suppliers launching new products and setting themselves with a good launchpad for growth in this market.
55,000 buildings identified under the mandatory category for installation of Rainwater Harvesting Systems in Bangalore
The market for rainwater harvesting systems in India has attracted a lot of attention and resulted in a series of policies, guidelines and mandatory requirements set by regional and city councils.
One such mandatory standard was issued by the Bangalore Water Supply and Sewerage Board (BWSSB) in August 2009 with an amendment to the Bangalore Water Supply and Sewerage Act. The amendment was in the form an inclusion of Article 72A, which stated that every occupier or an owner of a building with an overall site are of 2400 square feet or a new build on a area of 1200 square feet will need to install or provide a rainwater harvesting system in accordance to the guidelines issued by the BWSSB.
The BWSSB has already identified 55,000 buildings (expected to increase by another 15,000) with a sital area of 2400 square feet and noticed only about 3400 of these buildings have installed a rainwater harvesting system. The BWSSB has issued a firm warning to the others to comply with the mandatory installation of a rainwater harvesting system or face disconnection of water supply. (http://www.deccanherald.com/content/53770/instal-rwh-face-disconnection.html)
Frost & Sullivan has recently published a piece of market research titled - 'Analysis of Rainwater Harvesting Market in Europe and India'. This research highlights some of the key policy drivers such as the BWSSB notification and its influence on some of the potential regional hot-spots for rainwater harvesting in India.
The recently introduced boiler scrappage in the UK will have a significant impact on the sale of residential water softeners. One of the key requirements listed in the Domestic Heating Compliance Guide 2008 (http://www.planningportal.gov.uk/uploads/br/BR_PDF_PTL_DOMHEAT.pdf) states - 'Where the mains total water hardness exceeds 200 parts per million, provision should be made to treat the feed water to water heaters and the hot water circuit of combination boilers to reduce the accumulation of limescale.' The boiler scrappage scheme is mainly aimed at getting households to install energy efficient boilers and benefit by saving close to £200 annually in energy bills. As part of the scheme, close to 125,000 households will receive £400 to replace their inefficient boilers.
Close to 70 percent of the UK is faced with the problem of water hardness and reports from the Drinking Water Inspectorate indicate that majority of eastern and southern UK is plagued with water hardness in excess of 200 ppm and therefore any replacement of an existing boiler or installation of a new boiler will almost certainly need the installation of a water softener to comply with the Domestic Heating Compliance Guide 2008.
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