World demand for water disinfection products will rise 5.5 percent annually to $7.7 billion in 2016. China and the Asia/Pacific and Africa/Mideast regions will be the fastest growing markets. A shift in the product mix from elemental chlorine towards higher value chemicals and advanced technologies will continue.
This study analyzes the $5.9 billion world water disinfection product industry, with forecasts for 2016 and 2021 by product (e.g., chlorine gas, chlorine derivatives, bromine derivatives, chemical generation equipment, UV equipment, ozone equipment), market (municipal, industrial, recreational), world region and for 16 countries.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 40 industry participants such as Lonza, OxyChem, and PPG industries.
Regulations, health concerns to aid disinfection demand
Worldwide demand for water disinfection products is projected to exceed $7.5 billion in 2016. Significant changes are occurring around the world for a number of reasons. There is continuing concern about disinfection byproducts (DBPs), many of which are known or suspected carcinogens. Outbreaks of waterborne illness persist even in developed nations as pathogens such as Cryptosporidium and Giardia lamblia are resistant to chlorine. Heightened security and antiterrorism measures have led to increased regulatory costs. Finally, standards for water quality and waste-water treatment around the world are tightening -- including pressure to treat wastewater so that it is suitable for reuse or resupply of source waters. The net result of these factors has been a switch away from elemental chlorine in favor of higher value chemicals and advanced treatment technologies.
All disinfection markets worldwide to be impacted
The most notable changes in product mix are occurring in the municipal market. This trend is led by the US, which is making a push to replace chlorine gas. Around the world, municipal water treatment systems are reviewing their disinfection choices and trying to determine the best technology. In developing countries, this includes efforts to expand treated water supplies. Across the board, wastewater disinfection will post above average gains -- as operators improve on treatment techniques in developed areas and expand them in developing regions.
The recreational market is dominated by a handful of countries -- namely the US, Brazil, Spain, France, Germany, Italy, Australia, South Africa, and Mexico. While chemicals will continue to account for most recreational water treatment, saltwater chlorine generators and ozone equipment are increasing their market presence, as they provide better water quality.
The industrial market will rebound due to accelerating production activity, particularly in the large US market. Generally, industrial users favor high-end chemicals and nonchemical disinfection techniques, but chlorine and other commodities have a significant presence in industrial markets in developing countries. In those areas, rising numbers of users will shift to products that are better suited for industrial processes.
Different regions, different reasons for growth
In the US and Canada, municipal systems are increasingly replacing chlorine with sodium hypochlorite -- either in bulk form, or produced with onsite equipment -- as well as UV and ozone systems due to the regulatory burdens of chlorine use, in addition to health and environmental concerns. Saltwater chlorinators are becoming more common in pool applications. In Western Europe, the shift to equipment is further along than elsewhere in the world, but some areas of the European Union are not fully compliant with treatment standards, particularly in wastewater. In the developing world, expansion of water systems to reach rural areas and other previously unserved populations will be the primary driver of growth -- but even in these areas, use of UV and ozone equipment will increase as cities seek to reduce their reliance on chlorine. There is also growing pressure for wastewater treatment in developing areas, which in some cases is almost nonexistent.
This study analyzes the world market for water disinfection products, including chemicals and equipment. Although conventional filtration and membrane separation technologies are capable of removing some microbial contaminants from water supplies, they are not considered disinfection technologies for the purposes of this study. Markets include municipal (supply water and wastewater), industrial, and recreational. Historical data for 2001, 2006, and 2011 and forecasts to 2016 and 2021 are provided for demand at the manufacturers’ level in current dollars (including inflation). As used in this study, the term “demand” refers to sales or apparent consumption and denotes production from a nation’s indigenous water disinfection product manufacturing facilities plus imports, minus exports. Tabular details may not add to totals due to independent rounding. Ratios may be rounded for the sake of clarity.
Macroeconomic and demographic indicators presented in this study were obtained from The Freedonia Group Consensus Forecasts dated June 2012.Gross Domestic Product (GDP) historical data are derived from the national income and products accounts from the Organisation for Economic Co- Operation and Development (OECD) for its member countries, from the European Bank for Reconstruction and Development (EBRD) for its member countries, and from the International Monetary Fund for its member countries that are not part of the OECD or EBRD. Sources of GDP estimates for other countries are based on information from the World Bank and a variety of sources including the countries’ statistical bureaus. GDP forecasts are developed from a consensus of public agencies and private firms.