MOUNTAIN VIEW, Calif. — The
North American industrial water and wastewater treatment chemicals market has
always been fragmented, with both global and regional participants vying for
market share. According to a new report from Frost & Sullivan, to stay
afloat, participants have evolved from merely supplying chemicals to providing
a more integrated solution that includes services and equipment.
report, North American Industrial Water and Wastewater Treatment Chemicals
Markets, finds that the market earned revenues of $2.03 billion in 2011 and
estimates this to reach $2.79 billion in 2018. Despite the emergence of
alternative modes of water treatment, chemicals will continue to dominate the
landscape due to its cost effectiveness, analysts note.
present economic conditions in North America are not conducive for industries
to invest heavily in equipment or infrastructure," Frost & Sullivan
Senior Research Analyst Deepak Karthikeyan says. "Thus the lower cost and
higher performance of chemicals place them at par with the best available
technology for treating water."
freshwater resources depleting and governments stressing the need to conserve
and reuse water in industrial processes, end-users are turning to treatment
chemicals, notes the report. The market’s potential has attracted numerous
participants, escalating competition not only among chemical manufacturers, but
also among various value-chain participants that sell solutions. Consequently,
some segments in the market have become commoditized, placing pressure on
companies to reduce prices to meet customer expectations.
the price sensitivity of the market at present and depressed demand, low-cost
imports from Asia also pose a threat to the local manufacturing base in certain
segments, Karthikeyan notes. "Companies have to increasingly focus on
differentiating themselves through product development and innovation in niche
segments rather than compete on price. To maintain their dominance, domestic
manufacturers need to leverage their advantages such as product quality, strong
R&D capability, broader product line, superior customer service, and
long-term partnerships with service companies."