The Asia Pacific wastewater treatment and management industry is expected to register sluggish growth over the years through 2018, despite the positive influence of a combination of factors, including increased government investments, water pollution and demand for municipal wastewater treatment, according to a new report published by Indian market research company Ken Research.

Over the past few years, between 2007 and 2013, the market saw average annual growth of 1.9 percent. The highest growth rate of 3.1 percent was recorded in 2009 when wastewater treatment services turnover reached $88.8 billion. Sluggish growth is predicted for the next few years, as foreign investment will remain low through 2016. Meanwhile, domestic companies operating in the sector are likely to shift their focus towards industrial wastewater treatment as wastewater in the region is becoming increasingly toxic, the report said.

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The biggest wastewater treatment market in Asia Pacific is Japan, where the industry has seen steady growth over the past few years. Between 2007 and 2013 the treatment amount of wastewater in Japan recorded a solid annual growth rate. Similarly, revenues have also risen since the $46.4 million recorded in 2007. The fastest growth rate was witnessed in 2009, when revenues went up five percent to $50.2 million.

Another key market for wastewater treatment in the Asia Pacific region is China, where municipalities are looking for cost-effective treatment systems that can meet new environmental criteria, leading to an anticipated boost in the sector over the years through 2018.