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As its population keeps growing, India is finding it ever more difficult to meet the demand for clean drinking water. As a result, the local market for point-of-entry (POE) water treatment systems is expected to see strong growth in the next few years, according to a new report from Frost & Sullivan.

Frost & Sullivan estimates that the Indian market for POE water treatment systems (both commercial and residential) was worth INR3.4 billion (about $54.4 million) in 2012. By 2017, revenues are expected to rise to INR5.43 billion. This figure includes reverse osmosis (RO) systems and conventional ones such as filtration systems, iron and arsenic removal systems and softeners.

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The report notes that RO systems are becoming increasingly widespread, largely because of their use in hotels and residential apartments. As more and more tourists visit India, the local hotel industry is expected to comply with international water quality standards. RO systems are also often found in hospitals. In 2012, RO systems accounted for 52% of revenues generated by POE water treatment systems. Frost & Sullivan expects this segment to deliver annual growth of 10% between 2012 and 2017.