Desalination, recycle and reuse systems to dominate the market
As India eases into an exciting stage in its economic development, associated opportunities are unfolding in the country’s water and wastewater sector. After power generation, water supply and sanitation is the next high-growth industry, as the need for municipal water expands steadily. With more than 20 metros expected to mushroom by 2032, the water stress will only increase, creating huge demand for water and wastewater treatment systems in the Indian municipal segment.
New analysis from Frost & Sullivan, Analysis of the Indian Municipal Water and Wastewater Treatment Market, finds that the market earned revenue of INR 31,260 million in 2013 and estimates this to reach INR 49,000 million by 2018. Market growth is attributed to the rising population and urbanization. The study covers water treatment technologies such as desalination, clarification, filtration and activated sludge process.
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“Widening water-supply demand is the key driver for the municipal water and wastewater treatment market,” said Frost & Sullivan’s Environment & Building Technologies Analyst. “Of the 32 major cities in India, 22 are facing water shortages. Even in cities with comparatively narrower demand-supply gap, shortages are registered due to significant water loss during transmission.”
While demand drives the market, growth will be tempered the lack of proper planning and funds for infrastructure. Municipalities are unable to generate sustained revenues due to low water tariffs, poor meter connections, and a high share of non-revenue water supply. “With water being highly subsidized in India, most municipal corporations are unable to recover the cost of water supply,” stated the analyst. “Alternate sources of water, such as recycle and reuse water for various non-potable municipal applications, is very limited.”
In order to meet the growing water demand, two sustainable options are available – desalination and wastewater recycle and reuse. While desalination has strong potential, treatment of wastewater for recycle and reuse is still in the nascent stage in India. Unlike most of Europe and America, the wastewater recycling and reuse concept is gaining currency in India only now. However, the sector presents tremendous potential, as only 30 percent of the wastewater generated is currently being treated.
“Latest developments in the global desalination segment can be brought to India through joint ventures (JVs),” mentioned the analyst. “In such JVs, domestic water and/or infrastructure companies can meet the civil and structural development needs of desalination plants. These companies can also contribute with relevant technological insights, along with offering operation and maintenance expertise.”
Analysis of the Indian Municipal Water and Wastewater Treatment Market is part of the Environmental (http://www.environmental.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Point of Use Water Purifier Market in India, Analysis of the Gulf Cooperation Council (GCC) Membrane Elements Market, Analysis of the North America Tertiary and Advanced Wastewater Treatment Equipment Market, Produced Water Treatment Market in Southeast Asia, Global Residential and Light Commercial Water Treatment Equipment Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.