Advanced Technologies for Municipal Water Treatment

Report Highlights

• The U.S. market for the advanced drinking water technologies: membrane filtration, ozone disinfection, UV irradiation and novel oxidation processes is estimated at about $1.3 billion in 2006, and is growing at a combined average annual growth rate (AAGR) of 10.7%. In 2011 the market will grow to more than $2.1 billion.
• In the 1990s, waterborne disease outbreaks in the U.S. and Canada alerted utilities to the inefficiency of standard treatment processes. Plant operators discovered that these shortfalls could be addressed, however, by implementing a physical barrier to the microbes with the low-pressure membrane methods microfiltration (MF) and ultrafiltration (UF). Together, the five membrane treatments for municipal drinking water are valued at $1 billion in 2006, with a predicted combined growth rate of 10.3%.
• UV disinfection, a market valued at $29.2 million, should experience considerable growth in the forecast period. A 38.6% AAGR is predicted to 2011 at which time the market should be worth more than $149 million.

INTRODUCTION

According to the U.S. Environmental Protection Agency (EPA), all 50 states and Puerto Rico invested almost $9.5 billion in drinking water improvements from 1996 to 2005. In their 2005 annual report, the U.S.-based Water and Wastewater Equipment Manufacturers Association (WWEMA) reported market growth in the industry of at least 5%, with 78% of WWEMA manufacturers seeing and projecting 10% growth. These increases are primarily in the domestic market with international sales, as a whole, remaining fairly flat.

The majority of expenditures for water treatment are for conventional water equipment and chemicals. However, an ever-growing percentage relates to advanced treatment technologies including membrane filtration, ultraviolet irradiation, ozone disinfection and some novel disinfectant systems.

SCOPE OF STUDY

This report contains:

• A thorough examination of the market for four categories of advanced municipal water treatment: membrane filtration, ultraviolet irradiation, ozone disinfection and some novel advanced oxidation processes
• Five-year projections are provided for United States market activity and value through 2011
• A detailed overview that describes the industry, including definitions and past trends
• A technology overview that includes a detailed patent analysis
• Profiles of the major companies in the industry.

METHODOLOGY

A comprehensive literature, patent, and Internet search was undertaken and key industry players were queried. News and current developments in the field are evaluated in BCC's monthly newsletter Membrane & Separation Technology News.

Growth rates were calculated based on existing and proposed equipment sales for each of the advanced methods during the forecast period. Table 2 presents the average capital cost per gallon of water treated by technology type. These figures then were multiplied by anticipated treatment capacity additions during the survey period. Consumables used in the processes, replacement membranes, UV lamps, etc., were also taken into account. Values are given in U.S. dollars; forecasts are made in constant U.S. dollars, and growth rates are compounded. Calculations for system sales do not include design or engineering costs.

INFORMATION SOURCES

In addition to data from BCC's related monthly newsletters, other information in this report was gleaned from many different sources. SEC filings, annual reports, patent literature, business, scientific and industry journals, government reports, census information, conference literature, patent documents, on-line resources, and industry participants have all been researched. Information from the following industry associations also was reviewed: American Membrane Technology Association, American Water Works Association, International Desalination Association, International Ozone Association, Water and Wastewater Equipment Manufacturers Association, Water Environment Federation and the Water Quality Association.

ANALYST CREDENTIALS

During the past 6 years, Susan Hanft has authored more than 12 BCC market opportunity reports in the fields of membrane technology and water/wastewater treatment. Hanft also serves as editor of the BCC newsletter, Membrane & Separation Technology News.