Wastewater market rises as regulation bites

The EU Urban Wastewater Treatment Directive is driving growth in the market for water treatment equipment, according to a report from market researchers Frost & Sullivan. Worth some $1.96billion in 2001, the market will climb to $2.42billion by 2008, the report says. The deadline for compliance with the directive is 2005.

Municipal water treatment companies are leading the sector, accounting for 68.5 per cent of total sales by 2008, the report says. 'The main thrust of investment will be derived from upgrading and enlarging old treatment plants,' says research analyst Arantxa Mencia. Demand will increase particularly for denitrification equipment, elimination of cryptosporidium, and for equipment based on membrane technology, which currently accounts for 32.3 per cent of all treatment equipment. The UK is the largest market, accounting for 26.7 per cent of all investment.

Secondary treatment equipment is at the top of the shopping list for many operators, says Mencia. 'This type of treatment equipment wil be required by 31 December 2005 for every agglomeration with a population of between 2000 and 15 000.'

However, tertiary treatment equipment is set to be the most dynamic sector, and could create new revenue streams and stimulate demand in the entire market, she predicts.