Increasing water scarcity, exacerbated by inefficient water management practices, is driving the commercial and residential point-of-entry (POE) water treatment systems market in India. Escalating demand for water from a growing population, faster depletion of water resources than is replenished, and the contamination of ground water tables and surface water bodies are lending momentum to the POE water treatment systems market in the commercial and residential segments. A water treatment system having capacity up to 20 cubic meters per hour, installed in a suitable location where the main water pipeline enters the building, is called a POE system. This POE system could be installed in the building basement, backyard or in a corner depending on the water source i.e. ground water or municipal water and is meant for the entire building.
Though urban areas receive piped water from municipal corporations, the quality of water is a suspect since the municipal water authorities normally do not employ advanced treatment methods due to resource crunch. To make matters worse, pipes that transport drinking water from municipal treatment plants to end users are in a state of disrepair resulting in frequent seepage of sewage. In order to improve the water supply coverage in remote corners of the city, municipal corporation provide water by 1000-gallon tanker lorries. Poor cleaning and maintenance of these tankers results in contamination of water. Hence, all along the value chain, from sourcing to treatment to final supply, the quality of water is compromised, which drives demand for POE water treatment systems.
New analysis from Frost & Sullivan (environmental.frost.com), Commercial and Residential Point-of-Entry Water Treatment Systems Market in India, finds that the market earned revenues of INR 3.40 billion in 2012 and estimates this to reach INR 5.43 billion by 2017. The study covers reverse osmosis (RO) and conventional systems such as filtration systems, iron removal and arsenic removal systems, softeners, etc.
"The unavailability of municipal water in the sub-urban areas of India, where there is large-scale investment in the commercial and residential segments is fuelling the uptake of POE water treatment systems," said Frost & Sullivan’s Analyst from Environment & Building Technologies Practice. "New hotels, hospitals, large residential complexes and apartments in the suburbs are installing POE water treatment systems to purify the groundwater they are dependent on, as it is usually non potable."
The penetration of RO systems is increasing, with these systems used for potable applications in hotels and residential apartments. Increasing tourism in India is paving way for hotels to adapt to international water quality standards. Hospitals deploy RO systems for critical applications such as surgeries, equipment sterilization etc. The market share of RO systems in 2012 stood at 52 percent of the total commercial and residential POE water treatment systems. The RO systems are projected to grow at a Compound Annual Growth Rate (CAGR) of 10 percent from 2012 to 2017.
The rising health consciousness among consumers in India is further spurring the adoption of POE water treatment systems, especially in the residential segment. POE water treatment systems in many residential projects majorly use conventional treatment systems utilizing ion exchange, activated carbon, and sand filters as key processes. However, the high price of RO systems is slowing its penetration in this segment, as customers prefer low-cost technologies that are easy to operate and maintain. Though the residential segment accounts for less than 10 percent of the total POE market today, this segment is poised to grow at a CAGR of around 15 percent, much higher than the overall market, in the same period of 2012 to 2017. Many of the residential projects coming up in the city outskirts have water treatment systems. This segment would offer long-term growth opportunities to market participants.
Escalating demand for water treatment systems is also encouraging many small participants to enter the market, intensifying competition and reducing profitability. Market participants can overcome this challenge by providing value-added services such as extended warranty periods. "To gain a foothold in the POE water treatment systems market, suppliers should offer a one-stop-shop-solution for end users’ water and wastewater management needs," advised the analyst. "In addition, they must promote their products aggressively to rapidly expand their share in the commercial and residential POE water treatment systems market in India."
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Commercial and Residential Point-of-Entry Water Treatment Systems Market in India is part of the Environmental Growth Partnership Service program. Frost & Sullivan’s related studies include: Packaged Wastewater Treatment Market in India, Water and Wastewater Disinfection Systems Market in India, Water and Wastewater Treatment Equipment Market in Saudi Arabia, and Indian Market for Membrane Modules. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Commercial and Residential Point-of-Entry Water Treatment Systems Market in India / P792-15
Nimisha Iyer, Corporate Communications South Asia, Middle East, and North Africa
M: +91 98 20050519; P: +91 22 66072007 - E: niyer[.]frost.com.