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New Power Generation Infrastructure May Sustain Growth in the South African Water Treatment Chemicals Market Says Frost & Sullivan - The demand for water and wastewater treatment chemicals in South Africa's industrial sector will witness strong growth over the next few years
New Power Generation Infrastructure May Sustain Growth in the South African Water Treatment Chemicals Market Says Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2010/04/29 - The demand for water and wastewater treatment chemicals in South Africa's industrial sector will witness strong growth over the next few years.

   
 
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This is due to the increased recycling of water by end-users and the planned infrastructural development by the national electricity utility, Eskom.

"Increasing environmental awareness and economic concerns have driven industrial end users to reuse effluent and process water," notes Frost & Sullivan Research Analyst Naasir Roomanay "Additionally, South African end users of industrial water and wastewater treatment chemicals are aware of the scarcity of water and the implications of overuse in the region."

New analysis from Frost & Sullivan (chemicals.frost.com), South African Industrial Water and Wastewater Treatment Chemicals Market, finds that the market earned revenues of $87.8 million in 2008 and estimates this to reach $129.6 million in 2015. The products covered in this analysis are coagulants and flocculants, pH adjustment chemicals, scaling and corrosion control chemicals, disinfectants and biocides and defoamer and anti-foamer chemicals.

If you are interested more information on this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"Although the South African industrial water and wastewater treatment chemicals market is currently restrained, the high cost of alternative technologies and the necessity for chemicals in many end-user industries is sustaining demand," Roomanay says. "Many industry participants speak positively of upcoming opportunities in the local market, especially in the power generation and mining industries."

In 2009, Eskom's water consumption was approximately 375,000 million cubic metres per annum (MM3/a). The utility's significant expansion plans suggest that by 2017 its water consumption will increase by an estimated 67,200 MM3/a.

In the water treatment chemicals segments, scaling and corrosion control as well as disinfectant type chemicals are expected to witness the highest growth, as they are used extensively in high opportunity end-user industries for their cooling towers and boilers. Compound annual growth rates of 7.0 per cent and 6.6 per cent, respectively, are estimated for these chemicals types, largely due to their use in the power generation industry.

However, the cost-effectiveness and increasing efficiency of mechanical systems can affect the sales of water treatment chemicals.

"Mechanical technologies can remove scaling and corrosion-causing substances in the water used in boiler and cooling towers," explains Roomanay. "This decreases the need for industrial water and wastewater treatment chemicals."

Providing a complete client-support service, combined with alternative sales strategies and value-adding products could overcome these challenges for water and wastewater treatment chemicals suppliers. Furthermore, looking beyond local infrastructural expansion projects for opportunities abroad will also bring about growth prospects.

South African Industrial Water and Wastewater Treatment Chemicals Market is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: South African Industrial Paint and Coatings Market, South African Market for Commodity Plastics, Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries, and Key Sub-Saharan Crop Protection Chemical Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

South African Industrial Water and Wastewater Treatment Chemicals Market / M4C3

 
 
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New Power Generation Infrastructure May Sustain Growth in the South African Water Treatment Chemicals Market Says Frost & Sullivan

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