US market in water treatment equipment to rise to $1.6 billion by 2006

Tightened government regulations for water quality will lead to an expansion of the US water treatment equipment market, from $900 million in 1999 to $1.6 billion by 2006, says a market report.

Research conducted by Frost & Sullivan has concluded that “growth in this industry usually comes from increased water demand, but governmental regulations, such as the Safe Drinking Water Act and the Interim Enhanced Surface Water Treatment Rule, are placing pressure on municipal water treatment facilities to upgrade or install new equipment.

The study published by Frost & Sullivan also points to the companies that may be the losers in the expanding US water treatment equipment market. “Growing preference for Design-Build-Operate contracts among industrial end users and municipalities presents lucrative revenue opportunities,” says analyst Matthias Kubr, but those companies that are unable to provide a complete product line could see sales decline.

Filtration products command the largest section of the water treatment equipment market in the US, with a revenue share of 37%. But reverse osmosis products are close behind. Disinfection is in third position, with clarification the smallest sector.

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