china water and wastewater treatment market ab v4 20101126
TRANSCRIPT
Get ready for the next big thing!
Great potential lies in the China Water and Wastewater Treatment Market
M580-15
May 2010
2M580-15
1. Overview of the China Water Market
2. Industry Challenges
3. Total Market Forecast and Brief Findings
Agenda
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Historical and Geographical Disparities between levels of development of Each Region
Source: Year Book of China Statistics 2008
Total Water ResourcePopulation covered with water and wastewater
treatment facilities, (2007)
22%
Year
100
mill
ion
m3 /
year
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Water Resource Distribution and Utilization History in China
Note: All figures are rounded; the base year is 2009. Source: Year Book of China Statistics 2009
Total Water and Wastewater Treatment Market: Water Resource Distribution by Regions (China), 2009
Total Water and Wastewater Treatment Market: Water Usage Distribution by Regions (China), 2009
Regions Regions
Note: Others include seawater, brackish water, etc.
The municipal drinking water supply rate has been reached to 97% till 2009. The drinking water supply rate for counties/towns will reach 75% by 2010.
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Trends of wastewater discharge and rate of treatment
Source: National Bureau of Statistics of China, Ministry of Housing and Urban-Rural development of China; Frost & Sullivan, 2009
Urban Wastewater Discharge and treatment rate in China, 2005-2009
Forecasted
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Water Investments to be Doubled in 12th Five Year Plan (2011-2015)
Source: Ministry of Housing and Urban-Rural Development of China, China National Environment Protection Plan in the11 th Five Year (2006-2010)
Timeline2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
11th Five Year Plan11th Five Year Plan 12th Five Year Plan12th Five Year Plan
$224 billion in Environmental Protection$224 billion in Environmental Protection
About $11.2 billion in Water sector About $11.2 billion in Water sector
$454 billion in Environmental Protection$454 billion in Environmental Protection
About $48.5 billion in Water sector About $48.5 billion in Water sector
Accounted for 1.5% of GDP
Accounted for 1.35% of GDP
Environmental Protection Investment (China), 2006-2015E
7M580-15
1. Overview of the China Water Market
2. Industry Challenges
3. Total Market Forecast and Brief Findings
Briefing Content
8M580-15
Top Industrial Challenges
Rank Industry ChallengesImpact Over Forecast Period
1 - 2 Years 3 - 4 Years 5 - 7 Years
1Water scarcity and ever-polluted natural water resources.
High High High
2Government emphasis on Zero wastewater discharge in water intensive industries.
High High High
3Privatization for water and wastewater industry .
High High High
4Conflict between increasing wastewater discharge standards and the cost of treatment and operation.
High High High-to-Medium
5Relatively low water tariff affect the investment motivation.
High High High-to-Medium
6End users regional preference and fierce competition with domestic organizations pose a barrier for new entrants.
High High High-to-Medium
7Old infrastructure and facilities for existing water and wastewater treatment plants.
High High High-to-Medium
Source: Frost & Sullivan
Total Water and Wastewater treatment market: Impact of Top 7 challenges in China, 2010-2016
9M580-15
1. Overview of the China Water Market
2. Industry Challenges, Market Forces & Restraints
3. Total Market Forecast and Brief Findings
Briefing Content
10M580-15
Total Market Revenue Forecasts
Water and Wastewater Treatment Market: Total Market Revenue Forecasts (China), 2006-2016
Note: All figures are rounded; the base year is 2009; Source: Frost & Sullivan
2006-2009 2010-2013
CAGR (2009-2016): 1
0.4%
$25.8 billion
$38.6 billion
$40.6 billion
2014-2016
Year Water Wastewater2006 32.1% 67.9%2007 31.3% 68.7%2008 30.8% 69.2%2009 29.9% 70.1%2010 28.5% 71.3%2011 26.8% 73.0%2012 25.2% 74.6%2013 23.6% 76.2%2014 22.3% 77.6%2015 21.1% 78.7%2016 20.1% 79.8%
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Priority Investment
Water and Wastewater Treatment Market: Priority Investment in Municipal Sector (China), 2009
Wastewater Treatment Coverage in China, 2009
Source: Ministry of Housing and Urban-Rural Development of China
Total forecasted investment (2010-2015): U$ 38 billion
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Stakeholders Analysis – Municipal water and wastewater
Scenario 2
Retrofit project
Scenario 2
Retrofit project
EPCEPC
Design Institute
End User Water/Wastewater
Companies
Technology Suppliers/Manufacturer/DistributorTechnology Suppliers/Manufacturer/Distributor
Scenario 1
New project
Scenario 1
New project
1122
33
1’1’
3’3’ 44
ConstructionCompanies
ConstructionCompanies
Engineering SupervisionCompanies
Engineering SupervisionCompanies
Investor
Decision Making Process among Key Stakeholders in Chinese Water & Wastewater Treatment Market
Evaluation of Decision Making Criteria among Key Industrial Customers
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Competitive Structure
As tenders in the municipal sector are launched for turnkey projects, success in the market, particularly for equipment suppliers requires establishing good relationships with the remaining market participants. Understanding the market structure and relationships form the key success factors.
General EPC contractors and Specialized Water and Wastewater EPC companies Equipment suppliers and Distributors
Source: Frost & Sullivan
Total Water and Wastewater Treatment Market: Sample of Representative Companies (China), 2009