The new analysis from Frost & Sulivan says that depleting water reserves in China, especially northern China, calls for effective water regeneration technologies. Increasingly stringent wastewater discharge standards for various industrial sectors mean MBR wastewater treatment technology is the way forward.
The report says that the market earned revenues of $228.1 million in 2010 and estimates that this will reach $1,351.1 million in 2017.
Analyst Jennie Peng commented:
"As one of the recommended technologies by the Ministry of Environment Protection of China, MBR appears the most feasible solution to the water reuse problems, especially with the country's improving technology and operation management skills."
"The Chinese Government's 12th five-year plan (2011 to 2015) provides directive guidelines for water reclamation and reuse, which strongly encourages the widespread use of MBR applications."
The Chinese MBR market has witnessed exponential growth in the past three to four years and is expected to maintain the momentum. A shot in the arm for the MBR market was the staging of three important events in the country: the Olympic Games in Beijing, the Shanghai Expo and Guangzhou Asia Games in 2008 and 2010. MBR technology won the tender for ancillary water treatment facility for reclamation and reuse purposes, considerably raising its revenue and profile in the water reclamation market.
However, although the technology is mature, only part of its potential has been exploited.
"False operation leads to malfunctions and constant complaints about the quality of the system," notes Peng. "Therefore, technicians have to be trained to service the existing customers and develop businesses with more experienced ones in the future."
Market participants also have to develop strategies to deal with the relatively low tariffs in a way that will allow them to recoup their investments and operational cost of the systems, as well as offset the high market concentration that hinders the market entry of new participants.
The local government has to mark a special budget for the wastewater reclamation market to ensure its sustained development. The report concludes that efforts at both government and industrial levels augur well for the market and are expected to help it hold its course.
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