Global Residential and Light Commercial Water Treatment Equipment Market earned revenues of $11.03 billion in 2013 and estimates this to reach $18.80 billion in 2020, reports analysis from Frost & Sullivan.
The residential sector accounts for 67.4 percent of the total market promoted by stringent regulations for household water treatment in countries like US, Singapore, UK, Germany, India and China.
The light commercial WTE is gaining popularity and is expected to grow at a rate of 8.9 percent annually.
Currently, Americas hold the largest market share for commercial water treatment equipment.
While Europe represents the most environment-conscious and minimally cost-conscious market for WTE solutions.
The under-the-sink and point-of-entry system is expected to catch up market in the Americas and Europe.
Asia-Pacific offers high scope due to increased demand from the region’s growing population and public health concerns. Asia-Pacific will see a preference for counter top systems.
Premium products will see better market entry in developed countries, said, Vandhana Ravi, research analyst, Energy and Environmental, Frost & Sullivan.
Increased importance of health and wellness are highlighting water safety issues supporting growth in the global residential and light commercial WTE market.
The strict enforcement of water quality standards as well as regulations supporting upcoming innovative water treatment procedures is also driving the market.
However, pricing issues and a fragmented market structure that faces competition from the bottled water market will create a challenging business environment in the short term.
Bottled water provides customized solution, catering to the wellness sector and is marketed with supplemental rich minerals and ionisers. This segment will lose out due to environmental concerns on the use of plastics.
The end-user preference will concentrate on suppliers offering holistic WTE solutions. Transitional channels will be eliminated, bringing the supplier closer to customers, limiting the value chain, forcing suppliers to act as one-stop solution providers, and reducing costs.
This way, direct sales channels will be the profitable distribution method, with technological advancements through Web sales catching up in Europe and Americas and certain regions of Asia-Pacific. To that end, the market is experiencing consolidation with companies acquiring distributors, especially in the light commercial space, stated Ravi.
Meanwhile, the rental business will boost up market revenues due to reliable after-sales service and periodic monthly income for suppliers.