UV water purifier segment is estimated to hold below 10% volume share of overall residential water treatment equipment market in South East Asia
In terms of value, the UV water purifier equipment segment is estimated to account for more than 20% of overall market. However, in terms of volume, the segment is estimated to hold below 10% of the overall water treatment equipment market volume. The segment is expected to create incremental opportunity of more than US$ 100 Mn over the forecast period. Most of the UV based water purifier equipment segment revenue is expected to be generated from Vietnam and Malaysia. The UV water purifier equipment segment was valued at more than US$ 50 Mn in 2014 and is anticipated to reach a market value of more than US$ 100 Mn by 2026 end. In terms of value, the segment is expected to increase 2.4X between 2016 and 2026.
Rising industrialization and rampant use of pesticides translating into poorer water quality, increasing the growth of the UV water purifier segment
Due to large scale industrialization and rampant use of pesticides, the quality of naturally available water in South East Asia is deteriorating. Various water bodies that provide water for drinking to many thousands of local inhabitants are showing unacceptable levels of potentially toxic substances. These pollutants originate from a variety of sources, including local industries and wastewater disposal. Deteriorating water conditions in the region and lack of confidence on municipality supplied water or absence of the same is creating the need for purification of water, further fueling the demand for UV water purifiers. An increasing population of South East Asia coupled with the government’s inability to provide safe drinking water at the same scale is driving the need for residential water treatment. This factor is creating robust development in the UV water purifier segment. The rising availability of low cost gravity/non electric purifiers based on UF membranes has significantly altered the scenario in the water purification equipment market. With advancement in technology, the cost of gravity water purifiers is expected to further reduce, hence fueling the demand for water purifiers with UV technology.
In order to generate high ROI, companies in Malaysia need to run promotional campaigns to promote UV based water purifiers in the country
The UV water purifier segment in Indonesia was valued at more than US$ 32 Mn in 2015 and is projected to be valued at more than US$ 90 Mn by 2026. Revenue generated from this market is expected to increase at a CAGR of 9.9% over the forecast period. In terms of volume, unit sales of UV purifiers in Indonesia stood at more than 200 thousand units and is projected to reach more than 500 thousand units by 2026. Demand for standalone UV water purifiers has witnessed sluggish growth over the last five years. This is mainly attributed to its inefficiency to purify metallic contaminants. As a result, companies are offering UV based water purifiers in conjugation with RO and gravity based water purifiers. The UV water purifier segment in Malaysia was valued at more than US$ 5 Mn in 2015 and is projected to be valued at more than US$ 10 Mn by 2026. Revenue generated from this market is expected to increase at a CAGR of 6.7% over the forecast period. Sales of standalone UV water purifiers in the country seemed pessimistic over the past 2 years. Sales of these equipment dropped by 1.5% between 2013 and 2015. This is mainly attributed to increased preference for gravity water purifiers over UV based water purifiers. For instance, Philips witnessed slowdown in sales of UV water purifiers during the same period in the country. The UV water purifier segment is expected to create incremental opportunity of more than US$ 5 Mn in Malaysia between 2016 and 2026. In order to generate high ROI, companies need to run promotional campaigns to promote UV based water purifiers in the country.
While researching the South East Asia water treatment market for a new report titled “Residential Water Treatment Equipment Market: South East Asia Industry Analysis and Forecast, 2016 – 2026,” the analysts of Persistence Market Research have discovered that end users of water treatment equipment expect low-cost water purification systems that offer improved purification properties. The analysts have focused on the water treatment equipment market in South East Asia and while targeting geographies, expert analysts have considered the countries such as Indonesia, Malaysia and Philippines that have accounted for approximately half of the South East Asia residential water treatment market share. New products such as multifunctional filters, which allow heating, chilling and icing of water are projected to see wide adoption in mature markets of Malaysia and Singapore. Prominent South East Asian cities such as Indonesia and Vietnam have established a wide distribution and service channel.
Persistence Market Research has considered overall market approach and come to a conclusion that key companies in the water treatment equipment market in South East Asia are concentrating on capacity additions by introducing new product lines or commencing new production facilities. Historical trends, industry growth rate, statistical analysis and improved water source for urban population in South East Asia are some of the forecast factors that are positively affecting the growth of the South East Asia residential water treatment equipment market.
Relative market position on product life cycle and opportunities
The analysts have collected data necessary for this report with inputs from country wise manufacturers through secondary and primary sources and using the benchmarking method. Inputs from government databases pertaining to trade value and volume have also been taken into consideration while studying this market. Data has been validated and regional average profitability margins excluded to arrive at the estimated data collected from distributors. The report estimates approximate annual consumption of end use sectors in target geographies. The bottom-up approach in this industry helps gauge overall demand and market size of various types of residential water treatment equipment. Average annual installed numbers of residential water treatment devices and average selling price of each device in various countries have been included in this report.
The report covers special analysis of product life cycle and opportunities on relative market position. The report includes information on introduction of new products with low maintenance cost and increasing awareness coupled with marketing, through health organizations and micro financing institutions, which provide water purifiers on rental basis.
By Equipment Type
To deduce market size, the report considers the average selling price of various types of residential water treatment equipment across geographies. Furthermore, data points such as regional split and market split by equipment type have been incorporated to arrive at suitable market estimates. The forecast presented in the report evaluates the total revenue that is expected to be generated across the South East Asia residential water treatment equipment market over the forecast period (2016–2026). When developing the market forecast, the starting point involves sizing up the current market, which forms the basis for forecasting how the market is anticipated to take shape during the forecast period. Given the characteristics of the market, data is triangulated on the basis of various analysis based on both supply side and demand side. However, quantifying the market across the aforementioned segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them at the end of the forecast period. It is imperative to note that given the ever-fluctuating nature of the South East Asian economy, Persistence Market Research not only conducts forecasts in terms of CAGR, but also analyzes the market on the basis of key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities in the South East Asia residential water treatment equipment market.
As previously highlighted, the market for residential water treatment equipment is split into various sub-segments or categories on the basis of region and equipment type. All these sub-segments or categories have been analyzed in terms of Basis Point Share (BPS) to understand the individual segments’ relative contribution to market growth. This detailed level of information is important for identification of many key trends governing the South East Asia residential water treatment equipment market. In order to understand key market segments in terms of growth and performance of the South East Asia residential water treatment equipment market, Persistence Market Research has developed a market attractiveness index. The resulting index should help providers identify real market opportunities. In the final section of the report, the South East Asia residential water treatment equipment market competitive landscape is included to provide report audiences with a dashboard view of key market players, based on categories of providers across the value chain, market structure and their presence in the South East Asia residential water treatment equipment portfolio and key differentiators.
Kent RO Systems Limited
Panasonic Corp ADR
Koninklijke Philips N.V.
Mitsubishi Rayon Cleansui Co. Ltd.
P.T. Holland (Nazava)
Mazuma Thailand Co. Ltd