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Impact of Covid-19 on Industrial Water Service Market
Industrial Water Service Market: IntroductionA recent study published by Transparency Market Research on the industrial water service market includes global Industry analysis and opportunity assessment for 2021-2031. Revenue generated from the industrial water service market in the U.S. was valued at US$ 69.25 Bn in 2021, which is estimated to rise at a CAGR of 5.1% to reach US$ 114.41 Bn by 2031.
Increase in Awareness about Water Preservation Requires Sustainable Water Services
With the rising industrialization, there is a huge demand for water services that can effectively make water reusable for various products and services offered by industries. Moreover, stringent environmental regulations for preventing water pollution and encouraging water reusability imposed by governments across various regions demand that such products and services can sustainably conserve water, making them less harmful for the environment. These services produce such water, which is generally clear, odorless, and well-suited for flushing toilets for water art and for irrigation.
• In India, the Ministry of Water Resources and the Ministry of Environment and Forest have passed laws such as guidelines for repair, renovation, and restoration of water bodies with external assistance and domestic support for the conservation and reusability of water. These policies are helping shape the industrial water service market.
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High Demand for Water Management Systems across Various Industries
Industrial development across the globe due to rising demand for products and services is enhancing the effectiveness of water management systems. These systems are widely accepted and utilized across prominent industries such as oil & gas, food & beverages, pharmaceuticals, etc. These systems determine the amount of water that can be used and reused in various industrial applications. The need for these industries to operate uninterruptedly has increased the demand for such efficient water management systems.
• For instance, in a developing nation such as India, according to the Ministry of Water Resources, the industrial sector accounted for approximately 6% of the total freshwater abstraction at the beginning of this Century, and the Central Pollution Control Board (CPCB) reported that the figure may be up to 8%. Another estimate from the World Bank states that the present industrial water use in India is about 13% of the total freshwater withdrawal in the country and the water demand for industrial uses will grow at a rate of 4.2% per year, rising from 67 Bn cubic meters in 1999 to 228 Bn cubic meters by 2025. Such volumes needs to be properly managed for effective utilization.
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Need for Operational Efficiency Shaping Industrial Water Service Market
Operational efficiency is one of the potent requirements that governs the smooth functioning and cost cutting for various end-use industries. These industries are now focusing on services that comply with the regulatory standards and can also remain in line with the organization’s efficiency. If it deviates the utilities, the world will have to face cost of capital and provision services with limited ability to pass the cost further to consumers. Water companies in many parts of the world are now following in the footsteps of various end-use industries, providing their services according to the need of the industries.
• For instance, while drilling for oil & gas, high volume of water is used and is obtained while production. These industries are in need for personalized solutions, which also lies in line with the overall efficiency of the project.
Challenges for Industrial Water Service Providers
Stringent regulations, deficient tendering slows down market growth: Water supply and sanitation infrastructure are majorly held by public/government authorities in majority of countries. The governments in these countries generally function through releasing tenders for companies, which are either state-owned and follow government guidelines or are privately owned but have to follow government guidelines in order to run the business smoothly.
• Tendering process is implemented by a variety of different ministries and levels of government through different policies, laws, and decrees, which sometimes might be overlapping or leave gaps, making it quite difficult to identify who is really responsible for any of the given aspect of water management. Moreover, governments in these nations have implied certain set of regulations that are often found favoring local companies, making it difficult for foreign players to enter.
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