Point of Use Water Purifier (POU) Market in MENA to Witness a CAGR of 7.6% by 2020
Residential water purification system includes point of use water purifiers (POU), point of entry (POE) water purifiers, portable water purifiers. Moreover, the demand for POU water purifiers is high among consumers in MENA region as compared to POE and portable water purifiers.
In the POU water purifiers market, products with high purification capabilities such as combination of reverse osmosis (RO) and Ultraviolet (UV) technologies are more preferred. It has also been observed that a majority of the demand is coming from urban centres in GCC when compared to the entire MENA region.
The POU water purifiers market is segmented on the basis of technology which includes RO, UV and media-based. RO technology based water purifiers segment is estimated to account for slightly over 40% of the total POU water purifiers market in MENA region in 2014. Media-based water purification, which is a conventional water purification technology has also witnessed technological advancements, and is estimated to display a CAGR of 9.3% during the forecast period, in terms of volume. The third technology, UV based water purifiers, is estimated to exhibit a sluggish growth rate during the forecast period due to its limitation in removing only organic contaminants from water. Additionally, UV-based water purifiers are also priced higher in comparison to media-based water purifiers and hence the product preference for UV based water purifiers is comparatively low.
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Region-wise, the Kingdom of Saudi Arabia (KSA), United Arab Emirates (UAE), Turkey, Israel, Egypt and Algeria are the promising markets for POU water purifiers. In addition, a cumulative scenario has been highlighted for rest of MENA (includes smaller countries like Kuwait, Jordan etc.). Among the aforementioned regions, the Kingdom of Saudi Arabia is estimated to be the prominent market for POU water purifiers, followed by Turkey, due to its growing population and rapid urbanization, and increasing awareness for safe drinking water forecast period.
In addition, penetration of bottled water is a challenge for the POU water purifiers market in Anatolia. As a result, Anatolia is estimated to demonstrate a sluggish growth rate in the near future. Furthermore, POU water purifiers market in UAE is anticipated to reach 149.2 thousand units by 2020, exhibiting a CAGR of 10% between 2014 and 2020.
Drivers and Restraints
Deteriorating water quality, rising cost of bottled water, increasing population coupled with increasing per capita income are some of the prominent factors which will catalyse the point of use water purifiers in the region. Though the MENA market is attractive in terms of absolute dollar opportunity, low awareness about safe drinking water and product unavailability are major challenges for the MENA POU water purifier market.
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Key players operating in the MENA water purifier market are LG, Eureka Forbes, Strauss Water, Panasonic, WaterLife and Coolplex. The report sheds light on their key growth strategies and recent developments. In addition, the report also discusses the value chain followed by multinational companies in MENA for POU water purifiers.
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