Research Overview
Privatisation Drastically Alters the Competitive Situation
The increasing trend towards privatisation is significantly altering the
competitive road map of the desalination plants market in Europe, the Middle
East and North Africa (EMEA). Due to this trend, a whole new set of participants
is entering the market, looking to fulfil specific needs. A good case in point
is the strong presence of developers, traditionally not a part of the
desalination market. Developers generally come in the form of financially sound
companies such as CMS Energy, Tractabel and International Power who can secure
and guarantee the all-important funding aspect. On the other hand, existing
participants find themselves taking on new roles. For instance, traditional
equipment suppliers such as Weir Westgarth and IDE Technologies have taken on
the operation and maintenance of the desalination plants in addition to
obtaining the financing when required.
This research from Frost & Sullivan provides a realistic outlook on the
EMEA desalination plants market, which will help participants devise both short-
and long-term business plans. A detailed analysis of the challenges facing the
market and in-depth competitor profiles will enable participants to formulate
strategies as well as assess the competitive environment.
Rising Water Shortages are One of the Biggest Drivers
Water scarcity is increasing in many parts of the world due to increasing
population, drought conditions, and greater per capita water demand. Having a
reliable source of water for the future is now, more than ever, a high priority.
This is perhaps particularly relevant in Southern Europe, the Middle East and
North Africa, where freshwater is scarce and the water situation is often
uncertain.
"Desalination is increasingly being touted as the answer to the world
water crisis in the 21st century. This method of removing salts to produce a
virtually limitless supply of water has become a mainstay of water production in
many parts of EMEA," says Mili Shah, the analyst of this research service.
Growing Desalination Plants Market Offers Many Opportunities
The desalination plants market in EMEA is growing and holds significant
prospects both for existing participants and new entrants. Although desalination
was previously regarded as a prohibitively expensive solution, a dramatic cost
reduction has led potential customers to view it more favourably.
"Given a compound annual growth rate (CAGR) of 9.6 per cent from 2003 to
2010, the opportunities for growth within this market are substantial. This is
illustrated further by the increase in revenues from $1.32 billion in 2003 to
$2.50 billion in 2010," explains Mili Shah. After a slow year in 2003
mainly due to the war in Iraq, many plants are now expected to come online in
2004, thereby boosting market revenues by almost 50 per cent in this year.
Table Of Contents
1. Executive Summary
- 1. Introduction
- 1. Overview
- 2. Content
- 3. Identification of Challenges
- a. Environmental Opposition Hinders Market Development
- b. Initial High Investment Frightens Customers
- c. Growth in Build-Own-Operate-Transfer (BOOT) Offers a Competitive
Advantage
- 2. Key Findings
- 1. Main Drivers and Restraints
- 2. Trends by Technology
- 3. Analysis by Geographic Region
- 4. Competitive Environment
- 5. Conclusions
2. Industry Challenges
- 1. Key Challenges Facing the EMEA Desalination Plants Market
- 1. Top 12 Industry Challenges
- 2. Analysis and Impact of Challenges
- 1. Environmental Opposition Hinders Market Development
- 2. Initial High Investment Frightens Customers
- 3. Growth in Build-Own-Operate-Transfer Offers a Competitive Advantage
- 4. Hybrid Systems Provide Flexibility in Plant Design
- 5. Privatisation is Altering the Competitive Situation
- 6. High Cost of Desalination Favours Alternative Water Supply Options
- 7. Current Cost Focus May Not be Sustainable
- 8. Tampa Bay Plant Problems Give Reverse Osmosis a Bad Name
- 9. Vendor Loyalty Acts as an Entry Barrier to New Participants
- 10.Sporadic Orders Create Fixed Cost Nightmare
- 11.Lack of Coherent Standards Leads to Disorganised Governing of
Desalination
- Industry
- 12. Focus on Price Restrains Technological Development
3. Market Drivers and Restraints
- 1. Forcefield Analysis
- 1. Key Market Forces
- 2. Market Drivers and Restraints
- 1. Market Drivers
- a. Water Shortages
- b. Saltwater Intrusion into Underground Aquifers
- c. Reduced Plant Prices
- d. Private Finance
- e. Population Growth in the Middle East & North Africa (MENA)
- f. Industrial Expansion
- g. Growing Tourist Industries
- h. Fear of Future Water Shortages
- i. Refurbish and Replace Contracts
- j. Unacceptable Alternative Water Supply Options
- 2. Market Restraints
- a. High Capital Investment
- b. Political Instability
- c. Environmental Opposition
- d. High Energy Requirements
- e. Increased Rates of Water Reuse and Recycling
4. Total Market Opportunity Analysis
- 1. The Total Desalination Plants Market
- 1. Market Overview
- 2. Definitions and Content
- 3. Market Engineering Measurements
- 4. Market Forecasts
- 5. Market Trends
- 6. Pricing Trends
- 7. Trends by End-user
- 8. Trends by Technology
- 9. Trends by Feed Water Quality
- 10. Trends by Geographic Regions
- 11. Industry Structure
- 12. Competitive Analysis
- 13. Market Share Analysis
- 2. The Multistage Flash Market
- 1. Market Overview and Definitions
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Pricing Trends
- 5. Trends by End-user
- 6. Trends by Feed Water Quality
- 7. Trends by Geographic Region
- 8. Competitive Analysis
- 9. Market Share Analysis
- 3. The Multi-effect Distillation Market
- 1. Market Overview and Definitions
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Pricing Trends
- 5. Trends by End-user
- 6. Trends by Feed Water Quality
- 7. Trends by Geographic Region
- 8. Competitive Analysis
- 9. Market Share Analysis
- 4. The Membrane Market
- 1. Market Overview and Definitions
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Pricing Trends
- 5. Trends by End-user
- 6. Trends by Feed Water Quality
- 7. Trends by Geographic Region
- 8. Competitive Analysis
- 9. Market Share Analysis
5. Strategic Analysis of the Saudi Arabian Market
- 1. The Total Saudi Desalination Plants Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers and Restraints
- a. Market Drivers
- i. Limited Ground Water Resources
- ii. Population Growth
- iii.Privatisation
- iv. Industrial Expansion
- v. Refurbish and Replace Contracts
- vi. High Oil Prices
- b. Market Restraints
- i. Political Unrest
- ii. Increasing Interest in Desalination Alternatives
- 4. Market Forecasts
- 5. Trends by End-user
- 6. Trends by Technology
- 7. Trends by Feed Water Quality
- 8. Competitive Analysis
- 9. Market Share Analysis
- 2. The Saudi Multistage Flash Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 3. The Saudi Multi-Effect Distillation Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 4. The Saudi Membrane Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
6. Strategic Analysis of the Gulf States Markets
- 1. The Total Gulf Desalination Plants Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers and Restraints
- a. Market Drivers
- i. Water Shortages
- ii. Population Growth
- iii. Privatisation
- iv. Increasing Hi-tech Industrial Activity
- v. Growth in Tourism
- vi. Advanced Market Age
- b. Market Restraints
- i. Political Turmoil
- ii. Increased Rates of Water Reuse and Recycling
- iii. High Oil Price
- 4. Market Forecasts
- 5. Trends by End-user
- 6. Trends by Technology
- 7. Trends by Feed Water Quality
- 8. Competitive Analysis
- 9. Market Share Analysis
- 2. The Gulf Multistage Flash Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 3. The Gulf Multi-Effect Distillation Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 4. The Gulf Membrane Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
7. Strategic Analysis of the Rest of the Middle East Markets
- 1. The Total Desalination Plants Market in the Rest of the Middle East
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers and Restraints
- a. Market Drivers
- i. Water Shortages
- ii. Population Growth
- iii. Fear of Future droughts
- b. Market Restraints
- i. Political Turmoil
- ii. High Investment Costs
- iii. Politics Acts As Market Entry Barrier
- 4. Market Forecasts
- 5. Trends by End-user
- 6. Trends by Technology
- 7. Trends by Feed Water Quality
- 8. Competitive Analysis
- 9. Market Share Analysis
- 2. The Multi-Effect Distillation Market in the Rest of the Middle East
Markets
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 3. The Membrane Market in the Rest of the Middle East Markets
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
8. Strategic Analysis of the Northern African Markets
1. The Total North African Desalination Plants Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers and Restraints
- a. Market Drivers
- i. Water Scarcity
- ii.Drought Conditions
- iii.Private Finance
- iv.Growth in Tourism
- v. Potential in Undeveloped Markets
- b. Market Restraints
- i. Political Instability
- ii.Lack of Financing
- 4. Market Forecasts
- 5. Trends by End-user
- 6. Trends by Technology
- 7. Trends by Feed Water Quality
- 8. Competitive Analysis
- 9. Market Share Analysis
- 2. The North African Multistage Flash Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 3. The North African Multi-Effect Distillation Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 4. The North African Membrane Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
9. Strategic Analysis of the Southern European Markets
1. The Total Southern European Desalination Plants Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers and Restraints
- a. Market Drivers
- i. Water Scarcity
- ii.Government Policy in Spain
- iii.Increasing Use of Desalinated Water in Agriculture
- iv.Growing Tourism Industry
- v.Large Number of Islands
- b. Market Restraints
- i. Relative High Cost of Desalination
- ii. Expectations of Future Price Decreases
- iii.Stable Populations
- 4. Market Forecasts
- 5. Trends by End-user
- 6. Trends by Technology
- 7. Trends by Feed Water Quality
- 8. Competitive Analysis
- 9. Market Share Analysis
- 2. The Southern European Multistage Flash Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 3. The Southern European Multi-Effect Distillation Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 4. The Southern European Membrane Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
10. Strategic Analysis of the Northern European Markets
1. The Total Northern European Desalination Plants Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Drivers and Restraints
- a. Market Drivers
- i. Increasing Demand for Water
- ii.Climate Changes
- iii.Expected Increase in New Homes
- iv.Expansion of Cruise Ship Industry
- v.Alternative Options Deemed to be Unacceptable
- b. Market Restraints
- i. Relative High Cost of Desalination
- ii. Environmental Opposition
- iii.Increased Rates of Water Reuse
- iv.Stable Populations
- 4. Market Forecasts
- 5. Trends by End-user
- 6. Trends by Technology
- 7. Trends by Feed Water Quality
- 8. Competitive Analysis
- 9. Market Share Analysis
- 2. The Northern European Multi-Effect Distillation Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
- 3. The Northern European Membrane Market
- 1. Market Overview
- 2. Market Engineering Measurements
- 3. Market Forecasts
- 4. Competitive Analysis
- 5. Market Share Analysis
11. Market Engineering Awards
1. Award Category: Market Leadership
- 1. Award Definition
- 2. Award Recipient: Doosan Heavy Industries & Construction
- 2. Award Category: Product Leadership
- 1. Award Definition
- 2. Award Recipient: Sidem
- 3. Award Category: Market Penetration Leadership
- 1. Award Definition
- 2. Award Recipient: Degrémont