Seawater Desalination Remains Critical to Meet Water Requirements Across the Middle East and North Africa, Finds Frost & Sullivan
It is estimated that the Middle East and
North Africa (MENA) region needs
to add about 2.7 million Cu m/day of desalination capacity every year to meet
the rising water demand in the region. Considering this, the desalination
plant market in the MENA, which experienced spectacular growth in recent
years to emerge the largest market for desalination plants, can be expected
to sustain its impressive growth momentum. In fact, it is likely to gain
investments worth $15.5 billion between 2009 and 2013.
New analysis from Frost & Sullivan, The
Middle East and North Africa (MENA) Desalination Plant Market, finds that the
market earned revenues of $3.79 billion in 2008. Of this, 18.7 percent, that
is $710.0 million, is the revenue for small-capacity plants (capacity less
than 40 MLD) market. In terms of technology, reverse osmosis is likely to
increase its market share.
"More significantly, the growth has not only occurred in the Gulf
Cooperation Council (GCC) countries that have practiced desalination for
long, but also in countries such as Algeria, which has awarded several
contracts for large-scale desalination plants," says Frost & Sullivan Senior
Research Analyst, Vivek Gautam. "Though the current economic environment has
delayed several investment decisions, the long-term drivers of the growth of
desalination remain strong in the region as the gross domestic product (GDP)
of most countries in the MENA region is expected to increase."
The rapidly growing population, fast-improving living standards, and
rising concerns about climate change are likely to sustain the demand for
desalinated water in this region. Besides, the scarcity of fresh water
resources are compelling governments and planning agencies to invest in
enhancing desalination capacities to meet the soaring water demand.
The market has attracted numerous new participants in recent years,
intensifying competition, particularly in the small capacity plant segment.
In such a packed market, the competitive advantage will rest with the plants
that can better manage project risks and the associated costs.
"However, as most of the desalination technologies are relatively mature,
solutions provided by the suppliers tend to be similar, which then makes
competition a price-based one," notes Gautam. "Hence, organizational
capabilities such as value engineering, strategic sourcing of components, and
better management of project risks are becoming increasingly important for
being competitive on the price front."
The Middle East and North Africa (MENA) Desalination Plant Market is part
of the Environmental Growth Partnership Services program, which also includes
research in the following markets: analysis of Middle East (GCC) water and
wastewater treatment equipment market, study on the Indian waste management
services market, and Indian air pollution control equipment market. All
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extensive interviews with market participants.
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