It is estimated that the Middle East andNorth Africa (MENA) region needsto add about 2.7 million Cu m/day of desalination capacity every year to meetthe rising water demand in the region. Considering this, the desalinationplant market in the MENA, which experienced spectacular growth in recentyears to emerge the largest market for desalination plants, can be expectedto sustain its impressive growth momentum. In fact, it is likely to gaininvestments worth $15.5 billion between 2009 and 2013.
New analysis from Frost & Sullivan, TheMiddle East and North Africa (MENA) Desalination Plant Market, finds that themarket earned revenues of $3.79 billion in 2008. Of this, 18.7 percent, thatis $710.0 million, is the revenue for small-capacity plants (capacity lessthan 40 MLD) market. In terms of technology, reverse osmosis is likely toincrease its market share.
"More significantly, the growth has not only occurred in the GulfCooperation Council (GCC) countries that have practiced desalination forlong, but also in countries such as Algeria, which has awarded severalcontracts for large-scale desalination plants," says Frost & Sullivan SeniorResearch Analyst, Vivek Gautam. "Though the current economic environment hasdelayed several investment decisions, the long-term drivers of the growth ofdesalination 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, andrising concerns about climate change are likely to sustain the demand fordesalinated water in this region. Besides, the scarcity of fresh waterresources are compelling governments and planning agencies to invest inenhancing 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 plantsthat 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 makescompetition a price-based one," notes Gautam. "Hence, organizationalcapabilities such as value engineering, strategic sourcing of components, andbetter management of project risks are becoming increasingly important forbeing competitive on the price front."
The Middle East and North Africa (MENA) Desalination Plant Market is partof the Environmental Growth Partnership Services program, which also includesresearch in the following markets: analysis of Middle East (GCC) water andwastewater treatment equipment market, study on the Indian waste managementservices market, and Indian air pollution control equipment market. Allresearch services included in subscriptions provide detailed marketopportunities and industry trends that have been evaluated followingextensive interviews with market participants.