As Quoted In Energy Global
Gains will reflect healthy growth in the oil, gas, and mining industries, a rebound in manufacturing output, and an
increased need to protect companies’ investments in water treatment equipment.
US demand to rise 3.2% annually through 2017
Demand for water treatment chemicals in the US is forecast to rise 3.2 percent per year to $6.7 billion (15.1 billion
pounds) in 2017. Gains will reflect not only healthy growth in the oil, gas, and mining industries and a rebound in
manufacturing output, but also the increased use of scale control and other water treatment chemical products that help
protect companies’ investments in water treatment equipment. A shift in product mix favoring more efficient and less
hazardous chemicals that have higher prices will also promote growth in market value. Additionally, chemical demand will
be supported by efforts to recycle water, as water treated for reuse usually needs greater conditioning than fresh supply
Energy, mining sectors to be fastest growing markets
The energy and mining markets are projected to show the fastest growth through 2017. In the energy market, the primary
driver will be the rise in oil and gas production from hydraulic fracturing activities, which require large volumes of
water. Industry efforts to reuse water, as well as tighter restrictions on treated wastewater in some states, will
further support growth. In the mining market, an expected increase in mine output and a continued emphasis on wastewater
remediation will support gains in water treatment chemical demand. Manufacturing markets are expected to recover from the
weakness of the 2007-2012 period, when output was hampered by the struggling economy.
Scale, foam control agents to be fastest growing types
Increasing investment in water treatment equipment going forward will generally support greater water treatment
chemical consumption as companies seek to avoid fouling, scale, foam, and corrosion to maximize equipment life and
operating efficiency. Scale control agents are expected to show the fastest growth through 2017, followed by foam control
agents. In addition to the boost from increased use of water treatment equipment, demand for these products will be
supported by a shift to more expensive chemicals and increased water recycling activities. Biocide demand growth,
however, will be restrained by rising use of disinfection equipment.
The larger, more mature categories of water treatment chemicals are expected to show more modest growth, with gains
driven by trends in equipment use, water use and recycling, and changes in product mix. For example, demand for higher
value coagulants and flocculants will be supported by greater use of membrane separation systems and by an increased
emphasis on reducing sludge volumes.
This study analyzes the $5.7 billion US water treatment chemical industry. It presents historical demand data for 2002, 2007 and 2012, and forecasts for 2017 and 2022 by product (e.g., biocides, coagulants and flocculants, corrosion inhibitors, pH control agents, scale control agents, foam control agents), application (e.g., wastewater, cooling water, process water, boiler water) and market (e.g., municipal, manufacturing, energy, mining and mineral processing, electric power generation, commercial and institutional).
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 31 industry competitors such as General Electric, Ecolab and Kemira.