This sub sector market research report analyzes the market for equipment and services for the treatment of potable water and its distribution for human consumption. The total market is expected to grow by approximately 6% from 2011 to 2012. This market has become more competitive, especially due to efforts made by companies from France, Great Britain, Spain, Canada and others.
The total market in 2011 for potable water equipment and services is expected to reach US$1,615.1 million. It is expected that the total market will increase to US$1,712.0 million by the end of 2012. The federal, state and municipal water utilities demand 80% of the equipment and services from contractors for turnkey water projects, whereas 20% will be purchased by representatives and distributors of imported equipment to participate in local or international tenders published by municipal water utilities, the National Water Commission (CONAGUA) as well as companies that treat and bottle drinking water.
CONAGUA (Comision Nacional del Agua), part of the Secretariat for the Environment and Natural Resources (SEMARNAT) is the federal agency responsible for the maintenance of the potable and municipal wastewater infrastructure (including the distribution of potable water) in the country and is also responsible for the setting of environmental standards (Normas Oficiales Mexicanas-NOMs) related to the treatment of potable water for human consumption.
At the end of 2010, CONAGUA indicated that there were a total of 2,400 municipal water utilities, a total of 713 potable water treatment plants (631 were in operation), 16,500 city storage underground tanks, and a total of 165,000 kilometers of pipelines to distribute potable water to urban and rural areas. CONAGUA estimates that at the end of 2010 only 90% of a total population of 108 million had access to running potable water and that only 96% of the potable water treated was disinfected to be used for drinking purposes (meeting the drinking water standard NOM-127-SSA set by the Health Department).
Because of the demand for drinking water CONAGUA reports that now Mexico has over 2,000 private companies that treat and bottle drinking water that is distributed at grocery stores, gas stations, and at homes, etc.
The figures in Table 3 show that the total market size for potable water equipment and services will increase from US$1,555.2 million in 2010 to US$1,615.1 million by the end of 2011. According to CONAGUA officials, 80% of the total demand is from contractors to participate in local and international tenders at the federal, state and local government levels and 20% from representatives/distributors of imported equipment to supply the contractors and to companies that are involved in the treatment and bottling of drinking water.
Total imports of potable water equipment and services will grow at an average of 5% annually from 2011 to 2012. The growth is higher compared to 2010 to 2011, which reached 4%.
The following are some of the projects that offer good opportunities for potable water equipment:
Mexico City: - During 2011-2012 city water authorities will publish domestic and international tenders for the rehabilitation of 10 potable water treatment plants, rehabilitation of 20 kilometers of water pipelines, and the installation of water meters in various areas of the metropolitan area. The estimated budget for the project is US$120 million.
State of Mexico: - During 2011–2012 the municipal water utilities of Toluca, Naucalpan, Valle de Bravo, Metepec, and others will publish domestic and international tenders to upgrade existing potable treatment plants, pumping plants, and rehabilitation of 500 kilometers of potable water pipelines, etc. The estimated budget is US$70 million.
State of Puebla: - During 2011–2012 the municipal water utilities of Puebla, San Martin Texmelucan, Cuetzalan, Rio Frio, and others will publish domestic and international tenders to upgrade existing potable treatment plants, pumping plants, and rehabilitation of 150 kilometers of potable water pipelines, etc. The estimated budget is US$60 million.
State of Morelos: - During 2011–2012 the municipal water utilities of Cuernavaca, Cuautla, Tres Marias, and others will publish domestic and international tenders to upgrade existing potable treatment plants, pumping plants, and rehabilitation of 150 kilometers of potable water pipelines, etc. The estimated budget is US$30 million.
State of Queretaro: - During 2011–2012 the municipal water utilities of San Juan del Rio, City of Queretaro, Ezequiel Montes, Tequisquiapan, and others will publish domestic and international tenders to upgrade existing potable treatment plants, pumping plants, and rehabilitation of 50 kilometers of potable water pipelines, etc. The estimated budget is US$8 million.
Services: - Feasibility studies for the rehabilitation of 16 potable water treatment plants in Mexico City, 12 in the State of Baja California, 5 in the State of Mexico, 5 in the State of Nuevo Leon, 5 in the State of Coahuila, 10 in the State of Tamaulipas, etc.
Mexico has over 2,000 private companies that treat and bottle drinking water and are major end users of equipment and services, some of them are: Pepsico, Danone, Coca-Cola, Nestle, Kraft, etc. According to service contractors that serve this market, over 500 companies in this sector will invest during 2011 and 2012 over US$ 30 million in the maintenance and operation of their existing capacity.
Equipment Best Prospects:
Hydraulic turbines and water wheels, parts, including regulators for hydraulic turbines and water wheels, hydraulic fluid power pumps, rotary positive displacement gear type, rotary positive displacement pumps, submersible centrifugal pumps, turbine pumps, vacuum pumps, solar water heathers, water filtering or purifying machinery and apparatus, refrigerated or purifying machinery and apparatus, hydraulic fluid power filters, other filter and purifying machinery for liquids, electrostatic precipitators, ultrasonic cleaning devises, pressure-reducing valves, hydraulic valves flow control type, pneumatic valves, copper check valves, safety or relief valves, gate type taps, cocks and valves, butterfly type taps, regulator valves, control valves, flow meters for measuring or checking the flow or level of liquids, instruments and apparatus for measuring or checking pressure, liquid chromatographs, exposure meters, photometers, instruments and apparatus for measuring/checking viscosity, liquid meters, etc.