The market for Air Pollution Control (APC) equipment market in Canada is valued at approximately $1.2 billion, with imports from the United States dominating the market with 70% of total imports. Major players in the market include China, Germany, Japan, and the United Kingdom (U.K.), with each one of them accounting for approximately 2% of total imports of APC equipment to Canada.
The top five industries with the highest expenditures ($1.1 billion, combined) on air pollution reduction in Canada are the petroleum and coal manufacturing industry, the oil and gas extraction industry, the electric power industry, the primary metal manufacturing industry, and the paper manufacturing industry, in that order. These industries are concentrated within the economic regions of Alberta, Ontario, Quebec and British Columbia. These are some of Canada’s most important industries, as well as the highest end-users of APC equipment in Canada.
The composition of U.S. imports of APC equipment has only changed slightly over the past decade, with imports of equipment for air pollution abatement and control (end-of-pipe) accounting for over 90% of total U.S. imports of APC equipment. APC equipment used for the purpose of air pollution prevention accounts for only 1% - 4% of total imports of APC from the U.S.
This trend could change over the medium term as industrial air emissions regulations for air pollutants are likely to be implemented over the next few years in Canada. Stringent reduction targets will mean that industries will have to start allocating more investment on APC equipment for the purpose of air pollution prevention. In addition, to maintain stock of APC equipment for the purpose of abatement and control ages, companies will also invest in parts for repairs, and upgrades for this type of equipment.
Overall, there are significant opportunities for U.S. manufacturers and exporters of APC equipment to continue to dominate the Canadian market. U.S. suppliers should be aware of upcoming environmental regulations in Canada which will drive the demand for APC equipment. Keep in mind that these regulations will closely follow U.S.’ Environmental Protection Agency (EPA) regulations.
Increased industrial activity in Canada due to strong economic conditions, as well as an exchange rate close to parity creates an opportunity for U.S manufacturers and exporters of APC equipment. In addition to providing new equipment for an emerging market, U.S. manufacturers and exporters of APC equipment should focus on expanding into the market sub-segment of equipment for air pollution prevention, while continuing to serve the air pollution abatement and control equipment market by focusing on parts, repairs, and upgrades of an aging stock of equipment
By Cheryl SchellCarlos A. Murillo