Water Recycling Equipment Industry

An Expert's View about Environmental Technologies in Mexico

Posted on: 30 Sep 2012

Summary
This sub sector market research report analyzes the market for water recycling equipment used to recycle industrial wastewater, municipal wastewater, and urban gray water in Mexico. The total market is expected to grow by approximately 5% from 2012 to 2015. This market has become more competitive, especially due to efforts made by companies from France, Great Britain, Japan, Canada and others.
The total market in 2011 for water recycling equipment was US$ 556.8 million. It is expected that the total market will increase to US$583.7 million by the end of 2012. The private sector demands 70% of the equipment and the public sector 30%.

Market Demand
Mexico has 32 states, a total of 2,400 municipalities (including 16 districts of Mexico City). There are a total of 199,369 localities in the county; 178 have 50,000 or more inhabitants; 2,863 with 2,500 to 49,999 inhabitants; and 196,328 with less than 2,500 inhabitants. At the end of July 2012, 89.2% of the total population (113 million) had access to running water in their homes and 76.2% had sewage systems. Of the total availability of water in Mexico, 77% is used by the agricultural sector, 9% by the industrial and services sector, and 14% is for the consumption of the population.
At the end of 2011, of the total wastewater collected in municipal and industrial wastewater treatment plants, only 10% was recycled for reuse and 36% received some type of treatment.
The National Water Commission (Comision Nacional del Agua-CONAGUA), 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 in the country and is also responsible for the setting of environmental standards (Normas Oficiales Mexicanas-NOMs) related to the treatment, recycling and final disposition of municipal and industrial wastewater.
According to CONAGUA, as of July 2012, only 10 percent of the industrial wastewater treated is recycled back to be used in the manufacturing processes or cooling towers by industries as well as for irrigation of the green areas of their facilities. CONAGUA officials advise that the most important water polluting industries that should be targeted by U.S. manufacturers of recycling equipment for industrial wastewater equipment are: sugar, beverage and alcohol, petroleum, petrochemical, food processing, chemical, iron and steel, pulp and paper, mining and textiles.
Mexico has over 436,000 manufacturing companies nationally in various industrial sectors that use surface water and groundwater for their manufacturing processes that are potential clients of recycling equipment and services to reduce the consumption of potable water. Over 97 percent of the manufacturing companies are considered micro, small and mid-sized companies located in major cities such as Mexico City and its Metropolitan Area, Toluca, Guadalajara, Veracruz, Puebla, Queretaro, Celaya, Leon, Villahermosa, Cuernavaca, Tijuana, Reynosa, Ensenada, and Morelia. The other three percent are companies located in Mexico’s major industrial cities (Monterrey, Guadalajara, Tijuana, Puebla, etc.)
Mexico also has over 5,045 in-bond manufacturing companies that consume large amounts of potable water for their manufacturing processes and lack the wastewater recycling equipment for reuse. Seventy percent are considered large (more than 250 employees) located in the states of Baja California, Nuevo Leon, Chihuahua, Coahuila, Tamaulipas, State of Mexico, Jalisco, Guanajato, Puebla, Queretaro, D.F., San Luis Potosi, Aguascalientes, Yucatan, Durango and Veracruz.

Market Data
The figures in Table 4 below show that the total market size for water recycling equipment will increase from US$556.8 million in 2011 to US$583.7 million by the end of 2012. According to CONAGUA officials, 70% of the total demand is from the industrial sector; 20% by municipalities; 5% by the residential sector (collection and treatment of gray water); and 5% by the tourist industry (gray water in hotels, golf clubs, and other attractions).
Total imports of water recycling equipment are estimated to grow at an average of 5% annually from 2012 to 2015. The growth is higher than 2011, which reached 4%.

Best Prospects
According to CONAGUA and State Water authorities, the best prospects for the municipal sub-sector include the following States:
-Aguascalientes, www.aguascalientes.gob.mx: the state water authorities estimate an investment of over US$90 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Chihuahua, www.chihuahua.gob.mx: the state water authorities estimate an investment of over US$60 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Durango, www.durango.gob.mx: the state water authorities estimate an investment of over US$50 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Jalisco, www.jalisco.gob.mx: the state water authorities estimate an investment of over US$50 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- State of Mexico, www.edomex.gob.mx: the state water authorities estimate an investment of over US$70 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Queretaro, www.queretaro.gob.mx: the state water authorities estimate an investment of over US$60 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Sonora, www.sonora.gob.mx: the state water authorities estimate an investment of over US$30 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Tabasco, www.tabasco.gob.mx: the state water authorities estimate an investment of over US$30 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
- Veracruz, www.veracruz.gob.mx: the state water authorities estimate an investment of over US$50 million to purchase wastewater recycling equipment to be used by its existing plants during 2013-2015;
Best Prospects for the industrial sub-sector:
The industrial water recycling equipment market presents very good opportunities for U.S. suppliers. According to CONAGUA officials the industries that would benefit by implementing programs to substitute the use of potable for recycled water generated by their own manufacturing process are: Sugar; Beverage and alcohol; Petroleum and petrochemical; Food processing; Chemical and pharmaceutical; Iron and steel; Pulp and paper; Textile; Electronics and Mining, including the in-bond manufacturing industries.
• Food, beverage and tobacco: The companies in this sub-sector will invest over US$ 20 million during 2013 to 2015 in new equipment to recycle for reuse in their manufacturing processes and meet industrial wastewater discharge standards.
• Textile, dress and leather: The companies in this sub-sector will invest over US$ 10 million during 2013 to 2015 in new equipment recycle for reuse and to meet the industrial wastewater discharge standards.
• Paper, print and publishing: The companies in this sub-sector will invest over US$ 10 million during 2013 to 2015 in new equipment to recycle for reuse and to meet the industrial wastewater discharge standards.
• Chemical, oils, coal, rubber and plastics: The companies in this sub-sector will invest over US$ 20 million during 2013 to 2015 in new equipment to recycle for reuse and to meet the industrial wastewater discharge standards.
The water recycling equipment and products that offer the greater opportunities during the next five years to U.S. companies in the municipal, industrial, and urban for gray water markets are:
-activated carbon filtration media; actuator valves; adapters; agitators air reverse valves; ait tanks; algae control chemicals; augers; autoclaves; backwater valves; bacteria; bailers; ball valves; bar screen rakes; biological toxicity screening; blowers; check valves; chemical feed/chlorinators; chlorine monitor/controllers; cleaners for grease and oil; coliform testing; compressors; control panels; diaphragm pumps; diffusers; filters; flocculants; flow switches; pumps; sludge de-odor concentrate; water test kits; ultraviolet water purifiers; etc.

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Posted: 30 September 2012

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