Water and Wastewater Equipment Services

An Expert's View about Collection and Treatment of Hazardous Waste in Mexico

Last updated: 25 Sep 2011

  This sub sector market research report analyzes the market for equipment and services for the treatment of potable, municipal and industrial wastewater, water recycling, and water desalination sector. The total market is expected to grow by approximately 5% from 2011 to 2012. 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 2010 for potable water, municipal, and industrial wastewater treatment, water recycling, and water desalination equipment and services was US$3,820 million. It is expected that the total market will increase to US$3,968.2 million by the end of 2011. The federal, state and municipal water authorities demand 80% of the equipment and services whereas 20% will be purchased by manufacturing and services companies in the private sector. 

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 2010, 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, 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 2010, of the total wastewater collected in municipal and industrial wastewater treatment plants, only 36% received some type of treatment and only 10% was for reuse. 

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, the most important water polluting industries that should be targeted by U.S. manufacturers of industrial wastewater equipment and services providers are: sugar, beverage and alcohol, petroleum, petrochemical, food processing, chemical, iron and steel, pulp and paper, mining and textiles. 

Mexico has over 400,000 manufacturing companies in the country in various industrial sectors that use surface water and groundwater for their manufacturing processes that are potential clients of equipment and services to reduce their industrial wastewater discharges. Over 97 percent of the total number 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.)

According to CONAGUA officials and environmental consultants, during the last 10 years Mexico has been more active in promoting and encouraging developers of tourist resorts in Mexican states on the Pacific Ocean and the Gulf of Mexico to increase the use of desalination plants. CONAGUA has also invested along with the State of Baja California Sur in one of the biggest desalination plants in the country, is located in Cabo San Lucas Municipality.

Market Data 
The figures in Table 6 show that the total market size for water and wastewater equipment and services will increase from US$ 3,820.0 million in 2010 to US$3,968.2 million by the end of 2011. According to CONAGUA officials, 80% of the total demand is from the federal, state and local governments and 20 % from the manufacturing and services sector. 

Total imports of water and wastewater equipment and services will grow at an average of 5% annually from 2011 to 2012. The growth is higher compared to 2010, which reached 4% .

Best Prospects 
Best prospects for the municipal sub-sector include the following: 

Mexico City: 
- During 2011-2012 the city water authorities and CONAGUA will publish domestic and international tenders for the rehabilitation of the municipal treatment plants for Coyoacan, Iztacalco, Col. Campestre, etc. The estimated budget is US$45 million. 

- During 2011–2012 the city authorities and the National Water Commission will publish domestic and international tenders to increase the capacity of the Cutzamala Water System to pump more water into Mexico City. The project includes the construction of four new pumping stations, a new potable water plant, etc. The estimated budget is US$120 million.

State of Puebla: 
- CONAGUA authorities plans to rehabilitate municipal wastewater treatment plants for Cholula, Cuetzalan, and the city of Puebla, tenders are to be published during last quarter of 2011 and in 2012. The estimated budget is US$60 million. 

State of Mexico: 
- Environmental and CONAGUA officials from the State of Mexico plan to invite during 2011 and 2012 companies to bid on the rehabilitate the municipal wastewater treatment plants in Metepec, Naucalpan, Tlalnepantla, Ecatepec, Toluca, etc. Estimated budget is US$60 million. 

State of Tabasco: 
-CONAUGUA and Environmental State authorities for the State of Tabasco plan to invite during 2011 and 2012 companies to bid on the rehabilitation of municipal wastewater treatment plants for the cities of Villahermosa, Macuspana, Comalcalco, etc. Estimated budget is US$55 million. 

- Feasibility studies for the rehabilitation of municipal wastewater treatment plants in the State of Chiapas, Tabasco, Veracruz, Mexico City, Puebla, State of Mexico, Colima, Tamaulipas, Tlaxcala, etc. 

Best Prospects for the industrial sub-sector: 
The industrial wastewater treatment equipment and services market presents very good opportunities for U.S. suppliers. Companies should be aware that any technology above or equal to advanced primary treatment should comply with Mexican discharge standards. In the more sophisticated markets, such as export-oriented companies and multinationals, zero discharge technologies are well accepted. 

The wastewater processes and products most used by manufacturing firms in Mexico are extended aeration, activated sludge and trickling filters, instruments, appliances and machines, gears, ball bearings, water filters, centrifuges for filtering or purifying water, pumps, instruments and apparatus for measuring or checking pressure, flow meters, manometers, pipe, etc. 

Best Prospects for the services sub-sector: 
According to tourist developers, during the next four years at least 100 new wastewater treatment plants, as well as desalination plants, will be build by existing and new tourist resorts in the Mexican States of Baja California Sur, Sonora, Sinaloa, Colima, Jalisco, Nayarit, Guerrero, Oaxaca, Quintana Roo and Yucatan.

Key Suppliers 
Local manufacturers are present in almost all equipment categories, as well as the distributors of water and wastewater treatment equipment. The below-mentioned companies are potential partners for U.S. firms and are some of the most important importers and distributors in the Mexican market: 

Aqua Mex; Agua Sitemas, S.A. de C.V.; Bio Agua, S.A. de C.V.; Disenos Hidrologicos y Tecnologia Ambiental; Equipos para el Tratamiento de Agua; Quimica Ecotec; Tecnologia Ecologica Aplicada; Tecnologia en Sistemas Ambientales; Equipos y Suministros Industriales; Servicios de Ingenieria y Control Ambiental; Ingenieria y Sistemas de Agua; ECO Ingenieria; Proteccion Ambiental del Medio Ambiente; ICA; Grupo Mexicano de Desarrollo; Constructora DOMOS; PRO-AGUA; FYPASA Construcciones; Control Ambiental y Mantenimiento; Servicios y Abastecimeitnos Industriales; Servicios Ecologicos Especializados; Corporacion Hidro Industrial; and Tecnologia Industrial; and Water and Wastewater Systems Lawsco, S.A. de C.V.

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Posted: 24 September 2011, last updated 25 September 2011

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