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China Membrane Bioreactor (mbr) Market Outlook- Ambitious Water Reuse Targets Boosting Membrane Industry


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This presentation offers information on the China membrane bioreactor market outlook and the ambitious water reuse targets boosting
membrane industry.

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China Membrane Bioreactor (mbr) Market Outlook- Ambitious Water Reuse Targets Boosting Membrane Industry

  1. 1. China Membrane Bioreactor (MBR) Market Outlook - Ambitious Water Reuse Targets Boosting Membrane Industry Jennie Peng, Consulting Analyst Environment & Building Technologies August 31st 2011
  2. 2. Today’s Presenter: Jennie Peng Jennie Peng is Consulting Analyst with Frost & Sullivan GIC group specialised in Environmental practice. She mainly focuses on monitoring and analyzing emerging trends, technologies and market behavior in the water and wastewater management, waste management, new energy, air pollution control, and environmental health and safety industries in China. What she brings to the Team Highly fluent verbal and literal capability in both English and Chinese Varied experience across industry segments and solid experience in environmental industry Sound understanding of functions such as production, sales & marketing, and project managements Ability to understand client requirements and deliver solutions Industry experience Extensive expertise in environmental industry. Worked with several leading firms: such as Dow, GE, Siemens, Befesa, Severn Trent Services, etc. Consulting and research projects including China Water and Wastewater Treatment Market, ChinaJennie Peng Membrane Bioreactor Market, China Desalination Market, Opportunities in Mega Cities WaterConsulting Analyst Infrastructure Development, China Sludge Treatment and Disposal Market, etc.Frost & Sullivan • Prior to joining Frost & Sullivan, she was working as a Marketing Engineer for Hyflux Ltd inBeijing, China Singapore, where she was involved in several market research projects. Jennie also has experience with the same company working as a Global Sales Coordinator, as well as a Membrane Product Branding Specialist. Education MSc. Environmental Science & Engineering, Stanford University (US) and Nanyang Technological University (NTU) under Singapore Stanford Partnership program, Singapore B.Eng. in Environmental Engineering, Zhejiang University, Hangzhou, China 2
  3. 3. Today’s Agenda Overview of China water industry Government strategies and plans Key market forcesChina MBR MarketOutlook: $1 Billion Market forecast and perspectivesIndustry by 2017 Technology Analysis Key end-user analysis Mega trends and Industry convergence implications 3
  4. 4. Overview of China Water Industry Per capita water usage (China), 2010 Water Distribution (China), 2010 Seven regions Municipalities Most water- unstinted 1200.0 provinceWater usage per capita 1000.0 800.0 Heilongjiang (m3/year) 600.0 500 m3/yr extreme scarce level by UN Jilin 400.0 Xinjiang Inner MongoliaBeijingLiaoning 200.0 Tianjin Hebei Ningxia Shanxi 0.0 Qinghai Shandong Shaanxi Henan Jiangsu Tibet Sichuan HubeiAnhui Shanghai 250 Municipal Industrial Chongqing Jiangxi Zhejiang Hunan Volume (million m3/day) 200 Guizhou Fujian Yunnan Guangxi Guangdong Taiwan 150 100 Total Water Distribution (Billion tons) Hainan ≥396.5 317.4-396.5 159.2-317.4 ≤159.2 50 0 Only 8.5% reuse rate Total Wastewater Treated Wastewater Reused Wastewater in 2010 Generation Source: Year Book of China Statistics 2010, Ministry of Water Resources 4
  5. 5. Government Strategies and Plans 2010 Plans on Increasing Wastewater Reclamation and Reuse 2015 Overall Municipal Wastewater Reuse and Recycling Rate Wastewater Reclamation Rate for Northern Cities Water Consumption per 10,000 RMB Industrial Value-added Plan of Investment for Wastewater Reclamation and Reuse (China), 2011-2015 Central Government Budget Local Funds, Government $0.37 Bn Budget Fund, Private $0.74 Bn Investment, $2.56 Bn Source: 12th five year plan, Frost & Sullivan 5
  6. 6. MBR Market Evolution in China MBR Market: Historical Installation Capacities (China), 2005-2009 Ratio of Municipal Industrial Ratio of Municipal Industrial Industrial Municipal 900.0Year (‘000 (‘000 Installatio Installation Installation Capacity (‘000 m3/day) m3/day) m3/day) n 800.0 Capacity Capacity 700.02005 190.0 75.0 71.7% 28.3% 600.0 500.02006 189.9 81.4 70.0% 30.0% 400.0 300.02007 200.0 88.6 69.3% 30.7% 200.0 100.02008 519.2 23.5 95.7% 4.3% 0.0 2005 2006 2007 2008 20092009 700.2 142.7 83.1% 16.9% Year Source: Frost & Sullivan Note: All figures are rounded; the base year is 2010. 6
  7. 7. Key Market Challenges MBR Market: Impact of Top Six Industry Challenges (China), 2011-2017 Challenges 1-2 Years 3-4 Years 5-6 YearsRobustness of membrane material and challenge of fouling. High High HighLack of awareness among end-users of the tangible benefits High High Mediumof MBR systemsRelatively low tariff for reclaimed wastewater High High MediumHigh market concentration High High-Medium MediumLack of specific governmental subsidies to compensate the High High-Medium Mediumproduction of reclaimed water for self-supplying applications Source: Frost & Sullivan 7
  8. 8. Revenue Forecast and Perspectives MBR Market Revenue and Installation Capacity Market Revenue Share by Sectors (China), 2010 Forecast (China), 2011-2017 1,600 12000 1,400 1,350.8 10000 25% Installation Capacity (‘1000 m3/day) 9697 1,200 Municipal 75% IndustrialRevenue ($ million) 8000 1,000 877.6 800 6000 5019 Market Revenue Share by Membrane Types 600 (China), 2010 4000 400 6% 228.1 2000 200 Hollow fiber 59.2 1006 Flatsheet 289 94% 0 0 2007 2010 2015 2017 Year Revenue Installation Capacity (000 m3/day) Source: Frost & Sullivan 8
  9. 9. Technology Analysis China MBR Market: Target of Pollutants Reduction for 12th five year plan (China), 2011-2015 Existing plant meeting Level II discharging standard to upgrade to meet Level I Grade B Standard WWTP Upgrading & Nutrient Part of the existing plants need to be upgraded to meet Level I Grade A Standard Removal Targets 60% of the municipal wastewater treatment plants are to add denitrification and dephosphorous functions China MBR Market: Influence of 12th five year plan on treatment effectiveness for different wastewater reclamation technologies Add Add MBR Filtration Tank Denitrification Membrane Carbon Dephosphorous tank filtration Source chemcial COD - ++ + + Ammonia ++ Nitrogen Total Nitrogen +++ ++ + ++ + Total ++ + + + + Phosphorous Source: Frost & Sullivan 9
  10. 10. Key End-Users Analysis Market Share by Industry Segmentation (China), 2010 Market Share by sectors (China), 2010 MBR Growth Potential Industrial Application Market Share in 2010 (2011-2017) Power Petroche- mical Municipal Industrial Steel & Metal 28.60% Textile & Dye 71.40% Food & Beverage Pharmac euticals Leachate Oil Field Oil Field Others such as Pulp & Paper, Electronics, OilField, Pharmaceuticals, etc Source: Frost & Sullivan 10
  11. 11. Conclusion/Key Take-AwaysMegatrend Degree of Impact Impact TimingThe BOT business mode to dominate the MBR 8 1-2 yearsmarketReclaimed wastewater will be distributed under 7 3+ yearscomprehensive network systemAutomatic and integrated module design will 5-6 3+yearsenable the trouble-free operation Source: Frost & Sullivan 11
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  15. 15. For Additional InformationChiara Carella Jennie PengHead of Corporate Communications Consulting AnalystEurope, Israel, Africa Environment & Building Technologies+44 (0) 207 343 8314 (86) Jennie.peng@frost.comFredrick Royan Andrew ThorndykeResearch Director Sales DirectorGlobal Environment (Water) Markets Environment & Building Technologies+44 (0) 20 7343 8353 +44 (0) 186 539 15