$4 Billion Ultrapure Water Market
Sales of ultrapure water systems will grow from $2.8 billion this year to $4.4 billion in 2007. This is the latest prediction in the continually updated online Ultrapure Water: World Markets. Ultrapure water (UPW) is required to generate steam in power plants, to wash chips in the semiconductor industry, and to mix with drugs injected into the human body.
Ultrapure water systems consist of various filtration and other treatment steps, including piping, valves, pumps and corrosion resistant materials designed to eliminate any contamination. These specialized needs have created a unique market.
Worldwide the semiconductor segment was more than 50 percent of the total market for ultrapure water systems in 2000. However, in recent years this segment has contributed only 40 percent of the revenue as chip firms have postponed the building of new wafer fabrication plants (fabs). Now suppliers must build the latest generation of chip plants or lose their ability to compete.
Forty wafer fabs are currently under construction around the world. Twenty-four of the fabs will come online in the next six months. Over the next several years (2003-2007), the semiconductor ultrapure water system market will expand to $2.5 billion globally.
The U.S. power plant market for ultrapure water systems soared in the 1998-2001 period as many new gas turbine plants were constructed. This was followed by almost no new construction in 2002 and 2003. European investment was also down. Purchases in Asia rose but not enough to compensate for the drop in the other regions. The U.S. market now shows some promise as a number of new coal-fired plants have recently been announced. However, Asia represents the biggest growth potential for suppliers of UPW systems to the power industry.
Coal-fired power plants require three times as much ultrapure water as do combined cycle gas turbine plants. Asia has embarked on a huge program of coal-fired power plant construction with most of the activity in China. Recently, the Chinese government has unveiled an ambitious program to add 20,000 megawatts per year of new coal-fired capacity. To put this in perspective, Germany has only a total of 60,000 MW of coal-fired capacity, and the U.K only 40,000 MW.
The pharmaceutical biotech industry will continue to be a growing market for ultrapure water. Europe will continue to rival the U.S. in total purchases with Asia representing a much smaller market. However, the rate of growth (from this small base) will be higher in Asia than in the other regions.
The flat panel display industry will double purchases of ultrapure water systems in the next three years. This industry mostly located in Taiwan, South Korea, and Japan will purchase ultrapure water systems valued at more than $324 million in 2007 up from $135 million in 2003.
The industry is comprised of more than 1000 small suppliers and some larger companies. Among the largest suppliers in the industry are GE Water, USFilter, Kurita, BWT, and Ionics.
For more information on Ultrapure Water: World Markets click on: http://www.mcilvainecompany.com/water.html#N029 .
Bob McIlvaine
847-784-0012