2017 High Performance Cartridge Sales Will Be $4.6 Billion
Total sales of cartridges for liquid filtration in 2017 will be $17 billion.
High performance cartridge sales will be $4.6 billion, whereas sales of general
purpose cartridges will be $12.4 billion. All of the $5 billion of cartridge
sales for residential use will be general purpose. All of the $3.5 billion of
commercial cartridges will be general purpose. By contrast, high performance
cartridge sales in the pharmaceutical industry will exceed $1.6 billion. High
performance cartridge sales for healthcare will exceed $1 billion. These are the
latest forecasts in
N024 Cartridge Filters: World Market.
Industry |
High
Performance
Percentage |
Chemical |
50 |
Commercial – Point-of-Entry |
0 |
Commercial – Point-of-Use |
0 |
Electronics |
75 |
Food |
60 |
Healthcare |
60 |
Metals |
50 |
Oil & Gas |
60 |
Other Industries |
40 |
Pharmaceutical |
70 |
Power |
50 |
Residential – Point-of-Entry |
0 |
Residential – Point-of-Use |
0 |
Wastewater |
30 |
Water |
30 |
There is a big difference in price and sales approach between high performance
and general purpose cartridges.
McIlvaine is using its own definition of high performance to include:
·
Unique service
·
Severe service
·
Critical service
Unique service is defined as a cartridge which is custom engineered for an
application. The media, size and/or materials for the vessel are varied to meet
a customer’s need. The extent to which a cartridge is unique can be measured by
how much more a customer is willing to pay for the custom design rather than by
content with an off the shelf alternative. A paint manufacturer may want a
cartridge that is not too efficient on small particles but does remove the large
ones. The reason is that the small particles are the ones providing the color.
So, while with standard cartridges the higher the efficiency the better, this
will not be acceptable in paint filtration.
Severe service is defined as an application where particle adhesion, particle
size, corrosion, erosion, pressure, or temperature is a concern. Purchasers are
willing to pay more for better severe service cartridges because the alternative
is high replacement rates, high maintenance cost and potential disruption to
processes. The refining, chemical and power industries have many severe service
applications.
Critical service is defined by the importance of the cartridge performance. If
safety, health, or quality of the goods manufactured are impacted by cartridge
performance, then it would be critical service. An example would be cartridges
in the semiconductor industry which must remove any particles which would
otherwise cause damage to a computer chip. By contrast, the carbon cartridge in
a refrigerator may deteriorate to where taste is impacted but failure would not
be critical. The food, pharmaceutical and chemical industries utilize cartridges
for food processing and, therefore, performance of the cartridge is critical.
Identification of the high performance cartridge segment is important to
cartridge suppliers. High performance cartridges offer the opportunity for
higher profit margins. They are also sold based on determining the lowest total
cost of ownership. Therefore, the route to market is different than for general
purpose cartridges.
For more information on N024 Cartridge Filters: World Market, click on:
http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/117-n024
Market for Water used in Power Plants is Large and Fast Growing
Power plants extract and discharge more water than municipalities and industry
combined. Water shortages and environmental regulations are opening a large
market for many different technologies. The opportunities can be divided into
three segments:
·
Water delivery
·
Water discharge
·
Water avoidance
Water Delivery: The need to utilize
alternative water sources presents a several billion dollar per year opportunity
for:
·
Desalination: A number of Chinese and Indian power plants have already
incorporated desalinated water for cooling and boiler feedwater. Combined power
and desalination plants already provide both municipal drinking water and power
for many areas in the Middle East.
·
Use of treated municipal wastewater: Most power plants are within 100 miles of
municipal wastewater plants. With additional treatment this source is
ideal for power plant needs.
Water discharge: Zero liquid discharge (ZLD) is mandated for new power
plants in China and is being evaluated for all new plants in water stressed
regions. In some areas, with plentiful water supply, ZLD has been chosen
as a way to avoid delays in obtaining water discharge permits.
Regulations are tightening for plants which are discharging wastewater. U.S.
power plants have to meet new Emission Limit Guidelines (ELG). The
retrofit of scrubbers in the U.S., China and elsewhere has created new
wastewater treatment challenges.
Water avoidance: The steam plumes emanating from the stacks and cooling towers
of plants are not only testimony to water loss but to inefficiency.
District heating is an alternative which can nearly double power plant
efficiency. More modest efforts such as placement of the Blue Flint ethanol
plant at one of the Great Rivers Energy power plants need to be explored.
Recirculated water for cooling towers results in a big reduction in water
consumption versus once- through water. The problem is the net water loss
through evaporation. Dry cooling eliminates the water loss but requires
considerable energy. It is not practical in warm climates.
Initiatives to improve power plant efficiency have a direct effect on water
consumption per unit of energy produced. McIlvaine is conducting webinars
on greater heat recovery from flue gas with more efficient air preheaters and
the use of high temperature particulate removal to allow for the use of more
efficient heat exchangers.
These opportunities need to be addressed on a plant by plant basis. A
number of Indian power plants have immediate needs. Adani Power has shut down
five units of 660 MW capacity at the Tiroda plant in Maharashtra due to an acute
water shortage. The 2100 MW coal-fired Farakka power station in West Bengal shut
down its six turbines due to lack of water. The 1720 MW Raichur Thermal Power
Station in Karnataka state has been hit by lack of water also. Since March 15,
it has had to shut down several of its units indefinitely. The 1130 MW Parli
power station in Maharashtra state has been shut down since July 2015 due to
lack of water. NTPC's Solapur power plant is facing commissioning delays due in
part to uncertainty over water supplies. In Karnataka's Krishna Basin, NTPC's
Kudgi power plant and KPCL's Raichur power plant were affected by lack of water
this summer.
Individual coal-fired power plant opportunities are tracked in two services:
42EI Utility Tracking System tracks
all projects worldwide except China where projects are tracked in
42EIC Chinese
Utility Plans.
Gas turbine projects are tracked in 59EI
Gas Turbine and Combined Cycle Supplier Program.
Biomass, hydro and geothermal projects are tracked in
N042 Renewable Energy World Markets.
The market opportunity is also addressed in a number of multi client market
research reports Markets.
End users are aided by the following services
44I Power Plant Air Quality Decisions, Gas
Turbine and Combined Cycle Decisions,
Decision Guides.
Improving the Right-to-Win Ability for High Performance Flow Control and
Treatment Products
The right-to-win for high performance flow control and treatment products can be
enhanced by leveling the playing field and changing the scoring method.
Right-to-win is the ability to engage in any competitive market with a
better-than-even chance of success.
Four strategies have been used to improve the right-to-win ability. They are
position, execution, adaptation and concentration.
In flow control and treatment there are two types of products and services: high
performance and general performance. The right-to-win strategies for them differ
significantly.
The challenge of large U.S. and European based suppliers of high performance
flow control and treatment products is to not only improve the right-to-win
ability in the existing market, but to be pro-active in changing the rules of
the game to level the playing field and even the scoring method in developing
countries. Most of these large companies have not achieved the sales and profits
in the fast growing developing market. McIlvaine, therefore, proposes that
“creation” be considered a fifth right-to-win strategy. The importance of each
strategy has been ranked from very important to irrelevant.
Right-to-Win Strategies for High
Performance
and General Performance Products
(5 is very important and 1 is
irrelevant) |
||
Right-to-Win Strategy |
High Performance |
General Performance |
Position |
3 |
5 |
Execution |
3 |
5 |
Adaptation |
5 |
3 |
Concentration |
3 |
4 |
Creation
|
5 |
2 |
The creation strategy changes the playing field by making it easier for
purchasers to buy the best rather than the lowest cost product. This entails
finding an easier way to determine the lowest total cost of ownership (LTCO).
Arcelor Mittal is doing this by global sourcing and then providing LTCO analyses
for its 200 plants around the world. McIlvaine is accomplishing this in certain
industries with free Decision Guides for end users.
Changing the scoring method is another game changer. Most flow control and
treatment products contribute to increased life quality today at some penalty to
future generations (e.g. greenhouse gases or resource depletion). The
perspective is quite different for a wealthy individual who wants to set up
annuities for his grandchildren and the starving parent who cannot even ensure
the survival of his children. McIlvaine has created a metric to help developing
countries make the best choice for their citizens.
For more information on right-to-win strategies in flow control and treatment
contact Bob McIlvaine 847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com.
For more information on the markets see N064
Air/Gas/Water/Fluid Treatment and Control: World Market.
Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com