Privatisation Drastically Alters the Competitive Situation

The increasing trend towards privatisation is significantly altering the competitive road map of the desalination plants market in Europe, the Middle East and North Africa (EMEA). Due to this trend, a whole new set of participants is entering the market, looking to fulfil specific needs. A good case in point is the strong presence of developers, traditionally not a part of the desalination market. Developers generally come in the form of financially sound companies such as CMS Energy, Tractabel and International Power who can secure and guarantee the all-important funding aspect. On the other hand, existing participants find themselves taking on new roles. For instance, traditional equipment suppliers such as Weir Westgarth and IDE Technologies have taken on the operation and maintenance of the desalination plants in addition to obtaining the financing when required.

This research from Frost & Sullivan provides a realistic outlook on the EMEA desalination plants market, which will help participants devise both short- and long-term business plans. A detailed analysis of the challenges facing the market and in-depth competitor profiles will enable participants to formulate strategies as well as assess the competitive environment.

Rising Water Shortages are One of the Biggest Drivers

Water scarcity is increasing in many parts of the world due to increasing population, drought conditions, and greater per capita water demand. Having a reliable source of water for the future is now, more than ever, a high priority. This is perhaps particularly relevant in Southern Europe, the Middle East and North Africa, where freshwater is scarce and the water situation is often uncertain.

"Desalination is increasingly being touted as the answer to the world water crisis in the 21st century. This method of removing salts to produce a virtually limitless supply of water has become a mainstay of water production in many parts of EMEA," says Mili Shah, the analyst of this research service.

Growing Desalination Plants Market Offers Many Opportunities

The desalination plants market in EMEA is growing and holds significant prospects both for existing participants and new entrants. Although desalination was previously regarded as a prohibitively expensive solution, a dramatic cost reduction has led potential customers to view it more favourably.

"Given a compound annual growth rate (CAGR) of 9.6 per cent from 2003 to 2010, the opportunities for growth within this market are substantial. This is illustrated further by the increase in revenues from $1.32 billion in 2003 to $2.50 billion in 2010," explains Mili Shah. After a slow year in 2003 mainly due to the war in Iraq, many plants are now expected to come online in 2004, thereby boosting market revenues by almost 50 per cent in this year.