SLUDGE TREATMENT EQUIPMENT PROSPECTS BRIGHTEN AS EUROPE ENCOUNTERS HIGHER SLUDGE VOLUMES
A new study by Frost & Sullivan, the international marketing consulting
company, reveals that the European market for sludge treatment equipment
displays a noteworthy performance of sustained growth, despite approaching
maturity.
Frost & Sullivan is bullish on the outlook for the sludge treatment
equipment industry. "The ongoing development of regional wastewater
treatment facilities across Europe in compliance with the EU Urban
Wastewater Treatment Directive (91/271/EEC) and the implementation of
increasingly rigorous national regulations for safe sludge management will
offset the downward spiral of decline in investment," the study notes.
The rising volumes of sludge generation and the increasing stringency of
legislative forces will provide impetus for continued growth, with sales
of sludge treatment equipment rising from $1.36 billion in 2000 to $2.05
billion by the end of the forecast period in 2007.
The sludge treatment equipment market will draw strength from stricter
legislation governing the use of sewage sludge in agriculture. Interest in
the technology will expand as sludge producers require more sophisticated
technologies to reduce the growing volumes. Resilient demand for on-site
treatment facilities provides the overall market with a further boost.
Saana Karki, Research Analyst at Frost & Sullivan, reports: "The buoyancy
of the replacement market, particularly in the maturing regions boasting
an extensive installed equipment base, is lifting demand for upgrades of
old facilities with technology-savvy systems. The total market will be
offered a new lease of life through the refurbishment and upgrading of
facilities or the actual construction of new plants to increase sewerage
connection rates."
Frost & Sullivan believes that the controversy surrounding the majority of
sludge disposal routes and the strict specifications for improved
treatment and disposal are forcing sludge producers to actively seek
alternative solutions. Both the construction and the maintenance of such
facilities represent prime drivers behind growth in this market.
Saana Karki believes that the anticipated high levels of disposal costs
and restriction of organic content in landfill are most likely to prompt
developments in the treatment market for alternative disposal options.
"Such attempts will have a particularly positive impact on the sludge
dewatering and drying markets, which allow greater process efficiencies
and balance out disposal costs by increasing the dry solid content of
sludge matter. In some countries, landfill regulations have literally
abolished the possibilities of routing sludge to land, hence demanding a
greater need for advanced sludge treatment," she continues.
Frost & Sullivan's study confirms the prominence of the dewatering
equipment and the thickening equipment market, jointly accounting for just
below 68 per cent of total sales. Municipalities are responsible for 76
per cent of total revenues while the food & beverage and pulp & paper
sectors dominate the industrial applications in the sludge treatment
equipment market.
The leading companies have traditionally been large contracting companies,
with Degrémont, Vivendi Environment's USFilter and Vivendi Water's OTV
snapping up the lion's share of the market. These companies are generally
integrated into large business corporations and are in pole position to
provide complete turnkey solutions by providing a full range of treatment
technologies.
Similarly, the Passavant group has maintained a strong presence in the
total European market with its recent merger activities reflecting the
growing trend of consolidation in this market. However, the market also
consists of numerous strong manufacturers and participants who operate
successfully at a segment level, such as Andritz, Guinard Centrifugation
and Alfa Laval.
The study concludes: "As the significance of refurbishing works and
industrial applications accelerates across Europe, a shift in demand from
mere low price considerations in favour of customised service as well as
technologically-advanced upgrades is likely to accentuate the role of
specialised suppliers."
Frost & Sullivan is an international marketing consulting company that
monitors a comprehensive spectrum of energy and environment markets for
industry trends, market measurements and strategies. This ongoing research
is utilised to complement a series of research publications analysing the
water industry, such as the Strategic Review of the UK Water Industry, to
support industry participants with customised consulting needs. Free
executive summaries of all Frost & Sullivan reports are available to the
press.
Report Code: 3894, Publication Date: April 2001, Price: 5,000 Euros
For further press information, please contact
Frost & Sullivan's Public Relations Department
Tel. +44 (0) 20 7343 8376 or Fax. +44 (0) 20 7343 8380
(
kristina.menzefricke@fs-europe.com)
